PROVISIONS ON SPECIAL INVESTMENT INVESTMENT INVESTMENT INCOME

 PROVISIONS ON SPECIAL INVESTMENT INVESTMENT INVESTMENT INCOME

The Decision prescribes the level, time and conditions for applying special investment incentives to investment projects specified in Clause 2, Article 20 of the Law on Investment.

Time and level of special investment incentives

During the period of enjoyment of special investment incentives, any economic organization that satisfies the conditions for actual incentives shall enjoy such incentives for the remaining incentive period.

The remaining incentive application period is determined by the incentive period according to the actual incentive conditions minus the corresponding number of years of corporate income tax exemption and reduction, the number of years of applying the preferential enterprise's income tax rate, and the number of years of land rent exemption and reduction, which were previously applied.

Preferential treatment for special investment

Corporate income tax incentives; corporate income tax exemption and reduction period; land rent, water surface rent. Including:

- The preferential tax rate of 9% in the period of 30 years applies to incomes of economic organizations from the implementation of investment projects that fall into the categories specified at Point b, Clause 2, Article 20 of the Law on Investment.

- The preferential tax rate of 7% in the period of 33 years applies to income from investment projects in one of the following conditions:

1. Investment projects to establish innovation centers, research and development centers (including expansion) with an investment capital of 3,000 billion VND or more and disbursed at least 1,000 billion VND within 03 years. years from the date of issuance of the Investment Registration Certificate or the decision approving the investment proposal.
2. Investment project is classified following the provisions of Point b, Clause 2, Article 20 of the Law on Investment and satisfy one of the following four criteria: level 1 high-tech project; or having Vietnamese enterprises involved in the tier-one chain; added value accounting for over 30% to 40% of the total cost of their output and final products; meet the requirements for first-order technology transfer.

- The preferential tax rate of 5% in the period of 37 years is applicable to income from the activities of an object or an investment project following one of those cases:

1. National Innovation Center established under the Prime Minister's decision.
2. The investment project falls under the subjects specified at Point b, Clause 2, Article 20 of the Law of Investment and meets one of the following four requirement: level 2 high-tech project; Vietnamese enterprises to be participating in the tier-two chain; added value accounts for more than 40% of the total cost of final output products provided by economic organizations; meet the criteria for technology transfer level 2.

This Decision takes into effect from October 6, 2021.

Decision No. 29/2021/QD-TTg