Vietnam to Lower Corporate Income Tax to Lure Investment
The Vietnamese Ministry of Finance now considers gradually reducing corporate income tax (CIT) to a rate that is lower than the common level in the region, in order to attract more investments.
A senior ministry official said that the country would have to cut the CIT rate if other regional countries do so.
The move aims to improve competitiveness of local investment environment and help firms expand production and business in the country, said the official who wished to be unnamed.
Vietnam’s corporate income tax is 25% at the moment, compared to 20% in South Korea and 19% in Singapore.
Nguyen Thi Cuc, chairwoman of the Vietnam Tax Consulting Association, predicted that the CIT rate could be reduced to 20%.
In 2009, the ministry spent VND10 trillion for tax concessions and arrears for local enterprises in government efforts to stimulate growth and consumption. (HCM City Law)
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