Vietnam to End Tax Incentives for Equitized Firms
State-owned enterprises (SOEs) undergoing equitization will be no longer given income tax incentives, said Le Hoang Hai, deputy head of Business Finance Department.
Addressing the seminar on pilot equitization of public hospitals Thursday, Hai said the Government will announce a new decision on reorganizing SOEs to regulate this issue.
Previously, equitized SOEs were typically small and medium companies and were encouraged to undergo privatization with income tax reductions, Hai said.
However, in the future Vietnam will equitize large-scale corporations and groups. To ensure the state budget, these firms will not be entitled to such incentives.
In the new decision, the reorganization program will target economic groups, corporations, parent companies and wholly state-owned liability companies, he said. However, Vietnam will maintain 100 per cent state stake in some sectors, as national defense or utilities.
Share sales will include all investors, domestic and foreign. Foreigners will have the same incentives as domestic investors.
The new regulation demands that strategic investors commit to the firm they are investing in for at least three years, in addition to demanding capability in finance and technology.
(VietnamNet)
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