In the first half of 2025, the total amount of deferred and reduced taxes in support of businesses is estimated to reach nearly VND97 trillion (nearly $3.7 billion). Concurrently, the customs sector has cut 39 procedures, abolished 15 business conditions, and accelerated digital transformation to reduce compliance costs and facilitate trade.
This information was released at a seminar "Improving Tax and Customs Policies, Promoting Business Development," held on October 16.
Speaking at the workshop, Deputy Director of the General Department of Taxation Dang Ngoc Minh stated that under new regulations in the Corporate Income Tax Law, the common tax rate of 20% continues to be stable, with a more flexible mechanism for applying tax rates: 15% for businesses with annual revenue not exceeding VND3 billion (nearly $114,000) and 17% for those with annual revenue from above VND3 billion to VND50 billion (from above $114,000 to nearly $1.9 million).
Notably, newly established small and medium-sized enterprises (SMEs) are exempt from income tax for the first 3 years; businesses transitioning from household businesses to corporate models are exempt for the first 2 years.
Additionally, income from scientific research contracts, pilot production, or products applying new technology is exempt from tax for a maximum of 3 years. At the same time, the contribution level to the Science and Technology Development Fund has been raised to 20% of annual taxable income, the Deputy Director of the General Department of Taxation noted.
Mr. Minh said, to implement Resolution No. 66/NQ-CP dated March 26, 2025, of the Government, the General Department of Taxation has a specific plan to minimize intermediate steps, cumbersome processes, and administrative procedures. It will immediately cut and simplify administrative procedures under the General Department of Taxation's management. Concurrently, it will continue to effectively implement support packages for tax and land rent exemptions, reductions, and deferrals in 2025.
According to Mr. Minh, the Ministry of Finance is currently submitting a draft Law on Tax Administration (amended) to the National Assembly, expected to be passed in October 2025, aiming for 4 objectives: (i) modernizing tax administration towards transparency, (ii) reducing compliance costs, (iii) preventing revenue loss, fraud, and transfer pricing, and (iv) meeting the requirements of international integration and comprehensive digital transformation in the public finance sector.
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