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Wednesday, August 4, 2021

Vietnam cuts corporate income tax for science, tech firms

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HCMC – Companies active in the science and technology sectors in Vietnam will enjoy the exemption and reduction of corporate income tax for up to 13 years, beginning from March 1, 2021, according to Circular 03 issued by the Ministry of Finance.

Corporate income tax will be completely exempted in the first four years and reduced by half for the next nine years for new science and technology companies in accordance with Clause 12 of the Government’s Decree 13/2019/ND-CP and the Law on Science and Technology.

To be eligible for the tax reduction, the companies are required to have a Certificate of Science and Technology Enterprise issued by the relevant authorities.

Their annual revenue from producing and selling tech-based products must account for no less than 30% of their total revenue. Moreover, revenue from tech-based applications must come from new services, not services that already exist in the market.

Besides this, science and technology companies must comply with accounting and bookkeeping regulations and fulfill their tax liability in line with the law.

The corporate income tax reduction is expected to help boost the development of science and technology in Vietnam, the Ministry of Finance said.

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