That Tax Law Value, Tax Law enterprise income tax law and special consumption. This is the tax law impact directly and to most businesses.


According to Ministry of Finance, the change of a tax law is not aimed at anything other than creating the environment favorable investment, encouraging investment to attract foreign and domestic. At the countries in the region have reduced or route reduce taxes for many businesses, especially corporate income tax. Viet Nam to attract foreign investment, the reduction of some taxes, especially corporate income tax is to be done immediately.


Should apply a tax rate of value added


Domestic enterprises are the most benefit when the policy of tax reduction this come to life. Domestic enterprises will have to increase the accumulated capital investment for production to business development.


This is one of the advantages to domestic enterprises, especially those enterprises producing goods more competitive capabilities in the region and the world.


Tax Law on Value, the Ministry of Finance, will have more goods and services export is applied rate 0% tax rate. So the object of goods and services export levels enjoy 0% tax rate will be expanded more, it is policy to encourage export various goods and services in the country.


In addition to applying the tax rate 2 level 5% and 10% with a variety of goods and services imported variety. 5% rate will apply mainly to goods and services inputs for production of agricultural and consumer goods essential people ... 10% tax rate will apply to many types of goods not included in the tax rate of 5%. Thus, once this amendment to the Law on VAT also stopped in the expansion of the goods and services used.


Besides the Ministry of Finance has proposed the amendments apply to the tax value of the object is not taxable, modification of tax deductible value added input, on the tax value. ..


The issue concerns now is to use tax rate VAT not mentioned in the draft. According to many opinions should apply a tax rate tax rate of value added, not 2 to the current level, can be found at 8%.


Tax Law on special consumption also will be a change, but the Ministry of Finance has not made the changes specified. At the Ministry are considering reducing the consumption tax with goods vehicles, cigarettes, wine and beer. The reduction of import tax is not what others have to follow the route reducing import duties by commitments on WTO.


The tax income business is still high


According to information from the Ministry of Finance, in the tax law will change in 2008, the enterprise income tax will have the terms of the biggest changes. At this level of enterprise income tax is a common 28% (except the audience will enjoy preferential investment), Ministry of Finance is expected to decrease 25% level.


If the draft amendment law of corporate income tax this time is through a 2 times the level of enterprise income tax is reduced. Before 2004 the level of enterprise income tax is 32%, after amendment in 2004 decreased by 28%. Government to reduce corporate income tax had a positive impact policy to attract investment in Vietnam.


According to many experts economic times, the reduction of enterprise income tax this time is not yet final because the rate of investment attraction as the current domestic enterprises will face competition intense. At the Ministry of Finance just launched The tax rate expected by many but that the rate of 25% tax rate is still high.


Add to that the items subject to preferential investment today are advantages at the preferential tax rate as level 20%, 15%, 10% ...


Besides these enterprises also enjoy the preferential time exemption, reduction of corporate income tax. Then the level of enterprise income tax is calculated only from businesses with taxable income, this will lead to the inspection and supervision authorities, especially tax is very difficult. These points should be noted changes with the reduction of enterprise income tax in 2008.


Overcoming status spread the tax incentives


Trend now is to encourage investment and high technology-friendly environment, where capital investment on an area of land to large, avoid land being uninhibited use or not effective. For example, currently the Co-operative Production in plain enjoy income tax rate of enterprises is 20% within 10 years from its establishment and the reduction of 50% within 2 years since the income taxable.


It is not up to much account as other preferential land rent. The area of land used by the cooperative is not a small but effective investment is not high production.


In the draft this time the Ministry of Finance should make the terms as amended focus reform system preferential business through corporate income tax. If the amendment is carried to overcome the situation spread too many tax incentives today. Many accounts business incentives as well as in time will be reduced and removed.


The purpose of the less restrictive policies preferential corporate income tax to gradually increase the effective investment, investment selection. In addition to reducing corporate income tax to put additional taxes for income from the transfer of land use rights, the right to transfer land lease.


Currently object taxable income from the transfer of land use rights, the right to transfer land lease is the production and trading of goods, services, income from transfer of land use rights, the right to transfer land lease. The removal of the additional tax incomes may lead to the formation of a market of real estate between the underground organization of production, business goods and services.