After the National Assembly passed Resolution 43/2022, the Ministry of Finance developed and submitted to the Government for promulgation Decree 15/2022 stipulating the tax exemption and reduction policy, effective from February 1st.
On January 28th, the Government issued Decree 15/2022 stipulating tax exemption and reduction policies under Resolution 43/2022 of the National Assembly on fiscal and monetary policies to support under the Program on economic recovery and development. socio-economic.
In particular, the newly issued Decree retains the provisions compared to the previous draft for consultation by the Ministry of Finance, with a focus on regulations on reducing value-added tax (VAT), regulating costs deductible when determining taxable income (CIT) and enforcement.
Specifically, the Decree stipulates a 2% reduction of VAT rate in 2022, applicable to groups of goods and services currently subject to a 10% tax rate, except for some groups of goods and services. Thus, after deduction, the VAT rate of items in the group to be reduced will be at 8%.
In this Decree, the Government also specifies the groups of goods and services that are not eligible for VAT reduction.
In particular, the goods and services not eligible for tax reduction this time include telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, and products. Prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to special consumption tax (SCT).
Most goods and services subject to the 10% VAT rate will be reduced to 8% from February 1st. Photo: Phuong Lam.
About the type of goods that are not eligible for VAT reduction are mining products (excluding coal mining). The Government's Decree stipulates more clearly that for sale of mined coal (including the case of coal mined and then screened, classified and sold by a closed process), VAT will be reduced. The rest, coal products at other stages are not eligible for tax reduction.
In addition, the Decree also stipulates the reduction of VAT, regardless of whether the supplier of goods or services is an enterprise, organization or business household or individual. Therefore, the application of tax reduction will not distinguish whether the tax calculation method is the deduction method or the percentage method of revenue.
In order for consumers to really benefit from the VAT reduction, the Government also assigned ministries, functional branches and the People's Committees of provinces and centrally run cities to direct relevant agencies to guide, inspect and supervise , which focuses on solutions to stabilize the supply and demand of goods and services subject to tax reduction in order to stabilize market prices (prices without tax) from February 1st to the end of 2022.
According to the assessment from the management agency, the above regulation will have the impact of reducing budget revenue in 2022 by about 51,400 billion VND. In which, the VAT reduction policy is VND 49,400 billion and does not include CIT with the cost of supporting and sponsoring activities to prevent and control the Covid-19 epidemic is VND 2,000 billion.
However, this tax amount will help businesses, organizations and people overcome difficulties caused by the impact of the pandemic, thereby recovering and developing production and business. In addition, the policy also has the effect of stimulating consumption and investment, thereby contributing to the recovery of the economy after the epidemic and the implementation of social security.
According to Baomoi.