The National Financial Supervisory Committee (NFSC) has proposed cuts to corporate income tax for small-and-medium sized enterprises to promote their development.
This was a highlighted in the January-September fiscal and budget report by the National Financial Supervisory Committee (NFSC) published which said that the tax cut would help restructure budget revenue in a sustainable direction.
Prime Minister also said that the Vietnamese Government intended to cut corporate income tax from the current 20-22% to 15-17 % to create an attractive investment environment for Vietnam.
In August 2017, the Ministry of Finance also proposed a tax rate of 15% on micro-businesses (those with an annual revenue of less than VNĐ3 billion) and 17% for SMEs (those with less than 200 employees and annual revenue from VNĐ3 billion to VNĐ50 billion).
According to deputy chairman of the Vietnam Association of SMEs, the tax cuts for businesses were good but not enough. In the long term, policies should focus on improving the competitiveness of enterprises and their operational efficiency.
According to the General Department of Taxation, it was necessary to review tax policies comprehensively to increase the sustainability of budget revenue in terms of scale and structure.
For SMEs, reasonable tax rates would be proposed to increase competitiveness but ensure compliance with the Law on Supporting SMEs.
