Interest rates of home loans at commercial banks have tended to reduce significantly since the second half of July due to low capital demand from business and production.
The 30% CIT reduction is applied to all incomes that meet tax cut conditions specified in the resolution, not excluding incomes ineligible for incentives under the Law on Corporate Income Tax such as income from real estate transfer, capital transfer, mining income and income from services subject to special consumption tax.
The State Bank of Việt Nam (SBV) on Thursday announced its decision to cut the interest rate it pays on commercial banks' reserves by 0.2-0.5 percentage points as part of its efforts to help the economy weather the impact of the COVID-19 pandemic.
With many people looking for new options to deal with their financial affairs, digitisation of services and e-payments are becoming crucial, and banks, seizing the trend, have been embarking on the use of technology 4.0 and modernising their business models.
In particular, total asset value and equity has increased by 5 percent while the rate of non-performing loans (NPLs) has been brought down to 1.63 percent, or 4.43 percent if the NPLs sold to the Vietnam Asset Management Company and possible NPLs are included.
Domestic banks are expected to face increasing competition, especially as European banks will be able to access the Vietnamese market when the European Union-Việt Nam Free Trade Agreement (EVFTA) takes effect.
Under the new tax law, banks are allowed to deduct taxes for cross-border service suppliers on their earnings from Vietnam following Clause 27 of the Law on Tax Administration. That means banks are allowed to take taxes out of the bank accounts of companies which have been making transactions with overseas services suppliers, especially Facebook and Google.
A policy that may grant up to 30 per cent tax exemption for small-to-medium-sized business (SMEs) to mitigate the adverse effects of COVID-19 was discussed yesterday by National Assembly deputies during a meeting in Hà Nội.