I. DECISION NO. 28/2021/QD-TT
Policies on aid for workers and employers affected by covid-19 from Unemployment insurance fund
| Decision No. 28/2021/QD-TTG (“Decision 28”) dated 01 October 2021 of the Government on policies on aid for workers and employers affected by Covid-19 from Unemployment insurance fund, takes effect as of 01 October 2021. |
These are some prominent points of Decision 28 relating to the policies on aid for worker and employers fromUnemployment insurance fund:
1. Financial aid for workers affected by Covid-19
- Eligible beneficiaries: Workers who are participating in unemployment insurance on 30 September 2021 (included in the list of unemployment insurance participants of social insurance authorities), except people who are working at state agencies, political organizations, socio-political organizations,…;
- Policies on aid: Financial aid in lump sum with the amounts from VND1,800,000 to VND3,300,000;
- Procedures:
- By 20 October 2021, social insurance authorities shall send the lists to all employers;
- Within 05 working days upon receipt of the list from the social insurance authority, the employer shall disclose the list to the workers, prepare and send the correct and adequate information list to the social insurance authorities;
- Within 10 working days upon receipt of the list of workers, the social insurance authority shall provide the aid to the workers.
2. Reduction in contribution rates to the unemployment fund by employers affected by Covid-19
- Eligible beneficiaries: Employers that are prescribed in Article 43 of the Law on Employment, participating in unemployment insurance before 01 October 2021, exceptstate agencies, political organizations, socio-political organizations,…;
- Policies on aid: Reduction from 1% to 0% of the monthly wage fund for employees who are participating in unemployment insurance;
- Duration: 12 months, from 01 October 2021 to 30 September 2022 inclusive.
In general, Decision 28 was promulgated in a timely manner to help reduce difficulties encountered by workers and employers who are negatively affected by the Covid-19 pandemic. This not only demonstrates the concern of the Party and the State for the people, but also the social security role of the Unemployment insurance fund which has its operation based on the principle of sharing, the principle of contribution and the principle of equity.
II. DECISION NO. 29/2021/QD-TTG
Prescribing special investment incentives
Decision No. 29/2021/QD-TTG (“Decision 29”) dated 01 October 2021 of the Government on prescribing special investment incentives, takes effect as of the issuance date.
One of the most prominent points of Decision 29 are the levels of investment incentives relating to the corporate income tax rates, the land and water surface rents applied to investment projects. In particular:
- The business entity conducting the investment projects in the business line eligible for special investment incentives with an investment capital of at least VND 30,000 billion and disbursing at least VND 10,000 billion within 03 yearsshall be entitled to the preferential tax rate of 9% applied within a period of 30 years; land and water surface rent exemption for 18 years; …
- Projects on investment in establishment (including the expansion of such establishment project) of innovation centers and research and development centers with a total investment capital of at least VND 3,000 and disbursing at least VND 1,000 billion within 03 years shall be entitled to the preferential tax rate of 7% applied within a period of 33 years; land and water surface rent exemption for 20 years;…
- The national innovation center established under the Prime Minister’s decision and any investments meeting mandated criteria shall be entitled to the preferential tax rate of 5% applied within a period of 37 years; land and water surface rent exemption for 22 years;…
In addition, Decision 29 also stipulates the principles for applying and adjusting special investment incentives as well as the transparent and explicit criteria for high technology, investment in R&D and joining the domestic production value chain at each specific level.
In fact, the special investment incentive mechanism has been stipulated in the Law on Investment 2020 and Decree 31/2021/ND-CP. Therefore, Decision 29 is a step forward in concretizing the provisions on the level of incentives, time and conditions for applying special investment incentives in investment projects with widespread and significantimpact on economic and social development.
III. DECREE 80/2021/ND-CP
Small and medium enterprises are eligible for a wide range of assistance in various fields
Decree No. 80/2021/ND-CP (“Decree 80”) dated 26 August 2021 of the Government on elaboration of some articles of the Law on provision of assistance for small and medium enterprises, takes effect as of 15 October 2021 and replaces Decree No. 39/2018/ND-CP.
