Production at an enterprise in Thanh Hoá Province. More appropriate tax rates for small and micro–sized enterprises is one highlight of the draft amendments to the Law on Corporate Income Tax. — VNA/VNS Photo Tuấn Anh

The corporate income tax on small and micro-sized enterprises might be cut to 15-17 per cent from a current common rate of 20 per cent, depending on previous revenues.

More appropriate tax rates for small and micro–sized enterprises is one highlight of the draft amendments to the Law on Corporate Income Tax, which with aims to promote the development of the private economic sector and encourage a transition from business households into enterprises, according to the Ministry of Finance.

The ministry said that most countries apply tax rates lower than the common rate on small enterprises. Tax rates can vary according to revenue scale and taxable income.

In comparison with ASEAN countries, the ministry said that the common tax rate of 20 per cent is equal to that of Thailand, Laos and Cambodia, lower than the Philippines (at 30 per cent), Myanmar (at 25 per cent) and Indonesia (at 22 per cent) but higher than Singapore (at 17 per cent) and Brunei (at 18.5 per cent).

Statistics show that there are about 900,000 enterprises in Việt Nam, of which small and micro-sized enterprises account for nearly 94 per cent.

It is necessary to encourage their development to generate revenue for the State budget in the long term, the ministry said.

The ministry is therefore proposing a tax rate of 15 per cent for enterprises with revenues of less than VNĐ3 billion per year and 17 per cent for enterprises with revenues between VNĐ3 billion and VNĐ50 billion. — VNS