Archive for 2013

National Assembly drops business income tax to 20% for SMEs

In the latest Amendment to the Law of Business Taxation (Law No. 32/2013/QH13), the National Assembly reduced business income tax to 20% for businesses with annual turnover of less than 20 billion VND.
Debates in the National Assembly when this bold measure was proposed by the Economic Committee focus on the current budget deficit of between 50% to 60% GDP, and the Government’s ability to curb spending. In the last few years, poor management and investment decisions in state-owned conglomerates such as Vinalines or Vinacomin have caused serious bleeding in the budget. Last month, Prime Minister Nguyen Tan Dung and his team survived confidence ballot.
There are still questions if this Government can afford this tax reduction for SMEs or there may be some claw-backs in business deductions which are decreed by the Ministry of Finance.

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