THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 123/2004/TT-BTC
Hanoi December 22, 2004
 
CIRCULAR
GUIDING THE IMPLEMENTATION OF TAX PREFERENCES FOR SOFTWARE ENTERPRISES
Pursuant to Business Income Tax Law No. 09/2003/QH11 of June 17, 2003;
Pursuant to the Government’s Decree No. 152/2004/ND-CP of August 6, 2004 amending and supplementing a number of articles of the Government’s Decree No. 164/2003/ND-CP of December 22, 2003 which details the implementation of the Business Income Tax Law;
Pursuant to the Government’s Resolution No. 07/2000/NQ-CP of June 5, 2000 on building and developing software industry in the 2000-2005 period;
Pursuant to the Prime Minister’s Decision No. 128/2000/ND-CP of November 20, 2000 on a number of policies and measures to encourage investment in, and development of, software industry;
Pursuant to the Government’s Decree No. 77/2003/ND-CP of July 1, 2003 defining the functions, tasks, powers and organizational structure of the Ministry of Finance,
The Ministry of Finance hereby guides the implementation of tax preferences for software enterprises as follows:
A. SUBJECTS AND SCOPE OF APPLICATION
1. Business establishments set up under investment projects on manufacture of software products and provisions of software services (hereinafter referred collectively to as software enterprises), as prescribed in the Prime Minister’s Decision No. 128/2000/ND-CP of November 20, 2000, on a number of policies and measures to encourage investment in and development of software industry, shall be entitled to tax preferences guided in this Circular.
2. Tax preferences guided in this Circular shall apply only to the manufacture of software products and provision of software services.
B. TAX PREFERENCES FOR SOFTWARE ENTERPRISES
I. BUSINESS INCOME TAX (BIT) PREFERENCES
1. Newly-set up software enterprises shall enjoy the BIT rate of 10% for 15 years as from the date they commence their business activities.
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