New Resolution to Postpone Payment of VAT and CIT

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Jan. 18 – The Vietnamese government issued Resolution No. 02/NQ-CP on January 7, 2013, introducing a series of measures aimed at removing difficulties for business production, increasing market support, and resolving bad debt. The tax measures introduced in this Resolution will assist those enterprises and individuals facing economic difficulties by postponing the payment of value-added tax (VAT) and corporate income tax (CIT).

Certain enterprises will be entitled to defer their VAT payments for January, February and March in 2013 by six months. Similarly, certain enterprises will be allowed to defer their CIT payments for six months in the first quarter of 2013, and for three months in the second and third quarter.

Eligible enterprises entitled to payment deferral include:

    • Small and medium-sized enterprises (SMEs), defined as those enterprises who employ less than 200 full-time workers and generate an annual revenue of less than VND20 billion. SMEs engaged in financial activities, banking, insurance, securities, lotteries, game prizes, or the manufacture of goods and provision of services which are subject to Special Sale Tax are not eligible.
    • Labor-intensive enterprises who employ more than 300 workers and who engage in the manufacture of agricultural products, forestry products, fishery products, garment and textiles, electronic devices and the construction of certain infrastructure projects.
    • Enterprises engaged in the sale, leasing or financing of housing, regardless of size or number of employees.
    • Enterprises engaged in the production and processing of iron, steel, tiles and cement will enjoy a postponement to their VAT payments, but will not be eligible for the CIT payment deferral.

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