Investment Incentives

Article 15. Forms and objects for application of investment incentives

  1. Forms of application of investment incentives [shall comprise]:

(a) Application of a lower rate of corporate income tax than the normal tax rate for a definite period or for the whole duration of implementation of the investment project; and exemption from and reduction of corporate income tax;

(b) Exemption from import duty in respect of goods imported to form fixed assets; raw materials, supplies and components for implementation of an investment project;

(c) Exemption from and reduction of land rent, land use fees and land use tax.

  1. Objects entitled to investment incentives:

(a) Investment projects in the preferential investment industries and trades prescribed in article 16.1 of this Law;

(b) Investment projects located in preferential investment geographical areas prescribed in article 16.2 of this Law;

(c) Projects with a scale of capital being 6,000 billion Dong or more of which at least 6,000 billion Dong is disbursed for a period of three years from the date of issuance of the IRC or the date of the decision on the investment policy;

(d) Investment projects located in rural areas and employing 500 employees or more;

(dd) High-tech enterprises, and scientific and technological enterprises or organizations.

  1. Investment incentives shall apply to new investment projects and expanded investment projects. Specific levels of incentives in respect of each type of investment incentives shall be applicable in accordance with the law on taxation and the law on land.
  2. The investment incentives applicable to the objects prescribed in clause 2.(b), (c) and (d) of this article do not apply to investment projects for exploitation of minerals; or for production or business in goods or services subject to special sales tax stipulated by the Law on Special Sales Tax, except for manufacture of automobiles.


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