Extension for corporate income tax payments

Labour-intensive businesses will enjoy a one-year extension on 2011 corporate income tax payments, under Ministry of Finance Circular 170/2011/TT-BTC.

The circular, which takes effect on January 9, provides that enterprises and cooperatives in manufacturing, processing, agriculture, textiles and garment, footwear products, electronic components, and civil engineering with an average of over 300 regular employees during 2011 would be eligible.

The enterprises operating in the real estate, banking, insurance and securities sectors, as well as importers of luxury goods, would not benefit.

Under the terms of the extension, temporary tax payments for the first quarter in 2011 would be payable in April 2012; those for the second quarter would be payable in July 2012; and those for the third quarter would be payable in October 2012. Taxes for the last quarter of 2011 would not be due until March 2013.

In April, small- and medium-sized enterprises with 200-300 employees were granted a one-year extension on corporate income tax payments under a decision issued by prime minister Nguyen Tan Dung with the aim to help small businesses overcome inflation and the disadvantages created by foreign exchange fluctuations.

 

Category: Legal