On February 2, 2024, the Government issued Decree No. 11/2024/NĐ-CP, the noteworthy provisions include:
Corporate Income Tax Exemption
Entreprises involved in innovative startup activities, scientific and technological organizations, innovation centers, and intermediary organizations supporting innovative startups (collectively referred to as enterprises) are eligible for corporate income tax exemption on income generated from innovative startup activities within the jurisdiction of Ho Chi Minh City.
The tax exemption period is 05 years, calculated from the moment when the enterprise incurs corporate income tax liability arising from innovative startup activities within the jurisdiction of Ho Chi Minh City during the effective period of Resolution No. 98/2023/QH15. If the tax exemption period as stipulated in this provision has not expired upon the expiration of the effective period of Resolution No. 98/2023/QH15, the enterprise shall continue to enjoy the tax exemption until the end of the designated tax exemption period.
In cases where an enterprise is currently within the tax exemption period or falls under tax exemption conditions different from those stipulated in this Decree, the enterprise is entitled to choose between continuing to enjoy tax exemption based on the existing conditions or opting for tax exemption in accordance with the provisions of this Decree for the remaining period.
During the effective period of Resolution No. 98/2023/QH15, organizations generating income from the transfer of contributed capital or rights to contribute capital to innovative startup enterprises within the jurisdiction of Ho Chi Minh City shall be exempt from corporate income tax on this income.
Income from the transfer of capital, rights to contribute capital as stipulated in this clause refers to income obtained from the transfer of all or part of the capital, rights to contribute capital to innovative startup enterprises within the jurisdiction of Ho Chi Minh City (including the case of selling the entire enterprise), excluding income from the transfer of stocks, bonds, fund certificates, and other types of securities as regulated.
Personal Income Tax Exemption
During the effective period of Resolution No. 98/2023/QH15, individuals with income from the transfer of contributed capital or rights to contribute capital to innovative startup enterprises within the jurisdiction of Ho Chi Minh City shall be exempt from personal income tax on this income.
This Decree effect from the date of signing
