Law on Support for Small- and Medium-sized Enterprises, Law No. 04/2017/QH14

Micro- and small-sized enterprises shall be prioritized EIT

This is one of the supports prescribed at the Law on Support for Small- and Medium-sized Enterprises No. 04/2017/QH14, passed by the National Assembly on June 12, 2017, takes effect on January 01, 2018.

Accordingly, Small- and medium-sized enterprises may enjoy for a specified period of time an enterprise income tax rate lower than the ordinary tax rate applied to enterprises in accordance with the law on enterprise income tax. Micro-sized enterprises may apply simple tax-related administrative procedures and accounting regime.

Based on local budget capability, provincial-level People’s Committees shall submit to People’s Councils of the same level decisions on support in ground area rentals in local industrial parks, hi-tech parks and industrial clusters for small- and medium-sized enterprises. The maximum period of support is five years after a ground area lease contract is signed. Support in ground areas for production prescribed in this Article shall not be applied to foreign-invested or state-invested small- and medium-sized enterprises.

To support Small- and Medium-sized Enterprises in market expansion, ministries, ministerial-level agencies and provincial-level People’s Committees shall set up product distribution chains or join in setting up product distribution chains in the form of public private partnership. Other enterprises, investors and traders may set up product distribution chains. Enterprises and organizations investing in and operating product distribution chains that involve at least 80% of small- and medium-sized enterprises supplying made-in-Vietnam products are entitled to the supports such as exemption from or reduction of land rental, land use levy and non-agricultural land use tax; and exemption from or reduction of enterprise income tax for a specified period of time.

In human resource development support, small- and medium-sized enterprises are entitled to exemption from or reduction of expenses for attending state budget-funded training courses on business startup and corporate governance and for vocational training courses for their workers; the State shall organize online training programs and training programs in other mass media for small- and medium-sized enterprises; and support direct training for small- and medium-sized enterprises in the manufacturing and processing industries.