With the policy of industrialization and modernization of the country, in recent years, the State of Vietnam has constantly innovated preferential policies to promote foreign investment attraction, especially tax incentives. for enterprises with foreign capital. So what are those offers?
Article table of contents
All tax incentives for FDI enterprises (Artwork)
1. Corporate income tax incentives in Vietnam
Projects eligible for investment incentives of foreign-invested enterprises will be subject to the corporate income tax rate lower than the normal tax rate for a definite term or the entire project implementation period. investment project; tax exemption, tax reduction and other incentives in accordance with the law on corporate income tax.
In Clause 1, Article 11 of Circular 96/2015/TT-BTC of Vietnam, the preferential tax rates of CIT applicable to these projects are as follows:
*** 10% tax rate for 15 years
- Income of Vietnamese enterprises from implementing new investment projects in areas with extremely difficult socio-economic conditions, economic zones, high-tech zones (including concentrated information technology zones);
- Income of enterprises from implementing new investment projects in the following fields:
+ Scientific research and technology development;
+ High technology applications on the List of high technologies prioritized for development investment (according to the Law on High Technology of Vietnam);
+ High-tech incubation, high-tech enterprise incubation;
+ Venture capital to develop high technologies on the list of high technologies prioritized for development;
+ Investing in the development of water plants, power plants, water supply and drainage systems; bridge, road, railway; airport, seaport, river port; airports, railway stations and other particularly important infrastructure works decided by the Prime Minister;
+ Software production;
+ Producing composite materials, light building materials and rare materials;
+ Producing renewable energy, clean energy, energy from waste destruction;
+ Development of biotechnology.
- Incomes of enterprises from implementing new investment projects in the field of environmental protection: Manufacture of equipment to treat environmental pollution, equipment for environmental monitoring and analysis; pollution treatment and environmental protection; collection and treatment of wastewater, exhaust gas and solid waste; waste recycling and reuse;
- High-tech enterprises, agricultural enterprises applying high technology.
- Incomes of enterprises from implementing new investment projects in the field of production (except production of goods subject to excise tax, mining of minerals) that meet one of two criteria:
+ Having a minimum investment capital of VND 6000 billion, disbursing within 03 years from the time of first investment and having a total turnover of at least VND 10,000 billion/year no later than 03 years from the date of issuance. have revenue.
+ Projects with minimum investment capital of VND 6000 billion, disbursed within 03 years from the date of initial investment and regularly employ more than 3,000 employees no later than 03 years from the date of issuance.
- Incomes of enterprises from the implementation of investment projects in the manufacturing sector (except for the production of goods subject to excise tax, mining of minerals), with an investment capital of at least VND 12,000 billion, using The application of technology must be appraised according to the provisions of the Law on High Technology and the Law on Science and Technology of Vietnam, disbursing the total registered investment capital within 05 years from the date of investment permit.
- Income of enterprises from implementing new investment projects to produce products on the list of supporting industry products prioritized for development, satisfying one of the following criteria:
+ Industrial products to support high technology;
+ Industrial products to support the production of products of the following industries: Textile - Garment; leather - shoes; electronics and information technology; automobile production and assembly; mechanical engineering which as of January 1, 2015 cannot be produced domestically or can be manufactured but must meet EU technical standards or equivalent.
*** 10% tax rate during the operation period
- Income of the enterprise from socialization activities in the fields of education - training, vocational training, health, culture, sports and environment, and judicial assessment.
- Income of the Publisher's publishing activities.
- Income from printing press activities (including advertising on printed newspapers) of press agencies.
- Income of the enterprise from implementing investment projects - social housing business for sale, lease, lease purchase.
- Income of enterprises from: planting, tending and protecting forests; cultivating agriculture, forestry and fishery in socio-economic difficult areas; production, multiplication and crossbreeding of plant and animal varieties; producing, exploiting and refining salt, investing in post-harvest preservation of agricultural products, preserving agricultural, aquatic products and food.
- Income of cooperatives operating in the fields of agriculture, forestry, fishery and salt production, which are not located in difficult socio-economic areas and particularly difficult socio-economic areas.
*** 15 % tax rate
Incomes of farming, breeding and processing enterprises in the field of agriculture and fishery in areas that are not in areas with difficult or extremely difficult socio-economic conditions.
*** 17% tax rate for 10 years
- Income of enterprises from implementing new investment projects in areas with difficult socio-economic conditions.
- Income of enterprises from implementing new investment projects: production of high-grade steel; produce energy-saving products; manufacturing machinery and equipment for agriculture, forestry, fishery and salt production; production of irrigation equipment, production and refining of animal, poultry and aquatic feed; develop traditional industries (including construction and development of handicraft production, processing agricultural and food products, cultural products).
*** 17 % tax rate during the operation period
Applicable to People's Credit Funds, Cooperative Banks and Microfinance Institutions.
(People's credit funds, cooperative banks and microfinance institutions newly established in areas with extremely difficult socio-economic conditions after the expiration of the time limit for application of the 10% tax rate shall be entitled to tax rate of 17% applies)
Besides, according to the provisions of Article 20 of Circular 78/2014/TT-BTC and Article 12 of Circular 96/2015/TT-BTC of Vietnam, these projects are also entitled to the following incentives in terms of tax exemption and reduction: :
- Tax exemption for 4 years, 50% reduction of payable tax for the next 9 years for:
+ Enterprises' incomes from the implementation of new investment projects are entitled to a tax incentive of 10% for 15 years as mentioned above.
+ Incomes of enterprises from implementing new investment projects in the field of socialization implemented in areas with difficult or extremely difficult socio-economic conditions.
- Tax exemption for 4 years, 50% reduction of payable tax for the next 5 years for enterprises' incomes from implementing new investment projects in the field of socialization to be carried out in areas with difficult or extremely difficult socio-economic conditions.
- Tax exemption for 2 years and 50% tax reduction for the next 4 years for:
+ Incomes from the implementation of new investment projects are entitled to 17% tax incentives for 10 years as mentioned above.
+ Incomes of enterprises from implementing new investment projects in industrial parks (except for industrial parks in the inner city of special-class urban centers, grade-I cities directly under the Central Government, and grade-I cities directly under the province).
2. Import duty free in Vietnam
Applicable only to goods imported to create fixed assets; raw materials, supplies and components imported for production in accordance with the law on import and export tax;
3. Exemption and reduction of non-agricultural land use tax.
Investment projects of foreign-invested enterprises, if eligible for investment incentives under the provisions of the Vietnamese Investment Law 2020, will be exempted and reduced from land use tax according to current regulations on the use tax of non-agricultural land.
In Article 10 of Circular 153/2011/TT-BTC of Vietnam, the exemption from non-agricultural land use tax is applicable to the following land cases:
- Land of investment projects in the fields of special investment incentives (especially investment incentives); investment projects in areas with extremely difficult socio-economic conditions; investment projects in the field of investment encouragement (investment incentives) in areas with difficult socio-economic conditions; the land of enterprises using more than 50% of the labor force are wounded and sick soldiers.
- Land of establishments carrying out socialization for activities in the fields of education, vocational training, health care, culture, sports and environment.
In addition, Article 11 of this Circular also stipulates a 50% reduction of land use tax on land for investment projects in the fields of investment incentives; investment projects in areas with difficult socio-economic conditions; Enterprise's land uses from 20% - 50% of labourers are wounded and sick soldiers.
Bao Ngoc
