Government defers tax by 2 years for small businesses

The government has deferred by up to two years business income tax payment for very small, small, and medium enterprises as part of efforts to ease difficulties in doing business.

Taxes due in the first two quarters can be paid respectively by April 30 and July 30 next year.

Those due for the last two quarters have been deferred until October 30, 2012, and March 31, 2013.

However, tax on income earned from real estate, financial, banking, insurance, and securities transactionsb have to be paid normally

This will also apply to income from trading of imports that are not considered essential consumer goods.

According to the Ministry of Finance’s estimate, tax worth around 7 trillion dong (US$333 million) will be deferred under this scheme, with 200,000 out of more than 360,000 small and medium enterprises in operation benefiting.

Two years ago, to combat the economic downturn, the government had adopted a similar strategy, deferring income tax payment worth some 10 trillion dong.

Businesses are considered small or medium sized if their registered capital is not more than 10 billion dong or their annual labor force does not exceed 300 people.

Businesses with fewer than 10 employees are considered very small. – Tuoitre

Tags: Vietnam taxes