Logo of Phnom Penh Post newspaper Phnom Penh Post - VN ministry studies tax, fee reduction, exemption package

VN ministry studies tax, fee reduction, exemption package

Content image - Phnom Penh Post
Production at Fuhong Precision Component in Dinh Tram Industrial Zone, Bac Giang province, Vietnam. A 30 per cent reduction in corporate income tax is being considered to support Covid-hit enterprises. VIETNAM NEWS AGENCY

VN ministry studies tax, fee reduction, exemption package

The Vietnamese Ministry of Finance is studying a tax and fee reduction and exemption package estimated to be worth around 20 trillion dong ($870 million) to support citizens and enterprises affected by the Covid-19 pandemic.

Nguyen Quoc Hung, director of the ministry’s Tax Policy Division, said the proposals about tax and fee reductions and exemptions would be raised in a draft about budget collection solutions.

The procedure for the draft compilation would be shortened and proposed to the National Assembly’s Standing Committee soon to provide timely support to virus-hit citizens and businesses in the Southeast Asian country.

The pandemic had badly affected lives of citizens and production and business of enterprises, especially those of small and medium sizes and household businesses, as well as a number of sectors, including tourism, transportation, accommodation and catering services, Hung said.

“It is necessary to raise timely support for citizens and enterprises to help them overcome the impact of the Covid-19 pandemic,” he stressed.

Under the draft, four proposals about tax and fee reduction and exemption were raised.

Notably, the ministry proposed a 30 per cent reduction in the corporate income tax which enterprises must pay in 2021.

A 50 per cent reduction in tax which household businesses and individuals operating in all sectors must pay in the third and the fourth quarter of 2021 was proposed, together with a 30 per cent reduction in the value added tax for several sector.

The ministry also proposed exemption of the fee for late payments arising in 2020 and 2021 for enterprises and organisations which incurred losses for the three consecutive years of 2018, 2019 and 2020.

The government asked the ministry to complete the draft and propose it to the Prime Minister before August 10.

Hung said the reductions and exemptions were estimated to cause a drop of about 20 trillion dong in budget revenue.

The ministry was also studying proposals to reduce land use fees in 2021, he said.

It has been estimated that the government support in tax and fee reductions and exemptions will total 138 trillion dong this year, of which support worth 118 trillion has already been issued.

The tax and fee reductions and exemptions totalled 129 trillion dong last year.



  • WHO: Covid in Cambodia goes into new phase

    The World Health Organisation (WHO) in Cambodia said that Cambodia has reached a new phase of the pandemic with “decreasing case numbers, high vaccination coverage and a more transmissible circulating variant threatening a hidden surge”. In a press release on September 6, the WHO said that

  • Purging Sihanoukville’s past with a new masterplan

    Amid illicit activities, haphazard development and abandoned projects, the coastal city of Sihanouk province needs a reset to move forward. A new masterplan might be the answer to shake off its seemingly mucky image to become the Shenzhen of the south Gun toting, shootouts, police

  • Chinese may be first in tourism revival: PM

    Cambodia's tourism industry is gearing up to roll out the red carpet for Chinese travellers after Prime Minister Hun Sen on September 17 indicated that the Kingdom could soon throw open its doors to international holidaymakers vaccinated against Covid-19 – starting with guests from China. Cambodia Chinese

  • 'Pursue your goals, reach out to me': Young diplomat tapped as envoy to South Korea

    Chring Botum Rangsay was a secretary of state at the Ministry of Foreign Affairs and International Cooperation before being designated as the new Cambodian ambassador to South Korea. According to her official CV published on the foreign ministry’s website, she started her first government

  • Tourism concerns laid bare

    To ensure the success of plans to reopen the tourism market for international visitors, Cambodia must pay utmost attention to two primary determinants – the ongoing paradigm shift in domestic tourism services towards the ‘new normal’, and the factors influencing choices of destinations among foreign holidaymakers.

  • School reopening ‘offers model for other sectors’

    World Health Organisation (WHO) representative to Cambodia Li Ailan said school reopening process should be used as a role model for reopening other sectors currently mothballed by the Covid-19 pandemic. Li strongly supports the government’s decision to reopen schools, saying it is a decision