In the near future, how specifically will tax incentives when buying goods at a non-tariff zone for domestic and foreign visitors be regulated?

Main Content

• Are industrial parks in Vietnam and economic zones entitled to incentives under the law on investment?
• How to mobilize capital sources for investment and investment support in building infrastructure of industrial parks and economic zones?
• Tourists in non-tariff zones in economic zones enjoy tax incentives when buying goods?

Are industrial parks in Vietnam and economic zones entitled to incentives under the law on investment?

Pursuant to Article 22 of Decree No. 35/2022/ND-CP on management of industrial parks in Vietnam and economic zones, regulations on investment incentives for industrial parks in Vietnam and economic zones are as follows:

“Article 22. Investment incentives for industrial parks and economic zones

1. An industrial park is an area eligible for investment incentives and investment incentives applicable to areas with difficult socio-economic conditions as prescribed by law. on investment.

Investment incentives for industrial zones specified in the investment law shall apply from the time the industrial park is established.

2. An economic zone is an area with investment incentives and investment incentives, applicable to areas with extremely difficult socio-economic conditions in accordance with the law on investment.

Investment incentives for economic zones specified in the investment law shall apply from the time the economic zone is established.

3. Specific incentives for investment projects on construction and infrastructure business of industrial parks and functional zones in economic zones and investment projects in industrial parks and economic zones shall be applied according to the provisions of this Decree. provisions of tax law, land law, credit law, accounting law and other relevant laws.

4. Expenses for construction, operation or purchase, lease-purchase or lease of houses, service works, public utilities for employees working in industrial parks, economic zones, technical infrastructure works Technical connection with industrial parks and functional areas of investors implementing investment projects on construction and infrastructure business of industrial parks and functional zones in economic zones, investors implementing investment projects Investment in industrial parks and economic zones is a deductible expense when determining taxable income in accordance with the law on corporate income tax.

5. Investment projects on construction of houses, public service facilities and facilities for employees working in industrial parks and economic zones to enjoy incentives in accordance with the law on construction of communal houses Associations and other relevant laws.

6. Investors who have investment projects in industrial parks or economic zones are supported by competent state agencies to carry out administrative procedures for investment, enterprises, land, construction and environment. , labor, trade under the "one-stop shop, on-site" mechanism, support in labor recruitment and other related issues during project implementation."

Thus,industrial parks in Vietnam and economic zones are areas with investment incentives and are entitled to investment incentives applicable to areas with difficult socio-economic conditions according to the provisions of the investment law.

In the near future, how specifically will tax incentives when buying goods at a non-tariff zone for domestic and foreign visitors be regulated?

How to mobilize capital sources for investment and investment support in building infrastructure of industrial parks and economic zones?

Pursuant to Article 23 Decree 35/2022/ND-CP on management of industrial parks and economic zones stipulates methods of mobilizing capital sources for investment and investment support in building infrastructure of industrial parks and economic zones such as:following:

“Article 23. Methods of mobilizing capital sources for investment and investment support in building infrastructure of industrial parks and economic zones

1. Based on the ability to balance the state budget, calculate the allocation. Due to the urgency of the project, the conformity with relevant planning, the People's Committee of the province may decide to invest or support the investment and assign it to an agency or organization with experience and capacity to manage it. investment projects on construction of technical and social infrastructure works inside and outside the fence of industrial zones, investment projects on construction of technical and social infrastructure works in the zone economic zones to serve the operation of industrial parks and economic zones in accordance with the law on public investment.

The acceptance test for completion and management and use of the works after construction investment shall comply with regulations applicable to projects funded by the state budget in the law on public investment, the law on management, use of public property and other relevant provisions of law.

2. The use of development investment capital from the state budget to synchronously develop the technical and social infrastructure system inside and outside the fence of the industrial park, the technical infrastructure system , social infrastructure in economic zones shall comply with the provisions of the law on public investment, the law on the state budget and other relevant laws.

3. Investment projects on construction of large-scale technical and social infrastructures, which play a key role in the development of economic zones, may mobilize capital to issue local government bonds. according to regulations of the Law.

4. Economic zones on the list of key economic zones prioritized for investment from the state budget and other lawful funding sources for investment in the construction of technical and social infrastructure works in the region. economic zones in accordance with the law on public investment, the law on the state budget and other relevant laws.

5. Criteria for determining key economic zones include: position, role and contribution of economic zones to socio-economic development of provinces, centrally run cities and regions; connectivity of the economic zone with domestic and international markets; results of attracting and implementing investment projects and other relevant criteria.

6. Technical and social infrastructure works, service works, public utilities for employees working in industrial parks and economic zones may use official development assistance capital ( ODA), concessional credit capital and other technical assistance as prescribed by law.

7. Attracting investment capital by method of public-private partnership in accordance with the law on investment by mode of public-private partnership and other forms as prescribed by law for investment in construction of structural works technical and social infrastructure inside and outside the fence of the industrial park, technical and social infrastructure works in the economic zone.

8. Investment projects on development of technical and social infrastructure in general service in economic zones may raise capital from the land development fund in accordance with the land law.”

Tourists in non-tariff zones in economic zones enjoy tax incentives when buying goods?

Pursuant to Article 24 Decree 35/2022/ND-CP on management of industrial parks and economic zones regulates finance for industrial parks and economic zones as follows:

“Article 24. Financial regulations for industrial parks, economic zones

1. Domestic and foreign tourists entering a non-tariff zone in an economic zone are entitled to tax incentives when buying imported goods and bringing them home in accordance with the tax laws applicable to them. with non-tariff zones in economic zones.

2. Organizations and individuals with achievements in mobilizing ODA, concessional credit capital and other technical assistance and mobilizing investors to implement investment projects in industrial parks and economic zones shall be commended. reward according to the Regulation promulgated by the People's Committee of the province."

Thus, domestic and foreign tourists entering a non-tariff zone in an economic zone are entitled to tax incentives when buying imported goods brought home as above.

Decree 35/2022/ND-CP takes effect from July 15, 2022.