Since 2017, new regulations on corporate income tax and personal income tax incentives have been applied.
– Businesses with total annual revenue not exceeding VND 20 billion: a tax rate of 17% will apply from January 1, 2017 to December 31, 2020. (This revenue is from the immediately preceding year)
– Start-up businesses: a tax rate of 17% will be applied from January 1, 2017 to December 31, 2020. (Criteria for identifying start-up businesses are implemented according to government regulations)
Please note that this preferential tax rate does not apply to:
- Income from the transfer of capital, transfer of equity rights; income from the transfer of real estate (excluding social housing as stipulated in the Corporate Income Tax Law), 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 received from production and business activities outside Vietnam.
- Income from the search, exploration, and exploitation of oil, gas, and other rare resources, and income from mineral extraction.
- Income from business services is subject to excise tax as stipulated in the Excise Tax Law.
- Other cases as prescribed by the Government.
– Enterprises with profits from the transfer of real estate, investment projects, or the right to participate in investment projects (excluding the transfer of mineral exploration and exploitation rights): these profits can be offset against losses from production and business activities (except in cases where the enterprise's income from production and business activities is already enjoying corporate income tax incentives) from January 1, 2017 to December 31, 2020.
– Income of enterprises from implementing new investment projects providing software services is subject to a 10% tax rate for 15 years, 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.
– Income of enterprises from implementing investment projects to renovate and rebuild old state-owned apartment buildings that have been sold to tenants, are severely damaged, at risk of collapse, and do not ensure safety for users, for the purpose of resale, lease, or lease-purchase under the Housing Law: a tax rate of 10% will be applied from January 1, 2017 to December 31, 2020.
Businesses must separately account for the income from each investment project to renovate or rebuild old apartment buildings in order to qualify for tax incentives.
The list of investment projects for renovating and rebuilding old state-owned apartment buildings that have been sold to current tenants is compiled by the provincial People's Committee and reported to the Prime Minister for consideration and decision..
According to the "Draft Resolution stipulating tax solutions to remove difficulties and obstacles and promote the development of enterprises".
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