Ministry of Finance will sign and issue the circular guiding the policy of CIT (Corporate Income Tax) reduction and extension by this weekend, according to Pham Van Huyen, vice head of general Taxation Department.
Accordingly, SMEs subject to CIT reduction and extension are the companies having the registered capital of below 10 billion dong and a workforce of less than 300 employees.
Le Quoc Ly, head of Ministry of Planning and Investment’s Monetary Finance Department reported that CIT collection will be about 170 trillion dong each quarter. If CIT is reduced by 30%, the CIT collection will be down 21 trillion dong.
Pursuant to the government’s Resolution No 30, MoF will have to reduce 30% CIT in the fourth quarter of 2008 and the whole of 2009. And 70% of the remaining CIT will be extended to the subsequent nine months for SMEs.