Tax Breaks through 2012

The Government has issued Decree 101/2011/ND-CP dated November 4, 2011 on exempting personal income tax and reducing corporate income tax in a bid to helping taxpayers to reduce obstacles in production and business activities resulting from the economic crisis.

 

Personal income tax will be made exempt based on individual dividends gained from securities and corporate investments (excluding dividends from joint stock banks, financial investment funds and credit organisations). A reduction of 50 percent will be levied on individual income tax in relation to securities trading.

 

The decree additionally stipulates a 50 percent reduction in personal income tax alongside a fixed value-added tax to be applied to households or individuals providing accommodation and catering services to shift workers, students and baby-sitters.

 

Also according to the decree, corporate income tax payable by small- and medium-sized enterprises this year will decline by 30 percent. Enterprises in line for tax reductions include those operating in agricultural, forestry, fisheries, textile, garment, leather, footwear and electronic part production sectors and those contributing to socio-economic development.

 

The decree will come into effect on December 20, 2011.