Lam Dong National Assembly Delegate Trinh Thi Tu Anh: Proposal to amend tax regulations to suit digital transformation and innovation

Delegate Trinh Thi Tu Anh - Lam Dong Delegation participated in giving comments on the Draft Law on Corporate Income Tax (amended)

Commenting on the Draft Law, delegate Trinh Thi Tu Anh - National Assembly Delegation of Lam Dong province especially emphasized the need to adjust the regulations on the Science and Technology Development Fund. According to the delegate, the deduction level of "maximum 10%" of annual taxable income as currently drafted is not suitable for the diverse reality of different types of enterprises. The delegate proposed allowing high-tech enterprises and startups to deduct up to 15% to promote investment in research, development of science - technology, and innovation.

In addition, delegates also proposed extending the fund's usage period, allowing it to be transferred to subsequent years without tax collection, to suit the characteristics of long-term research projects, such as drug or software development. At the same time, there should be a strict monitoring mechanism to prevent abuse and loss of funds.

National Assembly Deputies attending the 9th Session

Regarding the regulations on taxpayers, delegates proposed amendments to create more favorable conditions for foreign enterprises without permanent establishments in Vietnam, especially in the field of e-commerce, by simplifying declaration procedures via the electronic portal; at the same time, recommending amendments to the wording to make it clearer and easier to apply.

In principle, the subjects applying corporate income tax incentives need to stipulate the maximum incentive period when there is taxable income to help businesses have clear investment plans; at the same time, encourage the development of an ecosystem to support small and medium enterprises and creative startups.

In addition, it is necessary to provide additional regulations on periodic evaluation of tax incentive effectiveness (for example, every 3 years) by the Government to periodically evaluate the effectiveness of tax incentive policies and report to the National Assembly for adjustment in accordance with socio-economic development goals. Because periodic evaluation ensures that incentive policies are truly effective, avoid budget waste, and promptly adjust if they are not appropriate.

Regarding other tax exemptions and reductions, delegates suggested considering adding more specific areas to apply tax incentives such as: Green development, environmentally friendly products... to create a legal basis for applying tax incentives.

View of the 9th Session

Delegate Trinh Thi Tu Anh also proposed a number of recommendations such as: Shortening the list of taxable incomes, adding references to tax treaties to avoid double taxation; adding a clear tax incentive period, having a mechanism to periodically evaluate the effectiveness of the policy; expanding the scope of tax incentives for vulnerable workers such as people with disabilities, early retirees, and business households converting to enterprises; at the same time, suggesting removing the 5-year limit on loss carryover, allowing enterprises to deduct losses when they have income, in line with business practices.

Concluding the discussion session, Vice Chairman of the National Assembly Nguyen Duc Hai affirmed that the opinions of the delegates will be received and studied to perfect the draft law to be submitted to the National Assembly for approval, in order to ensure the feasibility and consistency of the legal system.

Source: https://baolamdong.vn/kinh-te/202505/dbqh-lam-dong-trinh-thi-tu-anh-kien-nghi-sua-quy-dinh-thue-de-phu-hop-chuyen-doi-so-va-doi-moi-sang-tao-d1300ef/