Corporate income tax on Vietnam's small businesses proposed for 15 per cent cut


HANOI (Xinhua): The corporate income tax on Vietnam's small and micro-sized enterprises might be cut to 15-17 percent from a current common rate of 20 percent, depending on previous revenues, according to the country's draft amendments to the Law on Corporate Income Tax, Vietnam News Agency has reported.

The Ministry of Finance has proposed a tax rate of 15 percent for enterprises with revenues of less than 3 billion Vietnamese dong (US$117,800) per year and 17 percent for enterprises with revenues between 3 billion dong and 50 billion dong (US$1.9 million).

The move aims to promote the development of the private economic sector and encourage a transition from business households into enterprises, said the ministry.

Vietnam's current common tax rate of 20 percent is equal to that of Thailand, Laos and Cambodia, lower than the Philippines (at 30 percent), Myanmar (at 25 per cent) and Indonesia (at 22 per cent) but higher than Singapore (at 17 per cent) and Brunei (at 18.5 per cent), according to the ministry.

There are currently about 900,000 enterprises in Vietnam, of which small and micro-sized enterprises account for nearly 94 percent. - Xinhua

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