Is the State's tax reduction for enterprises considered an incentive policy in Vietnam?

Is the State's tax reduction for enterprises considered an incentive policy in Vietnam?

Pursuant to Article 4 of Decree 57/2018/ND-CP regulating the principles of applying investment incentives and support as follows:

Principles of applying investment incentives and support

1. The State encourages investment through tax exemptions, reductions of fees, charges, and simplification of certain administrative procedures for enterprises.

2. The State supports investment by providing partial funding support or interest gap compensation for enterprises.

3. Enterprises with agricultural projects that are specially incentivized, incentivized, or encouraged for investment enjoy investment incentives and support according to this Decree.

4. Priority is given to supporting investments for start-up innovative small and medium enterprises as stipulated in Clause 2, Article 3 of the Law on Supporting Small and Medium Enterprises; enterprises building a raw material area with contracts linked to farmers.

5. Within the same period, if an investment project enjoys different levels of incentives and support, the enterprise can choose the most favorable level of incentives and support.

6. Enterprises self-finance and mobilize capital to implement investment projects in the sectors and professions encouraged to invest in agriculture and rural areas. The State supports post-investment according to the support norms for each type of component or project issued by the provincial People's Committee; procedures and support are in accordance with this Decree.

Thus, it can be observed that the State's tax reduction for enterprises is one of the investment incentive policies for enterprises.

Is the State's tax reduction for enterprises considered an incentive policy in Vietnam? (Image from the Internet)

Is the tax exemption and reduction dossier for enterprises considered an electronic record in Vietnam?

Pursuant to Clause 1, Article 6 of Decree 19/2021/ND-CP regulating as follows:

Electronic records in electronic tax transactions

1. Electronic records include:

a) Electronic tax dossiers: taxpayer registration records; tax declaration records; confirmation of tax obligation fulfillment; review of tax payment information; procedures for tax, late payment interest, excess fine offsetting; tax refund records; tax exemption and reduction records; exemption from late payment interest; non-calculation of late payment interest; debt tax allocation records; tax debt clearance records, late payment interest, penalties; tax payment extension; installment tax payment plans and other tax-related records and records in electronic form as prescribed by the Law on Tax Administration and its guiding records.

b) Electronic state budget submission records: submission records for state budget as prescribed in Decree No. 11/2020/ND-CP dated January 20, 2020 of the Government of Vietnam on administrative procedures in the field of the State Treasury (hereinafter referred to as Decree No. 11/2020/ND-CP) in electronic form, in case of tax payment through electronic tax payment methods of banks or intermediary payment service providers, then the state budget submission record is the transaction record of the bank or intermediary payment service provider that must ensure sufficient information on the state budget submission record.

c) Notices, decisions, and other records of tax authorities in electronic form.

d) Electronic records as prescribed in this clause must be electronically signed according to the provisions of Article 7 of this Circular. In case electronic tax dossiers have attached records in paper form, they must be converted to electronic form as prescribed in the Law on Electronic Transactions, Decree No. 165/2018/ND-CP dated December 24, 2018 of the Government of Vietnam on electronic transactions in financial activities (hereinafter referred to as Decree No. 165/2018/ND-CP).

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Electronic records in electronic tax transactions will include Electronic tax dossiers which will include:

- Taxpayer registration records;

- Tax declaration records;

- Confirmation of tax obligations fulfillment;

- Review of tax payment information;

- Procedures for tax offsetting, late payment interest, excess fine offsetting;

- Tax refund records;

- Tax exemption and reduction records;

- Exemption from late payment interest;

- Non-calculation of late payment interest;

- Debt tax allocation records;

- Tax debt clearance records, late payment interest, penalties;

- Tax payment extension;

- Installment tax payment plans and other tax-related records and records in electronic form.

Thus, it can be observed that the tax exemption and reduction dossiers for enterprises are one of the types of electronic tax records.

What are regulations on the value of electronic records in electronic tax transactions in Vietnam?

Pursuant to Clause 1, Article 6 of Decree 19/2021/ND-CP regulating as follows:

Electronic records in electronic tax transactions

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2. Legal value of electronic records: Electronic records as prescribed in this Circular have the same value as records, records, notices, and paper records. An electronic record has the value of an original if performed by one of the measures specified in Article 5 of Decree No. 165/2018/ND-CP.

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Thus, it can be seen that electronic records in electronic tax transactions have the value of an original if performed by one of the measures in Article 5 of Decree 165/2018/ND-CP as follows:

- The electronic record is digitally signed by the agency, organization, or individual creating the electronic record and the agency, organization or individual with relevant responsibilities as prescribed by specialized law.

- The information system has measures to ensure the integrity of the electronic record during transmission, receipt, storage on the system; recording the agency, organization, or individual that created the electronic record and the agency, organization, or individual with relevant responsibilities that participated in processing the electronic record and applying one of the following measures to authenticate the agency, organization, or individual that created the electronic record and the agency, organization, or individual with relevant responsibilities involved in processing the electronic record: authentication by digital certificate, authentication by biometrics, multi-factor authentication in which one factor is a one-time authentication code or a random authentication code.

- Other measures agreed upon by the parties involved in the transaction to ensure data integrity, authenticity, non-repudiation, in compliance with the Law on Electronic Transactions.