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Vietnam floats corporate income tax cuts for small-micro businesses

The Ministry of Finance has issued a dispatch recommending a corporate income tax cut from the standard 20 percent to 15 percent for enterprises with revenue less than VND 3 billion, or about US$117,855, a year. It has also suggested a reduction to 17 percent for business with revenue between VND 3 billion and VND 50 billion, or US$1.96 million, a year.

Of note, the draft amendments to the Law on Corporate Income Tax do not seem to make  a distinction between local and foreign firms. That being the case, foreign-owned small businesses–cafes, bars, gyms, and what not–could also benefit from these changes if passed. That said, there does not seem to be a timeline for a decision as to whether these changes will  be approved and go ahead or not.

See also: Corporate Income Tax in Vietnam 2024: Quick Read

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