Vietnam’s favourable policies for foreign investment are mostly focused on taxation. Vietnam is now the focus of attracting foreign investment capital, and favorable policies in this field are a factor that investors and firms are particularly interested in.
Conditions for foreign-invested enterprises to receive incentives:
· Investment projects in industries, trades or areas eligible for investment incentives as prescribed by law.
· Investment projects with a capital of VND 6,000 billion or more that meet investment conditions
· Investment projects on social housing construction or investment projects in rural areas, investment projects using employees with disabilities.
· Enterprises in the field of high technology, science and technology organizations or projects with technology transfer.
· Investment projects in the field of innovative start-ups, research and development.
· Investment project on product distribution chain business.
Các ưu đãi đối với doanh nghiệp có vốn đầu tư nước ngoài:
1. Incentives on corporate income tax (Circular No. 151/2014/TT-BTC of the Ministry of Finance):
Foreign-invested enterprises are entitled to foreign corporate tax incentives when implementing investment projects in industries or areas eligible for investment incentives.
Newly established enterprises that meet preferential conditions are entitled to the tax rate of 10% within 15 years from the first year the investment project has taxable income, income tax exemption for 4 years and a 50% reduction in income tax. enter the enterprise within the next 09 years.
Newly established enterprises with investment projects located in areas with difficult socio-economic conditions, agricultural service cooperatives or people’s credit funds are entitled to the tax rate of 20% within 15 years from the year of this year. the first investment project has taxable income, income tax exemption for 02 years and 50% reduction of corporate income tax for no more than 04 subsequent years.
2. Incentives import tax
Investment projects are exempt from import tax on goods imported to create fixed assets, raw materials, supplies or components for project implementation.
3. Incentives loss transfer tax
Enterprises with losses will be able to carry forward this loss to the following year and be deducted directly from taxable income. The time to enjoy the preference for loss transfer shall not exceed 05 years from the year following the year in which the loss is incurred. Enterprises operating at a loss from the field of real estate transfer are only allowed to transfer the loss into the taxable income of this activity.
4. Incentives on land use tax
Agricultural projects with special investment incentives are exempted or reduced from land rental, land use or land use tax.
Subjects entitled to incentives (Investment Law 2020):
Pursuant to the industries, trades and geographical areas of investment incentives specified in Clauses 1 and 2, Article 16 of the Investment Law, to determine the beneficiaries of investment incentives. At the same time, the Government will promulgate, amend and supplement the list of industries, trades and areas eligible for investment incentives, and the list of industries and professions with special investment incentives.
Vietnam’s favourable policies for foreign investment are mostly focused on taxation. Vietnam is now the focus of attracting foreign investment capital, and favorable policies in this field are a factor that investors and firms are particularly interested in.
Conditions for foreign-invested enterprises to receive incentives:
· Investment projects in industries, trades or areas eligible for investment incentives as prescribed by law.
· Investment projects with a capital of VND 6,000 billion or more that meet investment conditions
· Investment projects on social housing construction or investment projects in rural areas, investment projects using employees with disabilities.
· Enterprises in the field of high technology, science and technology organizations or projects with technology transfer.
· Investment projects in the field of innovative start-ups, research and development.
· Investment project on product distribution chain business.
Các ưu đãi đối với doanh nghiệp có vốn đầu tư nước ngoài:
1. Incentives on corporate income tax (Circular No. 151/2014/TT-BTC of the Ministry of Finance):
Foreign-invested enterprises are entitled to foreign corporate tax incentives when implementing investment projects in industries or areas eligible for investment incentives.
Newly established enterprises that meet preferential conditions are entitled to the tax rate of 10% within 15 years from the first year the investment project has taxable income, income tax exemption for 4 years and a 50% reduction in income tax. enter the enterprise within the next 09 years.
Newly established enterprises with investment projects located in areas with difficult socio-economic conditions, agricultural service cooperatives or people’s credit funds are entitled to the tax rate of 20% within 15 years from the year of this year. the first investment project has taxable income, income tax exemption for 02 years and 50% reduction of corporate income tax for no more than 04 subsequent years.
2. Incentives import tax
Investment projects are exempt from import tax on goods imported to create fixed assets, raw materials, supplies or components for project implementation.
3. Incentives loss transfer tax
Enterprises with losses will be able to carry forward this loss to the following year and be deducted directly from taxable income. The time to enjoy the preference for loss transfer shall not exceed 05 years from the year following the year in which the loss is incurred. Enterprises operating at a loss from the field of real estate transfer are only allowed to transfer the loss into the taxable income of this activity.
4. Incentives on land use tax
Agricultural projects with special investment incentives are exempted or reduced from land rental, land use or land use tax.
Subjects entitled to incentives (Investment Law 2020):
Pursuant to the industries, trades and geographical areas of investment incentives specified in Clauses 1 and 2, Article 16 of the Investment Law, to determine the beneficiaries of investment incentives. At the same time, the Government will promulgate, amend and supplement the list of industries, trades and areas eligible for investment incentives, and the list of industries and professions with special investment incentives.