This morning, June 12, 2017, the National Assembly officially passed the Law on Support for Small and Medium Enterprises (SMEs), with a relatively high approval rate: 442 delegates participated in the vote on the Law on Support for SMEs (reaching 90.02%). The number of delegates in favor was 410, equivalent to 83.5%. Below are some notable contents:
Article table of contents
Increasing the Loan Balance Ratio for Small and Medium Enterprises
According to the credit access support policy at commercial banks in the Draft Law on Support for Small and Medium Enterprises:
- The State Bank encourages commercial banks to increase the loan balance ratio for small and medium enterprises;
In case a commercial bank achieves a minimum loan balance ratio for small and medium enterprises of 30% or provides loans to small and medium enterprises at preferential interest rates as per development objectives, they will receive support as stipulated by the Government of Vietnam;
- Commercial banks are to design appropriate lending processes for small and medium enterprises, ensuring simplicity in procedures, quick disbursement times, and credit safety;- Commercial banks will perform various credit-related operations such as lending, discounting, financial leasing, factoring, bank guarantees, and other credit granting operations in accordance with the size and characteristics of small and medium enterprises;
Small and Medium Enterprises to Pay Lower Taxes for 5 Years
As per regulations, startup small and medium enterprises in priority sectors and fields will:
- Apply a tax rate 5% lower than the standard rate stipulated in the Corporate Income Tax Law;- Application period: A maximum of 5 years from when the enterprise starts its business operations.
Developing a Series of Support Programs for Small and Medium Enterprises
Includes:
- Startup support program;- Innovation support program;- Industrial cluster and value chain linkage support program;- Diagnostic and productivity enhancement support program;- Integration support program;- Other support programs for small and medium enterprises as stipulated by the Government of Vietnam in each specific period.
Notable policies for startups in the support program include:
- Free business startup training within 1 year from the date of having a business plan or being issued the first Enterprise Registration Certificate;- Free access to information and posting of enterprise information on the national portal supporting small and medium enterprises;- Exemption from business registration fees for 3 years from the date of being issued the first Enterprise Registration Certificate;- Startup small and medium enterprises will not be inspected or investigated within 1 year from the date of being issued the first Enterprise Registration Certificate, except where there are signs of law violations;- Receiving consultation and dossier preparation for industrial property registration; 50 million VND when successfully registering a patent domestically or internationally;- Preference for green channel processing in import and export procedures;- Up to 50% funding for training when the startup enterprise’s owner participates in an intensive startup training course selected by the program’s leading agency. Each enterprise is entitled to this support only once;- Partial funding for booth displays at international fairs and exhibitions for startups;- 50% reduction in personal income tax from salaries and wages for high-tech workers in innovative startup enterprises;- Corporate income tax exemption for revenue from business operations abroad;- Priority access to loans from the Small and Medium Enterprise Development Fund.
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