Foreign direct investment enterprises (FDI) will enjoy certain tax incentives. Accordingly, what are the conditions for receiving these incentives? Hong Bang Law Firm would like to send you the following advice:
According to Clause 2, Article 15 of the Investment Law 2020 to enjoy investment incentives in general and tax incentives in particular, foreign-invested enterprises need to meet one of the following conditions:
Investment projects in investment-advantaged sectors and occupations
Comparing the provisions of Clause 1, Article 16 of this Law, investment incentive industries and occupations include:
| Stt | Preferential industries and occupations |
| 1 | High-tech activities, high-tech supporting industrial products, research and development activities, production of products formed from scientific and technological results in accordance with the law on science and technology |
| 2 | Production of new materials, new energy, clean energy, renewable energy; production of products with 30% or more added value, energy-saving products |
| 3 | Production of electronic products, key mechanical products, agricultural machinery, automobiles, auto parts; shipbuilding |
| 4 | Production of products in the List of industrial products supporting development priority |
| 5 | Production of information technology products, software, digital content |
| 6 | Farming and processing agricultural products, forestry and fishery products; planting and protecting forests; salt making; fishing and fisheries logistics services; production of plant varieties, livestock breeds, biotechnology products |
| 7 | Waste collection, disposal, recycling or reuse |
| 8 | Investment in development and operation and management of infrastructure works; development of public passenger transport in urban areas |
| 9 | Early childhood education, general education, vocational education, higher education |
| 10 | Medical examination and treatment; production of drugs, raw materials for making drugs, preserving drugs; scientific research on dosage technology and biotechnology for the production of new drugs; manufacturing medical equipment |
| 11 | Investment in training facilities, gymnastics and sports for people with disabilities or professional; protecting and promoting the value of cultural heritage |
| 12 | Investment in geriatric, psychiatric centers, treatment of patients infected with Agent Orange; care centers for the elderly, people with disabilities, orphans, children wandering without shelter |
| 13 | People’s Credit Funds, micro-financial institutions |
| 14 | Producing goods, providing services to create or participate in value chains, industry-linked clusters |
Investment projects in areas of investment incentives
Investment incentive areas include:
- Areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions;
- Industrial parks, export processing zones, high-tech parks, economic zones.
Investment projects with capital scale of VND 6,000 billion or more
At the same time, disbursement of at least VND 6,000 billion shall be disbursed within 03 years from the date of issuance of investment registration certificate or approval of investment policy and has one of the following criteria:
- Total revenue of at least VND 10,000 billion per year for the latest period after 03 years from the year of revenue or;
- Employs more than 3,000 people.
Investment projects for construction of social housing or;
- Investment projects in rural areas employing 500 or more workers or;
- Investment projects employing persons with disabilities in accordance with the law on persons with disabilities.
High-tech enterprises, science and technology enterprises, scientific and technological organizations or;
- Projects with technology transfer on the list of technologies that encourage transfer in accordance with the law on technology transfer or;
- Technology incubators, incubators of science and technology enterprises in accordance with the law on high technology, laws on science and technology or;
- Enterprises producing and providing technology, equipment, products and services to serve the requirements of environmental protection in accordance with the law on environmental protection.
Innovative start-up investment projects, innovation centers, research and development centers
Investment in the distribution chain of products of small and medium-sized enterprises or;
Investment in technical facilities to support small and medium-sized enterprises, small and medium-sized enterprises incubators or;
Investment in co-working areas supports innovative small and medium-sized enterprises in accordance with the law on supporting small and medium-sized enterprises.
Investment incentives are applied to new investment projects and expansion investment projects. According to Clause 5, Clause 6, Article 3 of the Investment Law:
A new investment project is a first-time investment project or an investment project independent of an active investment project.
An expansion investment project is an investment project that is operating by scaling up, improving capacity, technological innovation, reducing pollution or improving the environment.
Note:
Investment incentives for the above-mentioned cases 2, 3 and 4 do not apply to projects:
- Mining investment projects;
- Investment projects in the production and trading of goods and services subject to excise tax except for projects producing automobiles, aircraft and yachts;
- Investment projects to build commercial houses in accordance with the law on housing.
Above is the condition of receiving tax incentives of FDI enterprises in Vietnam.
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 free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com
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