Now, activities of manufacture of software products and provision of software services are all not subject to VAT according to the regulations at clause 21 Article 4 of Circular No. 219/2013/TT-BTC
However, regarding EIT, it is required to note that only projects of investment in manufacture of software products are entitled to EIT incentives; incomes from provision of software services are not entitled to the EIT incentives.
The incentive EIT rate currently applied to projects of manufacture of software products shall be as follows: Apply the tax rate of 10% within 15 years, EIT exemption for 4 years, 50% reduction in payable EIT for 9 subsequent years (the details are provided at point b clause 1 Article 11 and clause 1 Article 12 of Circular No. 96/2015/TT-BTC )
Regarding issues relating to programming service whether it is manufacture of software products or software service, enterprises need to contact with a specialized agency of the Ministry of Information and Communications) for obtaining guidelines.
|Published||Vietlaw's Newsletter No. 605|