Proposal to reduce corporate income tax for the press
On the afternoon of March 10, at the 43rd Session, the National Assembly Standing Committee gave opinions on explaining, accepting, and revising the draft Law on Corporate Income Tax (amended).
Previously, at the 8th Session, discussing in the hall the Draft Law on Corporate Income Tax (amended), many National Assembly deputies emphasized that the press is facing many difficulties, the lives and incomes of cadres and reporters have decreased significantly and the activities of agencies have many problems to solve.
Revenue decreases while tasks are greater and especially information competition on social networks requires better quality of press information and more investment. Many National Assembly delegates said that tax reduction is an opportunity and a condition to support press agencies to do their job better and need stronger policies. Therefore, it is necessary to reduce taxes to 10% for all types of press.
Giving his opinion, Chairman of the Committee on Culture and Society Nguyen Dac Vinh once again mentioned reducing corporate income tax for press agencies.
The drafting agency proposed applying a tax rate from 20% to 10% for print newspapers, while for other types of press from 20% to 15%. Meanwhile, many National Assembly deputies proposed applying the same tax rate among press agencies at 10%.
print newspapers, visual newspapers, spoken newspapers or electronic newspapers are also press agencies. Setting two tax rates like this and saying it to balance, I feel that the way of raising the issue is not satisfactory" - Mr. Nguyen Dac Vinh said.
Reporting at the meeting on the above issue, Deputy Minister of Finance Cao Anh Tuan said that this time, press agencies are reviewing and arranging, so it is appropriate to bring corporate income tax for press agencies to a level of 10%. "The drafting agency will work with the Economic and Financial Committee to absorb it" - Mr. Cao Anh Tuan said.
Unifying many contents
Previously, presenting a report explaining, accepting and revising the draft Law on Corporate Income Tax (amended), Chairman of the Economic and Financial Committee (FCT) Phan Van Mai said that the Standing Committee of the FCT Committee and the Drafting Agency agreed to accept the opinions of National Assembly delegates on the contents of taxpayers; tax-exempt income; tax calculation period; expenses deducted when determining taxable income; tax calculation method; system of corporate income tax incentives and Global Minimum Tax.
However, according to Mr. Mai, there are still some contents with many different opinions, which need to continue to be discussed and edited. Regarding the amendment to allow real estate businesses to offset profits from business activities, real estate transfers (including project transfers) for losses from other business activities, the Chairman of the Committee for Socio-Economic Affairs is concerned that this regulation will create a mechanism for businesses to take advantage of reducing tax obligations from business activities, real estate transfers, and investment project transfers through offsetting losses from other business activities, not excluding cases where other business activities are only registered and operate in a short-term manner, accounting for losses with purpose.
This will directly affect the amount of corporate income tax actually paid to the State budget of real estate businesses in the coming time. These risk factors have not been taken into account by the Drafting Agency when assessing the impact. The beneficiaries of this policy are enterprises that are both in real estate business and have other multi-industry business activities.
On behalf of the Standing Committee of the KTTC Committee, Mr. Mai suggested to carefully consider this issue and should keep it as the current regulations to avoid taking advantage of the policy.
