The National Assembly Saturday agreed to cut a variety of taxes as proposed by the government in an attempt to boost the economy.
The tax measures, passed by 82 precent of the NA members, include an individual income tax exemption for those earning less than VND9 million (US$440) a month, from August through December.
This group of taxpayers currently pays a 5 percent income tax after claiming a personal deduction of VND4 million per month and a VND1.6 million deduction for each dependent.
Legislators also approved a 30 percent corporate income tax reduction for small and medium enterprises. The reduction will not cover earnings from stock, banking and insurance business. Companies trading in luxury products and large state-owned enterprises are not eligible for the incentive either.
The government previously sought approval for an across-the-board corporate tax cut. The legislature's Finance and Budget Committee said the tax cut should only be offered to small medium enterprises because many large companies were still earning large profits.
The government also called for tax exemption on stock dividends and on capital gains from stock transfers through the end of 2012 to support the local market.
Lawmakers on Saturday decided to pass the proposed exemption on stock dividends and cut by half the tax on stock transfers.
According to news website VnExpress, the government estimates that the tax reduction and exemption measures will total VND13.3 trillion ($646.8 million). The amount will not have a significant impact on tax revenues for the state, it said.