Last updated: Monday, May 20, 2013
SMEs to Enjoy 30 Percent Cut on Corporate Income TaxPosted: Monday, August 06, 2012
Small and medium-sized enterprises (SMEs) will be entitled to a 30 percent cut on corporate income tax this year.
Firms involved in labor-intensive production and processing activities will also benefit from the tax reduction under Decree 60/2011 just issued by the Prime Minister.
The Decree, which will take effect as of September 20, is in line with the National Assembly’s Resolution 29 on policies to ease difficulties for organizations and individuals this year.
Furthermore, individuals and household businesses leasing out houses to students and workers will be exempted from lump sum tax this year, while businesses providing catering services for workers are exempt from value added and corporate income taxes.
In addition, individuals with taxable income within the first tax bracket from their salaries and business activities will be exempted from personal income tax beginning on July 1, 2012 until the end of the year.