Apr. 6 – A circular issued by the Ministry of Finance last month clarified details of the extension of 2010 corporate income tax payment for small and medium enterprises.

Following the previously issued Decision 12, small and medium enterprises  will be allowed CIT payment deferral based on their total capital or annual average number of employees. Specifically, SMEs with total employees numbering not more than 300 persons or total capital resource of up to VND100 billion will be qualified. Circular 39  clarifies on this issue by detailing how to determine total capital and workforce.

Total capital will be based on the capital reported on the company’s stated on balance sheet as of December 31, 2009. For newly established companies this year, the charter capital stated in the initial business registration certificate or initial investment certificate will be considered as the total capital.

On the other hand, the annual average number of employees will be taken from the number of regular employees with labor contracts of 3 months or more as of December 31, 2009. The total number of employees for new companies will be based on the number of employees receiving wages in the first revenue generating month. Companies are advised to indicate CIT tax deferral when they file their provisional and final returns.