Resolution 158 on the socio-economic development plan for 2025 promulgated in Vietnam? What is the preferential CIT rate for investment projects in economic zones in Vietnam?
Resolution 158 on the socio-economic development plan for 2025 promulgated in Vietnam?
On November 12, 2024, the National Assembly adopted Resolution 158/2024/QH15..Download on the socio-economic development plan for the year 2025.
To be specific, 2025 is a year of acceleration, breakthrough, reaching the destination; striving to achieve the highest results of the goals and targets of the 5-year socio-economic development plan 2021–2025, which include:
- Continuing to prioritize promoting growth based on maintaining macroeconomic stability, controlling inflation, and ensuring significant economic balances.
- Intensively focusing on supplementing, completing, and resolving obstacles in the legal system, fundamentally handling issues and unresolved matters related to institutions and long-standing implementation, best meeting the requirements of innovation and creating a breakthrough for national development in the new situation.
- Effectively restructuring sectors and fields linked to innovating growth models, improving productivity, quality, resilience, and competitiveness of the economy.
- Accelerating the progress, ensuring quality, and early completion of strategic, nationally important infrastructure projects, effectively exploiting new development spaces.
- Paying attention to building high-quality human resources, especially for priority and emerging sectors; strongly promoting science and technology, innovation, digital transformation, green economy, digital economy, circular economy linked to ensuring security and safety for development promotion.
- Developing culture and society closely and harmoniously linked with economic development; ensuring social welfare, enhancing social benefits, and improving people's lives.
- Further promoting administrative procedure reductions, improving the investment and business environment; enhancing substantive, effective decentralization and delegation; continuing to complete, reorganize a streamlined, efficient, effective organizational apparatus; tightening discipline and order, emphasizing accountability of leaders.
- Resolutely and persistently combating corruption, waste, negativity without affecting or hindering but encouraging socio-economic development, not criminalizing economic and civil relations; promoting savings and preventing waste.
- Improving policy communication, information dissemination, and propaganda work with the spirit of positive overshadowing negative aspects, enhancing the effectiveness of mass mobilization work, creating social consensus.
- Consolidating, strengthening national defense, and security, firmly protecting independence, sovereignty; maintaining political security, social order, and safety; promoting foreign affairs and international integration; enhancing the prestige and position of our country on the international stage.
Also, in Resolution 158/2024/QH15, the National Assembly set the targets for the socio-economic development plan for 2025 as follows:
- The growth rate of gross domestic product (GDP) is approximately 6.5% - 7.0% with a goal of around 7.0% - 7.5%.
- Per capita GDP to reach approximately 4,900 US dollars (USD).
- The proportion of processing and manufacturing industries in GDP to reach approximately 24.1%.
- The average consumer price index (CPI) increase rate is approximately 4.5%.
- The average growth rate of social labor productivity is about 5.3% - 5.4%.
- The agricultural labor ratio in the total social labor force is expected to reach 25% - 26%.
- The rate of skilled labor with degrees and certificates is approximately 70%, out of which approximately 29% - 29.5% hold degrees or certificates.
- The urban area unemployment rate is below 4%.
- The multidimensional poverty rate decreases by approximately 0.8% - 1%.
- The number of doctors per 10,000 people reaches approximately 15 doctors.
- The number of hospital beds per 10,000 people reaches 34.5 beds.
- The health insurance participation rate reaches 95.15%.
- The percentage of communes meeting new rural standards is approximately 80.5% - 81.5%.
- The rate of urban solid waste collection and treatment meeting standards and regulations is 95%.
- The percentage of operating industrial parks and export processing zones with centralized wastewater treatment systems meeting environmental standards is 92%.
See more Resolution 158/2024/QH15..Download
Resolution 158 on the socio-economic development plan for 2025 promulgated in Vietnam? (Image from the Internet)
Which enterprises are eligible for preferential CIT rate in Vietnam?
According to Clause 1, Article 18 of Circular 78/2014/TT-BTC (supplemented by Clause 5, Article 10 of Circular 96/2015/TT-BTC) stipulating the conditions for applying preferential CIT rate as follows:
Conditions for Applying preferential CIT rate
- preferential CIT rate are only applicable to enterprises implementing accounting policies, invoices, documents and paying corporate income tax by declaration.
- During the period of enjoying preferential CIT rate, if enterprises carry out multiple production and business activities, they must separately calculate the income from production and business activities enjoying preferential CIT rate (including preferential tax rates, tax exemption, tax reduction) and income from business activities not enjoying tax incentives for separate tax declaration and payment.
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Thus, preferential CIT rate are only applicable to enterprises implementing accounting policies, invoices, documents and paying corporate income tax by declaration.
What is the preferential CIT rate for investment projects in economic zones in Vietnam?
According to the provisions in Clause 1, Article 19 of Circular 78/2014/TT-BTC (amended by Clause 1, Article 11 of Circular 96/2015/TT-BTC) on the preferential corporate income tax rate as follows:
Preferential Tax Rate
- A preferential tax rate of 10% for a period of fifteen years (15 years) applies to:
a) Income of enterprises from implementing new investment projects in: areas with particularly difficult socio-economic conditions specified in the Appendix issued together with Decree 218/2013/ND-CP, Economic Zones, High-Tech Zones, including concentrated information technology zones established under the Decision of the Prime Minister of the Government of Vietnam.
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Additionally, according to Article 20 of Circular 78/2014/TT-BTC (amended by Clause 1, Article 12 of Circular 96/2015/TT-BTC) on incentives on tax exemption and reduction as follows:
Incentives on Tax Exemption and Reduction
- Tax exemption for four years, a 50% reduction in payable tax for the next nine years for:
a) Income of enterprises from implementing investment projects as specified in Clause 1, Article 19 of Circular 78/2014/TT-BTC
b) Income of enterprises from implementing new investment projects in the field of private investment in areas with difficult or particularly difficult socio-economic conditions specified in the Appendix issued together with Decree 218/2013/ND-CP.
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Furthermore, according to Clause 2, Article 22 of Decree 35/2022/ND-CP regulating investment incentives for industrial parks and economic zones as follows:
Investment Incentives for Industrial Parks and Economic Zones
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- Economic zones are areas eligible for investment incentives, benefitting from investment incentives applicable to areas with particularly difficult socio-economic conditions as prescribed by investment law.
Investment incentives for economic zones specified in the investment law are applied from the time the economic zone is established.
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Thus, according to the above regulations, new investment projects undertaken by enterprises in economic zones will enjoy a corporate income tax incentive rate of 10% for a period of 15 years.
In addition to benefiting from the corporate income tax incentive rate, enterprises are also exempted from tax for 4 years and enjoy a 50% reduction in payable tax for the following 9 years with respect to the income from these investment projects.
Moreover, investment projects in economic zones also enjoy investment incentives applied to areas with particularly difficult socio-economic conditions according to the provisions of the Investment Law 2020.
