TAX INCENTIVES FOR INVESTMENT IN VIETNAM

 The route to adjust the Corporate Income Tax (CIT) from 32% (1997) to 25% (2009) and most recently 22% (effective on 1 Jan 2014), 20% (effective on 01 Jan 2016) created a big step which is more attractive to domestic and foreign enterprises with the operation of business in the current economic context.

Corporate Income Tax Law also specifies preferential tax rate, period of tax exemption and tax reduction for newly established enterprises from investment projects in areas with difficult social economic, economic zones, high-tech zones; production of software products, operation in the field of education and training, vocational training, health, culture … to attract and facilitate investors interested in this field.

Tax incentives policy for investment in Vietnam

Circular 78/2014 / TT-BTC dated 18 June 2014 of the Ministry of Finance guiding the implementation of Decree 218/2013 / ND-CP dated 26 Dec 2013  of the Government and guidance for the implementation of corporate income Tax Law taking effect from 02 Apr 2014 was defined more clearly the policy on corporate tax incentives for new investment projects (tax rate incentives, tax exemption and reduction incentives).

Corporate income tax rate

From 01 Jan 2014, the Law on Corporated Income Tax dated 19 June 2013 which was amended and supplemented a number of articles becomes effective. Accordingly companies will benefit from the corporate income tax rate is as follows:

– Corporate income tax rate is 22%

– From 01 Jan 2016 corporate income tax rate is reduced to 20%

– Corporate income tax rate is 20% for companies with total revenue of the preceding year not exceeding 20 billion

Tax incentives in Long An province – Vietnam

 Tax incentives Kizuna rental workshop area

The projects of Kizuna JV located in the industrial park has convenient locations: the border between Ho Chi Minh City and Long An Province (Kizuna serviced rental workshop area) and Binh Chanh District (standard workshop ECO FACTORY); In addition, when investing in these projects, investors can have the corporate income tax incentives as follows:

From 01 Jan 2014, the corporate income tax rate is 22%, except for cases applied with preferential tax rate

From 01 Jan 2016, the case applied with the tax rate of 22% can be applied with 20%

With complete infrastructure and useful support services and tax incentives, it can be said that Kizuna is one of the best choices for investors when choosing the investment locations in Southern Vietnam.