While discussing proposed amendments to the Law on Corporate Income Tax, the National Assembly’s Standing Committee supported the government's proposal to lower the current general corporate income tax from 25 percent to 22 percent. The support was given at a meeting held on April 16 by the Committee, many members of which agreed that such a reduction would help boost investment in businesses and encourage business operations amidst lower purchasing power and high inventories.

The Committee also agreed to the proposed corporate income tax rate of 20 percent for small and medium enterprises and the proposed tax rate of 10 percent for businesses operating in the social housing field. In addition, with an aim to ease the difficulties facing these businesses as soon as possible, some members of the Committee advised that the tax reductions take effect from July of this year rather than January 2014, as proposed by the government. However, a specific effective date for such new tax rates will be subject to a resolution by the National Assembly on the revised Law in the near future. Offering preferential tax rates for enterprises was a positive solution, but tax reductions should only be made in combination with the adjustments to income tax and value added tax (VAT) laws that will be submitted to the NA for approval next May, said NA Chairman Nguyen Sinh Hung. Businesses operating in fields facing economic difficulties, such as agriculture, aquaculture and forestry in mountainous and island areas, could also be given preferential tax rates soon, the NA leader said. The amendments to the Law on Corporate Income Tax will be passed at the upcoming session of the National Assembly in May, the Standing Committee said.