Tax incentives applied from May 1 to December 31, 2009

The Ministry of Finance has issued a circular giving guidance on the Decision No. 58/2009/QD-TTg issued on April 16, 2009 supplementing some measures on tax just to carry out the stimulus policy.

The circular aims to stimulate investment and consumption, prevent economic downturn and help enterprises deal with difficulties.

According to the circular no 85/2009/TT-BTC, from May 1 to December 31, 2009, assorted fibres, fabrics and garment, leather and shoes products and paper (except for newsprint), cements, bricks and tiles; two-wheeled and three-wheeled motorcycles with cylinder capacity of over 125cm3 all are eligible to enjoy 50% VAT reduction.

VAT payment deadline is extended to 180 days for imported machines, equipment, spare parts and specialised means of transportation as fixed assets of enterprises which are yet to be produced domestically.

Stamp tax on passenger automobiles of less than 10 seats (including passenger and goods automobiles) is reduced by 50%.

Reduction of 30% corporate income tax for the fourth quarter of 2009 is applied to income from fibre production and processing, weaving, dying, sewing and footwear production.

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