Vietnam: Exemptions, reduced rates of corporate income tax under special investment incentives

Guidance implementing special investment incentive policy with regard to eligible investment projects

Exemptions, reduced rates of corporate income tax under special investment incentives

Guidance— Decision 29/2021/QD-TTg (6 October 2021)—implements the special investment incentive policy with regard to eligible investment projects.

If an investment project satisfies the conditions for eligibility, reduced corporate income tax rates and/or tax exemptions as well as relief from land and surface rental fees (instead of the standard corporate income tax and land and surface rental fee measures) are available.

The incentives available under three regimes or schemes are as follows:

  • Under one, the corporate income tax rate is 9% for 30 years, a five-year exemption and a corporate income tax rate that is half (50%) of the standard rate for the subsequent 10 years. Under this scheme, regarding land and water surface rent, there is a rental exemption measured for 18 years and a 55% reduction for the remainder of the project lifetime.
  • Under the second, the corporate income tax rate is 7% for 33 years, a six-year exemption and a corporate income tax rate that is half (50%) of the standard rate for the subsequent 12 years. Under this scheme, regarding land and water surface rent, there is a rental exemption for 20 years and a 65% reduction for the remainder of the project lifetime.
  • Under the third, the corporate income tax rate is 5% for 37 years, a six-year exemption and a corporate income tax rate that is half (50%) of the standard rate for the subsequent 13 years. Under this scheme, regarding land and water surface rent, there is a rental exemption for 22 years and a 75% reduction for the remainder of the project lifetime.

Read an October 2021 report [PDF 94 KB] prepared by the KPMG member firm in Vietnam

 

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