FORMS OF TAX INCENTIVES IN VIETNAM

Tax incentives  in vietnam means application of a lower rate of taxes for enterprises in forms of 

corporate income tax incentives,  exemption from import tax –  export tax, exemption from and reduction of land levy and land rents, accelerated depreciation, increasing the deductible expenses upon calculation of taxable income.

FORMS OF TAX INCENTIVES:

1. Corporate income tax incentives, including application of a lower rate of corporate income tax for a certain period of time or throughout the investment project execution; exemption from and reduction of tax and other incentives prescribed by the Law on Corporate Income Tax.
2. Exemption from import tax on goods imported to form fixed assets; raw materials, supplies and components for manufacturing purposes in accordance with regulations of law on import and export tax;
3. Exemption from and reduction of land levy and land rents;
4. Accelerated depreciation, increasing the deductible expenses upon calculation of taxable income.

WHO ARE ELIGIBLE FOR TAX INCENTIVES?

1. Investment projects in business lines eligible for investment incentives;
2. Investment projects located in the areas eligible for investment incentives (Industrial parks, export-processing zones, hi-tech zones and economic zones);
3. Any investment project whose capital is at least VND 6,000 billion of which at least VND 6,000 billion is disbursed within 03 years from the issuance date of the investment registration certificate or the approval for investment guidelines and which satisfies any of the following criteria: the total revenue is at least VND 10,000 billion per year within 03 years from the year in which the revenue is earned or the project has more than 3,000 employees;
4. Projects on investment in social housing construction; investment projects located in rural areas and employing at least 500 employees; investment projects that employ persons with disabilities in accordance with regulations of law on persons with disabilities.
5. Hi-tech enterprises, science and technology enterprises and science and technology organizations; projects involving transfer of technologies on the List of technologies the transfer of which is encouraged in accordance with regulations of the Law on Technology Transfer, science and technology enterprise incubators prescribed by the Law on High Technologies and Law on Science and Technology; enterprises manufacturing and providing technologies, equipment, products and services with a view to satisfaction of environment protection requirements prescribed by the Law on Environment Protection;
6. Start-up projects, national innovation centers and research and development centers;
7. Investment in business in small and medium-sized enterprises’ product distribution chain; investment in business in technical establishments supporting small and medium-sized enterprises, small and medium-sized enterprise incubators; investment in business in co-working spaces serving small and medium-sized enterprises and startups prescribed by the Law on Small and Medium-Sized Enterprises.
8. Investment incentives shall be given to new investment projects and expansion projects.

To apply for tax incentives, the investors, in addition to choosing the right scopes of business lines and investment areas, must also strictly follow the procedures for granting investment certificates, investment capital, and contributions, tax invoices and accounting regimes according to Vietnamese regulations.

VIVA Business Consulting provides a platform to help manage and choose industrial parks in Vietnam according to tax incentive criteria, manage investment and required business compliance procedures from the entry market step and during business operation, manage rental contracts and and relationships with industrial park owners.

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