Vietnam Slashes Taxes
November 17, 2011 Taxation in Vietnam
HANOI – Businesses and individual taxpayers across Vietnam are set to rejoice a new round of tax cuts, which will see significant reductions in obligations in a select number of business sectors in the country.
According to a Decree of the government of Vietnam enacted on November 4th, individuals taxpayers with personal incomes below VND 5 000 000 (USD 240) per month will be exempt from paying taxes on incomes dividends gained from securities or stock purchases. Personal income taxes on profits derived from securities trading will also be halved. Both changes are applicable for the period between August 1st 2011 and December 31st 2011. Additionally, households which provide accommodation to students and low income shift workers will see their personal income tax obligations and value added tax liabilities halved for the period between July 1st 2011 and December 31st 2011.
Some enterprises operating in Vietnam will enjoy a significant reduction in their income tax obligations, with firms operating in the forestry, agricultural, textile, fisheries, leather, garment, footwear and electronic sector set to have their tax obligations reduced by 30 percent for the 2011 year. The tax reduction will also apply to companies which are deemed to be contributing to the socio-economic development of the country. Businesses operating in the lottery, real estate, finance, securities, banking, insurance, goods production and service trading sectors have already been listed as not being eligible for the tax break.
The new rules were passed with the explicit aim of helping businesses and individuals deal with the country’s current high levels of inflation, and to encourage economic prosperity and expansion.
Photo by Sinue S