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THE PRIME MINISTER OF GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
128/2000/QD-TTg
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Hanoi, November 20, 2000
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DECISION
ON A NUMBER OF POLICIES AND MEASURES TO
PROMOTE INVESTMENT IN AND DEVELOPMENT OF THE SOFTWARE INDUSTRY
THE PRIME MINISTER
Pursuant to the Law on Organization of the Government of September 30,
1992;
Pursuant to the Government’s Resolution No.07/2000/NQ-CP of June 5, 2000 on the
building and development of the software industry in the 2000-2005 period;
At the proposal of the Minister of Science, Technology and Environment,
DECIDES:
Article 1.- Scope of regulation and objects of application
1. This Decision prescribes a
number of policies and measures to encourage organizations and individuals of
all economic sectors at home, overseas Vietnamese and foreign organizations and
individuals to invest in the production of software products and provision of
software services in Vietnam (hereinafter called the software enterprises for
short).
2. The incentives and
preferences prescribed in this Decision shall apply to the software
enterprises. In cases where an enterprise is engaged in different activities,
it shall be entitled only to the preferences provided for herein for activities
of producing software products and providing software services.
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In this Decision, the following
terms shall be understood as follows:
1. Software is understood as
programs, program-describing documents, support documents and digitized
information content.
a/ A program is a collection of
commands and/or statements, denoted in any language, code or notation system,
and displayed or stored in media (with or without relevant information), for
direct or indirect use after either or both the following processes:
- Being converted into another
language, code or notation system;
- Being reproduced to other
media; and causing a tool capable of processing information to perform a
certain function.
b/ Program-describing documents
and support documents are those represented in any form with contents
describing a program, recommending and guiding the program-setting, use,
upgrading, error correction or other guidance related to the use and operation
of such program.
c/ Digitized information
contents include:
- The data base, which is a
collection of data arranged and stored in the digitized electronic form;
- The collection of digitized
works, which is a collection of works stored in the digitized electronic form.
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Various kinds of software
products include:
a/ Embedded software are those
already programmed and set up by their producers in equipment and can be used
instantly with such equipment without further set-up by the users or a third
party.
b/ Packed software are software
products that can be used right after being programmed and set up by the users
or service providers in equipment or systems. Such a software is usually
supplied in forms of floppy disks, compact disks, any other media or via
computer networks. Packed software are commonly categorized into two: the
system software and the applied software (for example: operating systems,
development tools, programming languages, document processors, calculating
tables; anti-virus, accounting, teaching, financial management and supplies
management programs; scientific and technical calculation software, graphics
software, etc.).
c/ Special-use software are
software products developed upon specific and particular demands of customers.
A special-use software may be developed from its very initial from or designed
upon the customers’ demands on the basis of software already available on the
market.
d/ Digitized information
products are digitized information contents stored on certain objects.
3. Software services are used to
refer to all activities in direct service of the production of software
products, such as exploitation, research, use, training, popularization and
other similar activities related to software industry.
Software services include:
software consultancy; integration and supply of systems; software-related
professional services; software processing; data processing services, drill and
training services and services of organizing the software labor export.
a/ Software consultancy services
include the provision of consultations, information and instructions, exchange
of software, inquiry into demands, solutions and experiences in designing,
program-setting and upgrading computer networks.
b/ System integrating and
supplying services include consultations, connection of hardware, network
equipment and special-use software into the whole system, accompanying drills
and training.
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d/ Data processing services mean
services of data input and digitized electronic data processing for customers.
e/ Software drill and training
services mean the professional drill and training activities related to the
software industry.
Article 3.- Enterprise income tax rates
1. Vietnamese software
enterprises and foreign software enterprises operating in Vietnam, not under
the Law on Foreign Investment in Vietnam shall enjoy the following enterprise
income tax rates:
a/ The tax rate of 25%.
b/ The tax rate of 20%, for
enterprises investing in geographical areas with difficult socio-economic
conditions.
c/ The tax rate of 15%, for
enterprises investing in geographical areas with particularly difficult
socio-economic conditions.
Geographical areas where the
investment is made mentioned at Points b and c of this Clause are specified in
Lists B and C of the Appendix promulgated together with the Government’s Decree
No.51/1999/ND-CP of July 8, 1999 detailing the implementation of the Law on
Domestic Investment Promotion (amended).
