Proposal for zero tax price for charity goods

Deputy Head of the National Assembly Delegation of Quang Nam - Duong Van Phuoc spoke at the discussion. Photo: V.HIEU

Participating in the discussion of the draft Law on Value Added Tax (amended), delegate Duong Van Phuoc - Deputy Head of the National Assembly Delegation of Quang Nam said that regarding the issue of taxable prices, according to the general viewpoint and policy of the Party and State, it is to encourage enterprises and entrepreneurs to fulfill social responsibilities; at the same time, the law on corporate income tax in 2008 also considered expenses for supporting localities, unions, social organizations, charity expenses, etc. as tax-exempt expenses.

In the case of a business donating goods and services for charitable purposes, the business does not generate revenue; if it has to pay value added tax on these goods and services, the business will have to use money from other sources of revenue, which is unreasonable.

From the above reasons, the delegate proposed to consider and supplement the direction that for goods and services for charitable purposes, the taxable price is determined to be zero.

According to delegate Duong Van Phuoc, the tax rate calculation as stipulated in Clause 5, Article 9 of the draft law is unclear, will have many different interpretations, overlapping with products of crops, planted forests, livestock, aquaculture, and fishing that have not been processed into other products or have only undergone normal preliminary processing with a tax rate of 5% at Point d, Clause 2.

It is proposed to adjust Clause 5 "Animal feed and medicinal materials produced and processed from products of crops, planted forests, livestock, aquaculture, and caught fish that have not been processed into other products or have only undergone conventional preliminary processing shall apply the value-added tax rate according to the tax rate prescribed for products of crops, planted forests, livestock, and fishery". Such a regulation is to unify the understanding that animal feed and medicinal materials produced and processed from products of crops, planted forests, livestock, aquaculture, and caught fish that have not been processed into other products or have only undergone conventional preliminary processing shall apply the value-added tax rate of 5%; production and processing from other products shall apply the tax rate of 10%.

Participating in the discussion on the Law on Notarization (amended), regarding the issue of regulations prohibiting notaries from advertising on mass media about notaries and their organizations, delegate Duong Van Phuoc cited Resolution 172/NQ-CP dated November 19, 2020 of the Government on the orientation for the development of the notary profession "Encouraging individuals and organizations to notarize contracts and transactions to ensure legal safety for parties participating in contracts and transactions, contributing to reducing the workload of administrative agencies, reducing staff and state budget expenditures".

Therefore, the delegate believes that the introduction of notary organizations and notaries will help organizations, individuals and people better understand notary activities and notary organizations; especially in areas where notary organizations have been newly established, facilitating the search for information about notary organizations and notaries. The drafting agency is requested to reconsider this provision.

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