Corporate Income Tax to Touch 20 Percent
The current corporate income tax of 25 percent is expected to be lowered to 20 percent since January 1, 2016 in a bid to make the domestic business environment more competitive.
On behalf of the PM, Deputy PM Vu Van Ninh on May 20 in Ha Noi delivered a draft amended Corporate Income Tax Law to the National Assembly deputies at their fifth session of the 13th Legislature.
The draft law is expected to resolve inefficiency; encourage investment, production and business in line with the global tax reform trends and the national strategy on tax reform, streamline administrative procedures for tax payers, and modernize tax management.
It stipulates that the current tax rate of 25 percent will be lowered to 22 percent on January 1, 2014.
Only the enterprises having fewer than 200 employees and earning less than VND20 billion per year will enjoy a tax rate of 20 percent since July 1, 2013.
Ten percent of income tax will be applied to enterprises which gain profits from selling and hiring social housing.
Since January 1, 2016, regular tax rate will be 20 percent and preferential tax rate will be adjusted to only 17 percent.
The Ministry of Finance calculated that the tax cut will lead to lower tax collection of around VND22.2 trillion in 2014 and VND21,190-21.580 billion in 2016.
VGP
Vietnamese
