The Ministry of Finance has announced a list of ten notable events of Vietnam’s financial sector in 2020.

The interest expense deduction limit may be raised from the current 20% to 30% to support businesses, according to a draft decree on tax management for enterprises with related party transactions the Ministry of Finance made public for comments.

The threshold would now be raised from VND9 million (US$389) per month to VND11 million (US$475).

Overall, Vietnam is ranked 77 out of 117 countries and territories, up 14 places against 2017.

Property firms were the top bond issuers in the first four months of this year, but the race of issuing bonds to raise capital in the context of tightened credit was creating risks as many had much higher outstanding bonds than their equities.

Ministry of Finance’s proposal to increase the quota for credit poured into the securities sector is largely backed by market experts.

The State budget revenue in January – April was estimated to total VND491.38 trillion (US$21.18 billion), representing a drop of 5.9 per cent against...

The Ministry of Finance has slashed administration fees in numerous sectors to help the economy get back on its feet when the COVID-19 pandemic eases.

The equitisation of State-owned businesses from 2016-2019 fell behind schedule, putting heavier pressure on this year, according to the Ministry of Finance.

The Ministry of Finance forecast a budget overspending at 5-5.1 percent of gross domestic product (GDP) this year, about 1.5-1.6 percentage points higher than the Government’s plan due to the impacts of the COVID-19 pandemic.

The plummeting world crude oil prices will not have too great impact on Vietnam’s State budget revenue, said Vo Thanh Hung, head of the State Budget Department under the Ministry of Finance.

The Government has submitted a proposal to the National Assembly to extend the agricultural land tax exemption policy to the end of 2025 to support farmers and encourage the development of agriculture.

About 700,000 enterprises are expected to enjoy a cut in corporate income tax (CIT) to between 15-17 per cent from July 1 this year, down from the current rate of 20 per cent.

The Ministry of Finance (MoF) has suggested suspending exports of low-grade rice until June 15 to ensure purchase for the national reserves.

Prime Minister Nguyen Xuan Phuc on April 8 approved Decree No 41/2020/ND-CP on the extension of deadlines for tax and land use fee payments to support businesses suffering from the COVID-19 pandemic.

About 16,000 businesses are not included in the Ministry of Finance’s support package on tax and land rent.

The Ministry of Transport has proposed the Government assign the Ministry of Finance to consider reducing several taxes for transport businesses affected by COVID-19.

The Ministry of Finance has suggested adding four sectors into the list of industries eligible for extension of tax and land lease payment deadlines with a total sum of 180 trillion VND (7.82 billion USD).

The Ministry of Finance has proposed the payment deadlines for $3.4 billion in taxes be extended to support enterprises, business households and individuals doing business that are directly affected by COVID-19 pandemic.