|A view of the HCM City skyline. The city is implementing tax exemption and reduction policies to further promote start-ups under Resolution 98__Photo: VNA
The Government has recently approved special policies and mechanisms for corporate and personal income tax exemption in Ho Chi Minh City.
Such move is provided under Decree 11/2024/ND-CP, which are designed to respond to Resolution 98, a National Assembly-approved resolution on piloting special mechanisms and policies for the development of HCM City.
The decree exempts enterprises involved in innovative start-up activities, science and technology organizations, innovation centers, and intermediary organizations supporting innovative start-ups from corporate income tax on income generated from these activities.
The exemption will last for five years, including income generated from innovative start-up activities.
In addition, personal income tax and corporate income tax for individuals and organisations with income from capital contributions to start-ups will also be exempted.
The tax benefits aim to enhance the city’s appeal for foreign investors.
To be eligible for tax benefits, individuals and start-up businesses must meet specific conditions and obtain certification.
These conditions include operating in priority sectors, engaging in innovative activities, and possessing certification for tax exemption consideration.
The country’s largest economic hub has great potential for economic growth and job creation thanks to its thriving start-up ecosystem.
It is home to over 2,000 start-ups, making up about 50 percent of all start-ups in Vietnam.- (VLLF)