Vietnam Introduces Favorable Tax Policies for Certain Entities
Jul 23 – On June 21, the 8th National Assembly of the Socialist Republic of Vietnam approved Resolution No. 29/2012/QH13, aiming to introduce a number of tax policies in order to “resolve difficulties for organizations and individuals.”
The preferential tax policies include a 30 percent reduction in the enterprise income tax payable in 2012 for the following enterprises:
- Small and medium-sized enterprises (SMEs), excluding SMEs doing lottery, real estate, securities, finance, banking, insurance or producing goods, or providing services subject to special consumption tax
- First-class enterprises, special-class enterprises belonging to economic corporation and general companies
- Labor-intensive enterprises that produce, process and treat: agricultural products, forestry products, aquaculture products, textiles and garments, leather and footwear, and electronic components;
- Enterprises building socio-economic infrastructural constructions
Furthermore, the entities and individuals listed below will be exempt from presumptive tax (value-added tax, personal income tax) and enterprise income tax in 2012:
- Households and individuals providing hostel services for laborers, workers, students
- Households and individuals providing nursery services
- Households and individuals providing catering services as long as such households and individuals sustain the prices of their services the same as the end of 2011
Also, personal income tax will be exempted from July 1, 2012 until December 31, 2012 for individuals earning taxable incomes from salaries, wages and business that belong to Level 1 of the partially progressive tariff specified in Article 22 of the Law on Personal Income Tax No. 04/2007/QH12.
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