Investment incentive policies

Investment incentive policies

1. Exemption from land rent or water surface rent from the date the project is completed and put into operation, specifically as follows:

a) Three (3) years for projects on the list of investment incentive fields; At the new production and business establishments of economic organizations which are relocated under plannings and relocated due to environmental pollution.

b) Seven (7) years for investment projects in geographical areas with difficult socio-economic conditions.

c) Eleven (11) years for investment projects in geographical areas with specially difficult socio-economic conditions; Investment projects on the list of special investment incentive fields; Projects on the list of investment incentive fields invested in areas with difficult socio-economic conditions.

d) Fifteen (15) years for projects on the list of investment incentive fields invested in geographical areas with specially difficult socio-economic conditions; Projects on the list of special investment incentive fields invested in geographical areas with difficult socio-economic conditions.

The list of list of investment incentive fields, list of special investment incentive fields, areas with difficult socio-economic conditions or areas with specially difficult socio-economic conditions shall comply with the regulations of the Government".

2. For agricultural projects:

- Special investment incentives: free land use

- Investment incentives: 70% reduction of land use fees

- Investment encouragement: 50% reduction of land use fees

 Legal basis

- Decree No. 108/2006/ND-CP dated 22/9/2006, detailing and guiding the implementation of a number of articles of the Investment Law;

- Decree No. 142/2005/ND-CP dated 14/11/2005 of the Government stipulating exemption from land rent, water surface rent;

- Decree No. 121/2010/ND-CP dated 30/12/2010 of the Government amending and supplementing a number of articles of the Government's Decree No. 142/2005/ND-CP dated 14/11/2005 on Land and water surface rent collection (This Decree has taken effect since 01/3/2013).

- Decree No. 210/2013/ND-CP dated 19/12/2013 of the Government on policies to encourage enterprises to invest in agriculture and rural areas.

INCENTIVES OF FINANCIAL POLICIES

I. Corporate income tax:

TT

Tax rate

Conditions

Duration

Exemption and reduction of CIT

Exemption of CIT

Reduction of CIT

1

10%

- The enterprise's income from the execution of new investment projects in areas with specially difficult socio-economic conditions, EZs and hi-tech parks.
- Income of enterprises implementing new investment projects: scientific research and technological development; high technology applications; production of composite materials, light construction materials and rare and precious materials; production of renewable energy, clean energy, energy from waste disposal; development of biotechnology; environmental Protection;
- Income of enterprises from socialization in the fields of education - training, vocational training, health care, culture, sport and environment.

15 years from the first year of taxable income from the investment project

4 years

50% reduction in subsequent years not more than 9 years

Income of hi-tech enterprises, hi-tech agricultural enterprises according to the provisions of the Law on High Technologies;

15 years from the date of issuance of the certificate

2

20%

- Income of enterprises from the implementation of new investment projects in areas with difficult socio-economic conditions;

- Income of enterprises from implementing new investment projects, including: high-grade steel production; production of energy-saving products; Production of machinery and equipment for agricultural, forestry, fishery and salt production; production of irrigation equipment; Production and refining of cattle, poultry and aquatic products feeds, ; Traditional industry development. As of January 1, 2016, the income of the enterprise stipulated in this clause shall be subject to the tax rate of 17%.

- The enterprise's income from the execution of new investment projects in industrial parks, except for industrial parks in geographical areas with favorable socio-economic conditions.

15 years from the first year of taxable income from the investment project

2 years

50% reduction in subsequent years not more than 4 years


II. Import and export tax

Exemption of import tax for equipment, supplies, means of transport and other goods for execution of investment projects in Vietnam. Income from technology transfer for projects eligible for investment incentives is exempted from income tax.

III. Transfer losses

Enterprises with losses may carry forward losses to the following year; This loss is deducted from taxable income. The time for carrying forward losses shall not exceed five years, counting from the year following the year when the losses arise.

Legal basis:

- Law No. 32/2013/QH13 dated 19/6/2013 of the National Assembly on the amendment, supplement of some articles of the Law on Corporate Income Tax

- Decree No. 92/2013/ND-CP dated 13/8/2013 of the Government detailing the implementation of some articles effective from July 1, 2013 of the Law amending and supplementing some articles of the Law on Corporate Income Tax and the Law on Amendment of and Addition to a Number of Articles of the Law on Value Added Tax.

- Circular No. 141/2013/TT-BTC dated 16/10/2013 of the Ministry of Finance guiding the implementation of Decree No. 92/2013 / ND-CP dated 13/8/2013 detailing the implementation of some articles effective from July 1, 2013 of the Law Amending and Supplementing a Number of Articles of the Law on Corporate Income Tax and the Law Amending and Supplementing a Number of Articles of the Value Added Tax Law.

INDUSTRIAL PARKS