The Ministry of Finance (MoF) is proposing a regulation that exempts micro and small enterprises from corporate income tax for two years since they have sufficient income subject to taxation.

The regulation would be applicable for micro and small businesses which are established from household firms.

The regulation is one of the proposals made by the ministry in draft amendments to the Law on Corporate Income Tax.

It is aimed at implementing Party and State policies about the development of the private economic sector; and encourage household firms to establish businesses and develop production and trade.

There are currently some 5.5 million household firms nationwide, according to the MoF.