New corporate income tax rates regulated

Standard corporate income tax (CIT) in Vietnam shall be 20 per cent for resident and non-resident businesses, the Government News on July 14 quoted the latest CIT Law approved by the National Assembly as reporting.

A preferential CIT rate of 15 per cent shall be applicable for a business with total annual revenue of up to VND3 billion ($118,830). Meanwhile, a preferential CIT rate of 17 per cent shall be applicable for a business with total annual revenue between over VND3 billion and VND50 billion (more than $1.918 billion).

For oil and gas exploration and exploitation, the CIT rate shall range between 25 per cent and 50 per cent. The Prime Minister shall decide the specific tax rate for each oil and gas contract.

For exploration and exploitation of precious and rare natural resources, including platinum, gold, silver, tin, gemstones, rare earths and others as prescribed by law, the tax rate shall be 50 per cent.