Vietnam's government proposes raising the annual revenue threshold used to identify small and medium-sized enterprises to VND400 billion. Finance Minister Ngo Van Tuan presented the draft development law on October 17, VnExpress reported.
The four-chapter, 35-article bill remains under consideration. Its thresholds and tax measures are proposals rather than benefits already available under new legislation.
Measuring enterprise size
The draft would use average annual employment of no more than three hundred people, replacing the current measure of up to two hundred employees participating in social insurance.
Proposed financial ceilings are VND400 billion in revenue and VND150 billion in capital. The current system described by the source combines the employment condition with either a VND100 billion capital ceiling or VND300 billion revenue ceiling.
Classification into micro, small and medium enterprises would continue to account for business sectors, with detailed rules set by the government.
Support and implementation concerns
Proposals include lower corporate income tax rates, a three-year exemption from first registration and simpler accounting and tax procedures for microenterprises. Another measure concerns tax-method choices for eligible businesses with revenue up to VND10 billion.
The Economic and Financial Committee supports replacing the 2017 law but questions reliance on figures that change annually, particularly for support lasting three to five years. It recommends considering two or three years of data and different business characteristics.
Plenary discussion is scheduled for October 30 and a vote for November 20. Final provisions and commencement still depend on the legislative process.