On 26 March 2019, Vietnam’s Ministry of Finance has released a consultation on a draft resolution for the introduction of reduced corporate tax rates for small- and medium-sized enterprises (SMEs). The draft proposed following reduced rates:
- 15% for SMEs with annual turnover below VND 3 billion and no more than 10 employees; and
- 17% for SMEs with annual turnover between VND 3 billion and VND 50 billion and no more than 100 employees.
The reduced rates shall not apply to the following cases:
- Income from capital transfer or capital contribution transfer; income from real estate transfer (except social housing stipulated in the Law on Corporate Income Tax), income from transfer of investment projects, transfer of rights to participate in investment projects, transfer of exploration rights , mining;
- Income received from production and business activities outside Vietnam; and
- Income from the search, exploration and exploitation of oil, gas and other rare and precious natural resources and income from mining activities.
