2012 tax reductions and exemptions (15/8)
15/08/2012 - 13 Lượt xem
According to Decree 60/2012/ND-CP, a 30 percent reduction in the 2012 enterprise income tax will be applied to small to medium-sized businesses (excepting those involved in the lottery, real estate, securities, finance and banking, insurance and production of goods and services subject to the excise tax, and first-grade and special-grade businesses that are members of economic groups and corporations). The tax
reduction beneficiaries include businesses (including co-operatives)
that satisfy capital and workforce criteria outlined in section 1 of
Article 3, Government Decree 56/2009/ND-CP dated June 30, 2009
(referring to assistance for small to medium-sized enterprises).
Capital stated in the balance sheet constructed on December 31, 2011 is a criterion to define whether a business can benefit from the tax reduction or not. In cases where a candidate business was founded on January 1, 2012, chartered capital stated in the business registration certificate or the first investment certificate is a criterion to define whether that business can become a beneficiary of the tax reduction or not. Number of staff members used by that business in 2011 (including workers of the company's branches and members units if any, but excepting workers with whom the company signed a labor contracts of less than three months) is another criterion to define whether that business can become a beneficiary of the tax reduction or not.
Decree
60/2012/ND-CP says that if a company is involved in different
businesses including lottery and/or real estate, securities, finance,
banking, insurance and production of goods and services subject to the excise tax, it can benefit the tax reduction only for revenues that are not earned from the above-mentioned activities.
Businesses,
which use a large number of workers to produce and process farm
produce, forest products and seafood, textiles/garments, leather and footwear, and electronic components and construct socioeconomic infrastructure projects, are subject to the 30
percent tax reduction in 2012. To be specific, tax reduction
beneficiaries include businesses that have more than 300 employees in
2012 (excepting workers with a less-than-three-month work contract). In
cases where the candidate is a parent company, workforce of the company's subsidiaries is not included for the tax reduction.
The tax
reduction is calculated based on revenues from production and
processing of farm produce, forest products and seafood,
textiles/garments, leather
and footwear and electronic components, and construction of
socioeconomic infrastructure projects (waterworks, power plants, power
transmission and supply projects, water supply and drainage systems,
roads, railways, schools, hospitals, culture houses and more). The tax reduction is a deduction into tax temporarily paid quarterly and the remaining tax to be paid in 2012.
Decree
60/2012/ND-CP provides detailed guidelines on VAT (value added tax),
personal income tax and enterprise income tax exemptions for
organizations and household and individual businesses outlined in
section 2 of Article 1, National Assembly 29/2012/QH13. To be specific,
2012 tax exemptions are subject to households and individuals leasing
houses to workers and students, providing child care services and
offering shift meals for workers (meals for shift workers).
2012
VAT and enterprise income tax exemptions are subject to activities of
providing shift meals for workers (excepting activities of providing
meals for transport, aviation and other
businesses). In cases where a candidate company is involved in
different businesses, tax exemption is only calculated based on
revenues from providing shift meals for workers.
Households,
individuals and businesses leasing houses to workers and students,
providing child care services and offering meals for shift workers,
which benefit from 2012 tax exemptions, must commit to keeping their product/service prices unchanged compared to December 2011 and make these prices public. Those who break their price-related commitments shall not benefit from a tax reduction.
Referring
to personal income tax exemptions outlined in section 3 of Article 1,
National Assembly 29/2012/QH13, Decree 60/2012/ND-CP says that personal
income tax exemption is applied from July 1 to December 31, 2012 to
individuals that have a taxable income from salaries/wages and
businesses making revenues subject to personal income tax of level 1 in the tariff stated in Article 22 of the personal
income tax law. Average monthly taxable income in 2012 is a base for
calculating tax to be freed. Decree 60/2012/ND-CP will take effect on
September 20, 2012.
Source: VEN.
Source: VEN.
