Regulations on Special investment incentives in Vietnam

Regulations on Special investment incentives in Vietnam

The Government has made a decision to implement special investment incentives and support policies in order to encourage the growth of a number of projects with substantial economic effect.

The following projects will be given special investment incentives and support in accordance with the Investment Law 2020:

  • Newly established investment projects (including the expansion of such newly established projects) of innovation centers, research and development centers with total investment capital of 3,000 billion VND or more, implementing disburse at least VND 1,000 billion within 03 years from the date of issuance of the investment registration certificate or approval of investment policy; national innovation center established under the Prime Minister’s decision;
  • Investment projects in industries or trades with special investment incentives with an investment capital of VND 30,000 billion or more, disbursed at least VND 10,000 billion within 3 years from the date of issuance of the Registration Certificate. sign the investment or approve the investment policy.

Moreover, in accordance with Clause 3 of Article 20 of the Law on Investment, special incentives must comply with the Land Law and the rules of the Law on Corporate Income Tax for the duration that they are provided.

The following is stated in Point a, Clause 6, Article 20 of Decree No. 31/2021/ND-CP:

The level and time for the implementation of special incentives for corporate income tax, land rent, and water surface rent must all be in accordance with the land and corporate income tax laws;

The Prime Minister will choose the level and time that special incentives will be used, but they must be subject to the conditions listed below:

  • Tax incentives: Reduced but not more than 50% of the normal tax rate incentives
  • Time of application of tax incentives: Not more than 1.5 times compared to the period of application of tax incentives.

Projects that are not eligible for investment support and incentives are listed in Clause 5 of Article 20 of the Investment Law as follows:

  • Investment projects that have been granted investment certificates, investment registration certificates, or investment policy decisions before the effective date of the Law on Investment (January 1, 2021);
  • Mineral mining investment projects;
  • Investment projects on the production and trading of goods and services subject to excise tax under the provisions of the Law on Special Consumption Tax, except for projects on the production of cars, aircraft, and yachts;

Investment projects to build commercial houses in accordance with the law on housing.

ASL LAW is the top-tier Vietnam law firm for doing business in Vietnam. If you need any advice, please contact us for further information or collaboration.


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