Enterprise income tax in Vietnam

Enterprise income tax in Vietnam

Hi DMS Lawyers in Vietnam, We are about establishing a Company in Vietnam. Can you tell us briefly information about enterprise income tax incentives in Vietnam. Thanks,

The words of regulations is very lengthy. Therefore, DMS Lawyers in Vietnam provides briefly information about enterprise income tax incentive in Vietnam as follows:

1. The preferential tax rate of 10% for fifteen (15) years is applicable to:

a/ Incomes of enterprises from the implementation of new investment projects in geographical  areas with particularly difficult socio-economic conditions specified Decree No 218/2013/ND-CP, economic zone, hi-tech zone.

b/ Incomes of enterprises from the implementation of new investment projects in the fields of  scientific research and technological development; application of high technologies on the list of high technologies prioritized for development investment in accordance with the Law on High Technologies; nursery of high technologies and hi-tech enterprises, etc

Projects to develop water plant, electricity plant, drainages, airport, seaport, etc

c/ Incomes of enterprises from the implementation of new investment projects in the field of  environmental protection, covering manufacture of equipment for treating environmental pollution

d/ Hi-tech enterprises and agricultural enterprises applying high technologies defined in the Law on High Technologies;

dd/ Incomes of enterprises from the implementation of new investment projects in the fields of  production (except  projects  producing  goods  items liable  to  excise  tax  and  mineral  mining  projects) which satisfy either of the stipulated conditions

2. The preferential tax rate of 10% is applicable throughout the operation duration to:

a/ Incomes of enterprises from socialized education and training, job training, health care,  culture, sports and environmental protection activities (referred to as socialized fields) as specified in the list approved by the Prime Minister;

b/ Incomes of publishing houses from publication activities in accordance with the Law on Publication;

c/ Incomes of press agencies from printed newspapers (including advertisements on printed  newspapers) in accordance with the Law on Publication;

d/ Incomes of  enterprises  from  the  implementation  of  projects  on investment  and  trading  in  social houses for sale or lease to or hire-purchase by the subjects specified in Article 53 of the Housing Law;

e/ Incomes of enterprises from the forest planting, tending and protection; agricultural cultivation, planting of forest trees and aquaculture in geographical areas with difficult socio-economic  conditions

f/ Incomes of cooperatives engaged in agriculture, forestry, fisheries or salt production and not  located in geographical areas with difficult or particularly difficult socio-economic conditions.  

Legal basis: 

Article 19 Circular No 78/2014/TT-BTC dated June 18, 2014

Amended by Article 11 Circular No 96/2015/TT-BTC dated June 22, 2015.

Enterprise income tax in Vietnam

  DMS Law firm in Vietnam
Director
(Signed)
Lawyer Do Minh Son 

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