HIDS proposes tax support policy to promote sharing economy business model

In order to promote the model of sharing economy business, the Ho Chi Minh City Institute for Development Research (HIDS) has just proposed a number of policies, including tax support policy.


This policy of tax support will aim at start-up businesses, investors, investment funds, incubators and service providers for start-up businesses and staff in start-up businesses.

According to the Ho Chi Minh City Institute for Development Research, SMEs need to be exempt from income tax in the early stages of operation, then they will enjoy preferential tax rates lower than the general tax rate.

Income tax exemptions and reductions need to focus on salaries and bonuses from research and development in business enterprises so as to stimulate creative research and improve productivity for businesses.

Meanwhile, tax incentive policy will target income from investment surplus, capital transfer, and transfer of capital contribution rights at start-up enterprises to benefit investors and organizations which invest in creative start-up enterprises. The sharing economic business model can continue to maintain and gradually get more customers in Ho Chi Minh City with services such as housekeeping, medical, education, health care, or supply of freelance experts.

The models promote social interaction and connection because communities need to be encouraged and supported such as reading communities, bicycle exchange communities, and old furniture exchanges.

A sharing economy can be described as an economic model in which goods and resources are shared by individuals and groups in a collaborative way such that physical assets become services. The sharing economy enables people and organizations to earn profits from underutilized resources.

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