To summarize those important tax policies that Clients should be paying attention to throughout the 2021 tax finalization phase.

>> Regulation on Decree 31/2021/ND-CP prescribing instructions about. implementation of the 2020 investment law.


To make the advantage. conditions. for taxpayers, the Government issued new regulations. with some amendments to the reduction policy. compared to the previous regulations, specifically: THE IMPORTANT TAX POLICIES

Decreasing 30% in CIT payable in 2021. as well as both conditions are satisfied:

  • Any enterprise specified. in Law on Corporate Income Tax. whose revenue in the tax period of 2021. does not exceed 200 billion VND; and
  • The revenue earned. in the tax period of 2021 is smaller. than the revenue earned. in the tax period of 2019.

Note: The revenue earned. in the tax period of 2021 does not have to be smaller. than the revenue earned in the tax period. of 2019. in case the enterprise is newly, undergoes consolidation, merger, full division, or partial division in the tax period of 2020 and 2021.

According to regulations, Revenue earned in a tax period shall: include all revenues from the sale of goods, processing, provision of services, and business operation in the form of business cooperation contract. including subsidies and surcharges to which the enterprise is entitled. according to the Law on Corporate Income Tax. and its guiding documents, excluding revenue deductions, revenues from financial activities and other incomes. Compared to Decree 114/2020/ND-CP, this regulation added more binding conditions. on revenue. in the corporate income tax period to ensure transparency. and consistency in operations.



1. Groups of goods and services.are allowed to decrease value-added tax.

From February 1, 2022, VAT reduction for goods and services. is applying of the tax rate from 10% to 8%, except the following goods and services:

  • Telecommunication, financial activities, banking activities, securities, insurance, trading of real estate, metal and precast metal products, mining products (excluding coal mining), coke mining, refined oil, chemical products. THE IMPORTANT TAX POLICIES
  • Goods and services are subject to excise tax.
  • Information technology. as prescribed in the Law on information technology.

Reduction of VAT for each type of goods and services. shall be applied consistently in all stages, including import, production, processing, and commerce. Coal mine for sale (.including coal mined and then washed, sieved, and classified under a closed process) belongs to VAT reduction.

In addition, the goods and services. which belong to Appendixes I, II, and III of Decree 15/2022/ND-CP are exempt from VAT or paid 5% VAT. in accordance with the Law on Value-added tax.

2. Value-added tax reduction rate

The Government. regulated the level of value-added tax deduction, especially:

  • Businesses that pay VAT using the credit-invoice method. shall pay 8% VAT on the goods and services.
  • Businesses (including household and individual businesses). that pay VAT using the direct method (as a percentage (%) of revenue) shall be decreased by 20% in the percentage (%) to calculate VAT. when. issuing invoices for the goods and. services eligible for the VAT reduction.

3. Procedures for VAT reduction THE IMPORTANT TAX POLICIES

a.      For business establishments that pay VAT using the credit-invoice method:

  • When issuing VAT invoices. for goods and services on which VAT. is reduced, shall specify the “8% VAT rate”. in the line of the VAT rate, the VAT amount; the total amount payable. by the buyer
  • The seller or service provider. shall declare output VAT and the buyer. or service user shall declare input VAT. according to the VAT amount. written on the VAT invoice.

b.      For businesses (including household and individual businesses). that pay VAT using the direct method. (as a percentage (%) of revenue), when issuing sales invoices for goods. and services on which VAT is reduced: THE IMPORTANT TAX POLICIES

  • In the “Thành tiền” (“Amount”) column: write the amount before reduction;
  • In the “Cộng tiền hàng hóa, dịch vụ” (“Total amount”) line: write the amount payable. after reduction (by 20% of the tax rate. on revenue);
  • And the note “đã giảm… (số tiền) tương ứng 20% mức tỷ lệ % để tính thuế giá trị. Gia tăng theo Nghị quyết số. 43/2022/QH15” (“an amount of……., equivalent to 20% of the percentage. used as the basis for calculating VAT, is reduced according to Resolution No. 43/2022/QH15”) on the issued invoice.”


