The decrease of corporate income tax from 25% to 20% is considered as an important solution, encouraging SMEs to overcome the difficult period.
The decrease of corporate income tax to 20% helps many enterprises overcome difficulties. In the photo: Tam Giang Electromechanical Cooperative in Cam Thuong ward (Hai Duong city) specializes in repairing and trading in electric motors, maintaining stable production.
The decrease of corporate income tax (CIT) from 25% to 20% is considered as an important solution, encouraging small- and medium-sized enterprises (SMEs) to overcome the difficult period.
Ms. Tran Thi Thu, Director of Sao Do Computing JSC. (Hai Duong city) said, “The CIT rate of only 20% pursuant to the new regulation indicates the Government’s attention to SMEs’ activities. For the past time, the company’s business activities have encountered a lot of difficulties due to the common difficulties of economy. Rare new orders, dull goods plus prolonged high bank interest rates and CIT rate of 25% made the enterprise often seemingly exhausted. The company’s revenue in 2012 was VND5 billion, of which about VND100 million for tax payment. We have been very excited and waiting for positive effects from the economy since the CIT started to decrease to 20% on 1 July. Besides direct benefits, we also hope for the recovery of other enterprises. Then, the increasing commodity consumption rate will lead to the overall growth of the economy.”
There are nearly 6,400 enterprises with business registration in the province, of which, more than 4,300 are active, according to Mr. Doan Van Nghe, Chairman of the Association of Hai Duong SMEs.
SMEs account for about 80% of the total enterprises. Most of these businesses are small with annual average revenue of only VND10 – 13 billion.
The Association’s survey showed that CIT has not arisen from about 85% of the SMEs since early this year.
This demonstrates that the enterprises’ production and business have not yet recovered.
The extension of CIT, VAT payment and reduction of CIT to 20% will create favorable conditions for the enterprises to recover production, business.
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Đăng ký: VietNam News