93% enterprises to benefit from cut in corporate income tax

About 700,000 enterprises are expected to enjoy a cut in corporate income tax (CIT) to between 15-17 per cent from July 1 this year, down from the current rate of 20 per cent.

People apply for business registration certificates at the Department of Planning and Investment. The tax rate for micro and small enterprises is expected to decrease to 15-17 per cent. — Photo baodauthau.vn

This is one proposal by the Ministry of Finance to be submitted to the National Assembly in the May meeting to implement the CIT incentive scheme for micro and small enterprises from July 1, six months earlier than the initial roadmap of January 1, 2021, to alleviate business difficulties amid the COVID-19 pandemic.

The tax rate for micro and small enterprises is 15-17 per cent depending on the revenue and the number of employees of the business.

At the same time, new enterprises who transform from business households will enjoy an income tax exemption for two consecutive years from the time they first make a profit.

“In the case of implementing from July, the policy will assist 700,000 businesses, accounting for 93 per cent of the total enterprises nationwide, reducing their tax obligation by about VNĐ7.8 trillion in 2020,” said Minister Dinh Tien Dung.

It is estimated that the State budget will lose about VND15.6 trillion ($669.5 million) in revenue every year.

 

In addition, to further support new enterprises, the ministry is proposing to slash business-related fees by between 50 per cent and 70 per cent, worth an estimated VND500 billion ($21.5 million) this year.

The cut includes 70 per cent of the enterprise registration fee; 67 per cent of charges for providing information about enterprises; 50-70 per cent of the fee for assessment, amendment and supplementation of postal operation licences.

The ministry is also revising its circular on licence tax. It is expected that in the second quarter, micro and small business converted from business households will be exempt from the licence tax.

The tax exemption period is three years from the issuing date of the first business registration certificate.

Earlier, the Ministry of Finance issued a circular slashing fees for nine service groups and offering six service groups free in the field of securities applied at the stock exchanges and depository centre. — VNS

 
 

Other News

.
Vietnam Grand Sale 2021 to take place in December
Vietnam Grand Sale 2021 to take place in December
BUSINESSicon  25/11/2021 

The Vietnam Grand Sale 2021 will take place across the country from December 1, 2021 to January 1, 2022.

Japan’s investment in Vietnam soars 90%
Japan’s investment in Vietnam soars 90%
BUSINESSicon  24/11/2021 

Japanese investors poured approximately US$3.4 billion into Vietnam from January to October 2021, soaring 90% compared with the same period last year.

42 wind power projects permitted to operate commercially
42 wind power projects permitted to operate commercially
BUSINESSicon  24/11/2021 

A total of 42 wind power plants featuring a total capacity of 2,131.3MW have been approved for commercial operation as of mid-November, according to data released by Electricity of Vietnam (EVN).

Vietnam-Malaysia-India container shipping route to be inaugurated
Vietnam-Malaysia-India container shipping route to be inaugurated
BUSINESSicon  24/11/2021 

The Vietnam Maritime Corporation (VIMC) announced on November 23 that it will inaugurate a container shipping route linking Vietnam, Malaysia and India on November 25.

Tax rescheduling proposed to support local automobile industry
Tax rescheduling proposed to support local automobile industry
BUSINESSicon  24/11/2021 

The Ministry of Finance (MoF) has proposed rescheduling excise tax payments for local automobile manufactures and assemblers.

Big foreign companies to continue to increase investment in Vietnam
Big foreign companies to continue to increase investment in Vietnam
FEATUREicon  25/11/2021 

Most foreign invested enterprises have reopened their factories after lockdown and are optimistic about business performance for the last months of the year.

HoSE to develop other covered warrant products
HoSE to develop other covered warrant products
BUSINESSicon  24/11/2021 

The Ho Chi Minh Stock Exchange (HoSE) plans to develop products like covered warrants bought based on underlying assets including indices/ETF and put warrant, to further improve covered warrant products on the Vietnamese stock market.

