Incentive Policies for Projects Producing Supporting Industry Products

General preferential policies for Industrial Product Support Projects under the List of Prioritized Support Industrial Products for Development are stipulated in Clause 1, Article 12 of Decree 111/2015/ND-CP, specifically:

Illustrative image (source: internet)

- Corporate income tax: Tax incentives are applied according to the provisions of Law 71/2014/QH13 dated November 26, 2014, amending and supplementing certain articles of the tax laws.

- Import tax: Exempt from import tax for goods imported to create fixed assets as stipulated by the Export Tax, Import Tax Law and implementing guidance documents.

- Credit:

+ Support industrial product projects on the prioritized development list can borrow at investment credit interest rates from state investment credit sources;

+ Eligible for short-term loans in Vietnamese Dong at credit institutions, foreign bank branches with lending interest rates capped by the State Bank regulations at each specific period.

- Value-added tax: Revenue from support industrial products on the prioritized support industrial product list for development may opt to declare value-added tax on a monthly, yearly, and provisional quarterly basis. The Ministry of Finance will provide detailed guidance on this point.

- Environmental protection: Support industrial product projects on the prioritized support industrial product list for development can receive preferential rate loans from the Vietnam Environmental Protection Fund for pollution treatment and environmental protection items of the project.

Additionally, Investment Projects for producing support industrial products on the prioritized support industrial product list for development located in areas with difficult socio-economic conditions or especially difficult socio-economic conditions, in addition to general incentives, enjoy investment incentives by location.

See the full text of the regulation at Decree 111/2015/ND-CP, effective from January 1, 2016.

Thu Ba

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