The National Assembly approved the following fiscal stimulus measures for both corporates and individuals on 6 August 2011.
Corporate Income Tax ("CIT")
30% reduction of 2011 CIT will be granted to:
- Small and medium enterprises ("SMEs"), except for:
- Profits from lotteries, property trading, securities business, finance, banking, insurance or production/services subject to special sales tax;
- Profits of SMEs belonging to State Economic Groups and classified as 1st or special rank; and
- Profits of SMEs which are majority owned by a holding company which is not a SME.
- Labour intensive enterprises engaged in the manufacturing, processing, processing of farm produce, forestry products, aquatic products, garment and textile, footwear, electronic components, construction of certain infrastructure.
Personal Income Tax ("PIT")
- From 1 August to 31 December 2011, individuals having salary/wages or business income subject to PIT at the lowest rate of 5% (i.e. the assessable amount after tax relief does not exceed VND5 million
per month) will be exempted from PIT.
- From 1 August 2011 to 31 December 2012, proceeds/profits from sales of securities will be entitled to a 5o% PIT reduction.
- Dividends will be entitled to PIT exemption (no time limit is given).
It is expected that detailed guidance on the above will be issued shortly.
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