February 08, 2024 | 07:00 GMT+7

Income tax exemptions available to innovative startups and related organizations in HCMC

Bình Minh -

Exemptions for enterprises listed in new decree to last for five years.

A product from the Roboworld startup in Ho Chi Minh City showcased at the 2023 Techfest. Photo: VnExpress
A product from the Roboworld startup in Ho Chi Minh City showcased at the 2023 Techfest. Photo: VnExpress

Enterprises involved in innovative startup activities, science and technology organizations, innovation centers, and intermediary organizations supporting innovative startups in Ho Chi Minh City will be exempted from corporate income taxes on income from these activities, the Government News has reported.

This is part of a new decree on corporate income tax exemptions and personal income tax exemptions in the southern city that was issued by the government.

The decree was issued in response to the National Assembly’s Resolution No. 98 on piloting special mechanisms and policies for the development of Ho Chi Minh City.

These enterprises are eligible for tax exemptions for five years from the time they incur corporate income taxes payable from innovative startup activities in the city after Resolution No. 98 takes effect.

After the Resolution No. 98 expires, the tax exemption period prescribed has not ended; thus, enterprises continue to enjoy exemptions until the end of the tax exemption period.

The decree also stipulates that individuals and organizations with income from transferring capital contributions and transferring the capital contributions rights to creative startups in the city are exempt from personal and corporate income tax for this income.

To be eligible for the tax incentives, individuals, and organizations must meet specific conditions and obtain certification.

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