Fri. May 24th, 2024

The Government has laid down measures to ease difficulties faced by
businesses during the prolonged economic downturn in its Resolution No
02/NQ-CP issued in January.

The resolution grants a six-month
extension of corporate tax payments due for the first quarter of this
year and three-month extensions of corporate tax payments for the second
and third quarters.

Eligible are small- and medium-size
enterprises (SMEs) which employ fewer than 200 full-time employees and
have annual earnings of less than 20 billion VND (nearly 1million USD),
and enterprises with over 300 workers, operating in the fields of
production, outsourcing, food processing products, garment-making,
footwear production, electronic parts, and infrastructure construction.

Real estate developers shall be eligible to re-schedule corporate
tax payments for income from investing and trading in residential

The resolution also offers a six-month extension of
value-added tax (VAT) payments for January, February, and March to SMEs
not operating in the fields of finance, banking, insurance, securities,
lotteries or sweepstakes, or the production of goods and services
subject to special consumption taxes; enterprises with a large
quantity of workers which operate in the fields of production,
outsourcing, food processing, garments and footwear, electronic
components, and infrastructure construction; enterprises operating in
real estate development or production of construction materials which
pay VAT using the deduction method.

Enterprises will also be
refunded environmental protection taxes paid January 1 through November
14 of last year for nylon bags used for packaging.

The resolution
also provides for a 50-per-cent reduction in land use fees in 2013-14
if their fees have more than doubled since 2010. Project developers will
also be allowed to delay paying land use fees until they collect their
sales revenue.

Under the resolution, the Minister of Finance will
also propose to the National Assembly a new corporate income tax rate
of 20 percent for SMEs, effective July 1, 2013, with further reductions
for developers of low-cost housing.-VNA

By vivian