Tax exemption and reduction duration incentives for enterprises in Vietnam

14:16, 11/11/2009

The Law on Enterprise Income Tax 2008 of Vietnam was issued on June 03, 2008. This Law consists of 4 Chapters, 20 Articles. Besides tax rate incentives, this Law also stipulates tax exemption and reduction duration incentives for enterprises in Vietnam.

Specifically, according to Article 14 of the Law on Enterprise Income Tax 2008 of Vietnam, newly set up enterprises under investment projects in geographical areas with extreme socio-economic difficulties, economic zones or hi-tech parks; newly set up enterprises under investment projects in the domains of high technology, scientific research and technological development, development of the States infrastructure works of special importance or manufacture of software products; newly set up enterprises operating in education-training, vocational training, healthcare, cultural, sports and environmental domains are entitled to tax exemption for no more than four years and a 50% reduction of payable tax amounts for no more than nine subsequent years.

Newly set up enterprises newly set up under investment projects in geographical areas with socio-economic difficulties are entitled to tax exemption for no more than two years and a 50% reduction of payable tax amounts for no more than four subsequent years.

The tax exemption or reduction duration specified in this Article is counted from the first year an enterprise has taxable income; in case an enterprise has no taxable income for the first three years from the first year it has turnover, the tax exemption or reduction duration is counted from the fourth year.

View more details at the Law on Enterprise Income Tax 2008 of Vietnam, effective from January 01, 2009.

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