Vietnam: Introduced amendments to Law on Corporate Income Tax

On 22 November 2024, proposed amendments to the Law on Corporate Income Tax were presented to the National Assembly. These amendments aim to modernize Vietnam's tax policy by aligning it with international standards, ensuring neutrality, and addressing current regulatory gaps related to tax exemptions and incentives. The proposals also seek to attract international investment through updated and streamlined provisions. Key changes include the introduction of rules requiring foreign businesses operating on e-commerce and digital platforms in Vietnam to pay taxes on income generated within the country, with the current corporate income tax set at 20%. Additionally, the amendments prioritise corporate income tax incentives to ensure consistency across laws and propose simplified tax incentives for expansion investments. Furthermore, preferential tax rates may be introduced for projects deemed to be of national strategic importance.