The following are some notable regulations of Decree 80 relating to the assistance for small and medium enterprises (“SMEs”):
1. Information and technology assistance:
During business operations, SMEs are entitled to:
- Reimbursement of up to 50% of the value of the advisory contract for digitalization of the enterprise, the advisory contract for establishment of intellectual property rights,…;
- Reimbursement of up to 50% of the cost of leasing, buying solutions for digitalization,…;
- Free access to the information specified in Clause 1 Article 14 of the Law on Provision of Assistance for Small and Medium Enterprises.
2. Assistance in counseling
SMEs will receive counseling about personnel, finance, manufacturing, sale, market, internal administration and other contents pertinent to their business operation (except counseling about administrative procedures and legal advice according to relevant laws).
3. Assistance for SMEs converted from household businesses
SMEs that are converted from household businesses will be entitled to free guidance on documentation and procedures for enterprise registration or registration of the certificate of eligibility for conditional business lines (if any). Moreover, SMEs that are converted from household businesses will be exempted from paying the fee for enterprise registration for the first time at the business registration authority, the fee for publishing of the enterprise’s information for the first time on National Enterprise Registration Portal and licensing fees for 03 years from the issuance date of the first Enterprise Registration Certificate.
4. Assistance for startups
Startups are assisted in various fields, such as:
- Assistance in use of technical facilities, incubation facilities, co-working spaces;
- Counseling intellectual property, use and development of intellectual property;
- Assistance in completion of procedures relevant to technical regulations, standards, measurement, quality; testing, completion of new business models, products;
- Assistance in technology, advanced training and information, trade promotion, connection of startup network.
5. Subsidized interest rate for startups, SMEs participating in industry clusters, value chains
For each business plan/ project in the same period, startups and SMEs participating in industry clusters, value chains will be eligible for subsidized interest rates when taking medium-term, long-term loans from credit institutions. The difference in interest rates shall be subsidized by state budget for loans granted by credit institutions to startups, SMEs at the rate of 2%/year.
IV. DECREE 92/2021/ND-CP
Provision of assistance for enterprises and people affected by covid-19
Decree No. 92/2021/ND-CP (“Decree 92”) dated 26 August 2021 of the Government providing guidance on implementation of Resolution No. 406/NQ-UBTVQH15 on provision of assistance for enterprises and people affected by the Covid-19 pandemic, takes effect as of 19 October 2021.
The following are some noteworthy contents of Decree 92 relating to the assistance policies for enterprises:
Firstly, reducing 30% in corporate income tax (CIT) payable in 2021. Decree 92 specifies the requirements applicable to this assistance as follows:
- Organizations which are established in accordance with Vietnam’s law manufacture and/or sell goods and/or services.
- Revenue in the tax period of 2021 does not exceed VND 200 billion and is smaller than the revenue earned in the tax period of 2019. Revenue earned in a tax period shall include all revenues from 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 laws, excluding revenue deductions, revenues from financial activities and other incomes.
- 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 established, undergoes consolidation, merger, full division or partial division in the tax period of 2020 and 2021.
Secondly, reducing 30% in VAT from 01 November 2021 to 31 December 2021. This provision applies to the goods and services in Appendix 1 of Decree 92 (except for software, goods and services that are sold online), including: (i) Transport services; (ii) Hospitality services; (iii) Information and communication; (iv) Administrative and auxiliary services; (v) Art and recreation services.
Thirdly, exempting late payment interest incurred in 2020 and 2021 on all outstanding tax, land levies, land rent. This provision applies to enterprises and organizations (including their dependent units and business locations) that have incurred losses in the tax period of 2020. Heads of supervisory tax authorities shall determine the late payment interest incurred in 2020 and 2021 according to the tax administration database and issue late payment interest exemption decisions.
Finally, exempting personal income tax (PIT), value-added tax (VAT), excise tax, resource royalty, environment protection tax in the third quarter and fourth quarter of 2021. This provision applies to household businesses and individual businesses that are affected by Covid-19 in 2021, regardless of business lines, tax declaration and payment methods, according to lists issued by Presidents of the provincial People’s Committees.
