Vietnam’s corporate income tax to be lowered further

According to a UNDP-funded economic report, Viet Nam’s fee and tax rates against GDP are 1.4-3 times higher than other countries in the region.

However, Vietnamese officials as well as experts from the World Bank (WB) and International Monetary Fund (IMF) shared the view that the country’s tax-sourced budget collection is of medium level in the world.

Regarding corporate income tax, Viet Nam’s National Assembly has since 2003 lowered the rate from 32% to 25% at present. Meanwhile, the average corporate income tax of 83 countries around the world in 2011 was 27%, according to statistics from the Financial Strategy Institute.

Under the tax reform roadmap till 2020 approved by the PM, Viet Nam will gradually slash its corporate income tax. The Ministry of Finance is drafting amendments to the Corporate Income Tax Law and then submitting them to the National Assembly to approve in 2013.

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