Supporting business startups: Reduced taxes- Creating Motivation
Productive enterprise need to be prioritized tax. Photo: Thuy Linh |
The amount of expected tax is 17% or 15%
The Ministry of Finance has recently reported to the Government a new taxation plan to support startup firms, this plan will be applied to startup companies that do not meet the requirements for tax incentives, or are not part of a sector where investment is encouraged in the current situation. Whereby, ordinary tax rates expected to apply in these cases will be at 17% or 15%.
According to the Ministry of Finance, the criteria to determine a startup business is that it needs to be a newly founded enterprise and operate based on exploiting intellectual property, technology and a new business model to produces goods and services with innovation and practical applications for application in daily life. Additionally, it needs to generate total revenue that does not exceed 20 billion vnd per year.
In reality, the enterprise income tax policy already has many provisions for new startups firm like: 10% export tax for 15 years, exemption tax for 4 years and reduction of 50% of tax needed to be paid in the following 9 years, with newly invested startup business projects in areas with special difficulties, in economic zones or belonging to fields of investment attracting incentives such as scientific and technological research, production of software products and production of composite materials...
However, recent policy has not yet caught up with the majority of businesses due to the fact that many have not meet the criteria. Hence, to expand the scope of startup enterprise subjects that can have tax incentives it is necessary to support start-up businesses .
The need to extend for the beneficiaries
The reduced tax policy is desirable and expected by many enterprises, but many businesses have complained that regulations on preferential treatment are too narrow, meaning the majority of startup businesses could not access the benefits of the policy.
Mr Ho Dai Loi, the Manager of Dong Hung Production Limited Liability Company (specialized in producing and exporting ceramics products) said, with the standard that the Ministry of Finance have given there will only be a small number of business that can receive this benefit. Management agencies need to delve further so that the criteria can benefit more businesses through the policy.
Another enterprise representative shared a similar opinion, in parallel with the tax reduction, to have administrative, spending reform. This is even more important to support the business community. The representative thinks that: “Policy is always moral, towards good benefit, but when put it in practice it is another story. Tax offices need to enhance further the use to guide enterprises in performing procedures such as electronic declaration and electronic tax payments that are more convenient for businesses, to avoid traveling to solve many complicated procedures".
Further commenting on this policy, Mr.Luu Vu Truong, the Manager of WT Investment Consultants Joint Stock Company also said, the reduced tax is the right thing to do, is necessary, but more importantly has the amount of tax that businesses pay reduced compared to the old tax rate or not, because in reality tax rates in recent years have somewhat diminished, but the amount that businesses have to pay has not decreased, even increased for many enterprises, Some expenditures are deducted before calculating tax now.
“Along with tax relief, what is also needed is to reconsider the amount of deductibles so that businesses can actually beneficial from the policy."
Related News
State budget revenue estimated at VND733.4 trillion
14:40 | 06/05/2024 Finance
Binh Duong Customs and Korean businesses solve difficulties and obstacles
15:03 | 28/04/2024 Customs
Nghi Son port border gate customs: Stimulating demand for import and export through the seaport
06:47 | 30/04/2024 Customs
The supporting industrial enterprises transform for sustainable development
08:20 | 01/05/2024 Import-Export
Latest News
Six localities should expedite site clearance and public investment
10:36 | 05/05/2024 Finance
Banks announce plans to significantly increase capital
15:11 | 04/05/2024 Finance
Minister of Finance Ho Duc Phoc receives Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam
13:47 | 04/05/2024 Finance
Banks strengthen information security systems
14:55 | 03/05/2024 Finance
More News
“Opportune environment” for growth of insurance enterprises
10:15 | 03/05/2024 Finance
Closely monitoring fluctuations to calculate the appropriate time to adjust prices
15:35 | 02/05/2024 Finance
Strictly monitor market fluctuations to appropriately adjust prices
14:46 | 27/04/2024 Finance
Closely monitoring market fluctuations to consider appropriate time to adjust prices
09:30 | 26/04/2024 Finance
How does the Land Development Fund work effectively?
09:19 | 26/04/2024 Finance
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
Your care
State budget revenue estimated at VND733.4 trillion
14:40 | 06/05/2024 Finance
Six localities should expedite site clearance and public investment
10:36 | 05/05/2024 Finance
Banks announce plans to significantly increase capital
15:11 | 04/05/2024 Finance
Minister of Finance Ho Duc Phoc receives Ambassador Extraordinary and Plenipotentiary of Japan to Vietnam
13:47 | 04/05/2024 Finance
Banks strengthen information security systems
14:55 | 03/05/2024 Finance