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Vietnam Announces Corporate Tax Breaks For SMEs

Monday, April 15, 2019

Vietnam's Ministry of Finance has forwarded a proposal to parliament to legislate for corporate tax relief for small and medium sized enterprises.

The proposal would involve the introduction of a 17 percent corporate income tax rate (down from 20 percent) for those businesses with an annual turnover of between VND3bn (USD129,000) and not more than VND50bn in the preceding year, providing also that they have no more than 100 employees.

A lower rate of 15 percent would be introduced for those businesses with turnover below this threshold in the preceding year providing they employ no more than 10 people.

The proposal would also provide a two-year corporate tax holiday to newly started businesses, subject to certain conditions.

Certain businesses and income would be excluded from the scope of the reduced corporate tax rates, including real estate income, mining and other natural resources companies, investments in various projects, and foreign production and business activities.