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Tax break proposed to the Government (24/6)
24/06/2011 - 11 Lượt xem
The Ministry of Finance has drafted a tax break law which includes a range of corporate and personal income tax exemptions and deductions.
The draft tax break law targets creating incentives for enterprises to develop their business and provide financial support to their employees.
If approved, the draft would expand the 2011 tax payment by one year for enterprises operating in important sectors as defined by the Prime Minister, such as agriculture, fisheries and textiles as well as firms with more than 300 workers.
A 30 per cent tax reduction was also proposed for enterprises which qualify for the expansion.
Value added tax and personal income tax for the third and fourth quarters this year would also be reduced for renters and people who offer child care and other services for workers if they committed to maintaining their prices at current levels.
Another section of the draft calls to exempt individuals from paying personal income tax from August 1 to the end of this year on dividends gained from stock market investments in an aim to stabilise the stock market and encourage investment in production.
The starting point for personal income tax would also be raised under the draft. Under the Law on Personal Income Tax 2007 individuals are currently required to pay personal income tax at the first level of the progressive tariff (5 per cent). An exemption was proposed in the draft to exempt this starting point to help mitigate the difficulties of rising inflation.
Total tax exemptions would reach up to VND20 trillion (US$1billion), of which the personal income tax exemption would account for 15 per cent.
The ministry plans to submit the tax break proposal to the Prime Minister and the National Assembly next month before promulgation, it announced.
Source: VietnamNews
