Submit to the National Assembly tax incentive policies for press types at the 8th session
Recently, especially after the COVID-19 pandemic, the slowdown of the world economy has greatly affected the domestic economy; in which, production, business as well as people's lives have encountered many difficulties. In the context of general economic difficulties along with the development of digital technology, social media on cross-national digital platforms, the press has been greatly affected when revenue has seriously decreased.
During a working session with the Vietnam Journalists Association on June 13, 2023, on the occasion of the 98th anniversary of Vietnam Revolutionary Press Day, Prime Minister Pham Minh Chinh shared the difficulties and challenges that the Journalists Association at all levels, press and media agencies and journalists across the country are facing, especially the five issues raised by opinions at the meeting regarding press economics, staffing, finance, facilities and mechanisms and policies for the Journalists Association and press agencies.
The press is facing many difficulties due to a serious decline in revenue and needs timely support policies. Photo: Kha Hoa
At the same time, the Prime Minister assigned the Ministry of Information and Communications (MIC) to preside over and coordinate with relevant agencies to review, propose amendments and supplements to regulations related to press activities; perfect the mechanism for ordering and assigning tasks to the press... in accordance with the development needs of the press and the conditions and circumstances of the country.
Implementing the Prime Minister's direction, on November 24, 2023, the Ministry of Information and Communications sent an official dispatch to the Ministry of Finance requesting consideration of 5 groups of issues, including: Group of opinions on tax policy; Amendment and supplementation of Decree No. 60/2021/ND-CP dated June 21, 2021 on the financial autonomy mechanism of public service units.
It can be said that the preferential tax policy for press types helps press agencies reduce pressure in the current difficult context. This is also of interest to many press agencies, hoping that the Government will soon have measures to remove the problem.
In the official dispatch sent by the Ministry of Information and Communications to the Ministry of Finance, it was stated that currently, print media 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 (audio, visual, 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 preferential corporate income tax policies for all types of press, creating favorable conditions for press and facilitating tax accounting and management.
Informing the Journalists and Public Opinion Newspaper about the above content, the Ministry of Finance said that Clause 7, Article 1 of Law No. 32/2013/QH13 stipulates the application of a corporate income tax rate of 10% to "Income of press agencies from print newspaper activities, including advertising on print newspapers according to the provisions of the Press Law;...".
In the current difficult context, the press needs a mechanism to invest in production. Photo: Son Hai
Currently, implementing Decision No. 2114/QD-TTg dated December 16, 2021 of the Prime Minister promulgating the Plan to implement Conclusion No. 19-KL/TW dated October 14, 2021 of the Politburo and the Project to orient the Law-making Program for the 15th National Assembly term, the Ministry of Finance is conducting research, reviewing, and assessing the overall Law on Corporate Income Tax to report to the Government and the National Assembly Standing Committee for consideration of amendments and supplements to ensure conformity with Vietnam's socio-economic conditions as well as international practices and the consistency of the tax policy system.
After the research and review process, the Ministry of Finance said that on March 5, 2024, the Government submitted Document No. 82/TTr-CP to the National Assembly Standing Committee on adding the draft Law on Corporate Income Tax (amended) to the National Assembly's Law and Ordinance Development Program for 2024. This includes the content of adding preferential policies on corporate income tax for other press activities (other than print newspapers).
“On April 22, 2024, the Secretary General of the 15th National Assembly issued Notice No. 3525/TB-TTKQH on the conclusion of the National Assembly Standing Committee, in which the National Assembly Standing Committee agreed to submit to the National Assembly for consideration and decision to add the draft Law on Corporate Income Tax (amended) to the Law and Ordinance Development Program for 2025, adjusting the Law and Ordinance Development Program for 2024. It is expected that the draft Law on Corporate Income Tax (amended) will be submitted to the National Assembly for comments at the 8th session (October 2024) and approved at the 9th session (May 2025)” - informed the Ministry of Finance.
Thus, the preferential corporate income tax policy for other press activities (other than print newspapers) has been supplemented and will be submitted to the National Assembly at the 8th session and approved at the 9th session (May 2025). Many press agencies hope that this policy will be submitted to the National Assembly and approved sooner to help reduce tax pressure in the current difficult context.
Decree No. 60, soon issued, will "immediately" remove difficulties for press agencies.
Another content that is of particular interest to the press is the progress of promulgating the Decree amending and supplementing Decree No. 60/2021/ND-CP dated June 21, 2021 (Decree 60) on the financial autonomy mechanism of public service units.
Previously, in a document sent by the Ministry of Information and Communications to the Ministry of Finance to consider removing difficulties for the press, the Ministry of Information and Communications said that Decree 60 has inconsistent or non-specific regulations on implementing the roadmap for calculating full prices for public service fees using the State budget.
Within the framework of the 2024 National Press Conference, a discussion session was held on "Diversifying revenue sources for press agencies". Photo: Quang Hung
A survey by the Ministry of Information and Communications of 159 print and electronic press agencies during the two years of the COVID-19 pandemic showed that: Total revenue from newspapers decreased by 30.6% from VND 2,855 billion in 2020 to VND 1,952 billion in 2021. Revenue from radio and television in 2021 also decreased by 10% compared to 2020. The revenue of press agencies ranges widely from VND 200 - 300 million to VND 4 - 5 trillion. However, in reality, the number of press agencies with revenue at the trillion level is currently only about 1.2 billion. |
Specifically, Point a, Clause 2, Article 5 stipulates that by the end of 2021, the roadmap for calculating public service prices will be basically completed (calculating full salary costs, direct costs, management costs and depreciation of fixed assets, and other costs according to regulations of the law on prices).
