Applicable corporate income tax policy, personal income tax of enterprises overcome difficulties

23:44 - 18/08/2016

The Finance Ministry proposed to adopt a policy of corporate income tax, personal income tax in order to solve problems, promote the development of enterprises.

Proposal was made in the draft resolution of some tax solutions to remove difficulties and obstacles and promote the development of enterprises.

In particular, corporate income tax, according to the draft, enterprises with total revenue of 20 billion in tax rate 17% from 01/01/2017 to end on 31/12/2020 day. Revenue as a basis for determining the enterprise are entitled to the tax rate of 17% at this point is the revenue of the preceding year.

Business start-up rate of 17% applicable from the date 01/01/2017 to end on 12/31/2020. Criteria for determining start-up businesses apply 17% tax rate specified at this point follow the regulations of the Government.

The draft stated that the 17% tax rate as defined above do not apply to the following cases:

1. Income from capital transfer, transfer of capital contribution; Income from transfer of property (other than social housing provisions in the Law on corporate income tax), income from transfer of investment projects, transfer of right to participate in investment projects, transfer of exploration rights , mining; Income received from the production, sales outside of Vietnam;

2. Income from search activities, exploration and exploitation of oil, gas, other rare resources and income from mining activities;

3. Income from services business subject to excise tax under the provisions of the Excise Tax Act;

4. Other cases as stipulated by the Government.

According to the draft, enterprises operating profit from real estate transfer, assign projects, transfer of right to participate in investment projects (except for transfer of exploration and mining) are offset with losses from production and business activities (except for income from business activities of enterprises are enjoying preferential corporate income tax) from the date 01/01/2017 to end on 31/12 / 2020.

Enterprise income from investment projects implemented new software service providers are subject to the tax rate of 10% in 15 years, the tax exemption for 4 years and 50% of corporate income tax payable in 9 years followed by the date 01/01/2017 to end on 31/12/2020.

Enterprise income from investment of the project renovation and reconstruction of old apartment buildings owned by the State was sold to the tenant, was badly damaged, with the risk of collapse, does not guarantee safety for users to sell, lease or hire purchase under the provisions of the Housing Law is applied tax rate of 10% from 01/01/2017 to end on 12/31/2020 day.

The draft states that businesses must account separately for each project income investment in the renovation and reconstruction of old condominiums to make tax preferential basis. The list of investment projects on rehabilitation and reconstruction of old apartment house owned by the State has been sold to the tenant-level People's Committees of provinces and cities under central authority established, reporting to the Prime Minister consideration and decision.

Personal income tax, the Finance Ministry proposed a 50% personal income tax payable on income from salaries and wages of the individual high-tech manpower working in the field of information technology in the fields of high technology, high-tech applications in the fields of agriculture, agro-processing from the date 01/01/2017 to end on 31/12/2020.

Invite you to read the full text of the draft view and comment here.

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