{"id":14486,"date":"2020-10-28T23:49:46","date_gmt":"2020-10-28T16:49:46","guid":{"rendered":"https:\/\/dongtam.mywebico.com\/?p=14486"},"modified":"2020-10-28T23:49:46","modified_gmt":"2020-10-28T16:49:46","slug":"vietnam-finance-ministry-proposes-raising-vat-from-10-to-12-percent","status":"publish","type":"post","link":"https:\/\/dongtam.com.vn\/en\/vietnam-finance-ministry-proposes-raising-vat-from-10-to-12-percent\/","title":{"rendered":"Vietnam finance ministry proposes raising VAT from 10 to 12 percent"},"content":{"rendered":"<\/p>\n
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Vietnam\u2019s Ministry of Finance is looking to amend multiple tax laws in the country, including a proposal to raise the current value-added tax (VAT) rate from ten to 12 percent.<\/div>\n
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Customers check out at a supermarket in Ho Chi Minh City. Photo: Tuoi Tre<\/div>\n
The announcement came at a press conference on Tuesday, where the ministry said it would amend five laws that govern personal income tax, VAT, corporate income tax, special consumption tax and natural resources tax.<\/p>\n

The new VAT law would see a reduction in the number of services and goods exempt from the tax, as well as the list of those that currently enjoy a favorable VAT of only five percent.<\/p>\n

Current laws impose a VAT of zero percent on all exported goods, and a five-percent VAT on a number of goods essential for agriculture, medicine, education, science and technology.<\/p>\n

For other goods and services, the VAT is set at ten percent.<\/p>\n

According to the finance ministry\u2019s announcement on Tuesday, the amended VAT law would impose a six-percent VAT on services and goods currently enjoying a VAT of five percent, and raise the across-the-board ten-percent VAT to 12 percent.<\/p>\n

A number of VAT-free goods such as fertilizers, agricultural equipments and off-shore fishing vessels would also begin to be taxed under the new law, the ministry added.<\/p>\n

The Ministry of Finance also proposed a doubling of the current special consumption tax (SCT) rates on pickup trucks.<\/p>\n

Specifically, pickup trucks with a cylinder capacity of up to 2,500cm3 will be subject to a 15-percent SCT.<\/p>\n

For pickup trucks with cylinder capacities of up to 3,000cm3, the proposed new SCT is 20 percent, and 30 percent for anything above that.<\/p>\n

Twenty-cigarette packs will be subject to a 75 percent SCT starting from 2019, and from 2020, all cigarette packs will be levied an extra VND1,000 (US$0.04) in SCT.<\/p>\n

Also beginning in 2019, the ministry is looking to impose an SCT of 10 percent on soft drinks, an item currently exempt from the tax.<\/p>\n

Revisions to corporate income tax laws will offer a favorable tax rate of 15 percent for any small to medium enterprise (SMEs) with a yearly revenue of less than VND3 billion ($132,200).<\/p>\n

For SMEs with a yearly revenue of between VND3-50 billion ($132,200-$2.2 million), the proposed tax rate is 17 percent, less than the current corporate income tax rate for SMEs of 20 percent.<\/p>\n

The Ministry of Finance also plans to revise current personal income tax calculations, allowing those with a taxable monthly income of up to VND10 million ($440) to enjoy five-percent tax rate.<\/p>\n

Currently, only the first VND5 million ($220) in taxable income falls under the five-percent category, while the next VND5 million ($220) is subject to an income tax rate of ten-percent.<\/p>\n

According to Tuoitrenews.vn<\/strong><\/em><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Vietnam\u2019s Ministry of Finance is looking to amend multiple tax laws in the country, including a proposal to raise the current value-added tax (VAT) rate from ten to 12 percent. Customers check out at a supermarket in Ho Chi Minh City. Photo: Tuoi Tre The announcement came at a press conference on Tuesday, where the […]<\/p>\n","protected":false},"author":12,"featured_media":13432,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[734],"tags":[],"class_list":["post-14486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/dongtam.com.vn\/en\/wp-json\/wp\/v2\/posts\/14486"}],"collection":[{"href":"https:\/\/dongtam.com.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dongtam.com.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dongtam.com.vn\/en\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/dongtam.com.vn\/en\/wp-json\/wp\/v2\/comments?post=14486"}],"version-history":[{"count":1,"href":"https:\/\/dongtam.com.vn\/en\/wp-json\/wp\/v2\/posts\/14486\/revisions"}],"predecessor-version":[{"id":15346,"href":"https:\/\/dongtam.com.vn\/en\/wp-json\/wp\/v2\/posts\/14486\/revisions\/15346"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dongtam.com.vn\/en\/wp-json\/wp\/v2\/media\/13432"}],"wp:attachment":[{"href":"https:\/\/dongtam.com.vn\/en\/wp-json\/wp\/v2\/media?parent=14486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dongtam.com.vn\/en\/wp-json\/wp\/v2\/categories?post=14486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dongtam.com.vn\/en\/wp-json\/wp\/v2\/tags?post=14486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}