Vietnam to Maintain Low Corporate Income Tax Rates Amid Global Tax Increases
Deputy Prime Minister Ho Duc Phoc reaffirms support for businesses through tax policy.
Vietnam will continue to support businesses by maintaining its low corporate income tax (CIT) rates, even as many countries around the world are raising taxes, Deputy Prime Minister Ho Duc Phoc confirmed during a National Assembly session on November 28. The current CIT law imposes a 15% tax on businesses with annual revenue below VND 3 billion and 17% on those earning between VND 3 billion and VND 50 billion. The standard CIT rate remains at 20%, which some lawmakers, including Nguyen Thi Le from Ho Chi Minh City, believe is high compared to other ASEAN nations. She suggested reducing it to 19% to make Vietnam more competitive.
Deputy Pham Van Hoa from Dong Thap Province raised concerns about ensuring tax compliance among e-commerce businesses operating on digital platforms, calling for fairness in the tax system for domestic enterprises. In response, Deputy PM Phoc acknowledged these concerns, emphasizing the importance of a tax system that supports growth. He pointed out that while other countries are increasing taxes, Vietnam is implementing an expansionary fiscal policy to help the economy recover post-pandemic.
Deputy PM Phoc also proposed granting the government flexibility to adjust revenue thresholds for tiered tax rates, ensuring they are relevant amid price fluctuations. He noted that Vietnam's CIT rates are still lower than those of other Southeast Asian countries, such as the Philippines (30%) and Malaysia (24%), and confirmed that all businesses, including foreign ones, are subject to taxes in Vietnam.
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Deputy Pham Van Hoa from Dong Thap Province raised concerns about ensuring tax compliance among e-commerce businesses operating on digital platforms, calling for fairness in the tax system for domestic enterprises. In response, Deputy PM Phoc acknowledged these concerns, emphasizing the importance of a tax system that supports growth. He pointed out that while other countries are increasing taxes, Vietnam is implementing an expansionary fiscal policy to help the economy recover post-pandemic.
Deputy PM Phoc also proposed granting the government flexibility to adjust revenue thresholds for tiered tax rates, ensuring they are relevant amid price fluctuations. He noted that Vietnam's CIT rates are still lower than those of other Southeast Asian countries, such as the Philippines (30%) and Malaysia (24%), and confirmed that all businesses, including foreign ones, are subject to taxes in Vietnam.
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