However, he confirmed that the Personal Income Tax Law had taken effect on January 1.

Tuan said the Finance Ministry proposals would be submitted to the National Assembly’s session in May.

Earlier, the ministry had, on behalf of the government, submitted two proposals to the NA Standing Committee relating to the introduction of the Personal Income Tax Law.

Under the first proposal, enforcement of the law would be postponed until July 2009 or January 2010.

During that time, the ordinance on high-income earners would still take effect but a 30 percent reduction would be granted. Under the ordinance, people whose monthly income exceeds VND5 million (US$292.50) have to pay income tax without any deduction for dependents.

Under the second proposal, a one-year waiver will be granted for incomes on capital gains and stock market transactions as well as interest received on loans. A 30 percent personal income tax cut for one year would apply to households and individuals who had been subjected to the corporate tax earlier.

In related news, the Tax Policy Department under the Finance Ministry has said that the ministry will issue a circular within a few days with instructions on implementing a government decree on deferring and reducing corporate tax on small and medium enterprises and those facing financial difficulties.

Source: TN, VNA