Software companies enjoy free corporate tax for 4 years
Vietnamese and foreign software businesses that are operating in Vietnam and do not fall under the adjusted objects of the Law on Foreign Investment in Vietnam will enjoy exemption from the corporate tax for four years when they have taxable income.
This was announced in a circular issued on May 21, by the Ministry of Finance, on guiding the implementation of tax preference which is stipulated in a decision by the Prime Minister on some policies and measures to boost investment and development of the software industry.
As far as the software businesses in operation that have already had income are concerned, they are entitled to enjoy the exemption of corporate taxes for four successive years dating back to January 1, 2001. These businesses do not have to pay the value added tax for their software products and services sold in Vietnam. As for software products and services for export, a 0% value added tax rate is applicable.
The circular takes effect 15 days after the signing date.
(Nhan Dan Newspaper)
