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| Ministry proposes lower tax rate for small, micro-enterprises |
According to the Ministry of Finance, small and micro enterprises account for a majority of the total number of existing enterprises and are holding an important role in the country’s socio-economic development.
As small enterprises remain the central goal of economic development policies, many countries offer lower CIT rates for them, the ministry said.
For example, in China, the common CIT rate is 25% while small enterprises are entitled to a preferential rate of 20%.
The common CIT in Thailand is 20% and small enterprises with revenue from 300,000 baht or less would be exempted. A tax rate of 15% is imposed on those with revenue from 300,001 – three million THB and 20% for those with revenue from three million THB and higher.
In the Republic of Korea, the tax rate is 10% for the first 200 million KRW, 20% for the taxable income from 200 million KRW to 20 billion KRW, and 22% for the taxable income over 20 billion KRW.
The Netherlands applies a tax rate of 20% on the first 200,000 EUR of taxable income, 25% on taxable income of over 200,000 EUR...
The ministry proposed to include the amended Law on CIT in the 15th National Assembly's law and ordinance building programme in 2024 at its seventh meeting.
The draft would be submitted to the National Assembly for discussion at the 8th meeting in October 2024 and for approval at the 9th meeting in May 2025./.
