Decree No. 15/2022/ND-CP dated January 28th, 2022 of the Government on prescribing tax exemption and reduction under the Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies for supporting Socio-economic recovery and development program

This Decree regulates in details Resolution No. 43/2022/QH15 in terms of tax exemption and reduction policies in 2022, including:

(i) A reduction of 2% in VAT on goods and services currently subject to 10% VAT;

(ii) Corporate income tax (CIT) reduction, given through allowing enterprises to include their expenditures on donations or sponsors given for Covid-19 epidemic control operations in their deductible expenses

Accordingly, it is required to note that some goods, services are not eligible for 2% VAT reduction, such as telecommunication, financial activities, banking activities, securities, insurance, trading of real estate or goods and services subject to excise tax. The details are provided in Annexes I, II and III of this Decree.

The VAT reduction shall be applied consistently in all stages, including import, production, processing and trading.

It is required to issue separate invoices for goods and services on which VAT is reduced 2% and specify the “8% VAT rate” in the line of VAT rate.

Enterprises shall declare goods and services that are eligible for VAT reduction in 2022 (using Form No. 01 in the Appendix IV) together with the VAT declaration form.

The VAT reduction policy at this Decree shall take effect from February 1st, 2022 to December 31st, 2022 inclusively.

The CIT reduction policy applicable to donations or sponsors given for Covid-19 epidemic control operations shall apply from the tax period of 2022.

This Decree comes into force from February 1st, 2022.