Tax incentives and new policies: opportunities for creative start-ups!

Tax incentives and new policies: opportunities for creative start-ups!

In a rapidly changing economic climate, new measures to promote start-ups and innovative companies have been announced in both Vietnam and Germany. These initiatives aim to reduce financial burdens and improve access to capital for creative companies.

Corporate tax relief has been introduced in Vietnam to support creative start-ups. Hoang Van Nam, director of GLOBALCOM Logistics, points out that these tax breaks reduce financial pressure. In addition to corporate tax, concessions on lease payments are also offered for companies that invest in high technology, with terms of five to ten years. Financial and credit policy support, which is supplemented by interest reductions of 1 to 2% for loans in green technologies, is essential for the implementation of this political support.

Challenges and opportunities for start-ups in Vietnam

It is repeatedly emphasized that small and medium-sized enterprises in Vietnam often have difficulties accessing sources of capital. So far, the government's support packages have often only reached large companies. In addition, many start-ups face high rental fees and difficulties accessing land. These challenges make it necessary for the government's projects to be tailored more specifically to the needs of these companies.

Lawyer Ha Dang Luyen confirms the financial difficulties faced by startups. Particularly in the areas of technology and innovation, capital recovery times are long and risks are high. The new policy direction is intended to enable companies to reduce their financial burdens and make resources available for investments. There are also calls for a change in corporate attitudes in order to make better use of government support.

Cao Thi Van Diem, vice president of the Vietnam Medical Equipment Association, said that although there is a five-year tax exemption for companies, the unclear deadlines for implementation are problematic. Here too, the import tax on medical devices and raw materials leads to financial burdens.

Support for start-ups in Germany

In Germany, the federal government is aiming to expand access to capital for young, innovative technology start-ups. The aim is to support companies in promising areas such as artificial intelligence, climate, quantum and biotechnology. Dr. Florian Toncar, Parliamentary State Secretary at the Federal Ministry of Finance, emphasizes how important private capital is for Germany as a business location and emphasizes that at least 3.5 billion euros should be mobilized to support the venture capital market for technology-oriented start-ups.

1.6 billion euros from the future fund are earmarked for the implementation of these measures, as well as 150 million euros from the ERP special fund. The planned use of funds includes, among other things, 850 million euros for direct investments in young start-ups through KfW Capital and private venture capital funds.

With the new initiatives in Vietnam and Germany, both countries show a strong commitment to strengthening start-ups and innovative companies. While support in Vietnam addresses debt and leases, Germany aims to enable targeted investments and improve exit opportunities for start-ups. These measures could be crucial for the future competitiveness of both markets.

For more information on the measures in Vietnam see Vietnam.vn and for support in Germany Federal Ministry of Finance.