Revising Law on Corporate Income Tax: Promoting resources for socio-economic development

VCN - After a long time of implementation and many changes in reality, it is time to amend the Law on Corporate Income Tax (CIT) to remove difficulties for production and business activities, and open up and promote resources for economic and social development.
Extending deadline for VAT payment, corporate income tax and personal income tax 2022 Extending deadline for VAT payment, corporate income tax and personal income tax 2022
Amending regulations on temporary payment of 75% corporate income tax Amending regulations on temporary payment of 75% corporate income tax
MoF to revise regulations on temporary payments of Corporate Income Tax MoF to revise regulations on temporary payments of Corporate Income Tax
It is necessary to review and revise the regulations of the Law on Corporate Income Tax appropriately to ensure the consistency of the legal system. Photo: Internet
It is necessary to review and revise the regulations of the Law on Corporate Income Tax appropriately to ensure the consistency of the legal system. Photo: Internet

It is time to revise the Law on Corporate Income Tax

The Law on CIT was passed on June 3, 2008, at the 3rd session of the 12th National Assembly and took effect from January 1, 2009, to replace the 2003 Law on CIT. Since then, the Law on CIT has undergone two in 2013 and 2014 to solve inadequacies arising in practice and comply with tax management requirements in each period.

According to the Ministry of Finance, since its promulgation, the contents of the Law on CIT and the revised Laws have positively affected many aspects of socio-economic life and met developments of the socialist-oriented market economy. Besides the role of ensuring critical and stable revenue for the State budget and regulating the economy, the CIT policy also plays a vital role in ensuring macroeconomic stability, removing difficulties, encouraging enterprises to expand production and business and exports, boosting investment in priority sectors, fields and areas according to the orientations and strategies of the Party and State in each period.

However, after many years of application in the current domestic and international context, which have many changes, the country’s deepening international integration, the development of the domestic economy, affecting all aspects of the economy, life and society, many forms of e-commerce transactions, investments, and business lines based on digital platforms and new business models have been emerged, which has posed a requirement to review, amend and supplement the provisions of the Law on CIT.

Further, with the current socio-economic development situation and the forecast of future development trends, the CIT policy has also revealed certain limitations that should be improved to promote further the role of CIT, including regulations on tax-free income, taxable income, and principles related to determining deductible and non-deductible expenses and policies on CIT incentives. The fields and areas that enjoy tax incentives in recent years have tended to expand, while some fields that need to be prioritized have not yet had preferential policies (such as tax incentives for small-sized enterprises, start-up enterprises, and science and technology enterprises).

In addition, the Ministry of Finance also said that in recent years, the National Assembly had issued many new laws affecting the content and structure of the Law on CIT, such as the Investment Law 2020 and the Law on Support for Small- and Medium-sized Enterprises. These Laws have contents related to tax incentives for small-sized enterprises, start-up enterprises, science and technology enterprises, etc. Besides, regulations on conditions, the principles of application and the transition of tax incentives are also facing problems, and there is a lack of consistency in the legal system. Therefore, to ensure the consistency and uniformity of the legal system, it is necessary to review and perfect the provisions of the Law on CIT appropriately.

Rearrange policies on tax incentives

The Ministry of Finance recently completed the draft proposal for developing the Bill of the Law on CIT (amended). Accordingly, this Bill is to fully institutionalize the guidelines of the Party and State on reforming the tax policy system by 2030; promptly remove difficulties for production and business activities; accelerate administrative procedure reform, and create resources for socio-economic development. In addition, the Law on CIT (amended) will also ensure the consistency and uniformity of the legal system, comply with the international CIT reform trend, and ensure stable state budget revenue.

The Ministry of Finance said that the contents of the Bill would contribute to creating conditions to promote and support enterprises to expand production and business; review and rearrange policies on tax incentives to encourage and attract investment in priority sectors, fields and areas according to the orientation of the Party and the State. Moreover, it is necessary to offer CIT incentives for small-sized enterprises and encourage business households to transform into enterprises to nurture and create stable revenue.

Extending deadline for VAT payment, corporate income tax and personal income tax 2022 Extending deadline for VAT payment, corporate income tax and personal income tax 2022

Notably, in this Bill, the Ministry of Finance will study to expand the tax base; study, amend and supplement several regulations to combat CIT fraud and loss, ensuring State budget revenue. The Ministry of Finance will also amend the inadequacies in the current regulations to ensure the transparency, easy-to-understand and easy-to-implement of the Law; contribute effectively consulting to international tax initiatives and forums.

