Government Decree No. 11/2024/NĐ-CP dated 2/2/2024 provides clear regulations on the exemption of corporate income tax and personal income tax in Ho Chi Minh City.
For corporate income tax, the government decides that start-up innovative businesses, scientific and technological organizations, innovation and start-up support intermediaries (enterprises) with income from innovative start-up activities generated in the area, will be exempt from corporate income tax for this income.
Enterprises with income exempt from corporate income tax as provided for in this paragraph must meet the regulations of the Ho Chi Minh City People’s Council on priority areas, criteria, conditions, and content of innovative start-up activities.
The tax exemption period is 05 years from the time the enterprise generates corporate income tax payable from innovative start-up activities in Ho Chi Minh City during the effective period of Resolution No. 98/2023/QH15. After Resolution No. 98/2023/QH15 expires, if the tax exemption period specified in this paragraph has not ended, the enterprise will continue to implement it until the tax exemption period ends.
Start-up innovative businesses, scientific and technological organizations will be exempt from corporate income tax for income from innovative start-up activities (Illustrative photo)
For enterprises currently enjoying or eligible for corporate income tax exemption under other conditions than specified in this Decree, they may choose to continue enjoying tax exemption under other conditions or exemption under the conditions specified in this Decree for the remaining period.
During the effective period of Resolution No. 98/2023/QH15, organizations with income from capital transfer, contribution of capital to start-up innovative businesses in Ho Chi Minh City will be exempt from corporate income tax for this income.
For personal income tax, according to the decree of the government, during the effective period of Resolution No. 98/2023/QH15, individuals with income from capital transfer, capital contribution to start-up innovative businesses in Ho Chi Minh City will be exempt from personal income tax for this income.
Start-up innovative businesses in Ho Chi Minh City must meet the regulations of the Ho Chi Minh City People’s Council on priority areas, criteria, conditions, and content of innovative start-up activities.
Income from capital transfer, capital contribution refers to income obtained from the transfer of part or all of the capital, capital contribution to start-up innovative businesses in Ho Chi Minh City (including the case of selling the enterprise), excluding income from transfer of shares, bonds, fund certificates, and other securities as regulated.
In the case of selling the entire enterprise by individuals as owners in connection with real estate, they shall declare and pay personal income tax according to the real estate transfer activities.
The determination of income from capital transfer, capital contribution and declaration with the tax authorities shall be implemented according to the legislation on personal income tax and tax management.
