Hanoi: Expanding special support mechanisms to create momentum for science and technology enterprises.

The city's support policies focus on creating a favorable business environment where financial resources and high-quality human resources are given maximum priority.

Hanoi, with its leading position nationwide in the number of science and technology (S&T) enterprises, is continuously improving and expanding specific support mechanisms to create strong impetus for this sector, especially micro, small, and medium-sized enterprises.

In this effort, the City People's Council passed an important Resolution, detailing certain specific expenditure items and levels to support businesses, especially those carrying out key science and technology tasks.

Tax incentives are one of the sharpest tools Hanoi uses to attract and retain technology businesses. Currently, science and technology enterprises enjoy a corporate income tax exemption for a maximum of 4 years and a 50% reduction in tax payable for up to 9 subsequent years.

In particular, to encourage businesses to continuously research and create new products, the draft policies have added deeper incentives. Notably, these include a proposal to apply a preferential tax rate of 10% based on the Corporate Income Tax Law, along with a proposal to allow 200% of expenses to be deductible when calculating corporate income tax. This not only reduces the financial burden but also encourages businesses to reinvest heavily in research and development.

Tax incentives are one of the sharpest tools Hanoi uses to attract and retain technology businesses.

Recognizing the crucial role of human resources, Hanoi also prioritizes policies aimed at retaining and attracting experts and scientists. The city is moving towards exempting personal income tax on income from salaries and wages earned from scientific, technological, and innovative research work at science and technology enterprises. This is a strategic move, transforming Hanoi into an attractive destination for science and technology talent from both within and outside the country.

Besides tax incentives, Hanoi also focuses on directly supporting the operational processes of businesses through policies for key science and technology projects of the capital city. These supports include preferential treatment and assistance in purchasing and operating machinery and equipment, as well as flexible mechanisms in selecting contractors to supply services and goods for science and technology projects.

At the same time, the city focuses on building and developing a creative startup ecosystem, prioritizing the allocation of public investment capital and land, and encouraging public-private partnerships to form and operate science and technology infrastructure, innovation, and digital transformation.

Thanks to the combination of macroeconomic financial leverage and detailed support for research and development activities, Hanoi is creating a solid foundation to continue leading the nation in the field of science and technology, contributing to the creation of a knowledge-based economy .

Center for Science and Technology Communication

Source: https://mst.gov.vn/ha-noi-mo-rong-co-che-ho-tro-dac-thu-tao-dong-luc-cho-doanh-nghiep-khoa-hoc-va-cong-nghe-197251211114122457.htm