Vietnam: Projects for manufacturing of supporting products eligible for enterprise income tax incentives

According to Article 4 of the Circular No. 55/2015/TT-BCT of the Ministry of Industry and Trade of Vietnam, every new investment project that is eligible for enterprise income tax incentives under regulations of laws No. 71/2014/QH13 amending and supplementing a number of articles of the Law on taxation dated November 23, 2014 shall manufacture supporting products that satisfy one of the following requirements:

- The list of supporting products given priority in Vietnam that are manufactured before January 01, 2015 (Appendix 1 hereof) and granted a Certificate of Conformity to EU technical Regulations (standards promulgated by CEN - European Committee for Standardization) or equivalents (if any);

- All supporting products on the List compiled on the Decree No. 111/2015/ND-CP on development of supporting industry dated November 03, 2015 of the Government but not included in Appendix 01 of this Circular.

Notably, according to Clause 3 Article 3 of the Circular No. 55/2015/TT-BCT, a new investment project for manufacturing of supporting products means:

- Every first-time investment project or project that comes into operation independently of the existing project (hereinafter referred to as an independent project);

- Every existing project that is entitled to scope expansion, capacity enhancement, technological innovation in manufacturing of supporting products using new devices and manufacturing processes with an increase in productivity by at least 20%.

View more details at the Circular No. 55/2015/TT-BCT of the Ministry of Industry and Trade of Vietnam, effective from January 01, 2016.

Le Vy

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