Things to know about tax incentives for enterprises in Vietnam

According to Article 13 of the Law on Enterprise Income Tax 2008 of Vietnam, tax rate incentives are specified as follows:

1. 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 are entitled to the tax rate of 10% for fifteen years.

2. Enterprises operating in education-training, vocational training, healthcare, cultural, sports and environmental domains are entitled to the tax rate of 10%.

3. Newly set up enterprises under investment projects in geographical areas with socio-economic difficulties are entitled to the tax rate of 20% for ten years.

4. Agricultural service cooperatives and peoples credit funds are entitled to the tax rate of 20%.

5. For large-scale and hi-tech projects in which investment should be particularly attracted, the duration for application of tax rate incentives may be extended but must not exceed the duration specified in Clause 1 of this Article.

6. The duration for application of tax rate incentives specified in this Article is counted from the first year an enterprise has turnover.

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

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