Deputy Prime Minister Vu Van Ninh has asked the Finance Ministry to complete a draft resolution on tax incentives for IT firms and collect suggestions from relevant ministries.
Hanoi (VNA) - Deputy Prime Minister Vu Van Ninh has asked the Finance Ministry to complete a draft re𝓡solution on tax incentives for IT firms and collect suggestions from relevant ministries and the Ministry of Justice for submission to the Government thi🧸s month.
On November 24, 2015, the Ministry of Finance submitted to the Prime Minister a number of measures and policies on tax incentives to promote the application and development of IT in Vietnam.
Ninh also asked the Finance Ministry to discuss with the National Committee on Information Technology Application issues involving extending tax payment schedules for IT firms.
Regarding corporate income tax, IT service and software will be subject to tax preferences. They will be able to enjoy the preferential tax rate of 10 percent for 15 years. In special cases, companies that employ more than 1,000 workers, can enjoy the preferences for no more than 30 years, and get four-year tax exemptions and 50 percent tax reduction for no more than nine years.
On personal income tax (PIT), IT workers can enjoy a 50 percent tax reduction.
Meanwhile, some kinds of allowances are not counted as taxable income. The Vietnam Tax Consultants Association (VTCA) has suggested the special occupational allowance of 25 percent for salary for IT workers.
The association estimates that the new policy on tax incentives would help make up 25 percent of GDP growth, attract talented employees and create more than 1 million jobs with high income in IT and other industries.
The preferential tax incentives for the IT sector were also discussed by the National Committee on Information Technology Application at a meeting on September 2015 chaired by Deputy Prime Minister Vu Duc Dam.
At the meeting, Deputy PM Dam required the Ministry of Information and Communications to coordinate with the Ministry of Finance to offer clear guidance on tax incentives in the IT field.
Policies must be built in view of encouraging and developing IT enterprises, not simply satisfying users of services, said he.-VNA
Tax incentives should be used to allow enterprises in the fields of information and technology to maintain their businesses and pay taxes in Vietnam, Deputy Prime Minister Vu Duc Dam stated.
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According to the Politburo’s Resolution No. 57-NQ/TW, dated December 22, 2024, on making breakthroughs in the development of science, technology, innovation, and national digital transformation, this is considered a decisive factor in the development of nations. It is seen as a prerequisite and the best opportunity for Vietnam to become prosperous and powerful in the new era of the nation’s rise.
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Deputy PM Vu Van Ninh (Photo:VNA)
