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Tax incentives likely for tech-savvy enterprises

Update: September, 17/2013 - 08:38

Engineers at T-Tech Viet Nam Co check laboratory equipment. Tax incentives would be provided to enterprises operating in the field of high technology and those in agriculture with high-tech application. — VNA/VNS Photo Danh Lam

HA NOI (VNS) — Tax incentives would be provided to enterprises operating in the field of high technology and those in agriculture with high-tech application, aiming to encourage enterprises to strive for more added values.

According to the amended Law on Corporate Income Tax, high-tech enterprises would be imposed a tax rate of only 10 per cent in 15 years in comparision with the current normal rate at 25 per cent which would be cut to 22 per cent from January 1, 2014.

They would be provided tax exemption up to four years since having taxable income and 50 per cent tax reductions in the nine following years.

The Ministry of Finance was drafting a decree which would provide detailed instructions for the implementation of the amended Corporate Income Tax law which was passed in June and would take effect from the beginning of this year.

The ministry said that currently, there are enterprises enjoying tax incentives at the highest level for their investments in high-tech and economic zones and in localities with difficult socio-economic condition.

The draft circular will point out how these enterprises – which already enjoy tax incentives – would continue to receive incentives if certified as high-tech.

The ministry was also considering to provide a full package of tax incentives to enterprises that begins on the date that they are certified high-tech companies, regardless of any previous incentives.

This option would encourage them to develop into high-tech ones, however; they could easily take advantage of it to prolong their time for enjoying tax incentives.

The second option was that previous incentives would be accounted.

The amended law would also provide incentives to enterprises' new investments in industrial zones.

Accordingly, enterprises with new investments would enjoy tax exemption for two years and 50 per cent tax reduction in the four following years. — VNS

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