In accordance with Clause 3 Article 3 the Law on Investment 2014, expansion project means: “a project to make investment to expand the scale, improve the capacity, apply new technologies, reduce pollution or improve environment”. Clause 3 Article 15 of such law stipulates that expansion project is one of beneficiaries eligible for investment incentives. Investment incentives are normally tax such as corporate income tax, import tax, land use tax. These are also common things to which foreign investors pay much attention when investing in Vietnam. Therefore, in order to know whether your investment project is eligible for investment incentives or not, you have to base on regulations on investment, tax and land. In order to give our Clients a general view, Viet An Law Firm collects and provides some basic information as follows:
Corporate income tax (CIT) incentives: Operating investment project which is going to be expanded belongs to incentive investment fields and areas and the expansion project shall satisfy one of the three conditions:
20 billion VND for expansion projects in CIT incentives investment fields;
10 billion VND for expansion projects operated in difficult or particularly difficult socio-economic conditions;
Import duties incentives:
Imports as fixed assets of an entity eligible for investment incentives as prescribed by the law on investment includes:
However, import duties incentives shall not be applied to investment projects on mineral production, production and trading of goods or services subjected to the special consumption duties except motor vehicle production.
Non-agricultural land use tax incentives:
Besides that, expansion investment project which has total investment capital from at least 6000 billion VND and disburses an amount of at least 6000 billion VND within 03 years from the date of issuance of Investment Registration Certificate or decision on investment policies or project in rural areas hiring at least 500 employees are eligible for incentives on non-agricultural tax and imports duties.
Legal consulting on enterprises and investment at Viet An Law Firm:
If you are looking for legal issues related to tax, investment and enterprises in Vietnam, please feel free to contact Viet An Law Firm for more information!
#3rd Floor, 125 Hoang Ngan, Hoang Ngan Plaza, Trung Hoa, Cau Giay, Hanoi, Vietnam
Ho Chi Minh city office
Room 04.68, 4th Floor, River Gate Residence, 151 – 155 Ben Van Don Street, District 4, HCM, Viet Nam
SPEAK TO OUR LEGAL CONSULTANTS
English speaking: (+84) 9 61 67 55 66 (Zalo, Viber, Whatsapp)
Vietnamese speaking: (+84) 9 33 11 33 66 (Ms.Thu Ha) (Zalo, Viber, Whatsapp)