Enterprise revenue tax to be down to 25%
VNGOP – The Ministry of Finance (MoF) is collecting comments on the draft project to revise the Law on Enterprise Revenue Tax and the Bill on Value Added Tax (amended). Accordingly, the general tax rate will be reduced from 28% to 25% and the additional tax on income from land use rights transfer abrogated.
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Business income tax reduced to attract more investors |
According to the MoF’s analysis, the amendments are aimed at creating more favorable investment and business environment in which enterprises have more opportunities to accumulate and raise resources for their performance. Moreover, competitiveness will increase to attract more investors.
Under the drafts, newly-established businesses operating in extremely disadvantaged socio-economic localities or engaging in key sectors (high technologies, research and development, education-training, health, culture, sports, and environment protection) will be granted with a tax rate of 10% for 15 years, a tax exemption for four years and a tax reduction of 50% for nine years.
Newly-founded businesses operating in disadvantaged socio-economic localities can enjoy a tax rate of 20%, a tax exemption and tax reduction of 50% for ten, two and four years respectively.
To speed up international transport carried out by Vietnamese enterprises in line with international practices, the revised Law on Value Added Tax stipulates that this activity will be applied with a tax rate of 0%.
The tax rate of 5% is mainly imposed on input goods and services for agricultural production and people’s demand.
By Hoàng Phương