By Thuy Linh/ Huyen Trang

Related News

Policy adaptation and acceleration of digital transformation in tax and customs management

Policy adaptation and acceleration of digital transformation in tax and customs management

VCN - In order to contribute to economic growth, tax, customs and logistics management policies need to ensure high adaptability, stability and predictability so that they require little amendment or supplementation.
Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Recently, the implementation of a series of policies on tax, fee, and land rent exemption, reduction, and deferral has provided timely support for businesses to recover and develop, thereby making positive contributions to economic growth.
Timely decisions will bring about many innovations

Timely decisions will bring about many innovations

VCN - Speaking to reporters of Customs Magazine, economic expert, Associate Professor, Dr. Dinh Trong Thinh (photo) emphasized that the amendment and supplementation of 5 laws: Law on Public Investment, Law on Planning, Law on Investment, Law on Public-Private Partnership Investment and Law on Bidding will be an important policy lever to promote economic growth, help stabilize the macro economy, especially in the current period when the world economy is experiencing many fluctuations.
Amending Law on Corporate Income Tax must ensure budget revenue and overcome tax evasion

Amending Law on Corporate Income Tax must ensure budget revenue and overcome tax evasion

VCN - On September 23, 2024, the National Assembly Standing Committee gave opinions on the draft Law on Corporate Income Tax (amended). Many important contents of the draft Law such as: the scope of regulation of the draft Law; the authority of the National Assembly and the Government in directing, implementing the Law; tax rates for small and micro enterprises... were discussed.

Latest News

Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

VCN - Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

VCN - In order to avoid the situation of arriving at the airport or border gate and only finding out that you owe taxes and being temporarily suspended from leaving the country by the Tax Authority, the Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

VCN - In June 2005, the World Customs Organization (WCO) developed and adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade. The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs. This approach introduces a comprehensive method for cross-border goods management and promotes closer cooperation between Customs, businesses, and stakeholders. The Customs News presents a two-part series on implementing the SAFE Framework in Vietnam.
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax administration.

More News

Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of handling administrative violations of the customs sector.
Implementing the SAFE Framework in Vietnam: Lessons from practice

Implementing the SAFE Framework in Vietnam: Lessons from practice

VCN - The Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) is a strategic international instrument introduced by the World Customs Organization (WCO) to enhance security and trade facilitation in global supply chains. It contributes significantly to the economic development of the 21st century.
Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

VCN - Recognizing the significance, impact, and benefits of the SAFE Framework in customs modernization and reform, Vietnam Customs is advancing the implementation of SAFE. This involves both capacity building and phased deployment aligned with Vietnam Customs’ development strategy and practical needs.
Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

VCN - The Ministry of Finance said that the abolition of regulations on tax exemption for imported goods valued at less than VND1 million must comply with international practices in the context of the growing trend of cross-border e-commerce activities.
Implement regulations on special preferential import tariffs under VIFTA

Implement regulations on special preferential import tariffs under VIFTA

VCN - The General Department of Vietnam Customs (GDVC) requests provincial and municipal customs departments to implement Vietnam's special preferential import tariffs under the Free Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the State of Israel for the period 2024-2027 (referred to as the VIFTA) from October 15, 2024.
Perfecting tax policy for goods traded via e-commerce

Perfecting tax policy for goods traded via e-commerce

VCN - In order to ensure the goal of developing e-commerce activities without causing loss of state budget revenue, the Customs authority is actively coordinating with policy advisory units of the Ministry of Finance to research and review regulations on tax exemption for import and export goods transacted via e-commerce.
Are belongings of foreigners on business trip to Vietnam exempt from tax?

Are belongings of foreigners on business trip to Vietnam exempt from tax?

VCN - That is the question of Nhat Viet Relocation Company Limited, which has just been answered by the Customs Department and given specific instructions on providing a confirmation of residence of foreigners on business trip to Vietnam to follow tax exemption procedures for movable assets.
Amending regulations on enforcement measures in tax administration

Amending regulations on enforcement measures in tax administration

VCN - In draft of 1 law amending 7 laws in the financial sector, the Ministry of Finance proposed to amend the regulations on enforcement measures in tax administration in the Law on Tax Administration.
Customs procedures for import and export goods during system disruptions

Customs procedures for import and export goods during system disruptions

VCN - When the electronic customs data processing system experiences a disruption, customs procedures for export and import goods, goods under customs supervision, and goods sent via express delivery will follow a separate set of procedures.
Read More

Your care

Latest Most read
Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax
Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of h
Mobile Version