The Ministry of Finance has proposed amendments to regulations on the application of corporate income tax incentives within the draft Law on Corporation Income Tax (amended), to tackle existing shortcomings.

In the draft, the ministry proposes amendments to four groups of policies, including those on dealing with difficulties in production and trade and creating better conditions for taxpayers.

The ministry also suggested reviewing and rearranging sectors and areas benefiting from corporate tax incentives, to narrow the application of tax incentives in areas with developed socio-economic conditions and expand application to new and emerging sectors and areas and those that need investment encouragement.

A review from the ministry showed that businesses often invest in areas with favorable infrastructure conditions, such as the southern region and certain localities in the Red River Delta. Meanwhile, mountainous and remote areas like the north-central and central highlands regions have the lowest rate of investment, particularly by FDI enterprises.