The Ministry of Economy and Finance (“MEF”) recently issued a Prakas no. 002 MEF.PrK.GDT dated 6 January 2023, to extend the suspension of the 1% Prepayment on Income Tax for enterprises in the textile and garment industry. This suspension applies on enterprises which are recognized as Qualified Investment Projects which expires tax on income exemption period until the end of year 2025.
Under this Prakas, the enterprises in the textile and garment industry refer to enterprises that produce garment, textiles, footwear, bag, handbag and hat for export.
To be eligible for this suspension, the enterprises in the textile and garment industry is required to:
- keep proper accounting records in accordance with the provisions of Law on Taxation and the provisions of Law on Accounting;
- file and pay taxes by the stipulated deadline; and
- provide an independent annual audit report to the tax administration.
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