Vietnam’s 2017 Tax Policies for Social Enterprises

The Vietnamese proverb “Buôn có bạn, bán có phường” (roughly translated as “In business, companionship thrives”) rings true even today, especially for social enterprises, the brave “warriors” venturing into the challenging yet meaningful path of business. How did the 2017 tax policies support these social enterprises? Let’s delve in!

Key Policies Effective December 2017

Social Enterprises – A Refreshing “Drop of Water” for the Community

Mr. Nguyen Van A, a retired economist, shared, “I always believe in living a life that benefits society.” Driven by this belief, he founded an organic confectionery business using locally sourced ingredients, creating jobs for locals, and contributing to environmental protection. Mr. A’s story exemplifies the Vietnamese spirit of mutual support and showcases the powerful impact of the social enterprise model.

Tax Support – A Helping Hand for Social Enterprises

2017 marked a significant turning point with the enactment of the Law on Support for Small and Medium-Sized Enterprises, which included numerous tax incentives specifically for social enterprises. Ms. Le Thi B, a tax consultant in Cau Giay, Hanoi, stated, “The 2017 tax policies were like a breath of fresh air, empowering social enterprises.” So, what “sweetness” did the 2017 tax policies offer?

• Corporate Income Tax Exemptions and Reductions: Social enterprises enjoyed significant corporate income tax benefits, including a four-year exemption and a 50% reduction for the following nine years.
• Value Added Tax (VAT) Incentives: Eligible products and services provided by social enterprises benefited from a 5% VAT rate, significantly lower than the standard rate.
• Import-Export Tax Support: Social enterprises received import-export tax incentives for materials and equipment used to produce eligible products and services.

Contributing to a Prosperous “Common Home”

Thanks to these practical incentives, many social enterprises have thrived, developing sustainably and creating increasing value for the community. Moreover, government support has encouraged more individuals and organizations to invest in social enterprises, contributing to a more equitable and compassionate society.

Conclusion

The 2017 tax policies for social enterprises were like sunshine and nourishment, fostering their growth. Hopefully, the future will bring more practical policies that create favorable conditions for social enterprises to flourish, contributing to a more prosperous Vietnam.

If you dream of starting a social enterprise or have any questions about tax policies, contact us at 0968239999, email: [email protected], or visit us at No. TT36 – CN9 Road, Tu Liem Industrial Zone, Phuong Canh Ward, Nam Tu Liem District, Hanoi. The experienced team at “XE TẢI HÀ NỘI” (Hanoi Trucks) is always ready to assist you 24/7.