To support micro and small enterprises in capital accumulation and business development, the Ministry of Finance has proposed a tax rate of 15-17% for businesses with annual revenue not exceeding VND50 billion in the preceding year, instead of the current single rate of 20% Annual budget revenue fall of VND12.6 trillion The draft amendment to the Corporate Income Tax Law is scheduled to go before the National Assembly for the first hearing in the October 2024 sitting and reviewed for approval in the May 2025 sitting. Currently, the Ministry of Finance is seeking feedback on the draft law. A significant policy proposal from the drafting agency is to apply more preferential tax rates for micro and small enterprises to help them accumulate capital for expansion, while maintaining the standard tax rate of 20% for others. Specifically, a 15% tax rate would apply to companies with total revenue not exceeding VND3 billion in the preceding year, and a 17% tax rate would apply to companies with total revenue from over VND3 billion to no more than VND50 billion. Currently, micro and small enterprises are subject to a single tax rate of 20%, like businesses of larger sizes. The Ministry of Finance […]
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