Reduction of Corporate Income Tax for Employers Utilizing a High Number of Female Workers

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To be specific, Clause 2, Article 11 of Decree 85/2015/ND-CP stipulates that employers using a large number of female workers will be granted a corporate income tax reduction according to the provisions of the law on corporate income tax. Additionally, increased expenses for female workers will be considered deductible expenses when determining taxable corporate income in accordance with the regulations of the Ministry of Finance.

In which, an employer using a large number of female workers is defined as one who meets one of the following conditions:

- Employing from 10 to less than 100 female workers, with the number of female workers accounting for 50% or more of the total workforce;- Employing from more than 100 to less than 1,000 female workers, with the number of female workers accounting for 30% or more of the total workforce;- Employing 1,000 or more female workers.

And areas with many female workers are determined as follows:

- Industrial zones, clusters of industrial zones, export processing zones, economic zones, high-tech zones (referred to as industrial zones) with 5,000 or more female workers working in enterprises and participating in social insurance in the area of the industrial zone;- Communes, wards, and commune-level towns with 3,000 or more female workers registered for permanent residence or temporary residence in such communes, wards, and commune-level towns.

In addition to the above provisions, the Decree also stipulates that employers investing in the construction of nurseries, kindergartens, medical facilities, cultural works, and other welfare works, if meeting the scale and standard conditions as prescribed by the Prime Minister of the Government of Vietnam, will be entitled to policies encouraging private investment according to the current regulations of the State on policies encouraging private investment in activities in the fields of education, vocational training, healthcare, culture, sports, and the environment.

View more regulations at Decree 85/2015/ND-CP which came into effect from November 15, 2015.

Thu Ba

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