More incentives of personal income tax for hi-tech human resources

The State is concentrating on investing in development of hi-tech human resources at regional and international level. Picture: ST.

According to the Ministry of Finance, the State focuses on investing in the development of hi-tech human resources at regional and international level. Therefore, the application of preferential mechanisms and policies are to train, attract and use local and overseas hi-tech human resources effectively. Besides, the talented young people in research and teaching activities, incubation of high technology, incubation of high technology enterprises and other hi-tech activities (such as: new materials technology, automation technology) must be paid attention.

Along with that, Vietnam is transforming the development model from the base on basic factors such as resources, and cheap labor to improve productivity. In fact, national competitiveness lies in the enterprise itself and is reflected in the competitiveness of the quality and price of the product. The difference in quality and price of products comes from the creative capacity of enterprises, in which the technological factor, knowledge of human resources, and using technology are key factors .

According to Ministry of Finance, the Law on Personal Income Tax (PIT) does not have specific provisions on tax reduction for subjects of high technology. The High Technology Law also assigns the Government to adjust and supplement the technology sectors which need to invest in hi-tech development depending on the needs of socio-economic development, national defense and security. The high-tech investment must be prioritized in development of the fields of technology, which must conform to the requirements and trend of scientific and technological development in the world, for the positive advantages of the country. It is feasible and meets one of the specific conditions.

"Although there have been many policies to support businesses in the process of production and business, the current PIT policy does not provide appropriate incentives to attract qualified individuals in science and technology sectors. Therefore, it reduces the competitiveness of enterprises operating in these areas due to the lack of suitable human resources for research and development of products because the information technology and agriculture sectors are one of the important economic majors of our country today" the Ministry of Finance explained.

It is necessary to have policies focused on attracting high-level individuals to participate in the implementation in areas such as information technology or priority areas such as agriculture and agricultural product processing in order to further develop science and technology in general and to remove difficulties for enterprises in particular.

Therefore, in the Draft Proposal for the Law on Amendments and Supplements to a number of articles of the Law on Value Added Tax, the Law on Special Consumption Tax, the Law on Corporate Income Tax, the Law on Personal Income Tax, The Law on Natural Resource Tax and the Law on Export Tax and Import Tax (the Bill), the Ministry of Finance shall submit to the Government for supplementation the regulations on 50% reduction of PIT on incomes from salaries and wages of individuals who are hi-tech laborers working in the fields of information technology, agriculture and agricultural product processing under the projects on hi-tech application, projects on production of hi-tech products on the list of high technologies product encouraged for development.