10 per cent tax rate proposed for all press agencies

Mar 27th at 15:59

27-03-2025 15:59:58+07:00

During discussions on the amended draft Law on Corporate Income Tax, the Ministry of Finance agreed with National Assembly (NA) deputies on the proposal to apply a unified corporate income tax rate of 10 per cent for all types of journalism, without distinguishing between print and digital media.

On March 26, the seventh session of the NA Standing Committee convened to discuss the draft amendments to the Law on Corporate Income Tax.

The explanatory reports and feedback on the draft law revealed multiple proposals advocating for greater tax incentives for press agencies, suggesting tax rates from zero to 10 per cent.

The Standing Committee of the NA Economic and Financial Committee agreed with the government’s proposal to introduce tax incentives for the journalism sector.

According to the drafting committee, under the current law, income from print media activities, including advertising in print newspapers, is subject to a 10 per cent tax rate throughout its operational period. Other journalism-related activities are subject to a standard tax rate of 20 per cent.

To support media organisations, the revised draft law includes a provision for a 15 per cent tax rate on all other journalism activities, including online advertising. As a result, media organisations would benefit from two preferential tax rates: 10 per cent and 15 per cent.

The reviewing body noted that the proposed 15 per cent rate for journalism reflects the government’s commitment to supporting the sector while carefully balancing the broader fiscal policy, which aims to limit new tax exemptions and reductions to maintain neutrality in taxation.

The rate, applicable throughout the operational period for journalism activities other than print media, alongside the existing 10 per cent tax rate for print media, aligns with the high incentive levels granted to prioritised industries.

Deputies Thach Phuoc Binh of Tra Vinh province expressed concerns about the inconsistencies in the proposed tax adjustments, which reduce the tax rate from 20 to 10 per cent for print media but only from 20 to 15 per cent for other forms of journalism.

"Firstly, there is a disconnect between the practical operations of the media sector and the proposed tax policy," Binh said. "Digital journalism is becoming dominant, while print media is declining, with many newsrooms cutting back or ceasing print editions to focus on online platforms. Both print and digital media serve the same purpose of providing information, shaping public opinion, and delivering communication services, yet they are subject to different tax rates."

Delegate Thach Phuoc Binh, National Assembly Delegation of Tra Vinh province. Photo: National Assembly

Deputy Thach Phuoc Binh of Tra Vinh province. Photo: National Assembly

A higher tax rate for digital media negatively impacts the industry’s competitiveness, as many media organisations struggle to sustain operations amid declining revenues, Binh added.

"The demand for digital transformation in journalism is clear, but if tax policies fail to keep pace, they will create financial barriers for digital media," said Binh. "Cross-border digital platforms capture a large share of advertising revenue while only being subject to indirect taxes, whereas domestic media entities face both high tax burdens and fierce competition."

To ensure fairness, Binh proposed a uniform 10 per cent tax rate for all media organisations, regardless of format. A tax reduction would alleviate financial difficulties, help sustain operations, and enhance the quality of information.

"A unified tax rate would also balance different media formats, encourage digital transformation, foster sustainable development, and provide additional resources for content and technology investment. A 10 per cent rate would also strengthen the competitiveness of domestic media against cross-border platforms," he added.

Deputy Minister of Finance Cao Anh Tuan admitted that differentiating tax rates between print and other journalism formats is no longer appropriate in the current landscape.

"We will collaborate with the NA Economic and Financial Committee to incorporate a single tax rate into the draft law and present it to NA, scheduled to commence in May," said Tuan.