Tax declaration for innovation and start-up activities will be added

Clause 1, Article 8 of Resolution No. 98/2023/QH15 on exemption of corporate income tax and personal income tax for innovation and start-up activities in priority areas of the City stipulates:

"Article 8. On science and technology management and innovation

1. Support for innovation and start-up activities in the City's priority areas is stipulated as follows:

a) Exemption from corporate income tax for a period of 05 years from the time of arising of payable income tax on income from innovative start-up activities of innovative start-up enterprises, scientific and technological organizations, innovation centers and intermediary organizations supporting innovative start-ups arising in the City;

b) Exemption from personal income tax and corporate income tax for individuals and organizations with income from transferring capital contributions and capital contribution rights to innovative start-up enterprises in the City;".

Clause 3, Article 7 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration stipulates.

"3. Taxpayers are not required to submit tax returns in the following cases:

a) Taxpayers only have activities and businesses that are not subject to tax according to the provisions of tax law for each type of tax.

b) Individuals with income exempted from tax according to the provisions of the law on personal income tax and the provisions at Point b, Clause 2, Article 79 of the Law on Tax Administration, except for individuals receiving inheritance or gifts of real estate; real estate transfers".

Pursuant to Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Minister of Finance guiding the implementation of a number of articles of the Law on Tax Administration and Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration;

Regarding corporate income tax declaration, based on the above provisions, in the case of enterprises subject to the provisions of Resolution No. 98/2023/QH15 dated June 24, 2023, corporate income tax declaration shall be made according to Form No. 03/TNDN issued with Circular No. 80/2021/TT-BTC, which has the indicator [C2] to declare the tax number "Tax-exempt income ...".

The current declaration application supports selecting the type of tax-exempt income (by category), however, the type of tax-exempt income for innovation and start-up activities is a special case and is not yet included in the category.

Accordingly, the Tax Department will update the type of "Tax-exempt income according to Resolution No. 98/2023/QH15 dated June 24, 2023 to the list of "Tax-exempt income..." to facilitate taxpayers in declaring in accordance with the provisions of law.

Regarding personal income tax declaration, currently, individuals with income from capital transfer must declare tax according to the declaration form issued with Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Minister of Finance on guiding the implementation of a number of articles of the Law on Tax Administration and Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration.

However, Resolution No. 98/2023/QH15 dated June 24, 2023 of the National Assembly stipulates that individuals are exempt from personal income tax on income from capital transfer and capital contribution rights to innovative start-up enterprises in Ho Chi Minh City, issued after Circular No. 80/2021/TT-BTC. Therefore, currently, the capital transfer declaration does not have an indicator to declare tax-exempt personal income tax.

The Tax Department acknowledges the above problem and will supplement this indicator when drafting the Circular guiding the implementation of the Law on Tax Administration (amended) when the Law on Tax Administration is passed in December 2025.

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