Providing guidance on VAT, CIT reduction and extension

(ĐN)- On February 9, Dong Nai Taxation Bureau organized a conference at the meeting hall of the province’s Sport-Culture Complex to provide guidance on Corporate Income Tax (CIT) reduction and extension, VAT reduction in accordance with Resolution No. 30/2008/NQ-CP and Decision No. 16/2009/QD-TTg of the government on measures to contain the economic downturn, maintain economic growth and protect social welfare.

According to the new policies, small and medium enterprises (SMEs) will be entitled a 30% CIT reduction for the fourth quarter of 2008 and the whole year for 2009. Besides, as of February 1, 2009, thousands of products and services are cheaper thanks to the tax payment extension, or tax exemptions and reductions. 18 categories of commodities, including wholly-assembled cars and car components, engines, gear boxes, coal, basic chemicals and hotel and tourism services, now enjoy a 50% VAT reduction. The tax reduction went into effect on February 1 and will run till the end of the year.

Reported by N.V.B