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Tax incentives likely for tech-savvy enterprises

Tax incentives will 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.
Tax incentives will be provided to enterprises operating in the field ofhigh 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-techenterprises would be subject to a tax rate of only 10 percent in 15years in comparison with the current normal rate at 25 percent whichwould be cut to 22 percent from January 1, 2014.

They would beprovided tax exemption up to four years since having taxable income and50 percent tax reductions in the nine following years.

TheMinistry of Finance is drafting a decree which will provide detailedinstructions for the implementation of the amended Corporate Income Taxlaw which was passed in June and will take effect from the beginning ofnext year.

The ministry said that currently, there areenterprises enjoying tax incentives at the highest level for theirinvestments in high-tech and economic zones and in localities withdifficult socio-economic condition.

The draft circular will pointout how these enterprises – which already enjoy tax incentives – wouldcontinue to receive incentives if certified as high-tech.

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

Accordingly, enterprises with new investments will enjoy tax exemptionfor two years and 50 percent tax reduction in the four followingyears.-VNA

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