Monthly government meeting discusses changes to tax, credit and land use.
Changes in taxation, credit and land use that could lower costs for enterprises are under discussion at the government’s regular meeting on May 4 and 5.
The Ministry of Finance (MoF) has drafted a solution to cutting taxes on businesses in 2016, such as a tax-free period of one year for new businesses and not charging fines on overdue tax payments when companies temporarily suspend operations.
Other measures include reducing taxes for small business by 2 to 3 per cent and cutting personal income tax by 50 per cent for individuals working in certain sectors such as science application and information technology.
The government also intends asking MoF to change regulations to reduce the cost and time enterprises incur when paying taxes.
At a meeting between the Prime Minister and enterprises on April 29 the latter indicated that land use fees are too high. The government meeting therefore heard that new regulations will be issued, including those on smaller land plots at industrial zones and more flexible payment terms.
Regarding credit, subsidiaries and certain companies who build and manage industrial zones can use land as collateral in accessing loans, listing on the stock market or issuing bonds.