Vietnam's corporate income tax rate of 20 per cent is higher than in Singapore (17 per cent) and Brunei (18.5 per cent).
Nguyễn Văn Thân, chair of the Vietnam Association of Small and Medium Enterprises (VINASME) speaks at a regular meeting between the Government and small and medium-sized enterprises in Hà Nội on Thursday. — VNA/VNS Photo Dương Giang
The Vietnam Association of Small and Medium Enterprises (VINASME) has proposed that the Law on Corporate Income Tax be revised to support small- and medium-sized enterprises (SMEs).
Nguyễn Văn Thân, chair of the association, made the request at a regular meeting between the Government and SMEs in Hà Nội on Thursday.
“Provisions to reduce taxes for the entire SME sector should be added to the law to help sustain revenue sources,” he said.
“More credit institutions should be encouraged to offer mortgage-based lending that relies on assets formed in the future. Only a few banks offer such loans at the moment, but their scale is very small,” he added.
According to Thân, the 20 per cent corporate income tax rate has been in place since 2016. It is the same as the rate in Thailand, Laos and Cambodia, lower than in the Philippines (30 per cent), Malaysia (24 per cent), Indonesia (22 per cent), but higher than in Singapore (17 per cent) and Brunei (18.5 per cent).
“A tax reduction along with additional support for small and medium-sized enterprises is essential,” he said.
The association also proposed that the Government impose administrative sanctions on entrepreneurs and businesses that have not fully fulfilled their obligations to the State. The aim is to uphold the rule of law while alleviating concerns for other entrepreneurs and businesses.
The private sector plays an important role in the economy, as it contributes about 50 per cent of GDP and 56 per cent of total social investment capital, while creating more than 82 per cent of jobs, Thân said.
Of this, the domestic private sector accounts for 28 per cent of GDP, higher than other economic sectors, he added.
"If this sector can grow sustainably at a double-digit rate, the GDP target of over 8 per cent this year and at least 10 per cent for the 2026-2030 period might be achievable," he said. — VNS
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