Deputy Prime Minister and Minister of Finance Ho Duc Phoc said that if the National Assembly agrees, the corporate income tax rate for printed newspapers and other types of press will be 10%.
Deputy Prime Minister Ho Duc Phoc - Photo: GIA HAN
More support needed for journalism
Notably, many National Assembly deputies proposed reducing corporate income tax for the press. Delegate Thach Phuoc Binh (Tra Vinh) said that currently, press agencies operate with non-profit goals, serving political, propaganda, and educational tasks instead of doing business. However, applying a common corporate income tax rate of 20% for revenues outside of the main tasks such as advertising and event organization puts great pressure on press finances. He pointed out that public interest organizations enjoy corporate income tax exemption or reduction policies, but the press has not yet been given similar support mechanisms despite its important role in society. Especially in the context of fierce competition from digital platforms such as Google and Facebook, advertising revenue is decreasing, making it difficult for many press agencies to maintain operations. "Unstable income such as sponsorship and small advertising contracts are still subject to corporate income tax without considering their specificity, weakening the financial capacity of the press," Mr. Binh said. In addition, the current Tax Law does not have specific regulations for press agencies, leading to the application of tax rates as normal enterprises without considering the special role of the press in the political and social system. Some press agencies may enjoy incentives thanks to other regulations such as geographical areas and encouraged fields, but this is inconsistent and lacks transparency. From there, he proposed 7 incentives for press agencies. In particular, a preferential tax rate of 10% or lower is applied to income from activities outside of political tasks such as advertising and organizing events. At the same time, corporate income tax is exempted for sponsorships and aid for press agencies to create resources to support the implementation of political and communication tasks. Clearly separate income from tax-exempt political propaganda activities and income from business activities that enjoy low tax incentives. There are special support policies for local press agencies, especially in remote areas, where socio-economic conditions are difficult and financial autonomy is low or very low. Develop simple tax declarations, prioritize press support in determining taxable income, and apply incentives. Increase the application of information technology in tax declaration and settlement to reduce administrative burdens for the press. Along with that, provide indirect support through measures such as forming financial support funds from the state budget, socialization to partially finance press activities. Develop a tax collection mechanism from Google, Facebook... and use this revenue to support domestic press. Reduce taxes so that the press can perform its tasks better. Agreeing with these comments, delegate Do Chi Nghia (Phu Yen) emphasized that the press is facing extremely difficult times, the lives and incomes of officials and reporters have decreased significantly, and the activities of agencies have many problems to solve. Revenues are decreasing while tasks are increasing and especially information competition on social networks requires better quality of press information and more investment. He believes that this tax reduction is an opportunity and condition to support press agencies to do their tasks better and stronger policies are needed. He proposed to reduce taxes to 10% for all types of press, the state budget will not lose much but it is a very important encouragement for the press. Especially when reducing taxes, it increases the value of information, increases the spiritual value so that journalists can work better and more enthusiastically. Explaining later, Deputy Prime Minister and Minister of Finance Ho Duc Phoc said that if the National Assembly agrees, the tax rate for printed newspapers and other types will be 10%. The drafting committee discussed with the Finance and Budget Committee to agree on this content to help press agencies. He made it clear that there are many forms of support for press agencies such as ordering, advertising... For press agencies that are not yet autonomous, the State will still provide normal funding.
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Source: https://tuoitre.vn/pho-thu-tuong-ho-duc-phoc-neu-quoc-hoi-dong-y-se-ap-thue-10-voi-tat-ca-loai-hinh-bao-chi-20241128111217244.htm
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