The Law on provision of assistance for SMEs

25 August , 2017 1:07 am

Law No. 04/2017/QH14 dated June 12th, 2017 of the National Assembly on provision of assistance for small and medium-sized enterprises.

This Law provides regulations on principles, contents and resources of assistance for small and medium-sized enterprises (SMEs), including micro-enterprises, small enterprises and medium-sized enterprise.

An SME is an enterprise that has the annual average number of employees who participate in social insurance is not greater than 200 and its total capital is not greater than 100 billion dong or revenue of the previous year is not greater than 300 billion dong (Article 4).

If an SME meets the aforesaid criteria, it shall be provided assistance by the State through such policies as direct assistance provided by the state budget; assistance to access credit; remission of taxes, fees, land rental, land levy and other financial obligations (Article 6).

Particularly, SMEs may apply the corporate income tax rate lower than the common tax rate applied to enterprises for a limited period of time. Micro- enterprises may apply tax administrative procedures and simple accounting regimes (Article 10).

This Law shall take effect from January 1st, 2018.

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