Tax incentives for boosting information technology application and development

According to the policies of the Party and State on IT development, several of tax incentives and support has provided, contributing the important IT achievements. For the purpose of enhancing the competitiveness of IT enterprises and attracting investment for Information – Technology Industry (IT) in Vietnam and in the context of deeper and wider international integration, it is supposed to be necessary to issue more preferential policies, including the policies of tax incentives to boost the IT application and development in Vietnam.

Therefore, the Resolution offers the following incentives: supplementing some projects enjoyed the preferences of enterprise income tax at the same rate of software production as stipulated in law on enterprise income tax, included: manufacturing digital information content products, software service, manufacturing key IT products, the service of overcoming the information breakdown and protecting information; reduction of 50 percent of personal income tax for income from salary and wages of hi-tech employees working in IT.

Besides, the Government decides to supplement projects in the list of special encouragement, including: software production and services, IT consulting and design services, system integration services, IT system management and maintain services (applications, network, equipment), IT outsourcing, etc. Specially, the new investment project belong to the list of special encouragement that frequently uses more than 1,000 employees will be extended the period to apply the tax rate of 10 percent in 15 years (including the case has the preferential period of 15 years finished in the previous time).

The Ministries of: Finance, Information and Communication, Science and Technology, Ministers, Heads of Ministerial-Level Authorities, Chairmen of Provincial People’s Committees shall direct, guide and collaborate to carry out enterprise income tax incentives mentioned in this Resolution.