Innovative and start-up enterprises and individuals that have income derived in Ho Chi Minh City will be entitled to corporate income tax (“CIT”) and personal income tax exemptions under Decree No. 11/2024/ND-CP (“Decree 11/2024/ND-CP”) dated 2 February 2024 of the Government for implementing Resolution No. 98/2023/QH15 dated 24 June 2023 (“Resolution No. 98”) of the National Assembly on pilot mechanisms and policies for the development of Ho Chi Minh City. We outline below the tax exemptions stipulated in Decree 11/2024/ND-CP.

The tax exemptions are granted to enterprises that meet the conditions on prioritized sectors, criteria, conditions, and operational scope of start-up enterprises stipulated by the People Council of Ho Chi Minh City. The prioritized sectors include:

(i) E-commerce; 

(ii) Financial technology;

(iii) Logistics; 

(iv) Educational technology; 

(v) Healthcare and health services; 

(vi) High-tech agriculture; 

(vii) Sustainable development; 

(viii) Digital transformation; and 

(ix) Cybersecurity.¹

The CIT exemption period is five years from the effective date of Resolution No.98, which is 1 August 2023. The tax exemptions extend to the income generated from innovative and start-up operations in Ho Chi Minh City. Enterprises that are currently entitled to the CIT incentives different from the incentives stipulated in Decree 11/2024/ND-CP can opt to apply the CIT incentives under Decree 11/2024/ND-CP for the remaining tax exemption period.

Individuals who have income from the transfer of capital in innovative and start-up enterprises operating in Ho Chi Minh City are exempted from personal income tax on the relevant income. However, the income from the transfer of capital in connection with land use rights in a sole-owner enterprise is taxable.

Disclaimer: This publication is for general update. This should not constitute our professional advice for a particular case, entity, or any person. Should you need further information on the matter or our professional assistance for your specific cases, please contact us.

1. Article 8.1(e) of Resolution No. 98, Articles 13.1, 13.2, and 14.2 of the Decree 11/2024/ND-CP, Article 4 of Resolution No. 20/2023/NQ-HDND of People's Council of Ho Chi Minh City.