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blue-check Tax exemption, reduction policies applicable to projects entitled to special incentives

Decision No. 29/2021/QD-TTg dated October 6th, 2021 of the Prime Minister on prescribing special investment incentives
Posted: 8/10/2021 3:47:04 PM | Latest updated: 28/10/2021 3:25:39 PM (GMT+7) | LuatVietnam: 5312 | Vietlaw: 534
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This Decision provides regulations on conditions for application of special investment incentives to investment projects as prescribed in Clause 2 Article 20 of the Law on investment No. 61/2020/QH14status2 , including:

(i) Projects on investment in establishment (including the expansion of such establishment project) of innovation centers and research and development centers with a total investment capital of at least VND 3,000 and disbursing at least VND 1,000 billion within 03 years from the issuance date of the investment registration certificate;

(ii) Investment projects in the business line eligible for special investment incentives with an investment capital of at least VND 30,000 billion and disbursing at least VND 10,000 billion within 03 years from the issuance date of the investment registration certificate.

Accordingly, with regard to a project at point (ii) above, it shall be entitled to the preferential tax rate of 9% within a period of 30 years, tax exemption for 5 years and 50% tax reduction for the subsequent 10 years.

For a project at point (i) above or at point (ii) concurrently meets one of the 4 criteria (It is a level-1 high technology project/There are Vietnamese enterprises joining the value chain at level 1/ The value added is accounted for more than 30% to 40% of the prime costs/It meets level-1 technology transfer criteria), it shall be entitled to the preferential tax rate of 7% within a period of 33 years, tax exemption for 6 years and 50% tax reduction for the subsequent 12 years.

For a project of establishment of national innovation center or project at point (ii) concurrently meets one of the 4 criteria (It is a level-2 high technology project/There are Vietnamese enterprises joining the value chain at level 2/ The value added is accounted for more than 40% of the prime costs or it meets level-2 technology transfer criteria), it shall be entitled to the preferential tax rate of 5% within a period of 37 years, tax exemption for 6 years and 50% tax reduction for the subsequent 13 years.

This decision comes into force from the date of signing.

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Effective Date 6-Oct-2021
ExpiredDate Unknown
Published Vietlaw's Newsletter No. 534
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