This is one of the most important solutions on tax incentives for developing and applying information technology in Vietnam issued with the Resolution No. 41/NQ-CP dated May 26, 2016 of the Government.
In particular, beside the policy that personal income tax on salary-based and wage-based incomes of individuals working in hi-tech sections of the information technology industry is reduced by 50%. Such individuals are of high caliber and possess qualifications required for research, development and application of advanced technologies and services, for administration of high-tech activities, for operation of equipment and production lines manufacturing hi-tech goods in the industry of information technology, and for management of information system security. The Government also supplement that leveraged earnings for enterprises from the following types of projects: Production of digital contents, software servicing, manufacture of major information technology products, rectification of information safety issues, information safety security; such fields are granted with corporate income tax incentives similar to that of software production projects as per the Law on Enterprise income tax.
Besides, Addition of information technology operations particularly spurred: Production and servicing of software; information technology design and consulting services; system integration; information technology system management and maintenance services (e.g. applications, network, devices); information technology outsourcing; information system securing services without civil cryptography; database extracting and processing services; online information searching; data centers’ services; BPO and KPO services for export activities; digital signature verification are added to the List of operations of science research and technology development, the List of advanced technologies prioritized for investment and development and the List of hi-tech goods encouraged for development…In particular, the duration of eligibility for 10% tax shall be prolonged for another 15 years for new investment projects in information technology industries particularly spurred as per Article 1 of this Part, which maintain a regular workforce of over 1,000 workers.