30 Pct Cut in Corporate Income Tax for Businesses with over 300 Employees

4:48:12 PM | 8/10/2012

On July 30, 2012, the Government issued the Decree No. 60/2012/ND-CP detailing the implementation of the lawmaking National Assembly’s Decree No. 29/2012/QH13 on a number of tax policy in support of organisations and individuals to overcome difficulties.
Companies with more than 300 regular employees will enjoy a 30 percent reduction in corporate income tax 2012. Beneficiaries must operate in manufacturing, outsourcing and processing. Employees with employment contracts with the validity of less than three months are not counted. Small and medium-sized enterprises (SMEs) operating in agriculture, forestry, fisheries, industry, construction, trade and services are subjected to the regulations.
According to this decree, in a given period of time, if a company is granted different rates of tax support on the same income, the applicable rate will be the most beneficial to them. In case SMEs’ operations are involved in many fields, rebated tax will not count income from lottery, real estate, securities, finance, banking, insurance, and businesses imposed excise-tax.
The decree takes effect from on September 20, 2012.
Thanh Yen