The session

Content of legalization of the provisions in the Global Minimum Tax Resolution has not been added

At the session, referring to the basic content of the amendment of the Law on Corporate Income Tax (CIT), Deputy Minister of Finance Cao Anh Tuan said that with four chapters and 20 articles, the Bill has closely followed the policy groups in the proposal to build the CIT Bill (amended) which was approved by the National Assembly. At the same time, the Bill has legalized a number of contents that are being implemented stably in by-law documents.

Regarding the content of legalization of the provisions in Resolution No. 107/2023/QH15 on applying additional corporate income tax according to the regulations against global tax base erosion, through research and review, although Resolution No. 107/2023/QH15 takes effect from the 2024 tax period, the declaration and payment of additional corporate income tax is due 12 - 18 months after the end of the 2024 fiscal year.

Deputy Minister of Finance Cao Anh Tuan speaks at the session

Accordingly, until 2026 enterprises will reach the deadline for applying the provisions of Resolution No. 107/2023/QH15 and it is not possible to assess the effectiveness and issues arising in practical implementation. Therefore, the Bill has not added the content of legalizing the provisions of Resolution No. 107/2023/QH15 mentioned above to ensure the principle and viewpoint of building the Law is "Legalizing clear issues that have been tested in practice to be appropriate, including the contents that have been implemented stably in by-law documents".

Along with that, the Bill devotes a chapter to regulations on corporate income tax incentives and has new regulations on tax rates for small-sized enterprises and applies criteria to promote the development of this group.

Thus, in Chapter 2 on corporate income tax rates, the Bill stipulates the tax rate of 20%. Enterprises with total annual revenue of no more than VND 3 billion shall apply a tax rate of 15%; those with total annual revenue from over VND 3 billion to no more than VND 50 billion shall apply a tax rate of 17%.

The Bill also amends the minimum tax rate of the tax rate bracket for oil and gas exploration and exploitation activities from "from 32% to 50%" to "from 25% to 50%" and "the Prime Minister shall decide on the specific tax rate appropriate to each oil and gas contract" to be consistent with the Law on Petroleum; at the same time, it supplements detailed regulations on tax rates for exploration, exploitation and processing of rare mineral resources on the basis of legalizing the provisions in by-Law documents that are being implemented stably and without problems to ensure transparency and stability of the policy.

Regarding preferential tax rates and preferential application period, the Bill amendments and supplements the provisions on the application of a 10% corporate income tax rate for the 15 year-period for new investment projects in economic zones located in areas with difficult or extremely difficult socio-economic conditions.

At the same time, the Bill adds provisions on the application of a 15% preferential tax rate for income of press agencies from press activities other than print newspapers. Print newspapers continue to apply the 10% preferential tax rate as currently prescribed.

It is necessary to clearly define the authority of the National Assembly and the Government in implementation

At the meeting, Chairman of the Law Committee Hoang Thanh Tung highly appreciated the proposal of the Government as well as the Report on the assessment of the draft Law on Corporate Income Tax (amended) of the Finance and Budget Committee. However, the drafting agency is required to clarify the regulation scope of the draft Law.

At the same time, it is recommended that the Government and the Finance and Budget Committee study methods for amending and reviewing a number of taxes, including the draft Law on Corporate Income Tax (amended) to have a common approach to taxes, ensuring that tax amendments meet the socio-economic development situation, especially tax exemption policies.

According to the Chairman of the Law Committee, to avoid overlapping in functions and tasks in the process of directing, implementing and enforcing the law, it is necessary to clearly define which tasks the National Assembly assigns to the Government to perform, and which issues are under the authority of the Government to implement.

Giving opinion at the session, National Assembly Chairman Tran Thanh Man said that it is necessary to solve problems in the current law and continue study unclear contents. If the Law on Corporate Income Tax is to be comprehensively amended, there must be an impact assessment and the amended law must be better than the current one.

In addition, the amendment of the Law on Corporate Income Tax must ensure state budget revenue, overcome tax evasion and tax losses, and must be consistent with international practices.

Concluding the session, Vice Chairman of the National Assembly Nguyen Khac Dinh requested the Government to direct the drafting agency and relevant agencies to study and absorb the opinions of the National Assembly Standing Committee and the opinions of the assessment agency to complete the draft Law dossier.

At the same time, he requested relevant agencies to propose new approaches and methods in synchronously and comprehensively amending and supplementing laws in the fields of taxes and fees and laws in the fields of finance and budget in general; meeting practical requirements and renewing thinking in law-making in the new development stage of the country.