Worry about businesses dissolving and then re-registering after 3 years of tax exemption

PHẠM ĐÔNG |

National Assembly deputies are worried that small and medium-sized enterprises that have been operating for 3 years will be exempted from tax, and will be dissolved in the fourth year and then re-registered.

Continuing the program of the 9th Session, on the morning of May 16, the National Assembly discussed in the hall the draft Resolution of the National Assembly on mechanisms and policies for private economic development.

At the end of the discussion session, Minister of Finance Nguyen Van Thang will explain and clarify a number of issues raised by National Assembly deputies.

At the discussion session of the afternoon of May 15, delegate Hoang Van Cuong (Hanoi Delegation) commented on the regulation on exemption from inspection at enterprises and business households that comply with legal regulations, need to have specific criteria or assign the Government to specify details.

Regarding the regulation on the fund to support the development of small and medium enterprises, the delegate said that it is necessary to allow localities to use the budget to provide additional charter capital for the fund.

At the same time, provide lending guarantees to help many businesses access capital; encourage private funds to participate in supporting the development of small and medium enterprises.

Regarding the encouragement for business households to establish enterprises, the delegate said that the regulation on exemption of corporate income tax for small and medium enterprises for the first 3 years from the date of issuance of the first business certificate will lead to a situation of " beneficiation" of the policy.

"If you start a business and operate for 3 years, you are exempt from tax, and after the 4th year of paying the tax, you will destroy the business and register it under the name of your wife, children, or even rent a motorbike taxi to be the owner of the business, because it is very easy to register to establish a business. This will not create stable business operations, said the delegate.

The delegate of the Hanoi Delegation said that it would be unreasonable for non-profit enterprises such as innovative startups that went bankrupt to not enjoy this tax exemption policy if they continue to establish businesses.

The delegate said that corporate income tax should not be exempted for small and medium-sized enterprises continuously for 3 years, but the first year should be exempted from tax, the following years are only exempted by 50%.

Dai bieu Quoc hoi Nguyen Thi Lan phat bieu. Anh: Pham Dong
National Assembly delegate Nguyen Thi Lan speaks. Photo: Pham Dong

Delegate Nguyen Thi Lan (Hanoi Delegation) emphasized that there should be preferential policies and attention that are strong enough, especially to attract businesses to invest in remote areas, mountainous areas, areas with many difficulties, areas where we are focusing on many groups of solutions to promote economic development.

Mountainous areas and remote areas like this really need to have enterprises as the core, the spearhead to develop.

There should be preferential policies for tax exemptions and long-term land leases for businesses that can last from 5 to 10 years; support logistics costs, warehouses, investment in preliminary processing and processing so that businesses can reduce production costs and compete in the market.

Delegates also commented on supporting the improvement of the quality of human resources to promote the private economy. Including the content of the state supporting the training cost of 10,000 executives.

Emphasizing that this is an extremely important and practical content, the delegate suggested reviewing the needs of each industry and field, developing a systematic training program, to be able to lead and manage businesses professionally.

Invest in standard enterprises to work with qualified training institutions, practical facilities for practice, internship for business executives. Only then can we have high-quality human resources to promote the private economy.

PHẠM ĐÔNG
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