Fifty Percent Income Tax Reduction Granted to Economic Zone Employees

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Sept. 21- The Ministry of Finance has issued a new circular announcing that those working at Vietnamese economic zones (EZs) are qualified for a 50 percent tax reduction of their annual income tax.

According to Circular 176/2009/TT-BTC, the new rule will be applicable to local, foreign residents and non-residents employed by management boards, state management agencies, and business enterprises doing business in the EZ.

The rule also includes employees who work for companies not found in the EZ but are assigned to work in the zone. The HCMH government website reports that that employees working for organizations within EZs but not directly working there are not beneficiaries of the policy.

The new rule covers income taxes beginning January 1, 2009. Most of the country’s economic zones are either located in its coast or on its border areas with special incentive policies to attract more investors.