Chapter III
PREFERENTIAL TREATMENT ON DUTIES
Article 15.- The following types of investment projects are eligible for preferential treatment on duties:
1. Investment in industries and crafts described in List A of the Appendix to this Decree.
2. Investment in production establishments which use modern technology and which satisfy at least one of the following criteria:
a) The applied technology is capable of leading to an upgrading of technologies and equipment in other industries such as machine building, electricity, electronics, informatics, etc.
b) The applied technology uses domestic materials to make products which are of higher technical quality than the available products of the same kind.
c) The applied technology makes products which are of exportable quality or which can serve as import substitutes.
d) The applied technology helps improve product quality of traditional industries and crafts.
e) The applied technology is clean and employs wastes as materials, thus helping reduce environmental pollution.
f) The applied technology produces new materials.
g) The applied technology is high technology.
3. Investment in production establishments which, from the start, employ at least:
- In urban areas: 300 laborers.
- In mountainous areas: 50 laborers.
- In other areas: 200 laborers.
4. Investment in districts of ethnic minorities or in mountainous or island areas described in List B of the Appendix to this Decree.
5. Investment in other difficult areas as described in List C of the Appendix to this Decree.
Article 16.- New production or business establishments formed under investment projects in districts outside areas of ethnic minorities or mountainous and island areas and other difficult areas shall enjoy the following preferential treatments on duties:
1. An establishment which satisfies one of the conditions stipulated in Items 1, 2 and 3 of Article 15 of this Decree is entitled to a 50% reduction of the turnover tax in its first year, starting from the month its turnover is subject to duty; an exemption from income tax for the first two years starting from the time when a taxable profit is made and a 50% reduction of income tax in the ensuing three years. A production establishment which satisfies two or more conditions is entitled to a 50% reduction of income tax for one more year after that.
2. Transport, trade and servicing establishments described in List A of the Appendix to this Decree are entitled to a 50% reduction of income tax for two years, starting from the time when a taxable profit is made.
Article 17.- New production or business establishments formed under investment projects in districts of ethnic minorities or in mountainous areas described in Part I of List B of the Appendix to this Decree are entitled to the following preferential treatment on duties:
1. A production establishment which satisfies one of the conditions stipulated in Items 1, 2 and 3 of Article 15 of this Decree is entitled to a 50% reduction on income tax for four years, starting from the month when a taxable turnover is made; exemption from income tax in the first four years and a 50% reduction of income tax for the next seven years. A production establishment which satisfies two or more conditions is entitled to a 50% reduction of income tax for two more years after that.
2. Transport, trade and servicing establishments are entitled to a 50% reduction of income tax for two years, starting from the month when their taxable turnover is made; exemption from income tax in the first two years, starting from the time when a taxable profit is made, and 50% reduction of income tax for the next five years.
Article 18.- New production and business establishments formed under investment projects in districts of ethnic minorities and in mountainous and island areas stipulated in Part II of List B of the Appendix to this Decree are entitled the following preferential treatments on duties:
1. A production establishment which satisfies one of the conditions stipulated in Items 1, 2 and 3 of Article 15 of this Decree is entitled to a 50% reduction of turnover tax for three years, starting from the month when a taxable turnover is made; exemption from income tax for the first four years, starting from the time when a taxable profit is made, and a 50% reduction of income tax in the next five years; a production establishment which satisfies two or more conditions is entitled to a 50% reduction of income tax for two more years after that.
2. Transport, trade and servicing establishments are entitled to a 50% reduction on turnover tax for two years, starting from the month when a taxable turnover is made; exemption from income tax for the first two years, starting from the time when a taxable profit is made, and a 50% reduction of income tax for four more years after that.
Article 19.- New production and business establishments formed under investment projects in districts of other difficult areas described in List C of the Appendix to this Decree are entitled to the following preferential treatment on duties:
1. A production establishment which satisfies one of the conditions stipulated in Items 1, 2 and 3 of Article 15 of this Decree is entitled to a 50% reduction of income tax for two years, starting from the month when a taxable turnover is made; exemption from income tax in the first three years/starting from the time when a taxable profit is made, and a 50% reduction of income tax for the next five years. A production establishment which satisfies two or more conditions is entitled to a 50% reduction of income tax for two more years after that.
2. Transport, trade and servicing establishments are entitled to a 50% reduction of turnover tax for two years, starting from the month when a taxable turnover is made; an exemption from income tax in the first year starting from the time when a taxable profit is made, and a 50% reduction of income tax for the next three years.
The provisions on tax exemption and reduction for production and business establishments, which are classified as investment priorities in Articles 16, 17, 18 and 19 of this Decree, include all tax exemptions and reductions stipulated in the Law on Promotion of Domestic Investment and the current Law on Turnover Taxes and Law on Income Taxes.
Article 20.- A production or business establishment, which puts in additional investment capital or reinvest the remaining profit to expand its production or improve its production capacity or renew its technology, is entitled to an exemption from income tax on the additional profit in the following years as a result of the new investment.
The increased profit is measured on the basis of the total profit gained and the ratio of the new investment.
Article 21.- The investment projects on technical infrastructure construction, education and training, health, ethnic cultures, scientific and technological studies, and the investment projects in districts of ethnic minorities and in mountainous and island areas, are exempted from import taxes (for both direct and consigned import) on equipment, machinery and component parts for production chains. The equipment, machinery and component parts to be exempted from import taxes must be modern and not yet manufactured domestically; in case they are not employed as intended, the import taxes already exempted on them will be recollected.
Article 22.- The organizations and individuals stipulated in Article 1 of this Decree who buy stocks or contribute capital to enterprises, including State enterprises, are allowed to diversify their ownership and are exempted from income taxes or taxes on personal incomes, including the additional taxes on high-income earners, for the profit they make in the first three years, starting from the time when they enjoy their first dividends.
Article 23.- Overseas Vietnamese who contribute capital in the form of investments stipulated in Article 4 of the Law on Promotion of Domestic Investment, when transferring overseas their profits, shall pay a tax equivalent to 5% of the transferred sums.
Article 24.- On the basis of Articles 18 and 19 of the Law on Promotion of Domestic Investment and the provisions in Chapter III and Articles 26 and 27 of this Decree, the Ministry of Finance shall issue guidance on the procedures and modalities for the determination of preferential treatments on duties.
Tìm kiếm
Nghị định 29/CP (Bản Word)