HCM City authorities have proposed that the Prime Minister introduce a three month extension to corporate income tax deadlines for small and medium-sized enterprises.
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The proposal is intended to support companies during their current difficulties.
In the first three months of 2012, over 5,000 enterprises notice to HCM City Department of Taxation that they were filing for insolvency. 900 enterprises have already closed and over 500 have completed procedures for bankruptcy. This has led to thousands of unemployed.
The city registered nearly 29,000 newly unemployed so far this year, more than 20 labour strikes over salary disputes or business owners absconding without paying salaries.
However, the tax extension will not be applied to incomes from real estate, banking or securities speculation, and goods subject to excise duties.
On January 19, the government had granted a three month extension to corporate income tax deadlines for small and medium-sized businesses that had to pay tax in first and second quarter of 2011.
