The draft Law on Corporate Income Tax (amended) will amend and supplement regulations on applying a corporate income tax rate of 10% for a period of 15 years to new investment projects in economic zones located in areas with difficult or extremely difficult socio-economic conditions.
At the same time, the Government determines tax incentives for cases where the project implementation location is located in both areas eligible for corporate income tax incentives and areas not eligible for tax incentives to meet management requirements in each phase.
Supplementing regulations on applying a preferential tax rate of 15% to the income of press agencies from press activities other than print newspapers. Print newspapers continue to apply a preferential tax rate of 10% as currently regulated.
Supplementing regulations on applying a preferential tax rate of 17% for 10 years to: Investment projects in technical facilities to support small and medium-sized enterprises, small and medium-sized enterprise incubators; investment in co-working spaces to support small and medium-sized enterprises starting up creative businesses according to the Law on Supporting Small and Medium-sized Enterprises; investment projects in economic zones but not located in areas with difficult or especially difficult socio-economic conditions.
And amend and supplement specific regulations on criteria for cases considered for extension of preferential tax rate application period on the basis of legalizing regulations that have been stably implemented in sub-law documents.
Supplementing regulations on applying preferential tax rates to projects subject to special incentives as stipulated in the Investment Law 2020 to ensure consistency of the legal system.
The Draft Law also focuses on amending and supplementing regulations on the time to start calculating tax exemption and reduction for the following cases: High-tech enterprises, high-tech agricultural enterprises, science and technology enterprises, high-tech application projects, and supporting industrial product manufacturing projects to comply with specialized laws, ensuring consistency of the legal system.
Supplementing regulations on applying tax incentives to expansion investment projects to suit the practical situation; at the same time, amending the criteria on the original value of additional fixed assets for expansion investment projects (currently 20 billion for projects in investment-incentive industries and trades or 10 billion for projects in investment-incentive areas) to assign the Government to specify in accordance with the practical situation in each period.
In particular, the draft Law focuses on supplementing regulations on conditions for tax reduction and tax reduction levels for enterprises employing many female workers and ethnic minority workers on the basis of legalizing regulations that are being stably implemented in sub-law documents.
Supplementing regulations on reducing 50% of tax payable on income of public service units from providing public service in areas with difficult socio-economic conditions to implement policies of the Party and State on developing the public service sector;
Supplementing regulations on applying 02-year tax exemption for enterprises converting from business households to implement the policies of the Party and State on developing the private economic sector; at the same time, specifying conditions for tax exemption, tax rates applied after the preferential period to ensure that tax exemption is implemented strictly and to the right subjects.
