HCM City to give tax incentives to Samsung

Tuesday, Aug 09, 2016 16:33

The municipal People's Council has decided to provide an additional tax incentive for an expansion plan of the Samsung Electronics HCM City CE Complex at the Sai Gon Hi-Tech Park. — VNS Photo
 CITY (Biz Hub) The municipal People's Council has decided to provide an additional tax incentive for an expansion plan of the Samsung Electronics HCM City CE Complex at the Sai Gon Hi-Tech Park.

The city's budget will cover 50 per cent of the corporate income tax for Samsung after the South Korean firm makes full tax payments to the city. This tax incentive will be valid for three consecutive years, probably starting from 2030, after the company pays the tax for nine years.

The Sai Gon Hi-Tech Park's management board on Monday said the group in turn would commit to increase technology and localisation rate to enjoy the incentives.

Le Thanh Dai, deputy director of the Sai Gon Hi-tech Park, said the project was being quickly implemented, as per the progress. In just nine months, the group has built a complex of several warehouses and equipment. By the end of April, Samsung had invested US$795 million in the project.

In the first seven months of the year, the group's export turnover was $425 million, contributing $7.8 million to the state budget.

Samsung has employed 4,954 labours.

Dai said the project has shown its commitment to the city. The Sai Gon Hi-tech Park has granted 24 investment licences to support industry projects. The total investment of Samsung at the Sài Gin Hi-tech Park had reached $2 billion so far.

The complex is projected to create jobs for 7,000 workers by 2020. — VNS

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