Support policy for people and businesses affected by the covid-19 pandemic

In order to support the Socio-Economic Recovery and Development Program. On January 11, 2022, the National Assembly passed Resolution 43/2022/QH15 with many policies to support people and businesses affected by the COVID-19 pandemic as follows:

1. Policy of 2% VAT exemption and reduction in 2022:

– Accordingly, the VAT rate will be reduced by 2% in 2022, applied to groups of goods and services currently subject to a VAT rate of 10% (to 8%), except for the following groups of goods and services: Telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to special consumption tax.

– In addition, it is allowed to include in deductible expenses when determining taxable income for corporate income tax for support and sponsorship expenses of enterprises and organizations for COVID-19 prevention and control activities in Vietnam for the 2022 tax period.

2. Interest rate support policy (2%/year) for enterprises, cooperatives, and business households

– Interest rate support (2%/year) up to 40 trillion VND through the system of commercial banks for a number of important industries and sectors, enterprises, cooperatives, and business households with the ability to repay debts and recover; loans for renovating old apartments, building social housing, houses for workers to buy, rent, and hire-purchase;

– Provide charter capital for the Tourism Development Support Fund up to 300 billion VND;

– Continue to restructure debt repayment terms and maintain debt groups, waive and reduce interest rates for customers affected by the COVID-19 pandemic;

– Continue to recapitalize the Social Policy Bank to lend to employers to pay for work stoppage wages and pay for production recovery for employees, ensuring feasibility and quick implementation in practice.

3. Other policies

– Support housing rent for employees with labor relations, who are renting, staying in rented accommodation, working in industrial parks, export processing zones, and key economic zones (using about 6.6 trillion VND from increased revenue sources, saving central budget expenditures in 2021);

– Increase the Government guarantee limit for domestically issued bonds for the Bank for Social Policies to a maximum of VND 38.4 trillion to provide loans to support job creation; students; non-public preschool and primary education facilities; individuals borrowing to buy, lease-purchase social housing, build new or renovate and repair houses according to social housing policies;

– Use 1 trillion VND to equip tablets to implement the program “Waves and computers for children”;

– Direct credit institutions continue to reduce operating costs to strive to reduce lending interest rates by about 0.5% – 1% in 2022 and 2023, especially for priority sectors.

4. On applying special mechanisms in 2022 and 2023

– Allow the Prime Minister and the head of the competent authority to consider and decide on the appointment of contractors for consulting packages, packages for technical infrastructure relocation, packages for compensation, site clearance and resettlement, construction packages of important national projects, important large-scale and urgent infrastructure projects on transport and health infrastructure under the Program;

– The construction contractor does not have to carry out the procedures for granting a License to exploit minerals for common construction materials included in the Construction Materials Survey Dossier serving important national transport infrastructure projects under the Program.

Link to Resolution 43/2022/QH15: 

https://thuvienphapluat.vn/van-ban/Thuong-mai/Nghi-quyet-43-2022-QH15-chinh-sach-tai-khoa-tien-te-phuc-hoi-phat-trien-kinh-te-xa-hoi-500776.aspx

The above is a summary of the policy contents of Resolution 43/2022/QH15 on supporting people and businesses under the Socio-Economic Recovery and Development Program, effective from January 11, 2022. LS Law Firm respectfully sends this to our Customers and strategic partners to make appropriate decisions for their plans and projects. If you and your strategic partners wish to receive legal support on the above issue, please contact LS Law Firm immediately via Email: lslawfirm2014@gmail.com for advice and support from our lawyers.

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