Tax Incentives for Foreign Investment Projects in Vietnam

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With the policy of industrialization and modernization of the country, in recent years, our State has constantly innovated preferential policies to promote foreign investment attraction, including issuing preferential tax policies. investment in foreign investment projects in Vietnam.

Taxes of investment incentives for foreign investment projects in Vietnam

According to the provisions of the Investment Law 2014, when foreign investors conduct investment projects in Vietnam in industries and areas eligible for investment incentives, they are entitled to tax incentives. Accordingly, this is for investment for foreign investment projects in Vietnam include:

Corporate income tax

apply a lower tax rate than the normal for a definite term or the entire duration of the investment project. Or exempt, reduce corporate income tax

According to the current Law on Corporate Income Tax, foreign investors when implementing foreign investment projects in Vietnam are entitled to the following corporate income tax incentives:

10% tax rate:

Conditions: Applicable to enterprises newly established from investment projects in areas with extremely difficult socio-economic conditions, economic zones, high-tech zones, newly established enterprises from the project. investment projects in the field of high technology, newly established enterprises from investment projects in the field of high technology, scientific research, and technological development, investment in the development of especially important infrastructure of the country. State, manufacturing software products; Enterprises operating in the fields of education – training, vocational training, health care, culture, sports, and environment can apply for this position.
Term of application: 15 years from the first year of having taxable income from the investment project.
Exemption from corporate income tax: 4 years
Corporate income tax reduction: 50% reduction for the next 09 years.

Tax rate of 20%:

Conditions: Newly established enterprises from investment projects in areas with difficult socio-economic conditions; Agricultural service cooperatives and people’s credit funds.
Term of application: 15 years from the first year of having taxable income from the investment project.
Exemption from corporate income tax: 02 years
Corporate income reduction: 50% reduction for the next 4 years

1.2 Import tax

Exemption from import tax on goods imported to create fixed assets; raw materials, supplies, and components for the implementation of investment projects.

1.3 Land use tax

Exemption or reduction of land rent, land use levy, and land use tax. Specifically, according to Decree 210/2013/ND-CP dated December 19, 2013, of the Government on policies to encourage enterprises to invest in agriculture and rural areas:

If the investor has an agricultural project with special investment incentives and is allocated land by the State, he/she shall be exempted from the land use levy for such investment project.
Investors with agricultural projects with investment incentives, if allocated land by the State, will be entitled to a 70% reduction of the land use levy payable to the state budget for such investment projects.
Investors with agricultural projects encouraged for investment, if allocated land by the State, will be entitled to a 50% reduction of the land use levy payable to the state budget for such investment projects.

Procedures for application of investment preferential tax rates

When fully meeting the conditions for enjoying preferential investment tax for foreign investment projects in Vietnam according to the provisions of the Investment Law 2014:

For an investment project subject to an investment registration certificate or investment policy decision, the investor shall base itself on the contents of investment incentives specified in the investment registration certificate or decision document. investment policy to enjoy investment incentives. The basis for the application of investment incentives to science and technology enterprises is the certificate of science and technology enterprise.
For projects in which the investor is not required to carry out the procedures for applying for an Investment Certificate, the investor shall base himself on the beneficiaries of investment incentives to determine investment incentives by himself and carry out the procedures for enjoying such incentives. invest at the Agency applying investment incentives.

For Foreign companies that want to start or expand businesses and look for an office in Vietnam: