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|Proposals to reduce VAT for IT businesses - Photo: Internet|
The draft resolution aims to extend the period of 10-percent corporate income tax reduction to 30 years for IT businesses employing more than 1,000 IT workers each.
Under the draft, IT workers of businesses that enjoy corporate income tax incentives will enjoy 50-percent personal income tax reduction while value-added tax (VAT)-free software makers and software service providers will be exempted from VAT declaration and calculation.
The Finance Ministry will work with the National Committee on IT Application in guiding contractor tax relief for software and software copyright trading activities; formulating regulations on corporate income tax and private income tax on incomes from capital transfer or divestment in order to facilitate investment in start-up IT or IT-based businesses.
Earlier, the Ministry of Finance added 10 products to the list of commodity groups and particular preferential import duty rates for materials, supplies, parts and accessories for manufacturing information technology products. This brought the total number of IT products eligible for tax relief to 27.