Government has decided to reduce income tax by 30 percent for several businesses, households and individuals this year.
|Representatives of HCMC Tax Department on an online exchange with readers of Saigon Giai Phong Newspaper on tax exemption and reduction policy (Photo: SGGP)|
Accordingly 30 percent reduction of income tax will be implemented on medium and small businesses, but not for lottery, real estate, stocks, finance, banks and insurance.
This policy will also not take affect for enterprises producing commodities and services which are listed for excise tax and companies under economic groups and corporations.
However, businesses using a large work force in production and processing, and in agriculture, forestry, seafood, garments and footwear production, will be among those enjoying the policy.
Value added and personal income taxes will be exempt for households and individuals who let out rooms and houses on rent to workers, laborers and students. Those taking care of children and providing food to workers will also be exempt from tax.
In turn, they must pledge to keep their rentals and prices stable in 2012, and the rates must not be higher than in December last year.
The exemption of personal income tax will be applicable from July 1 until December 31 this year for individuals whose income comes from their own business.