The government has just issued a decree clarifying tax reductions and
exemptions for small- and medium-sized enterprises grappling with difficulties
due to the economic downturn.
The decree, coded 60/2012/ND-CP
and issued on Monday, allows for a 30 per cent reduction of corporate income
tax in 2012 for SMEs, except those in the areas of real estate, lottery,
securities, banking, insurance, and production or provision of commodities and
services that are subject to the special consumption tax.
Enterprises that are subject to
the 30 per cent tax reduction also include labor-intensive ones in areas of
farm produce processing, footwear and garment making, electronic components,
and construction. In these cases, enterprises must have at least 300 regular
labourers in 2012.
The government in its decree also
offers exemptions of value-added tax and corporate income tax for enterprises
involved in the business of food catering for workers of other enterprises.
However, those supplying food portions for others in the area of transport and
aviation are not subject to these incentives.
In the same period of time, if an
enterprise is entitled to different tax incentives for the same taxable income,
it can choose the most preferential incentive.
In case enterprises are already
enjoying other incentives of corporate income tax under the prevalent law, then
the tax reduction as provided for in this decree will be calculated on the rest
sum after deducting the tax incentives.
The decree will take effect as
from September 20.
SaigonTimes
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment