Bloomberg Tax
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Tax
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Vietnam Finance Ministry Proposes Corporate Tax Cuts

April 10, 2020, 1:31 PM

Vietnam’s Ministry of Finance has proposed corporate tax cuts to supplement tax payment deadline extensions announced earlier this week in response to the coronavirus pandemic.

The Ministry, led by Finance Minister Dinh Tien Dung, proposed Friday for the government to apply a preferential corporate tax rate of 15-17%, depending on the size of a company’s turnover and number of employees. Vietnam’s headline corporate tax rate is 20%. The Ministry is proposing to apply the measure starting in July, which would benefit about 700,000 businesses in Vietnam that make up 93% of all businesses in the country.

  • The Ministry of Finance’s Friday statement suggested the government should exempt small and micro businesses from paying corporate income taxes for two years from the time their income reaches the level where it would be taxable.
  • The Ministry also proposed raising the family allowances for personal income taxes, benefiting around 6.8 million households.
  • The statement also adds details to an April 8 announcement of a five-month extension of deadlines for payment of value-added tax and corporate income tax; payment of VAT and personal income tax of households; and payment of land rents of businesses, organizations and individuals.

To contact the reporter on this story: Kazuhiko Shimizu in Bangkok at correspondents@bloomberglaw.com

To contact the editors responsible for this story: Meg Shreve at mshreve@bloombergtax.com; Joe Stanley-Smith at jstanleysmith@bloombergtax.com