The aim is to create a more favourable tax regime for micro and small enterprises that account for nearly 94 per cent of the 900,000 businesses operating in the country now.

The tax cut, included in the draft Law on Corporate Income Tax (amended), is expected to be presented to the National Assembly for first review in October this year and for approval in May 2025, according to domestic media reports.

The ministry, meanwhile, is collecting feedback on the draft from government agencies and the public.

It said one of the drafting committee’s key objectives was to create a more favourable tax regime for micro and small enterprises.

The draft law proposes a 15 per cent tax rate for businesses with total revenue not more than 3 billion VND, and a 17 per cent tax rate for those with total revenue higher than 3 billion VND and lower than 50 billion VND.

A section of the business community has expressed enthusiasm about the proposal, while expressing concern over some provisions in the draft posing policy risks.

Fibre2Fashion News Desk (DS)