The Government has recently issued a decree revising a number of tax-related policies, aiming to create more favorable conditions for enterprises.
Under Decree No. 100/2016/ND-CP, taxpayers who fail to pay tax within the prescribed time limit, extended time limit or time limit stated in tax agencies’ notices or settlement decisions will have to pay tax arrears and late tax payment interest of 0.03 percent per day instead of the current 0.05 percent.
This late payment interest will also be applicable to tax arrears incurred before July 1, 2016, including those to be retrospectively collected as a result of tax inspection by competent authorities.
In addition, taxpayers that suffer damage caused by natural disasters, fire or other accidents and therefore become unable to pay taxes will be exempt from excise tax, royalties and personal income tax.
Under the Decree, individuals and households having an annual payable tax amount for non-agricultural land use of under VND 50,000 will be exempt from tax.
Regarding value-added tax (VAT), the Decree adds a number of cases eligible for VAT exemption. Specifically, cultivation, husbandry, aquaculture and fishery products not yet processed or just having gone through preliminary processing steps of cleaning, sun-drying, drying, peeling, pitting, cutting, salting or freezing for sale to other enterprises will not be required to be declared for VAT calculation and payment and will be eligible for input VAT credit.
Medical examination and treatment services, including transportation of patients, testing, radiography, supply of blood and blood products to patients, and health care services for the elderly and people with disabilities will be exempt from VAT.
Under the Decree, public passenger transportation by bus or electric vehicle (including tramway vehicle) within urban centers, provinces or suburban areas will also be VAT-free.- (VLLF)