1. VAT
- Software products are not subject to output VAT (Clause 21, Article 4, Circular No. 219/2013/TT-BTC dated December 31, 2013)
- Accordingly, input VAT on goods and services used to produce software products is not deductible (that is, included directly in costs) (According to Clause 7, Article 14 of Circular No. 219/2013/TT- BTC December 31, 2013)
2. Personal income tax
- Phase 1: Tax exemption for 4 consecutive years from the first year the enterprise has taxable income. In case the enterprise has no taxable income in the first three years, from the first year of revenue from a new investment project, then The tax exemption and tax reduction period is calculated from the fourth year the new investment project generates revenue. (Clause 1, Article 20, Circular No. 78/2014/TT-BTC dated June 18, 2014)
- Phase 2: Reduce 50% of the tax payable in the next 9 years (ie 50% 78/2014/TT-BTC June 18, 2014)
- Phase 3: Preferential tax rate of 10% for the next 2 years (Clause 1, Article 19 and Article 20, Circular No. 78/2014/TT-BTC dated June 18, 2014)
- Phase 4: General tax rate for subsequent years 20%
