Ministry of Finance considers proposal to reduce income tax on press to 10%

Article 10 of the current Law on Corporate Income Tax stipulates that the general tax rate for press agencies is 20% (except for print press activities which enjoy a preferential corporate income tax rate of 10%).

Illustration photo.

However, in the draft revised Law on Corporate Income Tax that is being consulted by the Ministry of Finance , the Ministry proposes to add press activities, including newspaper advertising in general, instead of just print newspaper activities as currently, to the industries and professions that are subject to preferential corporate income tax.

The tax rate proposed by this Ministry is 15%, a 5% reduction compared to the current rate. For printed newspapers, the proposed tax rate continues to be 10%.

The Ministry of Information and Communications then proposed to unify the application of preferential corporate income tax policies for all types of press, creating favorable conditions for press and facilitating accounting and tax management.

Newspaper revenue depends on advertising. But the development of technology, especially social media and social networks, has led to a sharp decline in advertising revenue for newspapers.

In the face of the situation where the revenue from press activities is no longer much due to the decline in revenue from print activities as well as revenue from advertising activities in general, the separate accounting of revenue sources for declaration and tax payment... affects the operations of press agencies.

Recently, Chairman of the Culture and Education Committee Nguyen Dac Vinh, in a meeting of the National Assembly Standing Committee on the draft revised Law on Corporate Income Tax, also proposed a common tax rate for the press of 10%.

In response to the comments, Deputy Minister of Finance Nguyen Duc Chi said the Ministry will take into account the comments and consider tax incentives at an appropriate level to support press agencies. "The Ministry will listen and take into account the comments during the process of finalizing the draft," he said.

Source: https://www.congluan.vn/bo-tai-chinh-se-xem-xet-de-xuat-giam-thue-thu-nhap-voi-bao-chi-xuong-10-post314174.html