Official letter No. 8441/CTHN-TTHT dated March 1st, 2023 of the Department of Taxation of Ha Noi city regarding policies on value added tax (VAT) and enterprise income tax (EIT) incentives with regard to computer programming

Now, activities of manufacture of software products and provision of software services are all not subject to VAT according to the regulations at clause 21 Article 4 of Circular No. 219/2013/TT-BTC

However, regarding EIT, it is required to note that only projects of investment in manufacture of software products are entitled to EIT incentives; incomes from provision of software services are not entitled to the EIT incentives.

The incentive EIT rate currently applied to projects of manufacture of software products shall be as follows: Apply the tax rate of 10% within 15 years, EIT exemption for 4 years, 50% reduction in payable EIT for 9 subsequent years (the details are provided at point b clause 1 Article 11 and clause 1 Article 12 of Circular No. 96/2015/TT-BTC )

Regarding issues relating to programming service whether it is manufacture of software products or software service, enterprises need to contact with a specialized agency of the Ministry of Information and Communications) for obtaining guidelines.