The National Assembly’s Committee for Culture and Education has proposed reducing corporate income tax for the media industry to 10%, similar to the rate currently applied to printed newspapers, aiming to support struggling journalism amid decreasing advertising revenues.

Deputy Finance Minister Cao Anh Tuan presented the Government’s proposal for significant corporate tax incentives, highlighting the importance of adjusting tax rates to stimulate investment in economically disadvantaged areas.

According to the proposal, new investment projects in economic zones located in areas with socio-economic challenges would enjoy a 10% corporate tax rate for 15 years, a sharp decrease from the current rate. This tax reduction aims to encourage investment in regions that need economic support.

Chairman of the National Assembly’s Committee for Culture and Education, Nguyen Dac Vinh, revealed that his committee, after working closely with the Ministry of Information and Communications, had agreed on the need to apply a flat 10% corporate income tax across the media industry, including digital and broadcast platforms. This would be similar to the current rate for printed newspapers.

“Vietnamese press organizations are entirely state-run, and most of their revenue comes from advertising. However, ad revenue has sharply declined in recent years. Therefore, we propose setting a unified 10% corporate tax rate for the entire media sector,” Vinh explained.

The draft law also proposes a 15% preferential tax rate for digital media, radio, and television, reducing the current rate by 5%. The tax for printed newspapers will remain at 10%, while other media platforms stand to benefit from the reduction.

In addition to the media sector, the draft law includes several provisions to boost other industries. Businesses that support small and medium enterprises, incubation facilities, and co-working spaces for startups may also enjoy a reduced tax rate of 17% for 10 years.

The law’s amendments will also affect the high-tech sector, agriculture, and the manufacturing of supporting industrial products.

The draft law introduces new provisions to clarify the tax obligations of foreign enterprises that generate income in Vietnam, whether they have a physical presence in the country or not. This includes companies engaged in e-commerce and digital platform businesses.

The law proposes that income generated in Vietnam, even by companies without a local office, should be subject to Vietnamese tax laws.

However, the National Assembly’s Finance and Budget Committee expressed concerns about the effectiveness of this provision. Chairman Le Quang Manh highlighted that the current definition of “permanent establishment” is outdated, as many foreign businesses operate through digital means without a physical office.

“The regulations need to be refined to adequately address the complexities of e-commerce platforms and ensure that foreign suppliers operating in Vietnam are taxed appropriately,” Manh explained.

The Committee called for further analysis to improve tax policies, especially concerning international companies and their obligations within Vietnam's growing digital economy.

Thu Hang