Vietnam cuts taxes for investors

vietnamVietnam has introduced a draft law on corporate income tax prepared by the Ministry of Finance which cuts taxes for investors in new projects in the country’s industrial zones.

Investors will be exempted from corporate income taxes in the first two years of operation, the draft law says. They will also enjoy further reductions of 50 per cent in the following four years.

According to Vietnam’s Ministry of Planning and Investment, said the changes were part of government plans to provide more investment incentives to investors. If the draft law is approved, it is expected to attract more investment in industrial zones “particularly during a time of economic difficulties.”

Before January 1, 2009, new investors to IZs enjoyed a corporate income tax reduction of 20 per cent for the first 10 years. For the first12 years, investors in production sectors were taxed only 15 per cent. However, the country decided to remove the incentives when the revised corporate income tax took effect on January 1, 2009.

However, the removal of the incentives made it difficult for industrial zones to attract investors as land lease was expensive due to high costs of land compensation and infrastructure construction.

The Ministry of Finance also said reinstalled incentives needed to be selective, adding that none were necessary for Hanoi, Hai Phong, Da Nang, Ho Chi Minh City and Can Tho as these cities received many other incentives.



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Vietnam has introduced a draft law on corporate income tax prepared by the Ministry of Finance which cuts taxes for investors in new projects in the country's industrial zones. Investors will be exempted from corporate income taxes in the first two years of operation, the draft law says. They will also enjoy further reductions of 50 per cent in the following four years. According to Vietnam's Ministry of Planning and Investment, said the changes were part of government plans to provide more investment incentives to investors. If the draft law is approved, it is expected to attract more investment in...

vietnamVietnam has introduced a draft law on corporate income tax prepared by the Ministry of Finance which cuts taxes for investors in new projects in the country’s industrial zones.

Investors will be exempted from corporate income taxes in the first two years of operation, the draft law says. They will also enjoy further reductions of 50 per cent in the following four years.

According to Vietnam’s Ministry of Planning and Investment, said the changes were part of government plans to provide more investment incentives to investors. If the draft law is approved, it is expected to attract more investment in industrial zones “particularly during a time of economic difficulties.”

Before January 1, 2009, new investors to IZs enjoyed a corporate income tax reduction of 20 per cent for the first 10 years. For the first12 years, investors in production sectors were taxed only 15 per cent. However, the country decided to remove the incentives when the revised corporate income tax took effect on January 1, 2009.

However, the removal of the incentives made it difficult for industrial zones to attract investors as land lease was expensive due to high costs of land compensation and infrastructure construction.

The Ministry of Finance also said reinstalled incentives needed to be selective, adding that none were necessary for Hanoi, Hai Phong, Da Nang, Ho Chi Minh City and Can Tho as these cities received many other incentives.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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