Small enterprises to get one-year tax extension

Small- and medium-sized enterprises (SMEs) will be allowed to extend their corporate income tax payments for an additional one year, under a decision issued by Prime Minister Nguyen Tan Dung with the aim to help SMEs overcome inflation and disadvantages created by the foreign exchange rate. The Ministry of Finance urged the Government to grant the extension, which will be applicable to an estimated VND7 trillion (US$325.5 million) worth of corporate tax payments.

Under newly-issued Decision No 21/2011/QD-TTg, SMEs that meet capital and labour criteria stipulated in Government Decree No 56/2009/ND-CPof June 2009 would be eligible for the tax extension, although SMEs operating in real estate, finance, banking, insurance and securities, as well as importers of luxury goods, would not benefit.

Under the terms of the extension, temporary tax payments for the first quarter, normally due at the end of this month, would be payable in April 2012, while taxes for all of 2011 would not be due until March 2013.

The Ministry of Finance has also proposed to extend VND10 trillion ($465 million) worth tax breaks for up to 300,000 businesses, granted in 2009 to help companies recover from the global financial crisis. — VNS

Tags: Vietnam companies, Vietnam enterprises, Vietnam SMEs

Posted by VBN on Apr 8 2011. Filed under Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry