To read or download the article, please click the following link.
The National Assembly has passed Resolution 198/2025/QH15. The goal is to cut red tape, ease business conditions, and create a level playing field for private companies. Here are the main changes that businesses should know.
1. Business Inspections Will Be Less Burdensome
- Fewer inspections: Each business will face no more than one inspection per year, unless there’s clear evidence of wrongdoing.
- Remote checks preferred: Authorities are encouraged to inspect remotely. On-site visits will be limited. Businesses with good compliance records may be exempt.
- No misuse of power: Officials cannot use inspections to pressure or disrupt businesses. Sharing false or damaging information is also banned.
- Shift to self-declaration: Instead of asking for approvals in advance, businesses will self-declare their compliance. Authorities will check later if needed.
2. Businesses Get More Protection in Legal Matters
- Focus on civil remedies first: Legal and administrative solutions come before criminal charges.
- Encourage fixing mistakes: If a business fixes the damage it caused, it may be given lighter penalties.
- Presumption of innocence: Authorities must assume a business is not guilty unless proven otherwise. If there’s any doubt, they must give a clear answer quickly.
- No retroactive rules: New laws can’t be used to punish past actions.
- Separate assets: Legal assets must be kept separate from illegal ones. Personal and business assets will also be treated differently.
3. Easier Access to Land
- Support from local governments: Cities and provinces can use their budgets to build infrastructure for industrial areas.
- Land set aside for innovation: At least 20 hectares or 5% of land in new industrial zones will be reserved for high-tech firms, startups, and small businesses.
- Lower land rent: Qualified businesses will receive at least a 30% discount on land rent for the first five years.
4. Financial Support for Growth
- Lower loan interest: Projects that are eco-friendly or follow ESG standards can get loans with a 2% annual interest rate reduction.
- Startup funding: The SME Development Fund will offer direct loans and seed capital for startups.
- More investment options: The fund can invest in private or local funds to expand financing options.
- Access to international funds: The fund will also be able to receive and manage overseas loans or grants to support local businesses.
5. Better Tax Support
- For startups:
- No corporate income tax for 2 years, then a 50% cut for the next 4.
- No personal income tax on share transfers or for experts and scientists during their first 2 years, then a 50% cut for the next 4.
- For small and medium businesses:
- No corporate tax for 3 years from the date of registration.
- Training costs covered by other firms can be deducted from taxable income.
- Ending flat-rate tax:
- The flat-tax system for household businesses will be scrapped.
- The business license tax will end on January 1, 2026.
6. Support for R&D and Digital Tools
- Businesses can set aside up to 20% of their taxable income to fund science, technology, and innovation.
- They can deduct double the actual cost of R&D from their taxes.
- The government will provide free digital tools and accounting software to micro and small businesses.
Know a business that could benefit? Share this update so they don’t miss out.
