On January 28, 2022, the Government issued Decree No. 15/2022/ND-CP stipulating tax exemption and reduction policies under Resolution 43/2022/QH15 of the National Assembly on fiscal and monetary policies supporting the socio-economic recovery and development program.

Accordingly, business establishments calculating value-added tax under the deduction method are entitled to apply a value-added tax rate of 8% for goods and services that are applying a tax rate of 10%, except for the following groups of goods and services: Telecommunications, financial activities,  banks, securities, insurance, real estate trading, metals and products from prefabricated metals, mining products, coke, refined petroleum, chemical products; products and services subject to excise duty; Information technology.

Business establishments (including business households and business individuals) shall calculate value-added tax according to the method of percentage of revenues which are reduced by 20% to calculate value-added tax when making invoices for goods and services that are entitled to value-added tax relief.

In addition, enterprises and organizations that are enterprise income tax payers in accordance with the Law on Enterprise Income Tax are included in the deductible expenses when determining the income subject to enterprise income tax of the 2022 enterprise income tax period for supporting expenditures, funded in cash and in kind for Covid-19 prevention and control activities in Vietnam through agencies receiving support and funding.

The decree takes effect from February 1, 2022.