Albania has a simple and straightforward tax system that is easy to navigate. The main taxes applicable to businesses are CIT and VAT, and the rates are relatively low compared to other European countries. The import duty rates are also reasonable, and there are no export duties. The laws governing each tax are regularly updated to ensure they are in line with the country's economic and political goals.
Enterprise Income Tax (EIT)
The EIT is the primary tax imposed on corporate income in Vietnam. The tax rate is currently 20%, with some exceptions for certain industries and projects. For instance, enterprises engaged in oil and gas exploration and production are subject to a tax rate of 32%, while those involved in high-tech industries are eligible for a reduced rate of 10%. The EIT law was first passed in 2008 and has undergone several amendments since then.
Value-Added Tax (VAT)
The VAT is a consumption tax imposed on the value added at each stage of the production and distribution process. The current standard VAT rate is 10%, but some goods and services are subject to a reduced rate of 5% or exempted from VAT. The VAT law was first introduced in 1997 and has undergone several revisions since then.
In Vietnam, there is no separate sales tax imposed on goods and services. The VAT is the main form of consumption tax, and there are no other significant taxes imposed on sales.
Import duties are imposed on goods imported into Vietnam from abroad. The rate of import duty varies depending on the type of goods and their country of origin. For example, the average rate for clothing and footwear is 12%, while the average rate for electronics is 5%. Vietnam is also a member of the ASEAN Free Trade Area (AFTA), which provides for tariff reductions on goods traded between ASEAN member countries.
Vietnam does not impose any significant export duties on goods exported from the country. However, there are some exceptions, such as a 5% export duty on crude oil.