Resolution to support enterprises and people affected by Covid-19

tHu tHao

Resolution to support enterprises and people affected by Covid-19

On 19 October 2021, the National Assembly approved Resolution 406/ NQ-UBTVQH15 introducing some solutions to support enterprises and people affected by Covid-19 pandemic.

30 percent reduction of corporate income tax payable in fiscal year 2021 for the enterprises whose total revenue in fiscal 2021 is not more than VND200 billion and lower than the revenue of 2019. The latter requirement shall not be applied for newly established enterprises and enterprises having merger, division, separation activities in 2020 and 2021 Exemption of personal income tax, valued added tax and other taxes payable arising in the third and fourth quarters of 2021 for business households and individuals doing business in districts impacted by the Covid-19 pandemic in 2021. The list of impacted districts shall be determined by chairmen of provincial People's Committees. This is not applicable to businesses which provide software products and services, digital entertainment content products and services, video games, digital movies, digital music and digital advertising.

Reduction of value added tax for the period from 01 November 2021 to 31 December 2021 for activities such as transportation (railways, waterways, airline, other road transportation); accommodation, tourism, art creation, entertainment; printing products and services; television program production, library, museum services, etc.

Waive of interest on late payment arising in 2020 and 2021 from the debts of taxes, land use fee and land rental fee for enterprises and organizations (including dependent units and business locations) having losses in 2020.

As Vietnam’s leading financial institution, BIDV continues to implement solutions to support businesses, people and the economy to overcome the difficulties caused by the Covid-19 pandemic, following the policy and direction by the Government and the State Bank of Vietnam. Total budget for the support of the year is estimated at VND7,100 - 7,500 billion ( USD330.4 million). As of 30 September 2021, total funding for the implementation of social security programs committed by BIDV was VND400 billion (USD17.6 million).

In August 2021, BIDV launched a special credit - service program of VND25,000 billion (USD1.1 billion) named “Accompanying the health sector, joining hands to overcome the pandemic” to support medical staff nationwide. The package disbursements as of the end of September this year had been more than VND5,140 billion (USD226.4 million).