Official Letter No. 7191/CT-QLDN dated September 29, 2026 of the Tax Department providing guidance on concerns regarding the conditions for tax exemption incentives for small and medium-sized enterprises as follows:
by KMC Consulting Company Limited
Clause 3, Article 7 of Decree No. 20/2026/ND-CP stipulates that an enterprise shall not be eligible for the corporate income tax exemption incentive for the first three years if the individual holding the largest capital contribution or the legal representative is still participating in the management of another enterprise that remains operational.
The individual making the capital contribution is one of the individuals holding the largest capital contributions in the Company and is also the legal representative of another enterprise that is still operational.
Therefore, where an enterprise has an individual who both holds the largest capital contribution and serves as the legal representative of another enterprise that is still operational, such enterprise is not eligible for tax exemption as prescribed.
