|INVESTMENT INCENTIVES AND INVESTMENT SUPPORTS
(Law on Investment 2014 and Decree No.118/2015/ND-CP dated November 12, 2015 guiding for the Law on Investment)
A. INVESTMENT INCENTIVES
Forms and subjects entitled to investment incentive
1. Forms of investment incentives:
a) Application of a lower rate of corporate income tax than normal tax rate for a definite period or 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, land use tax.
2. Objects entitled to investment incentives:
a) Investment projects in the preferential investment industries and trades prescribed in the Clause 1, Article 16 of the Law on Investment;
b) Investment projects located in prehential investment geographical areas prescribed in the Clause 2, Article 16 of the Law on Investment;
c) Investment 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 Investment Registration Certificate or the date of the decision on the investment policy;
d) Investment Projects located in rural areas and employing at least 500 employees;
e) Hi-tech enterprises, scientific and technological enterprises or organizations.
3. 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.
4. Investment incentives applicable to the objects prescribed at Points b, c and d, Clause 2 of this regulation do not apply to investment projects for exploitation of minerals or production or business in goods or services subject to excise tax specified in the Law on Excise Tax, except automobile manufacturing.
Procedures for application of investment incentives
1. For projects that are granted investment registration certificates, investment registration authority shall record investment incentives, bases and conditions for application of investment incentives in the investment registration certificates.
2. For projects that are not required an investment registration certificate to be issued, if satisfy conditions for entilement to investment incentives, the investors are entitled to investment incentives without permance of the procedures for issuance of an investment registration certificates. In this case, the investors shall, on the basis of conditions for entitlement to investment incentives prescribed in Articles 15 and 16 of the Law on Investment and other relevant laws, themselves determine investment incentives and perform the procedures for entitlement to investment incentives at the tax authority, financial authority or customs office, corresponding to each type of investment incentive.
B. INVESTMENT SUPPORTS
1. Forms of investment support:
a) Support for development of technical and social infrastructure systems inside or outside the fence of projects;
b) Support for human resources training and development;
c) Credit support;
d) Support for access to production and business sites; or to relocate production establishments from inner cities or towns;
e) Support for science, technology or technology transfer;
f) Support for market development and information provision;
g) Support for research and development.
Any question please contact NVCS for detail case-by-case legal advices.