Recently, the Ministry of Finance (MoF) has proposed a number of changes to the country’s tax regime, including a reduced corporate income tax rate.
Small and medium-sized firms currently pay 20% in corporate income tax. If the proposal is approved, micro firms with less than VND3bn annual revenue will have the tax reduced to 15%. Firms with VND3bn to VND50bn revenue will have to pay tax at a rate of 17%. Companies that are members of a group and whose equity is 25% owned by a parent corporation will not be eligible for the lower tax rate.
The MoF also suggested solutions to help firms with various tax-related problems such as VAT and corporate income tax procedures.
