New proposal on tax exemption and reduction
The Ministry of Finance is seeking opinions on the draft Law on Tax Administration. According to Article 19 of the draft Law, the Ministry of Finance proposes tax exemption, tax reduction, and no tax collection as follows:
(1) Cases of tax exemption, tax reduction, no tax collection
- Exemption from tax, tax reduction, no tax collection for organizations and individuals as prescribed by law on tax;
- Exemption from taxes, late payment fees, and fines for organizations and individuals in the following cases:
+ Exemption from non-agricultural land use tax for households and individuals with annual tax payable at the Government's prescribed rate;
+ Exemption from personal income tax for individuals with the amount of tax arising to be paid after personal income tax settlement from salaries, annual wages and other taxes according to the Government's regulations.
(2) The Ministry of Finance stipulates the records of tax exemption, tax reduction, non-tax collection and cases that must be inspected at taxpayer headquarters; the order and procedures for inspection at taxpayer headquarters.
(3) The head of the tax management agency decides on tax exemption, tax reduction, non-tax collection, tax exemption recovery, tax reduction recovery, and non-tax collection. In cases of tax exemption, tax reduction, or automatic tax collection, the information system of the tax authority shall base on the database and risk assessment results to decide on tax exemption, tax reduction, or tax collection.
(4) The Government stipulates the following contents: tax exemption and reduction; deadline for receiving and handling tax exemption and reduction and non-tax collection dossiers.
(5) The Ministry of Finance stipulates the following contents: the responsibility to receive, handle and respond to information on tax exemption, tax reduction, and non-tax collection dossiers of tax management agencies; procedures, procedures, and authority to resolve tax exemption, tax reduction, non-tax collection, tax exemption recovery, tax reduction recovery, non-tax collection and detailed regulations in Clause (1), (2), Clause (3)).
Cases where taxpayers determine the amount of tax exemption or tax reduction:
- Corporate income tax: Taxpayers enjoy incentives on tax rates, tax exemption periods, tax reductions and tax-free income according to the law on corporate income tax;
- Natural resource tax: Organizations and individuals exploiting natural seafood products are exempt from resource tax; individuals are allowed to exploit branches, tops, wood, bamboo, bamboo, bamboo, rattan, mai, giang, mountains, boats, boats, and crab for domestic purposes exempted from resource tax; natural water exploited by households and individuals for domestic use; natural water used for hydropower production of households and individuals self-produced for domestic use; land exploited and used on site on the allocated and leased land area; exploited land for leveling, building security, military and dyke programs;
- trading fee: The person paying the trading fee is exempted from trading fee according to the provisions of Article 3 of Decree 139/2016/ND-CP, Clause 1, Article 1 of Decree 22/2020/ND-CP.
- Personal income tax: Individuals with income from salaries and wages shall pay a tax amount payable after each year's settlement of VND 50,000 or less;
- In other cases, taxpayers determine the amount of tax exempted or reduced in the tax declaration or tax exemption or reduction dossier and send it to the tax authority directly managing or the tax authority managing state budget revenue, except for the cases instructed in Clause 1, Article 52 of Circular 80/2021/TT-BTC.
