Preferential Policies and Support Investors in Long An, Viet Nam

27/11/2017

Preferential Policies and Support Investors in Long An, Viet Nam:

- From 01/01/2016, the regular corporate income tax of 20%.

- The tax rate of 17% applied 10 years for the project in areas with difficult socio-economic conditions, include: Kien Tuong town; Tan Thanh district, Duc Hoa district, Thanh Hoa district.

- The tax rate of 10% applied 15 years for the project in areas with special difficult socio-economic conditions, include: Duc Hue district, Moc Hoa district, Vinh Hưng district, Tan Hung district and Long An border Economic zone.

Vietnam Law No. 67/2014/QH13 dated November 26, 2014 of the National Assembly on Investment (Vietnam investment law) - Download

I. Incentives for invest in industrial parks of Long An province.

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a. Tax exemption for 2 years, reduction of 50% of tax for the next 4 years for incomes from performing new investment projects when invest in all industrial park in Long An.

b. Tax exemption for 4 years, reduction of 50% of tax for the next 9 years for the project specified in Decree No. 118/2015/ND-CP date 12/11/2015.

c. Other incentives:

- Goods imported to create fixed assets of investment projects in domains entitled to import duty preferences or in geographical areas entitled to import duty incentives.

- Exemption from import duties for goods imported in Decree No. 87/2010/ND-CP dated August 13, 2010 of the Government detailing a number of articles of the Law on Import Duty and Export Duty. .

II. Incentives for invest in the economic zone of Long An province

(Pursuant to Decision 72/2013/QD-TTg date 26/11/2013 and Circular 109/2014/TT-BTC dated 15/08/2014 of the Ministry of Finance))

a. Corporate income tax incentives

- Tax rate of 10% within 15 years

- Exemption 4 years, 50% tax rate in the next 09 years.

b. Personal income tax incentives

Vietnamese and foreigners directly working or involved in production and business activities in border-gate economic zones, having incomes from their jobs and production and business activities in border-gate economic zones and being liable to personal income tax under the Personal Income Tax Law are eligible for 50% reduction of payable tax amounts.

c. Value-added tax incentives

Commodities and services ineligible for the value-added tax rate of 0% prescribed in Decision 72/2013/QD-TTg date 26/11/2013 and Circular 109/2014/TT-BTC dated 15/08/2014 of the Ministry of Finance.

d. Export duty and import duty incentives

Commodities exported, imported in border-gate economic zones are exempt by Decision 72/2013/QD-TTg date 26/11/2013 and Circular 109/2014/TT-BTC dated 15/08/2014 of the Ministry of Finance.

e. Land rent and water surface rent incentives

Investment projects in border-gate economic zones are exempt from land rent and water surface rent under the Government's Decree No. 142/2005/ND-CP of November 14, 2005, on the collection of land rents and water surface rents, and Decree No. 121/2010/ND-CP of December 30, 2010, amending and supplementing a number of articles of Decree No. 142/2005/ND-CP of November 14, 2005.

f. Land use levy incentives

Investors who wish to use land in border-gate economic zones as production and business grounds and choose the form of land allocation with land use levy payment, will be allocated land by the State and pay land use levy; enjoy land use levy exemption and/or reduction under the Government's Decree No. 198/2004/ND-CP of December 3, 2004, and Decree No. 44/2008/ND-CP of April 9, 2008, on the collection of land use levy and Decree No. 120/2010/ND-CP of December 30, 2010, amending and supplementing a number of articles of Decree No. 198/2004/ND-CP of December 3, 2004..

Source: Long An Economic Zone Authority (LAEZA)