An economic zone is an area with definite geographical boundaries, including many functional zones, established to fulfill the objectives of attracting investment, developing socio-economic development, and protecting national defense and security.

Therefore, Hong Bang Law would like to send to customers the following advice about the Tax policy for enterprises located in economic zones.

Legal grounds

• Decree 82/2018/ND-CP on the management of industrial parks and economic zones
• Circular 219/2013/TT-BTC on value-added tax
• Circular 78/2014/TT-BTC (regarding corporate income tax)
• Circular 151/2014/TT-BTC (regarding corporate income tax)
• Decree 46/2014/ND-CP (regarding land use levy incentives)
• Law on export tax and import tax 2016

Exemption and reduction of corporate income tax:

• The corporate income tax rate is 10% (ten percent) for a period of 15 (fifteen) years from the date the investment project commences its business operations;
• Exemption from corporate income tax for 04 (four) years from the date of taxable income and a reduction of 50% (fifty percent) of paying corporate income tax for the next 09 (nine) years

Preferential import and export tax

• Tax exemption for goods imported to create fixed assets according to the provisions of Article 14, Decree 134/2016/ND-CP dated September 1, 2016 of the Government detailing a number of articles and implementation measures Law on export tax and import tax;
• Exemption from import tax on raw materials, supplies and components that cannot be produced domestically for a period of 5 years as prescribed in Article 15 of Decree 134/2016/ND-CP dated September 1, 2016 of the Government on Detailing a number of articles and measures to implement the Law on Import Tax and Export Tax.
• Objects not subject to import and export tax: – Goods exported from non-tariff zones to foreign countries. – Goods imported from abroad into non-tariff zones and used only in non-tariff zones

Exemption and reduction of land rent:

• Exemption from land rent for the period of capital construction up to 3 years from the date of issuance of the land lease decision.
• Exemption from land rent after the period of land rent and water surface rent exemption for the period of capital construction: 15 years for projects not on the list of sectors eligible for investment incentives. 19 years for projects on the list of sectors eligible for investment incentives.
• Exemption from land rent and water surface rent for the entire lease term for projects on the list of fields of special investment incentives.
• Exemption of land rent for the entire land lease term after the period of exemption from land embroidery fee during the period of capital construction for investors who are leased land by the State for investment in construction and business of infrastructure in functional areas in the Economic Zone.

Services provided by Hong Bang Law

Hong Bang Law is a company with 10 years of experience in consulting in the fields of foreign investment, tax, and finance. We have supported many foreign investors, accompanying them throughout the implementation of investment projects and activities in Vietnam, especially in the field of taxation.

Hong Bang Law will accompany customers, providing tax consulting and support services for enterprises in Economic Zone including:

• Comprehensive consultation on the investment process in Economic Zone, tax issues for enterprises in Economic Zone;
• Registration service for business tax identification number;
• Service of declaring contractor tax on each arising, monthly basis;
• Service of corporate tax finalization;
• Service of confirming corporate tax obligations;
• Service of performing other tax procedures. Processing establishment and execution of authorized transactions, regularly informing about developments and proposing new ideas (note: if there are adjustments or supplements to the content of the authorization, rights must be made in a new document);
• Handing over the work results after successfully performing the authorized work.

If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

Wishing you and your family good health, peace and success!

Best regards!