6- Are there any new measures since Covid-19?
The government has put forward several measures to help businesses affected by the pandemic. The first one is Decree 57, issued in June 2021, for businesses involved in the supporting industry. Its main highlight is that it increases incentives for eligible manufacturers and overall incentives for processing and manufacturing industries in the local economy.
Decree 57 is retroactive and covers investments prior to 2015. These incentives incorporate a CIT rate of 10% for 15 years and a tax holiday for 4 years, followed by a reduced CIT rate of 50% for the next 9 years.
The decree also gives financial support to businesses that struggled the most during the pandemic. These incentives apply to textile and garment, footwear, electronics, automobiles, machinery engineering, and hi-tech industries if they meet specific conditions.
What’s more, a 10% reduction in electricity fees applied to factories or production facilities located in areas that were implementing social distancing measures have been set up to help factories with the Covid-19 crisis.
To help various companies, the government also set up some measures which were valid until December 31, 2021.
Resolution 68 in July 2021 gives, for example, access to short-term loans at a 0% rate for employers. Apart from these, the government reduced land rent by 30% (in addition to any existing reduction) for those affected by the pandemic. Eligible parties include businesses, households, and individuals that directly leased land from the State.
Finally, one of the most important government measures on several incentives was to include a 30% corporate income tax cut for businesses for the fiscal year 2021. The Resolution applied to all businesses that had not earned more than VND 200 billion (US$8.8 million) in 2021 and that had decreased revenue in 2021, compared to 2019.
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