However, Point b, Clause 2, Article 9 stipulates that Group 2 public service units (autonomous in regular expenditure) provide public services through auctions at prices that do not include depreciation costs. According to the Ministry of Information and Communications, this provision is difficult to apply in practice when making estimates for contractor selection plans.
In addition, Clause 3, Article 9 stipulates that Group 3 public service units (self-guaranteeing a portion of their regular expenditure) are ordered or bid by the State to provide public service services at prices that do not include full costs. However, there is still no regulation on which costs are not included in the price to have a basis for implementation, especially when implemented by bidding.
Therefore, the Ministry of Information and Communications proposed that the Ministry of Finance study and have unified regulations on the roadmap for calculating the full price of public products and services. In particular, it is proposed to calculate the depreciation cost of fixed assets when ordering and bidding for the provision of press and media services (regardless of the level of autonomy of the units) to support press and publishing agencies to proactively reinvest in assets and means of professional and technical operations.
In addition, it is proposed to clarify whether Group 4 units (with revenue from public services below 10%) can order or bid for public services or not to unify implementation.
The Ministry of Information and Communications also proposed to supplement regulations to clearly classify financial resources of autonomous units. Financial resources of public service units according to the level of financial autonomy are currently stipulated in Articles 11, 15 and 19 of Decree 60. However, they have not been classified appropriately according to the nature of the unit's financial resources, and have not been regulated on financial resources that are autonomous in exploitation and use, and non-autonomous financial resources of the unit.
At the same time, the Ministry of Information and Communications also proposed to adjust regulations on the management of financial resources for salary reform. Public service units are press agencies that have funds for salary reform but have not yet needed to use them or have not used them all, while revenue from career activities, advertising, copyright exchanges, etc. has decreased.
It is proposed to supplement Decree 60 or guiding documents on the principles of allocation and cost accounting for public service units and press agencies with many activities using the State budget and many business and service activities for unified application; supplement detailed instructions on project development and implementation in joint venture and association activities for public service units to implement (including press agencies).
Thus, amending and supplementing Decree No. 60 on financial autonomy mechanism of public service units is extremely necessary, meeting the expectations of press agencies.
In 2020, the Editor-in-Chief Forum: "Press and the Problem of Revenue Development" organized by the Journalists & Public Opinion Newspaper received many practical contributions, including a proposal to reduce taxes for the press. Photo: Quang Hung
Regarding the progress of promulgating the Decree amending and supplementing Decree No. 60 on the financial autonomy mechanism of public service units, the Ministry of Finance said that, based on the appraisal opinions of the Ministry of Justice in appraisal report No. 329/BCTĐ-BTP dated November 20, 2023 on the draft Decree (received by the Ministry of Finance on December 13, 2023); the Ministry of Finance has received and completed the draft Decree and has Submission No. 17/Ttr-BTC dated January 26, 2024 submitted to the Government for promulgation of the Decree. |
Previously, in a press interview in December 2023, Minister of Finance Ho Duc Phoc said that the Ministry of Information and Communications, the Vietnam Journalists Association, and a number of press agencies also registered to work with the Ministry of Finance on the difficulties and problems they are facing. These include difficulties and problems in the regulations on the financial autonomy mechanism of public service units in Decree 60.
The Ministry of Finance is receiving and explaining opinions to complete the draft Decree amending Decree 60 to create more favorable conditions for financial autonomy for public service units, including press agencies.
Recently, in an information to the Journalist & Public Opinion Newspaper, the Ministry of Finance said that after completing the draft Decree 60, it reported to the Government about its promulgation.
Specifically, regarding the progress of promulgating the Decree amending and supplementing Decree No. 60 on the financial autonomy mechanism of public service units, the Ministry of Finance said that, based on the appraisal opinions of the Ministry of Justice in appraisal report No. 329/BCTĐ-BTP dated November 20, 2023 on the draft Decree (received by the Ministry of Finance on December 13, 2023); The Ministry of Finance has received and completed the draft Decree and has Submission No. 17/Ttr-BTC dated January 26, 2024 submitted to the Government for promulgation of the Decree.
According to the Ministry of Finance, regarding the recommendations of a number of newspapers on the proposed amendments and supplements to Decree No. 60 (summarized through Document No. 5899/BTTTTKHTC dated November 24, 2023 of the Ministry of Information and Communications), the Ministry of Finance has issued Official Dispatch No. 444/BTC-HCSN dated January 11, 2024 to the Ministry of Information and Communications, in which it has explained and clarified a number of recommendations of a number of newspapers and accepted a number of opinions to complete the draft Decree in the above-mentioned Submission No. 17/Ttr-BTC.
It can be seen that in recent times, the Government and the Ministry of Information and Communications, together with relevant ministries and branches, have directed strongly and determinedly to remove difficulties, contributing to improving the operational efficiency of the press, publishing, information and communication sectors. And in order for the press to develop more and more, in line with modern communication trends, contributing to the successful completion of political tasks and being an essential means of information for social life, it is extremely necessary to perfect regulations on financial mechanisms and have timely preferential policies.
The Editorial Boards hope that the Government, the National Assembly and Ministries, including the Ministry of Information and Communications and the Ministry of Finance, will pay attention to and study policies to create conditions for the press to better fulfill its mission, contributing to the country's increasingly prosperous development.
Quoc Tran
Source: https://www.congluan.vn/chinh-sach-uu-dai-thue-cho-cac-loai-hinh-bao-chi-can-kip-thoi-hieu-qua-post299575.html
Comment (0)