Study on developing tax policies to assist small and medium enterprises in Vietnam

Study on developing tax policies to assist small and medium enterprises in Vietnam (Image from the Internet)

On October 7, 2024, the Prime Minister of Vietnam issued Official Telegram 103/CD-TTg regarding supporting enterprises to overcome difficulties and promote production and business activities at the end of 2024 and in following years.

Study on developing tax policies to assist small and medium enterprises in Vietnam

To support enterprises in overcoming difficulties and obstacles, promoting production and business activities in the coming months and years; the Prime Minister of the Government of Vietnam requests Ministers, Heads of Ministries, agencies under the Government of Vietnam; Chairpersons of People's Committees of provinces and centrally affiliated cities to focus on directing agencies, units, and subordinates to persistently and decisively implement according to their authority, focusing on carrying out the following key tasks and solutions:

- Ministries, agencies, local authorities:

+ During the process of formulating and promulgating policies, create a favorable environment to help enterprises develop, including small and medium enterprises, so that this type of enterprise can rise and develop. Encourage mechanisms for large enterprises to support and promote small and medium enterprises to create domestic value chains and develop the supporting industry in the country.

The necessary supportive policies should be practical, effective, and enable enterprises to compete healthily and effectively across regions; study support measures to reduce costs for enterprises to enhance competitiveness.

At the same time, strengthen decentralization and delegation associated with enhancing the execution responsibility of agencies and units; cut down on unnecessary, inappropriate administrative procedures and permits that increase compliance costs.

+ Enhance the public-private partnership mechanism, while researching breakthrough initiatives to transform the economy towards a green economy such as:

(i)  Developing  renewable  energy  by  taking  advantage  of  the  geographical  position  near  the  equator  and  tropical  monsoon  climate;

(ii)  Developing  clusters,  green  industrial-service  zones;

(iii)  Developing  and  producing  green  hydrogen,  green  ammonia  with  competitive  value.

- Ministry of Finance of Vietnam: Research and develop appropriate tax policies to support the sustainable development of enterprises, including small and medium enterprises; continue to effectively implement the issued tax reduction policies and tax deferral policies; speed up the refund of value-added tax to enterprises in compliance with the law.

- Ministry of Planning and Investment of Vietnam: Research and complete the institution, mechanism, and policy for the rapid, comprehensive, and sustainable development of enterprises, especially mechanisms encouraging innovation to leverage the internal strength of enterprises, contributing to the economy, creating jobs, and livelihoods for the people.

- Ministry of Information and Communications of Vietnam:

+ Urgently research and complete the draft Resolution of the Government of Vietnam on digital transformation.

+ Preside, cooperate with the Ministry of Science and Technology to build the institutional framework for managing artificial intelligence (AI) in Vietnam, initially focusing on ethical rules, governance framework, risk management, appraisal framework, and standards and specifications on AI.

- Ministry of Industry and Trade of Vietnam: Strengthen support for trade promotion to diversify production and supply chain markets, ... encourage enterprises to export products to foreign markets. Research and organize fairs, consumer festivals to stimulate consumption and other forms to increase domestic market demand.

- Ministry of Natural Resources and Environment: Research and develop mechanisms and policies on resource circulation to promote green transition, circular economy, resource saving, environmental protection, and carbon reduction.

- State Bank of Vietnam:

+ Direct credit institutions to continue to reduce costs, increase the application of information technology to lower lending interest rates, promote credit growth, focus on production and business fields, priority areas, traditional and new growth drivers of the economy.

+ Urgently preside, coordinate with relevant agencies to remove difficulties and obstacles, effectively implement the credit package of VND 140 trillion for social housing loans, preferential credit programs for the forestry and fishery sectors,...

More details can be found in Official Telegram 103/CD-TTg dated October 7, 2024.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE