Six months defer-
ment of VAT
payment for April,
May and June 2012
Projected 30%corpo-
rate income tax reduc-
tion in 2012 (*)
9-month deferral of
CIT liabilities fromor
prior to 2011
SMEs (excluding those engaged in the business of lottery,
securities, finance, banking, insurance or selling Special
ConsumptionTax
goods/services)
Labour intensiveenterprises
operating inmanufacturingandprocessingof agriculture,
forestryandaquaticproducts;
textileandgarments; leather
and footwear; electroniccomponents.
Manufacturers of mechanical
goods for waterway transporters or manufacturers
of steel and cement.
LOCAL NEWS - LEGAL UPDATES
Binh Duong announces the
establishment of Thu Dau Mot
City
On 27 June, Thu Dau Mot town was
officially named Thu Dau Mot City
in an announcement ceremony
organized by the Provincial People’s
Committee and Thu Dau Mot City.
Occupying a total of 12,000 hec-
tares, Thu Dau Mot City is home to
244,277 residents, and comprises
14 administrative units including
11 wards - Phu Cuong, Hiep Thanh,
Chanh Nghia, Phu Tho, Phu Hoa, Phu
Loi, Hiep An, Dinh Hoa, Phu My, Hoa
Phu, and Phu Tan and 3 communes:
Chanh My, Tuong Binh Hiep and Tan
An. Thu Dau Mot is situated adja-
cent to the East of Tan Uyen district,
West of Cu Chi district (Ho Chi Minh
City), South of Thuan An district and
North of Ben Cat district. Together
with Binh Duong New City, the two
LOCAL NEWS
LEGAL UPDATES
urban areas are set to be the core of
Binh Duong City in 2020.
At the ceremony, Tokyu Corpora-
tion (Japan) and Becamex IDC also
signed a memorandum of under-
standing (MOU) to jointly survey
and plan an inter-provincial bus and
metro system in Binh Duong.
On 10 May 2012, the Government approved Resolution 13/NQ-CP in which measures are given to support troubled en-
terprises during the economic hardship and revive the local market. Key support measures are highlighted below:
Selected trading and services enterprises, which have to reassess land prices in 2012 in accordancewithDecree 121/2010/
ND-CP and to which the State leases land, are generally subject to a 50% reduction in land rent in 2012. Selected inves-
tors that encounter financial difficulties may be entitled to deferred payment for land use fee for a maximum period of 12
months. The eligibility and specific deferral period for each project will be decided on a case by case basis by the Provin-
cial People’s Committee.
Further guidance on the implementation of these measures will be provided by the Ministry of Finance.
(Source: Grant Thornton)
Tax Incentives
(*) The Government assigned the Ministry of Finance to take into consideration the proposed CIT rate reduction and come to an official decision in the coming months.
Tax Incentives
Types of enterprises
1,2,3,4,5 7