1. Preferential tax rate of 10% within 15 years:
a) Newly established enterprises from the projects invested in the areas with extremely difficult socio-economic conditions (Son Dong district), economic zones, high-tech zones established by Decision by the Prime Minister.
b) Newly established enterprises from projects in the fields:
- Hi-tech prescribed by law; scientific research and technological development;
- Investment in developing water plants, power plants, water supply systems; bridges, roads, railways; air ports, seaports, river ports; airports, railway stations and other specially important works by the Prime Minister’s decision;
- Manufacturing software products.
2. Preferential tax rate of 10% during operation:
For the income of enterprises operating in the fields of education - training, vocational training, health, culture, sports and the environment (socialization).
3. Preferential tax rate of 20% applicable during 10 years:
Newly established business from projects invested in areas with difficult socio - economic conditions (including the districts namely Luc Ngan, Luc Nam, Yen The and Hiep Hoa).
4. Preferential tax rate of 20% applicable during operation for:
a) Agricultural services cooperative and people’s credit funds.
b) Agricultural services cooperative, people’s credit funds after expiry of application of 10% stipulated in point a, Clause 1 of Article 15 of Decree No. 124/2008/ND-CP shall switch to application of preferential tax rate 20%.
5. Time of applying preferenctial tax rate:
It is continuously applied from the first year of business with revenues from activities enjoying tax incentives.
II - Tax exemption and reduction:
1. Exemption 4 years, 50% of tax payable for nine subsequent years:
a) Newly established enterprises from projects invested in areas with extememly difficult socio-economic conditions (Son Dong district), economic zones, high-tech zones established by decision of the Prime Minister.
b) Newly established enterprises from projects invested in the following fields:
- High-tech prescribed by law; scientific research and technological development;
- Investment in developing water plants, power plants, water supply systems; bridges, roads, railways; air ports, seaports, river ports; airports, railway stations and other specially important works by the Prime Minister’s decision.
- Manufacturing software products.
c) Newly established enterprises in the field of socialization conducted in areas with difficult or extrememly difficult socio-economic conditions (including districts namely Son Dong, Luc Ngan, Luc Nam, Yen The and Hiep Hoa).
2. Exemption 4 years, 50% of tax payable in the next five years to:
Newly established enterprises in the field of socialization conducted in Bac Giang city, districts of Lang Giang, Yen Dung, Vietnam and Tan Yen Yen.
3. Tax exemption for 2 years and 50% of tax payable in the next four years for:
Newly established enterprises from projects invested in areas with difficult socio - economic conditions (including the districts of Luc Ngan, Luc Nam, Yen The and Hiep Hoa).
4. Time of tax exemption, reduction is calculated continuously from the first year of business with taxable income from the project investment; in case the enterprise has no taxable income in the first three years, from the first year with sales from the project the time for tax exemption, reduction is calculated from the fourth year.
In the first year of tax payable when the enterprises engaged in production or business with tax exemption and reduction under 12 (twelve) months, it enjoys tax exemption and reduction right in that year or it may subscribe to start enjoy tax exemption, tax reduction from the next year on.
Investment Incentives
