What is the latest list of investment incentive areas in Vietnam for 2024? How to determine investment incentive areas in case of administrative boundary change?
The latest list of investment incentive areas in Vietnam for 2024?
The latest list of investment incentive areas for 2024 is currently applying Appendix III issued together with Decree 31/2021/ND-CP. To be specific:
What is the latest list of investment incentive areas in Vietnam for 2024? How to determine investment incentive areas in case of administrative boundary change?
Guidelines for determining investment incentive areas in Vietnam in the case of administrative boundary change?
Based on Article 21 of Decree 31/2021/ND-CP guiding the determination of investment incentive areas in case of administrative boundary change as follows:
- In case a new administrative unit is established according to the Resolution of the Standing Committee of the National Assembly or the Government of Vietnam on adjusting administrative boundaries (division, separation, upgrading of old administrative units belonging to investment incentive areas) due to rearrangement, adjustment of administrative boundaries of commune-level administrative units in areas with different socio-economic conditions but not yet prescribed as investment incentive areas, it will be implemented as follows:
+ Newly established administrative units are determined as investment incentive areas according to the majority of the number of commune-level administrative units currently enjoying;
+ In case the number of commune-level administrative units belonging to areas with particularly difficult socio-economic conditions and areas with difficult socio-economic conditions is equal, the newly established administrative units are determined as areas with particularly difficult socio-economic conditions;
+ In case the number of commune-level administrative units belonging to areas with difficult socio-economic conditions and areas not belonging to investment incentive areas is equal, the newly established administrative units are determined as areas with difficult socio-economic conditions;
+ In case the number of commune-level administrative units belonging to areas with particularly difficult socio-economic conditions and areas not belonging to investment incentive areas is equal, the newly established administrative units are determined as areas with particularly difficult socio-economic conditions.
- When adjusting administrative boundaries, the adjusted commune-level unit enjoys investment incentives applicable to the district-level area receiving that administrative unit.
What are regulations on the forms of investment incentives in Vietnam?
Based on Clause 1, Article 15 of Investment Law 2020, the forms of investment incentives are regulated as follows:
- Corporate income tax incentives, including the application of lower corporate income tax rates than the regular rates for a definite period or the entire project implementation period; tax exemption, tax reduction, and other incentives according to regulations of the law on corporate income tax;
- Import tax exemption for goods imported to create fixed assets; raw materials, supplies, and components imported for production according to regulations of the law on export tax and import tax;
- Exemption or reduction of land levy, land rent, land use tax;
- Accelerated depreciation, increasing deductible expenses when calculating taxable income.
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