03March2024

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Incentive policies for Vidifi's investment projects

A. Corporate income tax incentives (CIT)

1. Preferential tax rate of 10% for 15 years, applied to:

  • Companies that are established for implementing investment projects in poor economic and social conditions areas,defined in the Appendix promulgated with Decree No. 124/2008/ND-CP dated December 11th, 2008 of the Government
  • Companies that are established for investment projects in the fields of:

- High technology by the law; scientific research and technology development

- Waterworks investment, construction, and development

- Software manufacturing

2. Incentives in exemption time and tax reduction:

  • Projects benefited from preferential tax rate of 10% in 15 years as mentioned above are entitled to receive preferential time tax exemption, tax reduction as: tax-free in 04 years and 50% reduction of payable tax amount in 09 years.
 
 

3. Time to apply the tax rate and tax exemption on the projects listed in Section 1.1 and 1.2 above as follows:

  • Time to apply the preferential tax rate is calculated continuously from the first revenue resulted from activities that receive preferential incentives.
  • Time of exemption is calculated continuously from the first taxable income from the investment project; in the situation where the firm does not have taxable income in the first 3 years of operation, started from the first year of having positive income, the time of exemption and tax reduction is calculated from the fourth year.

4. Tax reduction for other cases:

  • Manufacturing, transportation, and construction firms using large number of female workers receive tax reduction equivalent to the additional amount paid to the workers, including expenses on: re-training; health care; after birth allowance; salary and allowance for female workers working during birth staying home period.
  • Quote funds to develop science and technology enterprises up to 10% under Article 17 in Corporate income tax.
  • Fund for scientific and technology research and development up to 10% accordance to Article 17 on

B. Free of import duties for imported goods used to create fixed assets for the project, including:

  • Machines and equipments
  • Transport used in the line technologies approved validation by the Ministry of Science and Technology; transportation shuttle workers including cars with 24 seats or more, and water facilities
  • Components, details, removable parts and accessories, molds, attached accessories for assembling or use with the equipment, machinery, and transportation mentioned above
  • Materials used for manufacturing equipments and machineries in the technological line, or for manufacturing components, details, removable parts, spare parts, installations, molds, attached accessories for assembling or use with the equipment, machinery mentioned above
  • Construction materials that are not produced domestically.

C. VAT exemption:

  • VAT exemption is applied to the case of imported machinery, equipment and facilities used in the line technology that are not produced domestically.

 

D. Land rent incentives:

  • Investors will have exemption from land rent expenses as in the following cases:
  1. Projects using the land to build apartment houses for workers and infrastructure system (areas such as: public land and constructions of roads, drainage, trees, water processing stations, sport and cultural areas)

  2. Investment projects in industrial areas (unlisted in the investment incentives catalogue) are free of land rent in 07 years started from the date at which construction is completed and the project’s operation is started.

  • Investment projects in industrial areas (listed in the investment incentives catalogue) are free of land rent in 11 years started from the date at which construction is completed and the project’s operation is started

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