The 15th National Assembly has just officially passed the amended Law on Corporate Income Tax (CIT). This will be a clearer and more transparent legal framework, contributing to improving the investment and business environment and encouraging business development.
Small and medium-sized enterprises will be exempted from corporate income tax for the first 3 years from their establishment. This regulation aims to institutionalize the policy in Resolution 68 of the Politburo . Currently, we have about 5 million business households. This policy will be the driving force for business households to transform into enterprises, an important basis for completing the goal of having 2 million enterprises by 2030.
"If I were a business household, I would have to pay more than 200 million VND in taxes every 2-3 years. If I become a small or medium-sized enterprise, I would be exempted from taxes. I will consider becoming a small or medium-sized enterprise to use that money most appropriately, to develop my own economic household and for the State in general," said Ms. Nguyen Thi Duyen, a business household in Hanoi.
"When selling, we also want to have units, agencies, and schools that people want to buy from. Now that we have full invoices and documents, we also want to become micro-enterprises to meet the development needs of society," said Ms. Le Hai Duong, a business owner in Hoa Lu City, Ninh Binh Province.
Preferential tax rates to support small and medium enterprises development
Instead of the current corporate income tax rate of 20%, from October 1, 2025, small and medium-sized enterprises will receive tax incentives of 15% and 17%.
Currently a business household must pay taxes, converting to a small enterprise is exempted from taxes for the first 3 years. After the policy is implemented, many business households will convert to small enterprises.
Newly established enterprises have incentives, as well as existing small and medium-sized enterprises. Instead of the current corporate income tax rate of 20%, from October 1, 2025, small and medium-sized enterprises will receive tax incentives of 15% and 17%.
Specifically, the tax rate of 15% applies to enterprises with total revenue of no more than 3 billion VND/year. The tax rate of 17% applies to enterprises with total annual revenue from over 3 billion to no more than 50 billion VND. This policy will help small and medium enterprises have more resources to reinvest in production and business activities.
Recording revenue of millions of USD each year, equivalent to tens of billions of VND, the company said that they are eligible for a 17% tax rate. With the reduction in corporate income tax, they will save hundreds of millions of VND each year to maintain production.
Mr. Nguyen Van Tuyen, Founder of Trevi Bike said: "That surplus is not much for large enterprises, but for small enterprises, this is also a very meaningful amount of money, they can use it to pay employee salaries, buy raw materials and small machines".
Reducing corporate income tax at different rates for each business size is considered to encourage business households to develop into enterprises, and create motivation for enterprises to expand high-tech research centers.
After more than 10 years of operation, the company has decided to expand a third factory, which will also be a research center to produce high-tech products with high technological value to be able to export to more markets such as the United States and Europe.
"Corporate income tax for small and medium enterprises during the time when we need to accelerate, make breakthroughs and seize opportunities to grow together with the country, a corporate income tax of about 15-18% is reasonable and we will be more competitive in the market", Mr. Hoang Huu Thang - Chairman of the Board of Directors of Intech Group shared.
Mr. Mac Quoc Anh - Vice Chairman, General Secretary of the Hanoi Association of Small and Medium Enterprises said: "If we reduce, we will reduce according to the roadmap and scale so that we can encourage actual revenue, then the tax collected will be in accordance with the revenue level that people have achieved."
Currently, small and medium enterprises account for a very large proportion of the Vietnamese economy, about 98% of the total number of enterprises. Their limitations are difficulties in capital, raw materials, and markets. Therefore, reducing corporate income tax will be a great support for enterprises.
Many industries continue to receive corporate income tax incentives
Innovative enterprises are exempted from corporate income tax for 2 years and have 50% of the tax payable reduced for the next 4 years.
To avoid the situation where businesses circumvent the law by declaring low revenue to enjoy tax incentives, the draft law stipulates that the above preferential tax rate will not apply to businesses that are subsidiaries or affiliated companies that are large enterprises.
Not only does the draft law provide tax incentives for newly established enterprises and small and medium-sized enterprises, it also institutionalizes Resolution 198 of the National Assembly on private economic development, by adding many industries with corporate income tax incentives. In particular, innovative enterprises are exempted from corporate income tax for 2 years and have 50% of the tax payable reduced for the next 4 years. Other industries such as high-tech enterprises, high-tech agriculture, and renewable energy continue to be among the industries and fields with corporate income tax incentives at rates of 10-17%.
AMACCAO Group's Seraphin Waste-to-Energy Plant has just been operational for more than a month. When all the elements of green technology, high technology, and digital technology are present, waste can also be turned into money. Tax incentives are an important motivation for businesses to continue implementing green production and circular economy.
Mr. Nguyen Van Vinh - General Director of AMACCAO Group said: "Corporate income tax for some industries, including environmental energy, high technology or some fields, has helped businesses orient sustainable development for the country. We also want to contribute to the country's development by continuing to invest deeply in environmental energy, education, and industries with high-tech applications".
Depending on the industry, businesses can continue to enjoy preferential corporate income tax rates of 10%, 15% or 17%. During the same period, if a business enjoys many different tax incentives for the same income, the business can choose to apply the most favorable tax incentive. Experts say that support from tax policies will be an important driving force to promote economic growth.
Mr. Can Van Luc - Member of the Government's Policy Advisory Council said: "The Prime Minister's Government really wants us to achieve high growth, 8% this year, even double digits in the coming period, so we must use many policies to support businesses, support people, which is also to nurture revenue sources. It is also to stimulate investment and stimulate consumption".
The amended Law on Corporate Income Tax takes effect from October 1 and applies to the 2025 corporate income tax period. Businesses hope to soon have specific instructions so that they can promptly benefit from this policy.
"There will be many confusions related to taxes, support and laws. I think there should be specific instructions soon so that businesses can access and benefit," said Mr. Dao Ngoc Nam - Chairman of An Viet Group.
Press agencies are also entitled to a preferential corporate income tax rate of 10%, instead of the previous 20%. The tax reduction is an important motivation for press agencies to overcome difficulties, continue to perform well their assigned political tasks, and contribute to the overall development of the economy.
According to VTV.VN
Source: https://baohoabinh.com.vn/12/202031/Doanh-nghiep-moi-thanh-lap-duoc-mien-thue-3-nam-dau.htm
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