Vietnam introduced tax policies to resolve difficulties for organizations and individuals

(vasep.com.vn) In July 30th 2012, the government issued the Decree No. 60/2012/NĐ-CP regulating the implementation of the Resolution No. 29/2012/QH13 of June 21st 2012 introducing a number of tax policies in order to resolve difficulties for organizations and individuals.

1. Reducing 30% of the enterprise income tax in 2012 for:

- Medium and small enterprises, excluding medium and small enterprises doing lottery, real estate, securities, finance, banking, insurance business or producing goods, providing services subject to special consumption tax; first-class enterprises, special-class enterprises belonging to economic corporation and general companies; According to the Decree, medium and small enterprises, including co-operatives (excluding business units) enjoying tax reduction are those who meet criteria of capital or labor as regulated at the Article 1, Provision 3 of the Decree No. 56/2009/NĐ-CP.

- Intensive-labor enterprises that produce, outsource, process: agricultural products, forestry products, aquacultural products, textile and garment, leather and footwear, electronic components; building socio-economic infrastructural constructions.

2. The personal income tax is exempted from July 1st until the end of December 31st 2012 for individuals earning taxable incomes from salaries, wages and business that belong to the Level 1 of the Partially progressive tariff specified in the Article 22 of the Law on Personal income tax.The basis for tax exemption is individual’s monthly average taxable salary in 2012.This Decree takes effect since September 20th 2012.

KT

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