Investment incentives are one of the policies to help Vietnam develop its economy, attracting businesses, especially foreign ones (Korea, Japan, USA, China, Singapore, …) to Vietnam. over the years. So what are the basic investment incentive policies, how are the procedures in Vietnam, inco Minh Anh Law firm will summarize for interested customers.

Pursuant to the provisions of  Clause 1, Article 15 of the Investment Law 2020 , the form of investment incentives includes:

Corporate income tax incentives, including the application of a lower corporate income tax rate than the normal tax rate for a definite term or for the entire duration of the investment project; tax exemption, tax reduction and other incentives in accordance with the law on corporate income tax (for example, a 2-year exemption, a 50% reduction in the next 4 years when investing in a new project in an industrial park, export processing zones and economic zones in Vietnam);

Exemption from import tax on goods imported to create fixed assets; raw materials, supplies and components imported for production in accordance with the law on export tax and import tax (for example, for an EP project in an export processing zone in Vietnam);

Exemption or reduction of land use levy, land rent, and land use tax (for example, for projects in mountainous areas, poor areas, with difficult economic conditions, to help develop local infrastructure;

Depreciation is fast, increasing the deductible expense when calculating taxable income (for example, for projects with high and advanced technology content).

Procedures for applying investment incentives

Pursuant to the provisions of  Article 17 of the Investment Law 2020 guided by Article 23 of Decree 31/2021/ND-CP stipulating the procedures for applying investment incentives as follows:

Decision on approval of investment policy, Certificate of investment registration, Decision on approval of investor specifying the form, basis and conditions for application of investment incentives as prescribed in Articles 15 and 16 of this Decree. Law on Investment and Article 19 of this Decree.

Based on the content of investment incentives in the Decision on approval of investment policies, the Certificate of investment registration, and the Decision on approval of investors, the investor shall carry out the procedures for enjoying investment incentives at the agency applying for investment incentives. use investment incentives corresponding to each type of incentives.

The bases for application of investment incentives to a number of enterprises and investment projects specified in Clause 5, Article 19 of this Decree include:

For science and technology enterprises, it is the Certificate of Science and Technology Enterprise;

For agricultural enterprises applying high technology, it is the Certificate of agricultural enterprises applying high technology;

For hi-tech application projects, the certificate of high-tech application projects is required;

For supporting industry projects, it is the Certificate of Incentives for the production of supporting industry products;

For projects with technology transfer on the List of technologies encouraged for transfer, it is the Certificate of technology transfer encouraged for transfer according to the Prime Minister’s regulations.

For investment projects that do not fall into the cases specified in Clauses 2 and 3 of this Article, investors shall base themselves on the beneficiaries of investment incentives specified in Article 19 of this Decree and relevant laws. authorities to determine investment incentives themselves and carry out procedures for enjoying investment incentives at the agency applying investment incentives corresponding to each type of incentives.

For details, businesses and investors, please contact a lawyer of Inco Minh Anh law firm for advice.