Content Summary
Investment incentives are one of the essential policies in attracting investment from Vietnam to create an attractive and favorable investment environment for investors, thereby accelerating the process of attracting capital. The acquisition accelerates economic development and implements a positive shift in investment structure among sectors, regions, and regions.
So, according to the latest Investment Law 2020, who are entitled to investment incentives, and what are the applicable investment incentives? I will share this information with investors in this article.
The beneficiaries are entitled to investment incentives:
According to the provisions of Clause 2, Article 15 of the Investment Law 2020, there are 07 beneficiaries of investment incentives, including:
- Investment projects in industries or professions eligible for investment incentives
- Investment projects in investment incentive areas
- Investment projects with a capital scale of VND 6,000 billion or more disbursed at least VND 6,000 billion within three years from the date of issuance of the Investment Registration Certificate or approval of investment policies and one of the following criteria: having a total revenue of at least VND 10,000 billion per year within 03 years at the latest from the year of income or employing more than 3,000 employees.
- Investment projects on construction of social housing; investment projects in rural areas employing 500 or more employees; investment projects using employees under the law on people with disabilities;
- High-tech enterprises, science and technology enterprises, science and technology organizations; projects involving technology transfer on the list of technologies encouraged for transfer following the law on technology transfer; technology incubators, science, and technology business incubators according to the provisions of the law on high technology and the law on science and technology; enterprises producing and providing technology, equipment, products and services to meet the requirements of environmental protection by the provisions of the law on environmental protection;
- Innovative start-up investment projects, innovation centers, research and development centers;
- Investing in the business of product distribution chains of small and medium-sized enterprises; business investment in technical facilities to support small and medium enterprises; invest in the industry in co working space to support creative start-ups following the law on helping small and medium-sized enterprises.
Accordingly, the Investment Law 2020 stipulates to expand the beneficiaries of investment incentives such as adding two groups of subjects in items 6 and 7 that I mentioned above, extending the industries receiving investment incentives. Investment incentives and locations are eligible for investment incentives.
The forms of investment incentives.
Investors and investment projects eligible for the investment as mentioned above incentives are entitled to the following forms of investment incentives:
- Corporate income tax incentives include:
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- Apply a corporate income tax rate lower than the regular tax rate for a definite term or the entire duration of the investment project;
- Tax exemption, tax reduction, and other incentives under the law on corporate income tax.
- Import tax exemption for goods imported to create fixed assets; raw materials, supplies, and components imported for production by the law on import and export tax;
- Exemption or reduction of land use levy, land rent, and land use tax
- Fast depreciation, increasing the deductible expenses when calculating taxable income.
It’s clear that when investors are eligible for investment incentives, they can enjoy many forms of investment incentives. Compared to the 2014 Investment Law, the 2020 Investment Law has added an investment incentive, accelerated investors. In general, Vietnam’s investment policy is very open, with many incentives and increasingly perfected, which is a good opportunity for investors excellent want to invest and do business in Vietnam.
Above are some shares of AZLAW related to investment incentive policies according to the latest regulations in Vietnam. If you have any questions, please contact us for advice.
