Decree No. 60/2012/ND-CP of the Government, issued on 30 July 2012 detailing the implementation of Resolution No. 29/2012/QH13 dated 21 June 2012 of the National Assembly on issuance of tax policy in order to solve problems for organizations and individuals. Decree takes effect from the date of 20 September 2012.
Accordingly, small and medium enterprises (SMEs) shall enjoy 30% reduction of corporate income tax in 2012, not including SME business in the field of lotteries, real estate, securities, finance, banking, insurance, production of goods and services are being subject to special consumption tax; enterprises are ranked 1, a special class of economic groups or corporations.
SMEs – including co-operative (except administrative entities) satisfy requirements on capital or labor in accordance with provisions of Decree No. 56/2009 on development assistant shall enjoy tax reduction.
The above provisions also apply to the enterprise which using a great number of labor in the area of production, processing of agricultural, forestry, aqua cultural, textiles, footwear products and production of electronic and informatics components; Enterprises using many labors in the area of construction of economic-social infrastructure. Enterprises which are subject to tax reduction as mentioned above are enterprises regularly averagely using more than 300 labors in the year of 2012, excluding labors in short-term contracts under 3 months. Where the enterprise established in the form of parent company – subsidiary company, number of labors working in parent company is the basis for determining the subject to tax reduction excluding labor in the subsidiaries company.
In addition, the Decree provides provisions for personal income tax exemption from 01 July 2012 to 31 December 2012 applied to individuals whose monthly income derive from salary, wages and from business to the extent of taxable personal income in grade 1 of the tariff of partially progressive tax stipulated in Article 22 of Law on corporate income tax. Taxable income as a basis for determining the tax exemption is monthly averagely taxable income of the individual actually received in 2012.