VI On February 2, 2024, the Government issued Decree 11/2024/ND-CD regulating loan interest, reasonable profits, payment methods, and settlement of investment projects under BT contracts; corporate income tax exemption, personal income tax exemption in Ho Chi Minh City. Through today’s article, let’s learn more about this issue with Pham Consult!
Decree 11/2024/ND-CD detailing a number of articles of Resolution 98/2023/QH15 of the National Assembly on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City (hereinafter referred to as is Resolution 98/2023/QH15) including:
– Loan interest after the construction period, reasonable profit, payment method, settlement of investment projects under BT contracts (hereinafter referred to as BT projects) in Ho Chi Minh City according to the provisions of Point d Clause 5 Article 4 Resolution 98/2023/QH15;
– Exemption from corporate income tax and exemption from personal income tax according to the provisions of Points a and b, Clause 1, Article 8 of Resolution 98/2023/QH15.
Decree 11/2024/ND-CD does not stipulate the following contents:
– Loan interest during the construction period of the BT project shall comply with the provisions of construction law;
– The ratio of equity capital mobilized by investors to implement real BT projects according to the provisions of Article 77 of the Investment Law 2020 according to the public-private partnership method.
Decree 11/2024/ND-CD applies to the following subjects:
– Parties in the BT contract, agencies, organizations and individuals related to investment activities of BT projects in Ho Chi Minh City.
– Enterprises, agencies, organizations, and individuals related to innovation and creative start-up activities in Ho Chi Minh City.
Are organizations that have income from transferring capital contributions or the right to contribute capital to innovative startups exempt from corporate income tax?
Pursuant to Clause 2, Article 13 of Decree 11/2024/ND-CP stipulates as follows:
Exemption from corporate income tax
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2. During the time Resolution No. 98/2023/QH15 takes effect, organizations that have income from transferring capital and the right to contribute capital to creative startups in Ho Chi Minh City are exempted. corporate income tax on this income.
Innovative start-up enterprises in Ho Chi Minh City specified in this Clause must meet the regulations of the People’s Council of Ho Chi Minh City on priority fields; criteria, conditions, and content of innovative start-up activities.
Income from capital transfer and capital contribution rights specified in this Clause is income earned from transferring part or all of the capital and capital contribution rights to creative start-up enterprises in Ho Chi Minh City ( including cases of business sale), except income from transfer of stocks, bonds, fund certificates and other securities according to regulations.
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Thus, based on the above regulations, during the time Resolution 98/2023/QH15 takes effect, organizations will have income from transferring capital contributions and the right to contribute capital to local creative startups. Ho Chi Minh City desk is exempt from corporate income tax on this income.
Individuals who have income from transferring capital contributions to creative start-up enterprises are exempt from personal income tax, right?
Pursuant to the provisions of Article 14 of Decree 11/2024/ND-CD stipulates as follows:
Exemption from personal income tax
1. During the period of Resolution No. 98/2023/QH15 taking effect, individuals with income from transferring capital contributions and the right to contribute capital to creative start-up enterprises in Ho Chi Minh City are exempted. Personal income tax on this income.
Innovative start-up enterprises in Ho Chi Minh City specified in this Clause must meet the regulations of the People’s Council of Ho Chi Minh City on priority fields; criteria, conditions, and content of innovative start-up activities.
Income from capital transfer and capital contribution rights specified in this Clause is income earned from transferring part or all of the capital and capital contribution rights to creative start-up enterprises in Ho Chi Minh City ( including cases of business sale), except income from transfer of stocks, bonds, fund certificates and other securities according to regulations.
In case of selling an entire enterprise owned by an individual in the form of transferring capital attached to real estate, personal income tax shall be declared and paid according to the real estate transfer activity.
2. Determination of income from capital transfer, capital contribution rights and declaration to tax authorities is carried out in accordance with the law on personal income tax and the law on tax administration.
Thus, based on the above regulations, during the time Resolution 98/2023/QH15 takes effect, individuals will have income from transferring capital contributions and the right to contribute capital to local creative startups. Ho Chi Minh City desk is exempt from personal income tax on this income.
Thus, through the article on Pham Consult, we have helped you learn more new information about the regulations on corporate income tax exemption and personal income tax exemption in Ho Chi Minh City. Hope the above information will help your work.
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