Investment Incentives

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Investment incentive programs

Which investment projects, enterprises, organizations qualify for the investment incentives? With the guidance of  Investment Incentive for Investment Project in Vietnam below will help foreign investors, enterprises, organizations understand the conditions to be entitled to the investment incentive.

On June 17, 2016, Ministry of Finance promulgates the Circular No. 83/2016/TT-BTC guiding the implementation of investment incentive programs under the provisions of the investment law and the government’s decree No. 118/2015/ND-CP dated 12/11/2015 speccifying and guiding the implementation of several articles of the investment law.

This Circular provides guidance on the implementation of corporate income tax (“CIT”), import tax and non-agricultural land use tax incentives for entities qualifying for investment incentives under the provisions of the Investment Law No. 67/2014/QH13 and the Government’s Decree No. 118/2015/ND-CP dated 12/11/2015 specifying and guiding the implementation of several articles of the Investment Law (hereinafter referred to as the Decree No. 118/2015/ND-CP).

  1. Guidance on the implementation of CIT incentives

Under the Circular No. 83/2016/TT-BTC, the investment projects, enterprises and organizations hereinafter shall qualify for CIT incentives:

  • New investment projects meeting sectoral requirements of CIT incentives or located within areas to which investment incentives are granted as provided;
  • New investment projects located within economic zones or hi-tech parks;
  • New investment projects located in the vicinity of industrial parks (exclusive of industrial parks situated within areas that have economic and social advantages);
  • New investment projects located in the vicinity of export processing zones;
  • Investment projects shall, when meeting multiple eligibility requirements for CIT incentives, be entitled to the most favorable CIT incentive.
  • High technology (hi-tech) enterprises, science and technology (SciTech) enterprises, or SciTech organizations;
  • New investment projects manufacturing goods subject to special consumption tax;
  • Extension investment projects;
  • In addition, Circular 83 stipulates that if the new investment project simultaneously satisfies many incentive conditions, it shall qualify for the most favorable incentive.

  1. Guidance on import tax incentives

The Circular No. 83/2006/TT-BTC guides the import tax incentives for:

  • Investment projects belonging to the approved list of particular sectors or professions qualifying for investment incentives;
  • Investment projects belonging to the approved list of sectors or professions qualifying for investment incentives;
  • Projects qualifying for import tax incentives that invest in fields, such as hotel, office or apartment buildings for lease, residential houses, commercial centers, engineering services, supermarkets, golf courses, tourist sites, sports facilities, entertainment places, healthcare service facilities, training and cultural centers, finance, banking, insurance, auditing and consultancy services;
  • The investment project that has total investment of at least VND 6,000 billion, and disburses a minimum amount of VND 6,000 billion within 03 years from the date upon which either investment registration certificate or investment policy decision is obtained.
  • Investment projects located within rural areas that hire at least 500 employees;
  • Hi-tech, SciTech enterprises, or SciTech organizations;

Import tax incentives shall not be granted to investment projects such as mineral production, production and trading of goods or services subject to the special consumption tax, except motor vehicle production.

  1. Guidance on non-agricultural land use tax incentives
  • According to Circular No. 83/2016/TT-BTC, the investment project belonging to the list of particular sector or professions qualifying for investment incentives or developed in areas faced with special economic – social difficulty shall be entitled to non-agricultural land use tax exemptions.
  • In addition, the investment project that has total investment of at least VND 6,000 billion, and disburses an amount at least VND 6,000 billion within 03 years from the date upon which either investment registration certificate or investment policy decision is obtained; the investment projects located within rural areas that hire the minimum number of 500 employees; Hi-tech, SciTech enterprises, or SciTech organizations;

Non-agricultural land use tax incentives shall not be granted to investment projects such as mineral production, production and trading of goods or services subject to the special consumption tax, except motor vehicle production.

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