This is the content mentioned in the Draft Resolution on tax solutions to remove difficulties and obstacles, promoting the development of enterprises.
Article table of contents
Draft Resolution proposes several tax solutions, including some policies on corporate income tax, personal income tax, debt cancellation for late payment of taxes, debt clearance, debt freezing of taxes, late payment fees, and fines for taxpayers who have dissolved, gone bankrupt, or ceased operations. To be specific:
Application of Policies on Corporate Income Tax, Personal Income Tax
Regarding Corporate Income Tax
- Enterprises with total annual revenue not exceeding VND 20 billion shall apply a tax rate of 17% from January 1, 2017, to December 31, 2020. The revenue used as the basis for determining eligible businesses for the 17% tax rate under this point is the revenue of the preceding year.- Start-up enterprises shall apply a 17% tax rate from January 1, 2017, to December 31, 2020. The 17% tax rate does not apply to:- Income from the transfer of capital or rights to contribute capital; income from the transfer of real estate (except social housing as stipulated by the Law on Corporate Income Tax), income from the transfer of investment projects, transfer of the right to participate in investment projects, transfer of the right to explore and exploit minerals; income obtained from production and business activities outside Vietnam;- Income from activities of searching, exploring, and exploiting oil, gas, and other precious resources and income from mineral exploitation activities;- Income from business services subject to special consumption tax according to the provisions of the Law on Special Consumption Tax;- Other cases as prescribed by the Government of Vietnam.- Enterprises with profits from real estate transfers, investment project transfers, transfer of the right to participate in investment projects (except for the transfer of exploration and exploitation rights of minerals) can offset losses from production and business activities (except for income from production and business activities of enterprises enjoying corporate income tax incentives) from January 1, 2017, to December 31, 2020.- Corporate income from the realization of new investment projects providing software services shall apply a 10% tax rate for 15 years, enjoy a tax exemption for 4 years, and a 50% reduction in corporate income tax payable for the following 9 years from January 1, 2017, to December 31, 2020.- Corporate income from the implementation of investment projects to renovate and rebuild old condominiums owned by the State sold to tenants, which are in a state of severe damage, are at risk of collapse, and unsafe for users to sell, lease, or lease-purchase according to the provisions of the Housing Law shall apply a 10% tax rate from January 1, 2017, to December 31, 2020.- Enterprises must separately account for income from each investment project to renovate and rebuild old condominiums to determine eligibility for tax incentives.- The list of investment projects to renovate and rebuild old condominiums owned by the State sold to tenants shall be compiled by the provincial/municipal People's Committees and reported to the Prime Minister of the Government of Vietnam for consideration and decision.
Regarding Personal Income Tax
A 50% reduction in personal income tax payable on income from salaries and wages of individuals working in high-tech fields in the information technology sector particularly in high-tech, applying high-tech in agriculture, and processing agricultural products from January 1, 2017, to December 31, 2020.
Debt Cancellation, Debt Freezing of Taxes, Late Payment Fees, and Fines for Taxpayers Who Have Dissolved, Gone Bankrupt, or Ceased Operations
- Cancel tax debts, late payment fees, and fines for businesses and organizations that have actually dissolved, gone bankrupt, or ceased operations before January 1, 2014, and freeze tax debts, late payment fees, and fines for businesses and organizations that have actually dissolved, gone bankrupt, or ceased operations between January 1, 2014, and December 31, 2015.
In case the founder of the business, the legal representative of the organization whose debts are canceled or frozen continues to register for the establishment of other businesses or organizations, the business registration authority shall issue the business registration number after 2 years from the time of dissolution or bankruptcy (based on verification by the inter-agency mentioned above).- Cancel tax debts, late payment fees, and fines for households and individual businesses that have ceased operations before January 1, 2014, and freeze tax debts, late payment fees, and fines for households and individual businesses that have ceased operations between January 1, 2014, and December 31, 2015.
