Proposed regulations on tax exemption for enterprises converted from households and individual businesses

Đề xuất quy định về miễn thuế đối với doanh nghiệp chuyển đổi từ hộ, cá nhân kinh doanh- Ảnh 1. — The Ministry of Finance proposes regulations on corporate income tax exemption for enterprises converted from households and individual businesses.

The Ministry of Finance said that Clause 4, Article 15 of the Law on Corporate Income Tax stipulates: " 4. Enterprises specified in Clauses 2 and 3, Article 10 of this Law newly established from business households are exempted from corporate income tax for 02 consecutive years from the time of having taxable income ".

To implement the provisions of the Law on Corporate Income Tax, the Ministry of Finance proposes:

Enterprises specified in Clauses 2 and 3, Article 10 of this Decree newly established from business households (including individual businesses converting to enterprises) are exempted from corporate income tax for 02 consecutive years from the time of taxable income.

Clauses 2 and 3, Article 10 of the draft Decree clearly state:

2. The tax rate of 15% applies to enterprises with total annual revenue not exceeding 3 billion VND.

3. The tax rate of 17% applies to enterprises with total annual revenue from over 3 billion VND to no more than 50 billion VND.

The tax exemption period prescribed in this clause is calculated continuously from the first year the enterprise has taxable income. In case there is no taxable income in the first three years, from the first year of revenue, the tax exemption period is calculated from the fourth year.

In case the first tax period of an enterprise has a production and business period exempted from tax of less than 12 months, the enterprise can choose to enjoy tax exemption in that tax period or register with the tax authority the tax exemption period starting from the next tax period. In case the enterprise registers the tax exemption period in the next tax period, it must determine the tax payable in the first tax period to pay to the state budget according to regulations.

After the tax exemption period specified in this clause, in case an enterprise implements an investment project in a tax-incentive industry, trade or location, it will continue to enjoy the corresponding incentives (preferential tax rates and tax exemptions and reductions) as prescribed in Articles 16, 17 and 18 of this Decree.

After the tax exemption period and tax incentive period (if any) prescribed in this Clause expires, enterprises shall apply the corporate income tax rate prescribed in Clauses 2 and 3, Article 10 of this Decree.

Business households and business individuals specified in this clause must meet the conditions for registration and operation in accordance with the provisions of law, and have at least 12 consecutive months of production and business operation up to the date of being granted the first Business Registration Certificate.

Newly established enterprises that are exempted from tax and given tax incentives as prescribed in this clause are enterprises registering for business for the first time, excluding newly established enterprises whose legal representatives (except in cases where the legal representatives are not capital contributors), general partners or persons with the highest capital contribution have participated in business activities as legal representatives, general partners or persons with the highest capital contribution in enterprises that are in operation or have been dissolved but have not been 12 months from the time of dissolution of the old enterprise to the time of establishment of the new enterprise.

Please read the full draft and give your comments here.

Wisdom

Source: https://baochinhphu.vn/de-xuat-quy-dinh-ve-mien-thue-doi-voi-doanh-nghiep-chuyen-doi-tu-ho-ca-nhan-kinh-doanh-102250714112219184.htm