Abolish card fees, exempt corporate income tax for small and medium-sized enterprises in the first 3 years
The Politburo directs agencies to have special mechanisms and policies to support small and medium enterprises, ensuring compliance with market principles and international commitments.
In particular, the card fee will be abolished; corporate income tax will be exempted for small and medium enterprises in the first 3 years of establishment.
At the same time, allocate sufficient resources from the central budget and local budgets for programs and policies to support businesses, combined with mobilizing resources from investment funds of businesses, business associations, industry, research institutes, universities, etc.
Strengthen the role of the private economy and entrepreneurs in participating in giving comments and policies, ensuring substance, efficiency and transparency.
Training costs are deducted from taxable income
In order to improve the quality of human resources for the private economy, Resolution 68 clearly states: The cost of training and retraining human resources of enterprises will be included in the deductible costs to determine taxable income when calculating corporate income tax.
In addition, the State will implement other legal documents to support and encourage training forms according to business orders and attract businesses to participate more in human resource training.
Effectively implement training and fostering programs to improve the quality of human resources for the private economy; encourage localities to use their legal resources to proactively support training programs to develop human resources in accordance with the local socio-economic development orientation.
Implement a training program to train and foster 10,000 executives; mobilize successful entrepreneurs to participate in training, share experiences, inspire, and provide practical and effective support for the business community.
Promote education and training in creative skills, STEM, foreign languages, digital skills at all levels of education to meet the requirements of high-quality human resources associated with the development of science and technology, innovation, and start-ups.
Tax exemption and reduction for innovative and digital transformation enterprises
In order to promote science and technology, innovation, digital transformation, green transformation, effective and sustainable business in the private economy, Resolution 68 sets out preferential tax policies for businesses such as:
- Allowing businesses to be included in costs when determining the taxable income of businesses for research and development activities at 200% of the actual cost of this activity.
- Have policies to support investment costs for purchasing machinery, technological innovation, costs for digital transformation, green transformation, sustainable and circular business through the corporate income tax deduction mechanism or funding through funds.
- Enterprises are allowed to deduct a maximum of 20% of their income from corporate income tax to establish a fund for science, technology, innovation, digital transformation and research and development. Enterprises are allowed to use the fund to self-deploy or order outside research and development under the product contracts mechanism.
- There is a policy to exempt or reduce corporate income tax for creative start-up enterprises, adventure investment fund management companies, and intermediary organizations to support startups and innovation from the time of issuance of corporate income tax payable.
- Exemption from personal income tax and corporate income tax for individuals and organizations on income from transfer of capital contributions and capital contribution rights to creative startups.
- Exemption and reduction of personal income tax for experts and scientists working at innovative startups, research and development centers, innovation centers, and intermediary organizations supporting innovative startups.
