Vietnam Promulgates Fiscal Stimulus Measures

By Dezan Shira & Associates

Posted: 10th October 2012 10:29

On August 21, 2012, Vietnam’s Ministry of Finance promulgated Circular 140/2012/TT-BTC (hereinafter referred to as “Circular 140”), clarifying the country’s 2012 fiscal stimulus measures which aim to resolve some of the present tax difficulties facing organizations and individuals.
The preferential tax policies listed in Circular 140 include a 30 percent reduction in the enterprise income tax payable in 2012 for the following enterprises:

Furthermore, enterprises and organizations providing catering services are exempted from corporate income tax for the year 2012 as long as such enterprises and organizations sustain the prices of their services the same as the end of 2011.

The entities and individuals listed below will be exempt from value-added tax and personal income tax in 2012:

Also, personal income tax will be exempted from July 1, 2012 until December 31, 2012 for individuals earning taxable incomes from salaries, wages and business that belong to Level 1 of the partially progressive tariff specified in Article 22 of the Law on Personal Income Tax No. 04/2007/QH12.

Circular 140 is largely similar to last year’s Circular 154 (2011), however there are some small, but significant changes. For example, all individuals and enterprises that wish to take advantage of these tax reductions are required to fill out the necessary forms with responsible local tax authorities.

 
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.

For further details or to contact the firm, please email vietnam@dezshira.com, visit www.dezshira.com, or download the company brochure.

Related articles



Comments


close

Subscribe to our newsletter

Sign up here and get the latest news and updates delivered directly to your inbox

You can unsubscribe at any time