Urgent need to reduce corporate income tax for press agencies

(CLO) The press is currently facing a sharp decline in revenue, in the context that social networking platforms have taken away most of the advertising revenue. In this difficult time, press agencies and the Ministry of Information and Communications have proposed to impose a common tax rate of 10% on the press, to facilitate press agencies to serve political tasks and provide essential information to the people. The draft Law on Corporate Income Tax (amended) will be officially submitted to the National Assembly for comments at this 8th Session, and the proposal to reduce corporate income tax for the press is urgent and is being paid attention to by press agencies from the central to local levels.

Tax cuts will ease the economic burden on journalism

In fact, print press agencies have been given corporate income tax incentives by the State with a tax rate of 10%. However, currently, many press agencies have two or more types of press (radio, television, print, electronic). Meanwhile, press activities all serve political tasks, providing essential information. Therefore, the Ministry of Information and Communications proposes that the State unify the application of corporate income tax incentives for all types of press, creating favorable conditions for the press and facilitating tax accounting and management.

Adjusting corporate income tax for press agencies to 10% for all types of press is appropriate. Photo: illustration

As one of the press leaders who is particularly interested in the issues of press policies and mechanisms, aiming at the interests of cadres and workers, journalist Nguyen Ngoc Toan - Editor-in-Chief of Thanh Nien Newspaper said that in reality, with the general difficulties of the national economy, the press economy is also on the decline as readers are gradually switching from printed newspapers to electronic newspapers. In addition, the emergence of many new advertising platforms has led to increasingly difficult press economies. Therefore, Thanh Nien Newspaper has made recommendations on this issue to the Ministry of Information and Communications and he hopes that during the time of amending the Law on Corporate Income Tax, the press's recommendations will be considered and paid attention to.

He said that in reality, the press is still sharing the country's common difficulties and still fulfilling its obligations. But in fact, the press is currently facing difficulties, having to both perform political tasks and be financially independent. Especially, in the context of the press having to compete for information with social networks, the press needs financial resources, enough to maintain its apparatus to continue to perform well its political tasks, maintain its political viewpoints, protect the Party's ideological foundation, fight against erroneous and hostile viewpoints, etc.

Therefore, according to Editor-in-Chief Nguyen Ngoc Toan, adjusting corporate income tax for press agencies to 10% for all types of press is appropriate. "I think that press agencies, whether print, electronic, television or radio, are all revolutionary press, public service units under state agencies. And to always have the strength of a cultural and ideological front, we propose a common income tax incentive for electronic newspapers and other types of press as is currently applied to print newspapers" - journalist Nguyen Ngoc Toan affirmed.

On this issue, journalist Tran Tien Duan, Editor-in-Chief of VietnamPlus e-newspaper (Vietnam News Agency) agrees with the proposal of the Ministry of Information and Communications that all types of press need to be subject to a preferential tax rate of 10%, or even a lower preferential tax rate, in order to create financial resources for press agencies and improve the quality of information content. Mr. Tran Tien Duan analyzed: The draft Law on Corporate Income Tax reduces corporate income tax for press agencies from 20% to 15%, while printed newspapers remain at 10% as before. This is a positive signal and affirms the attention of the Party, the State and relevant ministries. However, the proposed level has not really resolved the difficulties for press agencies, especially for e-newspapers. Along with the strong development of other types of media, advertising activities of press agencies have also been severely affected. In which, print newspaper advertising is declining, electronic newspaper advertising is not yet competitive with online advertising and social networks. Having reasonable policies at this time such as applying preferential tax rates of 10% or lower for all types of newspapers will help reduce pressure on press agencies in the context of general difficulties.

Faced with the current difficult economic situation of the press, journalist Tran Tien Duan also added that solving the difficult economic problem of the press of course requires a comprehensive solution. In addition to the State's mechanism for ordering press agencies, especially in the issue of policy communication, the managing units need to support press agencies or have a mechanism to create conditions for the editorial office to access economic resources. At the same time, the editorial offices also need to diversify their revenue sources, by organizing events, affiliate marketing or data trading, creating revenue sources on social networking platforms; or charging readers...

Tax policy should take into account specific sectors such as journalism and television.

The "hot" issue of corporate income tax policy for the press is not only in central press agencies but also from local press agencies. This issue is also being proposed and recommended by leaders of press agencies.

Looking at the reality and sharing with local press agencies, Mr. Le Van Toa - Chairman of Lam Dong Provincial Journalists Association said that in this digital era, the press is having to compete with many different social networking platforms, advertising is decreasing, while press agencies must invest more funds to ensure the quality of information work, serving the propaganda cause of the Party and State. If income tax is not adjusted at a reasonable level, it will lead to the press lacking the strength of resources to compete with social networks. The press will find it difficult to develop if the quality of press works is increasingly declining, even causing negative aspects in press activities.

Reporters working in the storm.

Directly facing many difficulties, journalist Vo Nguyen Thuy - Director of Quang Tri Radio and Television Station shared: According to data from the Ministry of Information and Communications, the total revenue of Radio and Television Stations in 2023 decreased by 20% compared to 2022. Not to mention that in the two years of the Covid-19 pandemic, revenue decreased even more sharply by 30-40%. The decline in revenue has caused press agencies that are self-sufficient or partially self-sufficient to face many difficulties in their operations. The advertising situation of local radio and television stations is also facing many difficulties, the main source of revenue of local stations used to be advertising but has now fallen to the "rock bottom" level.

"The reality is that few businesses come to the station to advertise, and businesses are no longer interested in advertising in newspapers and on television like before. Therefore, if the corporate income tax rate for television is applied at 15%, it is still high, causing difficulties for units. In fact, a television press work costs a lot to produce, which is increasingly putting great pressure on the income of officers and employees in the station. Many sources of revenue for the station that were previously considered stable are now deadlocked, and television press agencies like those in Quang Tri are in an extremely difficult situation," said Mr. Thuy.

Journalist Vo Nguyen Thuy gave a specific example at his unit: from the beginning of 2024 until now, reporters of Quang Tri Radio and Television Station have been working quite a lot in mountainous districts such as Dakrong, Huong Hoa, Con Co island... They hope that the agency will support the cost of gasoline for travel (the agency does not have vehicles to serve reporters working at the base), but currently the station does not have the funding to support. Meanwhile, the royalties for each reporter's work are not enough to pay for those working trips...

Faced with that reality, the Director of Quang Tri Radio and Television Station frankly proposed that tax policy should take into account specific fields such as journalism and television. In particular, local radio and television agencies should be paid special attention to. They are performing political tasks every day, with a lot of pressure, but applying tax rates like the current draft Law on Corporate Income Tax is... "difficult on top of difficult".

It can be said that the press field is a special field, which needs strong support for journalists to overcome difficulties and perform their tasks better. Therefore, applying a common tax rate of 10% for all types of press will help tax authorities easily manage and at the same time help press agencies have more resources to focus on completing their political tasks better...

Ha Van - Le Tam

Source: https://www.congluan.vn/can-kip-giam-thue-thu-nhap-doanh-nghiep-cho-cac-co-quan-bao-chi-post317965.html