SMEs to enjoy tax payment extension

Vietnam’s small and medium sized enterprises and labour-intensive businesses are set to enjoy a three-month extension on 2012 corporate income tax (CIT) payments.

SMEs and labour intensive firms in the manufacturing, processing, agriculture, textile, and garment, footwear, electronic components and civil engineering sectors will be beneficiaries of a three-month CIT extension for tax to be paid in the first and second quarters of 2012, according to Resolution 02/NQ-CP dated January 1, 2012.

Real estate, banking, insurance and securities companies will not benefit and neither will importers of luxury goods.

For those beneficiaries, however, the tax payment for the first quarter in 2012 shall be paid in July 2012, while second quarter payment shall be done in October 2012.

This move is one of the measures introduced by authorities to reduce the financial burdens for enterprises in what is expected to be a difficult 2012.

In a report proposing this tax extension, the Ministry of Finance said the move would help create favourable conditions for enterprises to spend more capital to stabilize and develop business and production activities but would not badly impact on state budget collection in 2012.

“Together with measures on monetary and credit policies, the extension will be really efficient in supporting enterprises to overcome difficult stages of the economy in the coming time,” said the report.

Vietnam Investment Review/VOV