Land rental exemption: |
During the first 6 months upon officially concluding the land lease agreement, the lessee will enjoy the land rental exemption for basic construction works. |
Taxation incentives: |
Corporate income
tax incentives :
| Description of
projects |
Tax rate |
Exemption
time |
Deduction
50% |
Applicable
period |
Export processing
enterprise |
10% |
4 years |
9 years |
15 years |
Manufacturing
enterprise |
15% |
3 years |
7 years |
12 years |
| Servicing enterprise |
20% |
2 years |
6 years |
10 years |
|
| After the applicable period for the above-mentioned incentive tax
rate, the corporate income tax rate of 28% is applied for the
Enterprises. |
|
Refunding of corporate income tax : |
|
Foreign investors using income and other legal revenue sources generated from their investment operation in Vietnam to plough back on another project being in operation or on a new project will be refunded part of or entire corporate income tax upon the reinvested revenue. |
|
Loss transfer: |
|
Foreign-invested enterprises, upon settlements of tax balances, incurring loss will be allowed to carry the loss to the year following and this loss will be deducted from the taxable income. Time period for loss carried forward will not exceed 5 years. |
|
Enterprises are free from export duty on: |
|
Finished goods, semi-finished goods, materials, raw materials for export or sale to export processing enterprises are not subject to this kind of tax. |
|
| Enterprises that are not subject to import duty include : |
Foreign invested enterprises importing the following as part of their fixed assets : |
Machinery, equipment. |
| Specialized means of transport which form part of the main technology or means of transport used for employee pickup. (cars of 24 seats and more). |
Components, parts, spare parts, accessories of machinery and equipment. |
| Building materials that Vietnam cannot produce. |
- Enterprises with business expansion, or replacement, innovation of technology. |
- Special incentive investment projects are exempted from import duty for manufacturing materials for 5 years from the production commencement. |
- Raw materials, separate parts, spare parts and accessories imported for re-export. |
|
| Remittance tax |
The tax rate of 0% is applied to profit gained from investments into Vietnam (including profit gained from reinvestment, or from capital transfer). |
| Value added tax (VAT): |
Machinery and equipment that are considered as part of fixed assets are still not subject to VAT. |
Materials imported then provided to export enterprises are not subject to VAT. |
|
