An artist's rendering of the National Innovation Centre in Ha Noi. — Photo courtesy of the Ministry of Planning and Investment
Standing Deputy Prime Minister Pham Binh Minh has just signed Decision No 29/2021/QD-TTg of the Prime Minister on special investment incentives.
This Decision provides the levels, duration, and conditions for the application of special incentives for investment projects specified in Clause 2, Article 20 of the Law on Investment.
The decision offers many special investment incentives such as corporate income tax, land rent, and water surface rent.
In which, the preferential tax rate of 9 per cent for a period of 30 years applies to incomes of economic organisations from the implementation of investment projects that fall into the categories specified in Point b, Clause 2, Article 20 of the Law on Investment.
The preferential tax rate of 7 per cent for a period of 33 years applies to income from investment projects in one of the following cases: newly established investment projects (including the expansion of such projects); innovation centres; research and development centres with a total investment capital of VND3 trillion or more, disbursing at least VND1 trillion within three years from the date of issuance of the investment registration certificate or decision on approval of investment policy.
The preferential tax rate of 7 per cent is also applied for investment projects that fall within the categories specified in Point b, Clause 2, Article 20 of the Law on Investment and meets one of the following four criteria: being a level 1 high-tech project; Vietnamese enterprises participating in the value chain of level 1; added value accounts for over 30 per cent to 40 per cent of the total cost of final output products provided by economic organisations; and meeting the criteria for technology transfer level 1.
The preferential tax rate of 5 per cent for a period of 37 years applies to income from the activities of an object or an investment project in one of the following cases: national innovation centre established under a decision of the Prime Minister and investment projects that fall within the categories specified in Point b, Clause 2, Article 20 of the Law on Investment.
These projects must meet one of the following four criteria: a level 2 high-tech project; Vietnamese enterprises participating in the level 2 value chains; added value accounts for over 40 per cent of the total cost of final output products provided by economic organisations; and meeting the criteria for technology transfer level 2.
According to Clause 2, Article 20 of the Law on Investment, the beneficiaries of special investment incentives and support include new investment projects (including the expansion of such projects) of innovation centres, research and development centres with total investment capital of VND3 trillion or more; disbursing at least VND1 trillion within 3 years from the date of issuance of the investment registration certificate or approval of investment policy; national innovation centre established under the Prime Minister's decision.
The beneficiaries also include investment projects in industries with special investment incentives with an investment capital of VND30 trillion or more, disbursing at least VND10 trillion within 3 years from the date of issuance of the investment registration certificates or approval for investment guidelines. — VNS