New Motivation for Business Development

 

An official from the General Department of Taxation said, to implement Resolution 19 on accelerated administrative procedure reform and business environment improvement, and Resolution 35 of the Government on troubleshooting for enterprises, the Ministry of Finance submitted to the Government and the National Assembly to promulgate many tax policies such as Law 106/2016/QH13 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 Tax Administration, the Law on Export Tax and Import Tax 107/2016/QH13, Law on Charges and Fees 95/2015/QH13 and Decree 120/2016/ND-CP.

At the conference on "Tax solutions and policies in support of businesses to develop and integrate", the Tax Policy Bureau said, the Ministry of Finance put forth a lot of tax preference solutions for start-up businesses. Supports for start-ups are very important because they usually have small scales at first. The preferential tax rate is 17 per cent in the 2017-2020 period.

 

In addition to giving preferential tax to start-up businesses, the new tax policy also has many preferences for old apartment investment and renovation. As the Law on Corporate Income Tax does not stipulate preferential taxes for old apartment restoration and reconstruction, the Ministry of Finance proposes adding the regulation on preferences for enterprises building and restoring old apartments. The preferential tax rate is 10 per cent from 2017 to 2020.

 

The business community cheered recent changes to tax and customs policies. Current tax and customs policies are suitable in the current context and creating fairness and equality among economic sectors.

 

Businesses appreciate income tax cut for small and medium enterprises (SMEs). This will enable them to have more investment capital for production and business operations. New policies also evidence the Government’s drastic actions to support SMEs and start-ups to create new motivations for business development.