Draft law to offer various supports to startups
The Ministry of Planning and Investment is working on the second draft of a law on supports for small- and medium-sized enterprises (SMEs), which is expected to devote a separate section on programs to assist startup businesses.
According to drafters, supports would be given to SMEs set up and having operated for three years since the date of establishment registration, particularly in key sectors and fields.
Eligible enterprises would be exempted from license tax for 36 months and from examination and inspection for 12 months from the date of establishment provided that they commit no violation.
Moreover, separate supports would be granted to startups that develop innovative and creative products. Specifically, hi-tech workers in these startups would be entitled to a 50 percent reduction of personal income tax on their incomes from salaries and wages, while income tax exemption would be provided for incomes from transfer of capital or shares with respect to over-one-year investments.
The drafters also propose giving priorities to creative startups in customs clearance; providing a support equal to 50 percent of training costs, at least 30 percent of expenses for hiring domestic experts to design new products and change technological process, or 50 percent of charges for using machinery and equipment in national key laboratories for research, design and manufacture of new products.
These startups would also be exempted from corporate income tax on sales of products in the trial stage and for two years.
Some experts proposed credit institutions to extend credit to businesses and facilitate their access to credit sources in order to ensure the best use of resources in production and business. They suggested standardizing criteria for credit access, finalizing the mechanism of loan guarantee and improving the legal environment to simplify mortgage procedures. Businesses should promote financial transparency and transparency of invoices and documents while proving the efficiency of funding sources in business activities so as to build trust for banks from which they wish to take loans.
The draft law is scheduled to be tabled at the second session of the XIVth National Assembly.