Vietnam sets aside 7tr dong for CIT extension

The Vietnamese Ministry of Finance has submitted to the government a 7-trillion dong plan of extending Corporate Income Tax (CIT) for some difficult objectives, the local newswire VnExpress reported.

A source from the ministry said that the plan had been finished and submitted on March 30 for asking the government’s approval.

As estimated, there are about 200,000 super small and small sized enterprises subject to the CIT extension according to Ministry of Finance’s proposal. The CIT amount expected to be set aside for the plan is seven trillion dong. “This is seen as an urgent measure which we can do to settle difficulties for enterprises amid the crisis and inflation context”, a ministry official said.

In 2009, in order to help SMEs, the ministry also had recommended a CIT incentive for some sectors. Total over 300,000 SMEs enjoyed the incentive amounting to 10 trillion dong.

The CIT extension plan was collected point of view from relevant agencies to build up a modification for the circular guiding Law on CIT. Currently, many proposed to reduce common CIT from 25% to 20% that was in the country’s tax cutting timetable set for 2011.

Since 1997, CIT in the above law has undergone 3 times of amendments, being cut from 32% in 1997 to 28% in 2003, and 25% starting from January 1, 2009. – Vietbiz24

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial