On February 2, 2024, the Government issued Decree 11/2024/ND-CP, which stipulates tax exemptions for innovative startup activities arising in Ho Chi Minh City.
1. Exemption from corporate income tax on income from innovative startup activities arising in Ho Chi Minh City.
Innovative startups, science and technology organizations, innovation centers, and intermediary organizations supporting innovative startups (collectively referred to as businesses) that generate income from innovative startup activities within Ho Chi Minh City are exempt from corporate income tax on this income.
Businesses whose income is exempt from corporate income tax as stipulated in this clause must Comply with the regulations of the Ho Chi Minh City People's Council regarding priority areas; criteria, conditions, and content of innovative startup activities.
The tax-free period is 05 years This period begins from the time the enterprise incurs corporate income tax payable from innovative startup activities in Ho Chi Minh City during the period when Resolution No. 98/2023/QH15 is in effect. After Resolution No. 98/2023/QH15 expires, if the tax exemption period stipulated in this clause has not yet ended, the enterprise shall continue to implement it until the end of the tax exemption period.
In case an enterprise is in the exemption period or is eligible for corporate income tax exemption under exemption conditions other than those prescribed in this Decree, it can choose to enjoy tax exemption under other tax exemption conditions or tax exemption according to regulations. specified in this Decree for the remaining time.
2. Exemption from tax on income from the transfer of capital contributions and investment rights in innovative startup businesses in Ho Chi Minh City.
During the period when Resolution No. 98/2023/QH15 is in effect, organizations with income from the transfer of capital contributions or capital contribution rights in innovative start-up businesses in Ho Chi Minh City are exempt from corporate income tax on this income.
Innovative start-up enterprises in Ho Chi Minh City specified in this Clause must meet the regulations of the People's Council of Ho Chi Minh City on priority fields; criteria, conditions, and content of innovative start-up activities.
Income from capital transfer and capital contribution rights specified in this Clause is income earned from transferring part or all of the capital and capital contribution rights to creative start-up enterprises in Ho Chi Minh City ( including cases of business sale), except income from transfer of stocks, bonds, fund certificates and other securities according to regulations.
In case of selling an entire one-member limited liability company owned by an organization in the form of transferring capital attached to real estate, declare and pay corporate income tax according to the real estate transfer activity. product.
In cases where an enterprise engages in multiple production and business activities, the enterprise shall determine and account for income from the tax-exempt activities under this Article in accordance with the provisions of corporate income tax law.
3. Exemption from personal income tax for individuals with income from the transfer of capital contributions or investment rights in innovative startup businesses in Ho Chi Minh City.
During the period when Resolution No. 98/2023/QH15 is in effect, individuals with income from the transfer of capital contributions or capital contribution rights in innovative startup businesses in Ho Chi Minh City are exempt from personal income tax on this income.
Innovative start-up enterprises in Ho Chi Minh City specified in this Clause must meet the regulations of the People's Council of Ho Chi Minh City on priority fields; criteria, conditions, and content of innovative start-up activities.
Income from capital transfer and capital contribution rights specified in this Clause is income earned from transferring part or all of the capital and capital contribution rights to creative start-up enterprises in Ho Chi Minh City ( including cases of business sale), except income from transfer of stocks, bonds, fund certificates and other securities according to regulations.
In case of selling an entire enterprise owned by an individual in the form of transferring capital attached to real estate, personal income tax shall be declared and paid according to the real estate transfer activity.
Determination of income from capital transfer, capital contribution rights and declaration to tax authorities is carried out in accordance with the law on personal income tax and the law on tax administration.
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