Tax benefit for science, technology and innovation business approved

The Legislative Assembly (AL) has approved a regime that proposes to grant tax benefits to the science, technology and innovation industry.
Secretary for Economy and Finance Lei Wai Nong presented the regime of tax benefits for science, technology and innovation business to lawmakers.
Overall, the tax benefits include waiving various types of taxes on immovable properties, waiving the tax on dividends to shareholders, waiving employment tax for relevant employees, among others.
Addressing the lawmakers, Lei remarked that if the government reduces or waives the tax on property and employment, the benefit may attract parties to invest in the science, technology and innovation sector because these companies spent lot of money in factories and on paying salaries.
The bill proposes to grant a three-year income supplementary tax exemption starting from the time when the relevant enterprises obtain taxable profits.
As to the definition of science, technology and innovation industry, the law proposes to establish a science and innovation business review committee to assess whether a company’s business belongs to the industry. JZ