Kyocera seeks tax incentives

Vietnam Kyocera Company, a wholly-owned subsidiary of Kyocera Corporation, recently sent a proposal to the Ministry of Industry and Trade (MoIT) saying that its manufacturing project in northern Hung Yen province should be recognised as a supporting industry enterprise, given that its products are surface mount devices (SMD).

SMD is a necessary component product for phones, household appliances, audiovisual appliances, all-purpose computers, fine ceramics or micro-electronics.

In the document sent to the MoIT, Kyocera said SMD products “is appropriate to the list of electronic components and microchips for development of peripheral devices of computers, household appliances, audiovisual appliances, solar cells” regulated by the Vietnamese government.

Therefore, Kyocera proposed that it should enjoy 10 per cent corporate income tax in the first 15 years. The company will also enjoy tax exemption in its first four years of operation and pay half of this 10 per cent rate in the following nine years.

“This incentive policy will help reduce financial burden and encourage us to expand investments. In addition, it enhances attractiveness of Vietnam to encourage Kyocera’s subsidiaries to select Vietnam as one of main manufacturing bases in the world,” Kyocera Vietnam said in the proposal.

Kyocera is a multinational electronics and ceramics manufacturer founded in 1946 in Japan. In August 2012, the corporation gained an investment certificate for building a $76 million manufacturing factory in Thang Long Industrial Park II. It is expected to be operational in the second half of next year, providing around 2.4 billion SMD products each year.