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Circular 16/2013/TT-BTC on the conditions to enjoy tax preferential policies

Circular 16/2013/TT-BTC of the Ministry of Finance on the conditions to enjoy tax preferential policies

In 2013, other criteria for small and medium enterprises will be applied in order to enjoy tax preferential policies in accordance with Resolution 02/NQ-CP.

Accordingly, small and medium enterprises have to meet two criteria on labor (less than 200 employees) and yearly revenue (not exceeding 20 billion VND).

Method to determine the number of employees and revenue are specifically guided in Circular 16/2013/TT-BTC.

Compared to the previous regulations (Circular 83/2012/TT-BTC and Decree 60/2012/ND-CP), the current condition is now replacing the condition which is capital to revenue, as well as revised the criteria for the number of employees.

This new regulation increases the binding to the Enterprise, this will lead to a number of enterprises have enjoyed policy in 2012 that will not be eligible for the policy in the first half of 2013, and vice versa.

Circular takes effect from March 25th 2013.

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