Vietnam to propose tax cuts for SMEs

Vietnam’s Ministry of Finance is considering reducing the corporate income tax rate to 15-17 per cent for micro and small enterprises with total revenue of up to 50 billion Vietnamese dong, down from the current 20 per cent flat rate.

The proposed tax cuts aim to stimulate economic growth and support the development of small businesses, which constitute nearly 94 per cent of all enterprises in Vietnam.

While the business community has welcomed the tax incentives, concerns have been raised about potential policy risks and the need for clearer guidelines.

The government is currently gathering feedback on the draft law before its submission to the National Assembly for approval.

If implemented, the tax cuts are expected to have a positive impact on Vietnam’s small and medium-sized enterprise (SME) sector, fostering entrepreneurship and innovation.

Attribution: Vietnam News Agency