Income tax cut of 30% for small businesses

Income tax cut of 30% for small businesses

VGP - The National Assembly’s resolution on reducing corporate income tax by 30% for small and medium-sized businesses came into effect on August 3

VGP - The National Assembly’s resolution on reducing corporate income tax by 30% for small and medium-sized businesses came into effect on August 3.

 

Income tax cut of 30% for small businesses

 

The beneficiaries should make no more than VND200 billion (US$8.6 million) in revenue this year. 

 

It is part of the various measures to support businesses affected by the coronavirus pandemic.

 

The tax cuts are expected to trim VND22.44 trillion (US$972.3 million) off government revenues in 2020.

 

Finance Minister Dinh Tien Dung said the incentive is expected to help small businesses survive the impact of the COVID-19 pandemic. It also aims to lay the foundation for them to grow stronger in the coming time.

The tax cut means State revenue this year will lose more than US$990 million.

Small and micro businesses account for 93% of the total number of businesses in Viet Nam. 

                                                                                                                                                                                                     

                                                                                                                                                                                                              By Hoang Ha

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