The Government has laid down measures to ease difficulties faced bybusinesses during the prolonged economic downturn in its Resolution No02/NQ-CP issued in January.
The resolution grants a six-monthextension of corporate tax payments due for the first quarter of thisyear and three-month extensions of corporate tax payments for the secondand third quarters.
Eligible are small- and medium-sizeenterprises (SMEs) which employ fewer than 200 full-time employees andhave annual earnings of less than 20 billion VND (nearly 1million USD),and enterprises with over 300 workers, operating in the fields ofproduction, outsourcing, food processing products, garment-making,footwear production, electronic parts, and infrastructure construction.
Real estate developers shall be eligible to re-schedule corporatetax payments for income from investing and trading in residentialhousing.
The resolution also offers a six-month extension ofvalue-added tax (VAT) payments for January, February, and March to SMEsnot operating in the fields of finance, banking, insurance, securities,lotteries or sweepstakes, or the production of goods and servicessubject to special consumption taxes; enterprises with a largequantity of workers which operate in the fields of production,outsourcing, food processing, garments and footwear, electroniccomponents, and infrastructure construction; enterprises operating inreal estate development or production of construction materials whichpay VAT using the deduction method.
Enterprises will also berefunded environmental protection taxes paid January 1 through November14 of last year for nylon bags used for packaging.
The resolutionalso provides for a 50-per-cent reduction in land use fees in 2013-14if their fees have more than doubled since 2010. Project developers willalso be allowed to delay paying land use fees until they collect theirsales revenue.
Under the resolution, the Minister of Finance willalso propose to the National Assembly a new corporate income tax rateof 20 percent for SMEs, effective July 1, 2013, with further reductionsfor developers of low-cost housing.-VNA
The resolution grants a six-monthextension of corporate tax payments due for the first quarter of thisyear and three-month extensions of corporate tax payments for the secondand third quarters.
Eligible are small- and medium-sizeenterprises (SMEs) which employ fewer than 200 full-time employees andhave annual earnings of less than 20 billion VND (nearly 1million USD),and enterprises with over 300 workers, operating in the fields ofproduction, outsourcing, food processing products, garment-making,footwear production, electronic parts, and infrastructure construction.
Real estate developers shall be eligible to re-schedule corporatetax payments for income from investing and trading in residentialhousing.
The resolution also offers a six-month extension ofvalue-added tax (VAT) payments for January, February, and March to SMEsnot operating in the fields of finance, banking, insurance, securities,lotteries or sweepstakes, or the production of goods and servicessubject to special consumption taxes; enterprises with a largequantity of workers which operate in the fields of production,outsourcing, food processing, garments and footwear, electroniccomponents, and infrastructure construction; enterprises operating inreal estate development or production of construction materials whichpay VAT using the deduction method.
Enterprises will also berefunded environmental protection taxes paid January 1 through November14 of last year for nylon bags used for packaging.
The resolutionalso provides for a 50-per-cent reduction in land use fees in 2013-14if their fees have more than doubled since 2010. Project developers willalso be allowed to delay paying land use fees until they collect theirsales revenue.
Under the resolution, the Minister of Finance willalso propose to the National Assembly a new corporate income tax rateof 20 percent for SMEs, effective July 1, 2013, with further reductionsfor developers of low-cost housing.-VNA
