(VOV) – The Corporate Income Tax would be reduced  from 25 percent to 23 percent-20 percent for small and medium-size enterprises under an amendment to the Law on Corporate Income Tax.

According to the  Ministry of Finance, who wrote the amendment, this tax rate is low compared to other countries and is designed to increase competitiveness and investment attraction. Besides lowering the tax rate, the draft amendment also adds some sectors to the preferential tax list. According to the Ministry of Finance, the amendment will reduce the State’s budget for the first few years of application, but will attract more investment.