Investment tax incentives for foreign investment projects in Vietnam

Foreign investment tendency in Vietnam is growing fast and is considered as the main motivation of the economy. During the current years, Vietnam’s jurisdiction has many new regulations opening the market for foreign investors. Besides procedures, investment incentives, especially, investment tax incentives for foreign investment projects in Vietnam also help attracting the flow of foreign capital. Viet An Law Firm collects and provides our Clients some information related to investment tax incentives for foreign projects in Vietnam as follows:

Corporate income tax incentives: Apply a lower tax rate for a certain time or throughout the project execution; exemption, reduction or corporate income tax, corporate income tax exemption or reduction.

Import tax incentives: Exempt import tax for imported goods as fixed assets; raw material; supplies and parts used for the project.

Land levy incentives: Exempt, reduce land levy, land rents.

Investment projects subjected to investment incentives are:

• Investment project whose business sectors are in the list of investment incentives or special investment incentives (refer to Annex I – Decree No.118/2015/NĐ-CP);
• Investment project operated in extremely disadvantaged areas or disadvantaged areas (refer to Annex II – Decree No.118/2015/NĐ-CP);
• Projects whose capital is from 6000 billion VND, disburse at least 6000 billion VND within 03 years from the date of issuance of the Investment Registration Certificate or decision on investment policy;
• Investment projects executed in rural areas and use form 500 employees (excludes part-time workers and workers whose recruitment contracts are less than 12 months);
• Hi-tech enterprises, science and technology enterprises, science and technology organizations.

If a project is eligible for many investment incentives, it may choose the highest one.

Procedures for investment incentives:

Almost foreign investment projects in Vietnam are subjected to Investment Registration Certificate or decision on investment policy. Therefore, during preparing the application, investors should research and require investment incentives in the proposal for investment project. Investors shall rely on incentives recorded in the Investment Registration Certificate or decision on investment policy to take these incentives. If a project is not subjected to the Investment Registration Certificate or decision on investment policy, investors shall determine investment incentives and perform the procedures at competent agencies.

Legal consulting services on enterprises and investment at Viet An Law Firm:

• Consult about regulations and procedures related to enterprises and investment in Vietnam;
• Consult about conditional business sectors and detailed conditions apply to each sectors;
• Consult about limitations on foreign investors under the laws of Vietnam and international treaties to which Vietnam is a member;
• Consult about issues related to investment projects in Vietnam of foreign investors such as: investment incentives, investment tax incentives, contracts, Vietnamese labor, foreign labor working in Vietnam, social insurance, commerce, commercial franchise…;
• Draft, submit the application and act on behalf of Clients to work with state-authorized agencies when Clients grant authorization.

If you are looking for regulations and procedures related to enterprises and foreign investment in Vietnam, please feel free to contact Viet An Law Firm for more information!