Top 5 Business Lines enjoyed the highest tax incentives
To become a more attractive country for investors in the world, Vietnam has always focused on the development and completion of legal policies on incentives and support in investment to attract and well manage foreign investment capital, paving the way for the country’s development, one of them is tax incentive policy.
Tax incentives are divided into 03 groups: (1) Corporate Income Tax Incentives (CIT Incentives); Import Tax Incentives; (3) Land Finance Incentives.
The following category will list top 5 business lines subject to the highest tax incentives (It is ranked in order from high to low):
| Business lines/fields | CIT Incentives | Import Tax Incentives | Land Finance Incentives. | ||||||
| Tax rate of 10% for 15 years | Tax exemption for 4 years, 50% reduction of payable tax amounts for 9 next years | Import tax exemption for creating fixed assets | Import tax exemption for 5 years from the commencement date of production for domestically unavailable raw materials, supplies and components imported to produce for investment projects (except projects of manufacturing and assembling cars, motorcycles, air-conditioners, electric heaters, refrigerators, washing machines, electric fans, dishwashers, DVD, stereos, electric irons, kettles, hair dryers, hand dryers and other articles as decided by the Prime Minister) | Exemption from land rent for entire the lease period | – Exemption of land rent for the period of basic construction under the approved project for no more than 03 years – Exemption of land rent for 15 years after the time of basic construction under the approved project
| – Exemption of land rent for the period of basic construction under the approved project for no more than 03 years
| Exemption of non-agricultural land use tax | ||
New investment projects in the following fields:
| √ | √ | √ | √ | √ (if the projects are located in extremely disadvantaged areas) | √ (if the projects are located in disadvantaged areas) | √ | √ | |
New investment projects in the field of environmental protection, comprising of:
| √ | √ | √ | √ | √ (if the projects are located in extremely disadvantaged areas) | √ (if the projects are located in disadvantaged areas) | √ | √ | |
| Investment projects of hi-tech enterprises and hi-tech agricultural enterprises | √ | √ | √ | √ | √ (if the projects are located in extremely disadvantaged areas) | √ (if the projects are located in disadvantaged areas) | √ | √
| |
| New investment projects in the manufacturing sector (except for projects on production of goods subject to special consumption tax or mineral exploitation projects) meet one of the following two criterias: (i) minimum investment capital of VND 6 trillion, disbursed for no more than three years from the date of issuance of the Investment Certificate and with a minimum total turnover of VND 10 trillion per year, within 3 years at the latest from the year of turnover; (ii) The project has an investment capital at least VND 6 trillion, disbursed within three years from the date of issuance of the Investment Certificate and employs over 3000 employees; | √ | √ | |||||||
| New investment projects on manufacturing products on the list of products of support industries prioritized for development meet one of the following criterias: (i) Supporting products for high technology; (ii) Supporting industrial products for manufacturing products: textile – garment; leather – shoes; electronics and information technology; production and assembly of automobiles; mechanical engineering products that, as of January 1, 2015, have not been domestically produced or manufactured, but must meet European Union (EU) technical specifications or equivalent. | √ | √ | |||||||
Should our clients have any enquiry or demand of detailed advice about the aforementioned, please contact us via our email: Info@bizlawyer.vn or Hotline Call: +8486.888.1900 for timely advice and support.
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