Many National Assembly deputies proposed further reduction of corporate income tax, to 0% or tax exemption, to help press agencies overcome difficulties and fulfill their political tasks.
On the morning of November 22, after listening to the presentation, the National Assembly spent time discussing the draft Law on Corporate Income Tax (amended). In the draft, the Government proposed applying a preferential tax rate of 15% (5% reduction compared to the common tax rate) to press agencies from press activities other than print newspapers. Print newspapers will continue to apply the current preferential tax rate of 10%.
Delegate Tran Anh Tuan, Head of the HCM City Business Management Innovation Committee, discussed at the group.
PHOTO: GIA HAN
During the discussion, delegate Tran Hoang Ngan (HCMC delegation) said that the corporate income tax rate applied to the fields of press, media and culture is currently too high. According to him, these are important fields and need more tax incentives.
"It is necessary to apply a common tax rate for print and electronic newspapers of 10%, and it should even be reduced further," Mr. Ngan said, and proposed exempting corporate income tax for the press for 5 years, or applying a minimum tax rate to help the industry overcome difficulties.
Ho Chi Minh City delegates analyzed that the press has made great contributions to the process of building and developing the economy and society. The press also contributes to the fight against bad and toxic information, preventing and combating corruption and waste, thereby increasing budget revenue. However, the revenue of press agencies has decreased sharply in recent times due to competitive pressure from social networks. Meanwhile, it is necessary to increase investment in facilities and technology to meet the development needs in the digital age.
"The press has both reduced advertising revenue and increased investment spending, so it is facing difficulties," said Mr. Ngan.
Sharing the same view, delegate Tran Anh Tuan, Head of the HCM City Business Management Innovation Committee, also said "taxes need to be reduced further, to 0% or 5% for the press sector".
Proposal to reduce tax on all press agency revenue
Delegate Do Chi Nghia (Phu Yen delegation), Vice Chairman of the National Assembly's Committee on Culture and Education, reflected that the current tax rate for printed newspapers is 10%, and for other types of newspapers is 20%. The Government proposed that the corporate income tax for printed newspapers remain at 10%, while the tax rate for other types of newspapers would be reduced by 5%, to 15%.
Vice Chairwoman of Ho Chi Minh City People's Committee Tran Thi Dieu Thuy proposed tax incentives for all revenue from business activities serving the operations of press agencies.
PHOTO: GIA HAN
Mr. Nghia proposed to reduce the tax on the press to the same level of 10%, because this is not a business sector, but serves politics, performs communication tasks, so it needs appropriate support and incentives.
"Separating 10% from print newspapers and 15% from other newspapers is unreasonable, because the revenue and distribution of print newspapers are currently very low. There are almost no newsstands left in Hanoi and Ho Chi Minh City, while there were many before. Everything has switched to other platforms, such as online newspapers, even television has switched to digital platforms such as watching on YouTube...", Mr. Nghia stated.
According to delegate Nghia, the digital transformation of news agencies is currently taking place vigorously. To transform digitally, it requires a huge investment in resources, people, and technology. Therefore, a 10% tax incentive, according to Mr. Nghia, does not have much meaning. "If incentives are given, they should be commensurate with the level, clearly demonstrating the policy of caring for the press," Mr. Nghia added.
Vice Chairwoman of the Ho Chi Minh City People's Committee Tran Thi Dieu Thuy said that with the current situation of publishing printed and electronic newspapers, advertising revenue cannot support the newspaper when implementing autonomy. However, currently, press agencies only enjoy preferential treatment for revenue from press activities, other revenue such as building rental is subject to normal corporate income tax, while for many press agencies, this is a large part of income serving the operation of the editorial office.
“What do we invest in the press through? It is through tax incentives from newspaper advertising revenue and building business for newspaper operations. However, these expenses are taxed at a high rate, which is unreasonable,” Ms. Thuy said, suggesting that all business activities serving the newspaper’s operations should enjoy tax incentives.
Previously, the proposal to reduce corporate income tax for press agencies, regardless of type, was raised by National Assembly delegates.
At the 37th session of the National Assembly Standing Committee on September 23, when giving the first comments on the draft Law on Corporate Income Tax (amended), Chairman of the Committee on Culture and Education Nguyen Dac Vinh proposed applying a common income tax incentive rate for print newspapers, electronic newspapers and other types of press as currently applied to print newspapers, which is 10%.
According to the current Corporate Income Tax Law, the income of press agencies from print newspaper activities, including advertising on print newspapers, enjoys a preferential corporate income tax rate of 10%. There are no regulations for press agencies of other types such as electronic newspapers, television, and radio.
Thanhnien.vn
Source: https://thanhnien.vn/de-xuat-giam-thue-thu-nhap-doanh-nghiep-voi-bao-chi-ve-0-185241122112002392.htm
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