Corporate income tax expected to decrease

23:13' 27/06/2007 (GMT+7)

Mr Truong Chi Trung VietNamNet Bridge - Deputy Minister of Finance Truong Chi Trung said that the Finance Ministry was considering reducing the corporate income tax to further attract foreign investment. The reduction may be performed this year and could drop to the level of some countries in the region, from 28% to 25%. At a meeting on the draft Law on Personal Income Tax on June 26, Deputy Minister Truong Chi Trung said that many investors had complained that Vietnam’s corporate income tax was quite high compared to the common level in the world and ASEAN countries (around 20-25%). If Vietnam maintains the current tax rate the country will have difficulty encouraging production and business as well as drawing foreign investment into the country. “That’s why we are considering adjusting the tax rate to be suitable to the development situation of Vietnam,” Mr Trung said. (Source: Viet Nam Net)