Reduction of 30% of enterprise income tax amount in 2012 for intensive-labour enterprises in manufacture, processing in Vietnam

Reduction of 30% of enterprise income tax amount in 2012 for intensive-labour enterprises in manufacture, processing in Vietnam (Internet image)

According to Clause 2, Article 2 of Decree 60/2012/ND-CP on reduction of 30% of enterprise income tax amount in 2012 for the intensive-labour enterprises in manufacture, processing: Agricultural products, forestry products, fishery products, textile and garment, leather and footwear, electronic components, intensive-labour enterprises for building socio-economic infrastructure.

The intensive-labour enterprises subject to enjoyed tax reduction in this Clause are enterprises have average annual number of laborers in 2012 over 300 persons, not including laborers under short-term contract less than 03 month. If an enterprise is operated under model of mother company and subsidiary companies, number of laborers as the basis for identifying a mother enterprise eligible for enterprise income tax reduction not includes number of laborers of its subsidiary companies.  

The amount of enterprise income tax being reduced is amount of tax calculated on income of operation in manufacturing, processing of: Agricultural products, forestry products, fishery products, textile and garment, leather and footwear, electronic components, operations in building socio-economic infrastructure.  

The operations in manufacturing, processing of: Agricultural products, forestry products, fishery products, textile and garment, leather and footwear, electronic components specified in this Clause are defined in according to provisions in the System of economic branches in Vietnam promulgated together with the Decision No. 10/2007/QD-TTg, of January 23, 2007 of the Prime Minister.

Operations in building socio-economic infrastructure specified in this Clause including construction, installation of: Water plants, power plants, electrical transmission and distribution works; system of  water supply and drainage, roadways, railways; aerial ports, seaports, river-ports; airports, railway stations, car station; building schools, hospitals, cultural houses, cinemas, art performance facilities , training, sport competition; treatment system for waste water, solid wastes; communications works, construction works to serve for agriculture, forestry, fishery.  

More details can be found in Decree 60/2012/ND-CP, which comes into force from September 20, 2012.

Le Vy

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE