Who is exempted from PIT for 5 years in HCMC? What is the List of professions and occupations prioritized to attract strategic investors to HCMC according to Resolution 98/2023/QH15?
Who is exempted from PIT for 5 years in HCMC?
Pursuant to Point c, Clause 1, Article 8 of Resolution 98/2023/QH15 has the following regulations:
Management of science and technology and innovation
1. Regulations on support for innovation and entrepreneurship in prioritized fields of the City:
a) Startups, scientific and technological organizations, innovative centers, and intermediaries supporting innovation and entrepreneurship are exempted from CIT for 5 years from the generation of income tax payable for income from their innovative operations in the City;
b) Organizations and individuals with income from the transfer of contributed capital and rights to contribute to the capital of startups in the City are exempted from PIT and CIT;
c) During the implementation of this Resolution, experts, scientists, persons with special talents, and individuals engaging in innovative entrepreneurship working in startups, scientific and technological organizations, innovative centers, and intermediaries supporting innovation and entrepreneurship in the City are exempted from PIT for 5 years regarding income from their salaries and wages;
d) High-tech zones, concentrated information technology zones, and innovative centers in the City may conduct controlled experiments of new technology solutions within the scope of high-tech zones, concentrated information technology zones, and innovative centers;
dd) Non-refundable support from recurrent expenditures of the City Budget for incubating projects on innovation and entrepreneurship includes: costs of the organization of the selection of projects; costs of hiring experts; direct labor wages; services of supporting innovation and entrepreneurship; costs of using technical facilities, incubation facilities, and co-working areas;
e) The People’s Council of the City shall stipulate prioritized fields; criteria, conditions, and contents of innovation and enterprises of entities prescribed in Points a, b, and c of this Clause; criteria for and experimental fields of new technology solutions and support contents (if any) as prescribed in Point d of this Clause and the support rate prescribed in Point dd of this Clause.
Thus, during the implementation of this Resolution, individuals working in startups, scientific and technological organizations, innovative centers, and intermediaries supporting innovation and entrepreneurship in the City are exempted from PIT for 5 years regarding income from their salaries and wages, specifically:
- experts, scientists
- persons with special talents,
- individuals engaging in innovative entrepreneurship.
In addition, organizations and individuals with income from the transfer of contributed capital and rights to contribute to the capital of startups in the HCMC are exempted from PIT and CIT.
Who is exempted from PIT for 5 years in HCMC? What is the List of professions and occupations prioritized to attract strategic investors to HCMC according to Resolution 98/2023/QH15?
What is the List of professions and occupations prioritized to attract strategic investors to HCMC according to Resolution 98/2023/QH15?
Pursuant to Clause 1, Article 7 of Resolution 98/2023/QH15, regulations on priority industries to attract investors are as follows:
Professions and occupations prioritized to attract strategic investors to the City
1. List of professions and occupations prioritized to attract strategic investors to the City:
a) Investment in the construction of innovative centers, research and development centers (R&D); investment in research and support for high-tech transfer in information technology, biotechnology, automation technology, new material technology, and clean energy with investment capital from at least 3.000 billion VND;
b) Investment in projects in the semiconductor integrated circuit industry, design technology, component manufacturing, integrated electronic circuit, printed electronics (PE), chips, new technology batteries, new materials, and clean energy industry with investment capital from at least 30.000 billion VND;
c) Investment in the construction of Can Gio international transshipment port according to a planning with investment capital from at least 50.000 billion VND.
Thus, the City will focus on and prioritize the following industries in developing and attracting investors, specifically:
- Investment in the construction of innovative centers, research and development centers (R&D);
- Investment in research and support for high-tech transfer in information technology, biotechnology, automation technology, new material technology, and clean energy with investment capital from at least 3.000 billion VND;
- Investment in projects in the semiconductor integrated circuit industry, design technology, component manufacturing, integrated electronic circuit, printed electronics (PE), chips, new technology batteries, new materials, and clean energy industry with investment capital from at least 30.000 billion VND;
- Investment in the construction of Can Gio international transshipment port according to a planning with investment capital from at least 50.000 billion VND.
Based on the above List of professions and occupations prioritized to attract strategic investors to the City.
For projects subject to investment policy approval, the authority competent to approve the investment policy for the project shall carry out the order and procedures for investment policy approval.
When does Resolution 98/2023/QH15 come into force?
Pursuant to Article 12 of Resolution 98/2023/QH15 on implementation provisions as follows:
Implementation provisions
1. This Resolution comes into force as of August 1, 2023.
Resolution No. 54/2017/QH14 dated November 24, 2017 of the National Assembly of Vietnam expires as of the effective date of this Resolution.
Accordingly, the application of personal income tax exemption according to Resolution 98/2023/QH15 will take effect from August 1, 2023.
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