The Ministry of Finance has issued

The Ministry of Finance has issued an ordinance to reduce taxes in accordance with World Trade Organisation's rules, which took effect from 1 January.

Some commodities have been moved to different groups of tariffs on the list for import-export goods

Preferential taxes have been adjusted, especially for electronic components.

Corporate income tax has dropped from 25 to 22 per cent, except for some special cases, since yesterday.

For companies having paid 22 per cent of corporate income tax, they will have the right to pay 20 per cent two years later.

With small enterprises that have low revenues not exceeding VND20 billion (US$1 million) per year, they have to pay only for 20 per cent.

Some enterprises might receive preferential taxes ranging from 10 – 20 per cent.

For example, enterprises that invest in remote and difficult areas, a high-tech zone have to pay 10 per cent for the first 15 years of their projects.

Other projects related to science and technology, or those developing important infrastructure, renewable energy, environmental protection or in education, vocational training, healthcare, culture and sports, also enjoy a tax level of 10 per cent.

A range of 32 – 50 per cent of tax will be applied to oil refineries and other rare natural resources.

Under the adjusted value-added tax law, which will come into effect in April, taxes will not be levied for some kinds of insurance, including health, cultivation and fishery activities.