On September 23, the National Assembly Standing Committee gave opinions on the draft revised Law on Corporate Income Tax (CIT).
Presenting a summary of the draft law, Deputy Minister of Finance Cao Anh Tuan said that the draft includes a chapter on corporate income tax incentives. At the same time, there are new regulations on tax rates for small-sized enterprises and criteria for application to promote the development of these types of enterprises.
Accordingly, the draft stipulates a tax rate of 20%. Enterprises with total annual revenue of no more than VND3 billion will be subject to a tax rate of 15%; enterprises with total annual revenue from over VND3 billion to no more than VND50 billion will be subject to a tax rate of 17%.
Regarding corporate income tax incentives, the draft stipulates the application of a 10% corporate income tax rate for a period of 15 years for new investment projects in economic zones located in areas with difficult or extremely difficult socio-economic conditions...
In addition, the Government proposed that investment projects in technical facilities, incubators, and co-working spaces to support small and medium-sized enterprises and creative startups are expected to receive a 3% reduction in corporate income tax, down to 17% within 10 years.
Notably, the bill adds a provision to apply a preferential tax rate of 15% to the income of press agencies from press activities other than print newspapers. Print newspapers will continue to apply the preferential tax rate of 10% as currently regulated.
Examining this content, the Standing Committee of the Finance and Budget Committee noted the conditions and levels of special investment incentives.
According to the review agency, the draft law still lacks regulations on disbursement time conditions for the remaining VND20,000 billion of "eagle" projects and VND2,000 billion of research and development centers.
Speaking at the meeting, Chairman of the National Assembly's Culture and Education Committee Nguyen Dac Vinh said that currently, print newspapers are enjoying a corporate income tax incentive of 10%, while electronic newspapers are not, so it is very difficult.
According to Mr. Nguyen Dac Vinh, press agencies, whether print, electronic, television or radio, are all revolutionary press, public service units under state agencies.
Currently, the income of press agencies mainly depends on advertising; however, the advertising "pie" is also shrinking, causing many difficulties for press agencies.
"We propose a common income tax incentive for print newspapers, electronic newspapers and other types of newspapers as currently applied to print newspapers" - Mr. Nguyen Dac Vinh proposed.
According to the current Corporate Income Tax Law, the income of press agencies from print newspaper activities, including advertising on print newspapers as prescribed by the Press Law, enjoys a preferential corporate income tax rate of 10%. There are no regulations for press agencies of other types such as electronic newspapers, television, and radio.