2. Software enterprises subject
to the Law on Foreign Investment in Vietnam shall enjoy the enterprise income
tax rate of 10%.
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Article 4.- Enterprise income tax exemption
Software enterprises shall be
exempt from enterprise income tax for four years from the date the taxable
income is generated, and shall not have to pay
enterprise income surtax for incomes earned from software production and
service activities.
The Finance Minister shall
provide detailed guidance on the enterprise income tax exemption according to
the provisions of this Article.
Article 5.- Income tax on high-income earners
For professional laborers who
are Vietnamese and personally engaged in software production and service
activities, the minimum taxable income level and progressive tax rates
prescribed for foreigners shall apply.
Article 6.- Value added tax
Software products and services
shall enjoy the highest value added tax preferences.
The Finance Minister shall
provide detailed guidance on the implementation of value added tax according to
provisions of this Article.
Article 7.- Export tax and import tax
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2. Software products shall be
exempt from export tax.
Article 8.- Credit preferences
Vietnamese enterprises engaged
in software production and service activities shall enjoy investment assistance
in various forms from the State’s Development Assistance Fund according to the
provisions of the Government’s Decree No.43/1999/ND-CP of June 29, 1999 on the
State’s development investment credit.
Article 9.- Land use and rent preferences
1. Vietnamese software
enterprises shall be entitled to land use levy, land rent and/or land use tax
exemption or reduction according to the provisions of the Government’s Decree
No.51/1999/NQ-CP of July 8, 1999.
2. Software enterprises subject
to the regulation of the Law on Foreign Investment in Vietnam shall enjoy
preferences according to the current regulations on land rent.
Article 10.- Protection of copyright over software products
The Ministry of Culture and
Information shall assume the prime responsibility and coordinate with the
concerned ministries and branches in revising the current legal documents, to
promulgate according to its competence or submit to competent bodies for
promulgation legal documents concerning the protection of copyright over
software products; enhancing the capability and operation effectiveness of the
agencies in charge of managing and enforcing the copyright over software.
Article 11.- Training and development of human resources
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2. The Ministry of Education and
Training shall assume the prime responsibility and coordinate with the Ministry
of Science, Technology and Environment, the General Department of Post and
Telecommunications and the concerned ministries and branches in proposing to
the Government plans on the training of human resources to meet the software
industry building and development requirements and the Internet project in
service of education and training.
3. The General Department of
Post and Telecommunications shall assume the prime responsibility and
coordinate with the Ministry of Finance, the Ministry of Education and Training
and the concerned ministries and branches in promulgating policies whereby
lecturers, teachers, students and pupils of schools in the national education
system can benefit from the regime of Internet access fee exemption or
reduction at training establishments.
Article 12.- Creation of favorable telecommunications
infrastructure
The General Department of Post
and Telecommunications shall assume the prime responsibility and coordinate
with the concerned ministries and branches in promulgating specific policies
and regulations aimed at boosting a competitive environment, creating
conditions for software enterprises to engage in telecommunications and
Internet service activities; fully and conveniently supplying
telecommunications and Internet services to the users with high speed and
quality, at a charge level lower than or equal to that of the regional
countries; permitting the software industry parks to hook up their own Internet
gates to the worldwide Internet system, so that all software enterprises in
such parks and those registered to provide Internet services via such parks can
easily access to all Internet services at competitive prices as compared to the
regional countries.
Article 13.- Publication and inspection of software export and
import
The Ministry of Culture and
Information shall assume the prime responsibility and coordinate with the
concerned ministries and branches in guiding and improving the procedures for
quick publication, export and import of software, especially programs,
program-describing documents, supporting documents, without causing troubles,
obstacles or damage to organizations and individuals with relevant rights and
interests; and at the same time, taking comprehensive and synchronous measures
to tackle abusing acts detrimental to the national security and national
cultural identity preservation.
Article 14.- Implementation effect
This Decision takes effect 15
days after its signing.
The ministers, the heads of the
ministerial-level agencies, the heads of the agencies attached to the
Government and the presidents of the People’s Committees of the provinces and
centrally-run cities shall have to implement this Decision.
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FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER
Pham Gia Khiem