Remission of corporate income tax for a limited period of time for small and medium-sized enterprises converted from a household businesses in Vietnam

Specifically, according to Article 16 of the Law on provision of assistance for small and medium-sized enterprises 2017 of Vietnam, a small and medium-sized enterprise (SME) converted from a household business will receive assistance if the following conditions are fulfilled:

- 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.

- The household business has been operating continuously for at least 01 year by the day on which the first ERC is issued.

Such an SME is entitled to the following forms of assistance:

- Free consultancy and instruction on applications and procedures for the enterprise establishment;

- 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;

- 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;

- Remission of corporate income tax for a limited period of time in accordance with regulations of law on corporate income tax.

- 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.

The SME converted from a household business shall inherit all rights, obligations and legal interests of the household business in accordance with regulations of law. If a household business is converted into a limited liability company or a joint stock company, the household business owner, with his/her entire property shall be liable for the outstanding loans of the household business unless otherwise agreed by the parties in accordance with regulations of law. The household business shall be shut down as soon as the SME converted from this household business is issued with ERC.

View more details at the Law on provision of assistance for small and medium-sized enterprises 2017 of Vietnam, effective from January 01, 2018.

Ty Na

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