Policy choices for Government to design economic master programme
Policy choices for Government to design economic master programme
BUSINESSicon  24/11/2021 

Vietnam’s Government is planning a master programme to gear up for a post-pandemic recovery, which this time requires sophisticated organisation and effective implementation to ensure long-term efficiency.

Vietnam seeks new-generation ODA from Japan
Vietnam seeks new-generation ODA from Japan
BUSINESSicon  24/11/2021 

Prime Minister Pham Minh Chinh suggested Japan provide Vietnam with new-generation official development assistance with maximum incentives and the simplest procedures.

FTAs momentum for Vietnam's exports
FTAs momentum for Vietnam's exports
BUSINESSicon  24/11/2021 

Since joining the World Trade Organisation 15 years ago, Viet Nam has become a part of 17 FTAs, which are either under negotiation or underway. This has helped create a momentum for the country's exports.

VIETNAM BUSINESS NEWS NOVEMBER 24
VIETNAM BUSINESS NEWS NOVEMBER 24
BUSINESSicon  24/11/2021 

VN seeks Japanese investments in renewable energy

Textile - garment industry may flourish in 2022: insiders
Textile - garment industry may flourish in 2022: insiders
BUSINESSicon  24/11/2021 

The textile - garment industry is expected to thrive and earn 40 billion USD in exports next year, when the COVID-19 pandemic is forecast to ease in Vietnam and the world.

VIETNAM BUSINESS NEWS NOVEMBER 23
VIETNAM BUSINESS NEWS NOVEMBER 23
BUSINESSicon  23/11/2021 

Demand for industrial, logistics estates at core of enquiries next year: Savills

Enterprises of agricultural export to China strive to adapt to new market regulations after COVID-19 impacts
Enterprises of agricultural export to China strive to adapt to new market regulations after COVID-19 impacts
BUSINESSicon  23/11/2021 

China's increasing demand for imports of high-quality agricultural products has contributed to boosting the recovery of domestic production and export after the COVID-19 pandemic impacts.

Vietnam - US trade likely to reach 100 billion USD this year
Vietnam - US trade likely to reach 100 billion USD this year
BUSINESSicon  23/11/2021 

Vietnam–US trade could hit 100 billion USD in this year, up 221 times against the figure in 1995 when the two countries normalised relations.

Special working groups set up to speed up public disbursement
Special working groups set up to speed up public disbursement
BUSINESSicon  23/11/2021 

Prime Minister Pham Minh Chinh has decided to establish six working groups to accelerate the disbursement of public investment capital in 2021 at ministries, agencies and localities.

Vietnamese investors pour money into realty bonds despite China’s Evergrande case
Vietnamese investors pour money into realty bonds despite China’s Evergrande case
FEATUREicon  24/11/2021 

Realty bonds often catch special attention in the primary market thanks to attractive interest rates, even though warnings are often issued about their risks.

Vietnam Airlines to fly non-stop to US
Vietnam Airlines to fly non-stop to US
FEATUREicon  24/11/2021 

The first commercial flight from HCM City to the West Coast of the US is scheduled to take off on November 28, 2021. Vietnam Airlines’ CEO Le Hong Ha talks about the opening of the special air route.

Vietnam seeks VND90 trillion to build railways connected to seaports
Vietnam seeks VND90 trillion to build railways connected to seaports
BUSINESSicon  24/11/2021 

Vietnam Railway Authority (VRA) has submitted a plan to call for foreign investment in two railways to be connected to the Lach Huyen and Cai Mep – Thi Vai ports.

Enterprises of agricultural export to China strive to adapt to new market regulations after COVID-19 impacts
Enterprises of agricultural export to China strive to adapt to new market regulations after COVID-19 impacts
BUSINESSicon  23/11/2021 

China's increasing demand for imports of high-quality agricultural products has contributed to boosting the recovery of domestic production and export after the COVID-19 pandemic impacts.

 
 
 
Leave your comment on an article

OR QUICK LOGIN