On 5 August 2021, the Ministry of Finance (MoF) has published a draft resolution according to Notice No. 209/TB-VPCP, for further tax reductions for 2021 due to the COVID-19 pandemic. The draft resolution was submitted to the Vietnamese National Assembly for approval. The resolution includes the following measures:
- A 30% reduction in corporate income tax for SMEs for the tax year 2021;
- For the third and fourth quarters of 2021, an income tax reduction of 50% is planned for business households and private individuals in all sectors;
- A 30% VAT reduction would be provided for certain service sectors; and
- For companies that suffered losses for three consecutive years 2018, 2019 and 2020, penalties for late payments would be waived in 2020 and 2021.
