On 6 August 2012 it was published that, in a decree to take effect on September 20, 2012, the Vietnamese government has confirmed that small and medium-sized enterprises (SMEs) will be given a 30% reduction in corporate income tax (CIT) this year.
Businesses with at least 300 full-time employees, involved in labour-intensive production and processing activities in the agricultural produce, footwear, garment, electronic component and infrastructural construction industries will also benefit from the CIT cut, but SMEs in the real estate, lottery, securities, banking and insurance sectors, as well as those involved in the production or provision of commodities and services that are subject to excise tax, will not.
In addition, a 50% reduction in value-added tax and CIT has been provided in 2012 for individuals or businesses that rent accommodation to workers or students, or that provide meals for workers of other firms, except for those in transport and aviation.
