TAX PREFERENTIAL POLICIES TO VIETNAM’S FOREIGN INVESTMENT (FDI)

FDI is an important factor that contributes greatly to economic growth and restructuring, a major driving force for the economy. Therefore, at present, Vietnam has a lot of policies to attract foreign investment in Vietnam, mainly preferential corporate income tax, import tax, land incentives, specifically as follows: after:

For corporate income tax: Applying the enterprise income tax rate lower than the ordinary tax rate with a definite term or the whole duration of implementing investment projects; exemption and reduction of corporate income tax;

For import duties: Exempting import tax for imported goods to create fixed assets; raw materials, supplies and components for executing investment projects;

For land: Exemption, reduction of land rent, land use fee, land use tax.

So, who is entitled to the above preferential investment policies?

– Investment projects in sectors and trades eligible for investment incentives such as:

+ High-tech activities, high-tech supporting industry products; research and development activities;

+ Producing new materials, new energy, clean energy and renewable energy; production of products with a value-added of 30% or more, energy-saving products;

+ Production of key electronic products, key mechanical products, agricultural machinery, automobiles and automotive parts; ship building;

+ Production of industrial products supporting the textile, footwear and products specified at Point c of this Clause;

+ Producing information technology products, software, digital content

+ Farming and processing agricultural, forestry and aquatic products; planting and protecting forests; salt making; fishing and fishery logistics; production of plant varieties, animal breeds and biotechnology products;

+ Collection, treatment, recycling or reuse of waste;

+ Investment in development, operation and management of infrastructure projects; developing public passenger transportation in urban areas;

+ Preschool education, general education, vocational education;

+ Medical examination and treatment; production of drugs, medicinal ingredients, essential medicines, essential medicines, medicines for prevention and control of social diseases, vaccines, medical bio-products, medicines from materia medica and traditional medicines; scientific research on preparation technology and biotechnology for production of new medicines;

+ Investment in physical training and sports establishments for disabled or professional people; protect and promote the value of cultural heritage;

+ Investing in geriatric, psychiatric centers, treating patients infected with Agent Orange; care centers for the elderly, people with disabilities, orphans, homeless children;

+ People’s credit funds, microfinance institutions

+ Investment projects in geographical areas eligible for investment incentives under Clause 2, Article 16 of this Law;

+ Investment projects with a capital scale of VND 6,000 billion or more, disbursing at least VND 6,000 billion within 3 years after being granted investment registration certificates or investment policy decisions;

+ Investment projects in rural areas employing 500 employees or more;

+ High-tech enterprises, science and technology enterprises, science and technology organizations.

– Investment incentives are applicable to new investment projects and expansion projects. Specific incentives for each type of investment incentives are applied in accordance with tax laws and land laws.

– Investment incentives do not apply to investment projects of mineral exploitation; producing and trading goods and services subject to special consumption tax in accordance with the Law on Special Consumption Tax, except for automobile manufacturing.

Legal consultancy service on investment of phapluatdoanhnghiep.vn:

– Consult the laws and procedures related to the field of business and investment in Vietnam;

– Consulting on implementation of business establishment procedures, change of business registration.

– Consulting business lines with conditions and specific conditions for each industry;

– Advising on investment restrictions for foreign investors according to Vietnamese law, treaties to which Vietnam is a signatory;

– Consultancy of regulations and procedures for applying for an Investment Registration Certificate, Enterprise Registration Certificate, sub-license …;

– Advice on issues related to investment projects in Vietnam of foreign investors such as investment incentives, investment incentive tax, contracts, Vietnamese labor, foreign laborers working in Vietnam, social insurance, commerce, franchising …;

– Consulting on tax and environment, carrying out procedures related to tax and environment when authorized by customers.

– Drafting, submitting documents and on behalf of Customers working with competent state agencies when authorized by the Customer.

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