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Value added tax (VAT) and taxes on enterprise income, high- income earners, and import-export operations are subject to the recent revision which was made public by the General Department of Tax on Wednesday.
Under the new tax policy on high-income earners, just lottery winners and those who made profits from the transfer of technology are the target of irregular income taxes at the rates of 10 percent and 5 percent, respectively. Those who earn less than 60 million VND a year will not pay income taxes.
The revision aims to narrow the gap between Vietnamese and foreigners so as to encourage enterprises to employ locals with high skills or high professional qualifications, said Deputy General Director of the Tax General Department Nguyen Thi Cuc.
The VAT revision increases the number of companies exempt from tax payments as well as subject to low tax levels between zero and 5 percent. The number of goods subject to preferential rates of 20 percent, 10 percent, and tax exemption or tax reduction are increased.
The revision is expected to reduce in-put costs for enterprises and stimulate exports, Cuc said.
All the changes are in favour of investors, confirmed Tax General Department officials.
Vietnam Agency - (06/09/2004)
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