Vietnam to Cut 30 per cent Corporate Income Tax for SMEs from 29 March

The Vietnamese Ministry of Finance has just issued a circular to allow a 30 per cent reduction of corporate income tax for the fourth quarter and a full year of 2009 for small and medium companies with registered capital of less than VND10 billion, Vnexpress online newswire said.

 

The regulation will take effect from March 26 this year, Vnexpress said.

 

The 30 per cent income tax cut is part of the government’s US$6 billion economic-stimulus package aimed at boosting growth and consumption amid the global economic slowdown.

 

The total tax concession that the government has decided to accept under this rule will cost the state about VND10 trillion (US$580 million) this year, according to the state-run Thoi bao Kinh te Vietnam. (Vnexpress)