Are enterprises that converted from household businesses exempt from corporate income tax in Vietnam?
Are enterprises that converted from household businesses exempt from corporate income tax in Vietnam? I just converted a household business into a single-member limited liability company, my business is small, is it exempt from corporate income tax?
Are enterprises that converted from household businesses exempt from corporate income tax in Vietnam?
Pursuant to Clause 2, Article 16 of the Law Provision Of Assistance For Small And Medium-sized Enterprises 2017, such an SME mentioned in Clause 1 of this Article is entitled to the following forms of assistance
a) Free consultancy and instruction on applications and procedures for the enterprise establishment;
b) Exemption from fees for enterprise registration and the first provision of enterprise information; exemption from fees for assessment and fees and licensing fees for the first license of business lines subject to conditions and exemption from licensing fees within 3 years from the day on which the first ERC is issued;
c) Free consultancy and instruction on the tax administrative procedures and the accounting regime within 03 years from the day on which the first ERC is issued;
d) Remission of corporate income tax for a limited period of time in accordance with regulations of law on corporate income tax.
dd) Remission of land rental, land levy and the levy on non-farming land for a limited period of time in accordance with regulations of law on land.
Thus, your company will be exempted or reduced from paying corporate income tax for a certain period of time in Vietnam. However to enjoy this support. Your business needs to meet a number of conditions.
What are conditions for Small And Medium-sized Enterprises converted from household businesses to be exempt from corporate income tax in Vietnam?
Pursuant to Clause 1 of Article 16 of the Law Provision Of Assistance For Small And Medium-sized Enterprises 2017, an SME converted from a household business will receive assistance if the following conditions are fulfilled:
a) Before being converted to a SME, the household business has obtained the enterprise registration certificate (ERC) and is run in accordance with regulations of law.
b) The household business has been operating continuously for at least 01 year by the day on which the first ERC is issued.
According to this Article, to be exempt from corporate income tax, your business must meet the above conditions in Vietnam.
Best Regards!
