Ho Chi Minh City Real Estate Association (HoREA) has just sent a document to The financial, made many recommendations to improve the Draft Law on Corporate Income Tax (Draft Law), creating more favorable conditions for businesses, especially small and medium enterprises.
Accordingly, HoREA proposed to add "deductible expenses when determining taxable income" for "support and sponsorship expenses for the field". medical, education, disease prevention, natural disasters, storms, floods according to regulations Goverment” at the end of Point a, Clause 1, Article 9 of the Draft Law to ensure fairness for businesses operating in charity activities.
“In addition to investment, production, and business activities to seek profits, our country's business community also has a tradition of carrying out social and charitable activities, helping others as they would themselves,” Mr. Le Hoang Chau, Chairman of HoREA, explained the reason for making this recommendation.
People and businesses in Ho Chi Minh City actively support people affected by storms and floods in the North. Photo TL
At the same time, HoREA proposed to add medium-sized enterprises to be subject to a tax rate of 18% or lower than the normal corporate income tax rate, especially enterprises with total annual revenue from over 50 billion VND to no more than 300 billion VND to ensure consistency and consistency with legal regulations on supporting small and medium-sized enterprises, which is also reasonable and suitable for practice.
According to HoREA, our country has about 920.000 enterprises, of which small and medium enterprises hold a very important position in the economy, accounting for 98% of the total number of enterprises. These enterprises contribute about 40% of GDP, about 30% of the State budget revenue and employ over 50% of the workforce, so Congress The Law on Support for Small and Medium Enterprises 2017 has been issued and the Government has also issued Decree 39/2018/ND-CP detailing the support mechanism for small and medium enterprises.
HoREA also proposed to add to the "Draft Law" a regulation that enterprises "investing, renovating, and rebuilding apartment buildings" are subject to a tax rate of 10% and enterprises "investing in building social housing for rent only" are subject to a tax rate of 6% CIT, 70% lower than the normal tax rate to specify the preferential tax rate policy for investors of social housing projects for rent only, instead of only being reduced by 50% as at present.
In addition, HoREA also proposed to add a policy allowing a 50% reduction in tax payable for no more than the next 5 years" for the subjects specified in Clause 4, Article 15 of the "Draft Law".
Sources: https://nld.com.vn/kien-nghi-mien-thue-khi-doanh-nghiep-lam-tu-thien-196240916111654013.htm
