The standard Corporate Income Tax (CIT) rate in Vietnam stands at 20%. Besides the already low tax rate, Vietnam also has preferential tax rates of 10%, 15% and 17% based on the industry and the size of business. The chart below provides a comparative view of the standard CIT Rates of 7 major ASEAN economies, and in doing so, a measure of their relative business friendliness. As can be seen, Vietnam’s CIT rate is lower than the rates prevailing in other ASEAN emerging markets, thus, making the Vietnamese economy an attractive option for foreign investors looking to enter the region.
It is also important to note that the state plans on reducing the rate of taxation to 15% for micro industries and 17% for small industries. This serves as an additional step forward in Vietnam’s progress towards economic appeal.