Vietnam companies resume operations as government offers sops

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Nearly 2,000 companies that had earlier shut down temporarily due to the economic meltdown resumed operations in June-July after the government rolled out favorable policies.

By the end of June, approximately 100,000 companies have been allowed to defer income and sales taxes, estimated at VND11 trillion (US$480 million), VnEconomy quoted Deputy Minister of Finance Do Hoang Anh Tuan as saying.

Sales tax payments in the second quarter of 2012 will be delayed by six months for firms in fields such as agriculture or clothing industry with a large number of employees or small and medium companies except for those in some fields like banking, securities and lottery.

Corporate income tax payments ending 2011 of these companies will also be deferred by nine months.

A 30 percent cut in corporate income tax this year has been made from July for them.

The current corporate income tax rate in Vietnam is 25 percent.

The number of companies remaining shut by the end of July was around 21,000, down 6.7 percent from a month earlier, VnExpress said citing government data.

At the start of the year the number had been nearly 23,700, according to General Statistics Office.

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