V. DECREE 93/2021/ND-CP
Supplement a regulation regarding an individual who have the full civil act capacity can mobilize, receive and distribute voluntary contributions
Decree No. 93/2021/ND-CP (“Decree 93”) dated 27 October 2021 of the Government on mobilization, receipt, distribution and use of voluntary contributions for people to overcome difficulties caused by natural disasters, epidemics or incidents; support patients with critical illnesses, takes effect as of 11 December 2021.
Accordingly, beside the current organizations having the right to mobilize voluntary contributions, Decree 93 has supplemented that the individuals who have the full legal capacity shall be entitled to mobilize, receive, distribute voluntary contributions for the remedy of consequences of natural disasters, epidemics or incidents, support patients with critical illnesses.
When a natural disaster, epidemics, serious incident happens and causes damage to people, property or affecting people’s lives, depending on the severity and scale of damage, the mobilization of voluntary contributions of organizations is carried out in the following ways:
- Presidium of Central Committee of Vietnam Fatherland Front and President of provincial Vietnamese Fatherland Front of may mobilize organizations and individuals to voluntarily donate funds and goods to victims and their localities.
- Vietnam Red Cross Society shall make an appeal for donations in the system of domestic and overseas Red Cross societies according to The Laws of Red Cross Societies.
- Mass media agencies, in response to the appeal of Presidium of Central Committee of Viet Nam Fatherland Front and President of provincial Vietnamese Fatherland Front may mobilize donations for the remedy of consequences of natural disasters, epidemics, incidents according to the laws.
- Social funds and charity funds may mobilize donations for the remedy of consequences of natural disasters, epidemics, serious incidents in their authority areas, according to the laws. When mobilizing, receiving and allocating voluntary contribution, organizations shall be responsible for informing on the media about the purpose, scope, method, form of campaign, the receiving account (for money), the receiving location (for exhibits), commitment in distribution time; and send a document to the commune-level People’s Committee of the place of headquarter to notify this content. The commune-level People’s Committee shall be responsible for archiving to monitor and provide information upon request of organizations and individuals who participated in contribution or received support, and for guiding, monitoring, inspecting, examining, supervising and handling violations of competent authorities.
- National Steering Committee for natural disaster prevention and control may mobilize for international voluntary contributions. Ministries, ministerial-level agencies and agencies under the Government; provincial and district-levelPeople’s Committees may mobilize organizations and individuals to donate voluntary contributions for the remedy of consequences of natural disasters, fires or incidents.
After several “scandals” concerning the transparency of charitable activities of some individuals and artists in recent times, the promulgation of Decree 93 has been considered as an important legal basis to ensure the substantive effectiveness of charity activities, avoid the abuse of charity activities for personal gain, causing loss and waste of charity money.
VI. DECREE 104/2021/ND-CP
Decree No. 104/2021/ND-CP (“Decree 104”) dated 04 December 2021 of the Government on the extension of payment deadline of Special Consumption Tax (SCT) for local automobile manufacturers and assemblers, takes effect as of the issuance date.
Accordingly, the Government agreed to extend payment deadline for SCT incurred in the tax period of October and November 2021 for local automobile manufacturers and assemblers. The extension period is from the end of the time limit for SCT payment deadline in accordance with the law on tax administration, particularly:
- The payment deadline for payable SCT incurred in the tax periods of October 2021 will be extended to no later than 20 December 2021;
- The payment deadline for SCT incurred in the tax periods of November 2021 will be extended to no later than 30 December 2021.
In case taxpayers make additional tax declarations for the extended tax period, resulting in an increase in the amountof payable SCT, and send them to the tax authorities before the extended tax payment time limit expires, the amount of payable SCT for the extended tax period shall include the increased amount due to the additional tax declaration.
In case a taxpayer is eligible for an extension of declaration and submission of SCT in accordance with the current law, they are not required to make payment for the payable SCT amount incurred as a result of such declaration.
In case an enterprise has branches or affiliated units, which make separate SCT declarations with the tax authorities directly managing the branches or affiliated units, the branches and affiliated units are also subject to this extension of payment deadline for SCT. In case an enterprise’s branches or affiliated units do not have automobile production or assembly activities, the branches or affiliated units are not subject to this extension.
When the extended payment deadlines under this Decree expire, the payment for SCT of local automobile manufacturers and assemblers shall be conducted in accordance with the applicable laws.
