To support businesses to overcome difficulties, the Ministry of Finance continues to propose to reduce value-added tax (VAT) and 35 fees and charges in 2023.
The Ministry of Finance continues to propose a reduction in value-added tax and 35 fees and charges in 2023
In order to support and advise businesses in the best and fastest way, Accountants and Auditors always update the latest legal information on corporate policies and laws. Recently, the Ministry of Finance proposed to reduce the VAT rate by 2% for all goods and services subject to the 10% tax rate (to 8%); reduce 20% of the percentage rate to calculate VAT for business establishments (including business households and business individuals) when issuing invoices for all goods and services subject to tax liability. 10% VAT.
The Ministry of Finance proposes to apply the above fee from the date the policy is issued until the end of December 31, 2023. Follow this plan to ensure the right target of stimulating consumption demand, in line with the current economic context, thereby promoting production and business activities to soon recover and develop to contribute back to the bank. state books as well as the economy.
It is expected that the reduction in state budget revenue under the above plan will be about 5.8 trillion VND/month, if applied in the last 6 months of the year, it will be equivalent to about 35 trillion VND.
Currently, the Ministry of Finance has completed the dossier of the National Assembly’s Resolution on VAT reduction to consult with ministries, branches and localities. In order to be on schedule to submit to the Government and the National Assembly, the Ministry of Finance shall submit to the Prime Minister for permission to promulgate a Resolution of the National Assembly on VAT reduction according to the simplified order and procedures specified in Clause 1, Article 146 of the Law on Taxation. enforce legal documents.
35 reductions in fees and charges
Along with the VAT reduction policy, over the past time, to support businesses and people, based on the provisions of the Law on Fees and Charges, the Ministry of Finance has coordinated with ministries and branches to review and issue according to its competence. Circulars to stipulate the reduction of various fees and charges. The amount of fees and charges that have been exempted and reduced in 2020 and 2021 is about VND 2 trillion per year; in 2022 is about 900 billion VND applied from January 1, 2022 to the end of June 30, 2022.
To continue to support cost reduction for businesses and people in 2023, the Ministry of Finance proposed to continue to reduce the collection of about 35 fees and charges from July 1, 2023 to the end of January 31. 12/2023. This policy is expected to reduce budget revenue by about 700 billion VND.
According to the provisions of the Law on Promulgation of Legal Documents, the Prime Minister shall decide on the application of simplified order and procedures to Circulars of ministers and heads of ministerial-level agencies. Therefore, in order to soon support people and businesses, the Ministry of Finance shall submit to the Prime Minister for permission the Ministry of Finance to issue a Circular on fee and fee reduction according to simplified order and procedures.
It can be seen that, in the past time, according to the management function, the Ministry of Finance has actively researched, proposed and submitted to the competent authorities as well as promulgated according to its competence solutions for the extension, exemption and reduction of taxes. taxes, fees, charges and land rents to support businesses, people and the economy. The policies implemented with great support value and wide range of support have contributed to positive results in socio-economic recovery and development as well as the activities of businesses and people. .
Above are the shares of MVA to help readers update the latest information on policies and business laws; If your business needs advice and answers, please contact Accounting – Auditing MVA Vietnam.