    • If businesses fail to issue separate invoices. for goods and services. which are eligible for VAT reduction, they shall receive no VAT reduction.
    • In case a business has issued an invoice. and declared tax at the tax rate or percentage (%). which is not yet reduced, the seller and the buyer shall prepare a record. or enter into a written agreement. specifying the errors. The seller shall also issue a corrected invoice. and provide it to the buyer. The seller shall adjust the output VAT. and the .buyer shall adjust the input VAT (if any) according to the correct invoice.
    • In case a seller or provider of goods or services. that are eligible for VAT reduction has issued invoices. in the form of tickets with the printed prices, and wishes. to keep using these invoices, they shall stamp the reduced prices. (by 2% of the tax rate or by 20% of. the percentage (%) of revenue). beside the pre-printed prices.
The important tax policies


1. Adding the cases. which are applicable to the registration fee rate 

Accordingly, a number of new subjects subject to. registration fees have a change. in the rate as follows:

  • Pickups for cargo transport. with the maximum payload capacity allowed to be in traffic. of under 950 kg. and 5 or fewer seats and vans. with the maximum. payload capacity allowed to be in traffic of under 950 kg, to which the rate equal to 60% of the first-time registration fee. for passenger motor vehicles. with 9 seats or fewer apply upon first-time registration.
  • For electric cars running on batteries, accordingly:
    • Within 3 years from March 1, 2022 (March 1, 2022 – March 1, 2025): the first-time registration fee is 0%.
    • Within the next 2 years. (March 1, 2025 – March 1, 2027): the first-time registration fee is 50%. of the fee rate. for petrol and oil cars with the same. quantity of seats.

2. New regulations on prices for registration fees. for houses and land

  • The base price for a tenement or. an apartment building includes its allocated land value. The allocated land value is determined by the price. in the Land Price List issued by the People’s Committee. of the province or municipality cities, and they will be multiplied by. the allocation coefficient.
  • In case of determining the price to calculate the house. registration fees are annulled, including the lesser sold to the lessee. and houses purchased by. the auction method.

3. Adding the calculating of registration fees for new cars. and motorbikes

  • The previous provisions on registration fees. only regulated the decision on price for cars and motorbikes. Currently, Decree 10/2022/ND-CP has been issued. and replaced those provisions. with additional regulations on the bases of calculating. registration fees. for new cars and motorbikes.
  • Accordingly, the vehicle or motorcycle. which has not yet been included in the Table of base prices. at the time of submission. of the registration fee declaration, the tax agency shall be based on. the vehicle type for motor vehicle or motorcycle; for trucks is. the country of manufacture, brand, and the maximum. payload capacity. allowed to be in traffic; for cars, they are based on the country. of manufacture, brand, and the number of people allowed for transportation, including the driver to decide the price. to calculate the registration fee for each new type.


1. Specific regulations for those with a rental revenue of less than 100 million VND per year

Specifically, individuals who. only have property leasing activities. and the rental period is less than 1 year, and they have rental revenue of less. than 100 million VND/year, are not required to pay Value Added Tax. and Individual income tax.

Therefore, in case the lessee pays. the rent many years in advance, the revenue level to consider. whether an individual has not to pay. or pay is the one-time payment revenue. according to the calendar year.

2. The tax calculation method in case of organizations. and individuals declare tax. on behalf of individuals or pay taxes on behalf of individuals

For subjects entitled. to make tax declarations. and pay taxes on behalf of individuals, has an adjustment when the Organization, including the owner of the E-commerce trading website, makes tax declarations, pays taxes on behalf of individuals. with authorization. in accordance with the provisions of the civil law. Thus, compared to the previous regulation. on “e-commerce floor owners. make tax declaration and payment on behalf of sellers, according to the tax authority’s roadmap”, there is no longer required the. E-commerce website must pay tax. that on behalf of the seller. if the seller do not authorize to other.


The above. is an entire analysis of advisory. content on legal issues related to. the important tax policies in 2022. If you need more advice, please contact LawPlus at hotline: +84 2862 779 399, +84 3939 30 522 or email



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