Ktetaichinh’s Blog

February 9, 2009

Vietnam Delays Personal Income Tax Collection to Spur Spending

Filed under: Uncategorized — ktetaichinh @ 8:16 pm
Tags:
VietBusinessNews – Viet Nam will delay the collection of personal income tax until the end of May to help stimulate spending amid the global economic crisis.

Personal income including salaries, profit from real-estate and stock transactions and other investment returns won’t be taxed until May, the government said in a statement posted on its Web site today. The National Assembly will decide then if the payments will be waived completely or just delayed.

Vietnam’s economy expanded 6.2% in 2008, the slowest pace in nine years, as the global recession cut demand in the U.S. and Japan for Vietnamese exports. The government is targeting 6.5% growth for this year.

Viet Nam will give a 30% discount on tax bills from the fourth quarter of last year and in 2009 for small and medium-sized firms, which have less than 10 billion dong ($572,000) in capital or employ fewer than 300 workers, the government said last month. It will also cut value-added tax by half in February for products including coal, construction materials, engineering equipment used to make other products, and automobile parts.

The country will lose about 1 trillion dong every month by “temporarily” not collecting personal income taxes for five months, the Tuoi Tre newspaper reported on Jan. 13, citing Deputy Finance Minister Do Hoang Anh Tuan.

Non-resident individuals won’t have to pay tax for income from financial investments, transactions, copyright and franchising until May, today’s statement said. (Bloomberg)

Updates:

02/12/09 Income tax payers to get money back

Được giãn thuế vẫn lo

02/13/09 Tax reduction just helps reduce losses: distributor

TrackBack URI

Blog at WordPress.com.

%d bloggers like this: