Changes in the financial industry can solve many problems for businesses

DNHN - Nguyen Van Than, the representative of the Vietnam Association of Small and Medium Enterprises (Vinasme), expressed his pleasure before the Dialogue Forum on Fiscal Policy to Support the Socio-Economic Recovery and Development Program.

 Mr Than said the following: "According to reflections and surveys of small and medium-sized businesses, we are quite appreciative of the General Department of Customs and the General Department of Taxation's support and help.

Over the years, the units have been very proactive in improving administrative operations and using technology early on, resolving several challenges and difficulties faced by businesses.

However, companies believe that ministries and branches may work with the government and the National Assembly to reschedule the application of the 30% corporate income tax cut.

It should have been considered before the outbreak of COVID-19 since companies did not report revenue during the pandemic. Additionally, we expect that management agencies will produce circulars before implementing new policies, such as lowering the value-added tax to 8%, to minimize disputes and misunderstandings in the business world.

On January 11, 2022, the National Assembly passed Resolution 43 on Fiscal and Monetary Policy to Help the Economic Recovery and Development Program, which was signed into law.

For the tax year 2022, the National Assembly decided to reduce the VAT rate by 2% on a wide range of goods and services, to allow enterprises to deduct support and sponsorship expenditures for COVID-19 prevention and control activities, and to increase state budget development investment spending to a maximum of VND 176 trillion.

This resolution was issued on January 30, 2022. Specifically, the government's Resolution 11 stated that the program's goal is to quickly restore and develop production and business activities, promote growth drivers, prioritize several critical industries and fields, and strive for a 2021–2025 average GDP growth of 6.5–7%, urban unemployment of under 4%, macroeconomic stability, and ensuring major long-term balances.

As part of achieving these goals, Resolution 11 mandated a 2 per cent cut in the value-added tax rate for all currently taxable goods and services in 2022. Use a 10% VAT (remaining 8%) except for specific products and services that may be deducted from business income taxable revenue for COVID-19 pandemic prevention and control efforts in Vietnam throughout the tax year 2022.

The state will also reduce land and water surface rent by 30% in 2022 for organizations, units, companies, families, and individuals leasing property directly from the state. The state will also reduce registration fees for cars made or assembled in the US by 50% in 2022.

Bich Hang