A.Investment preferences to foreign projects:
1. Preferences on enterprise income tax:
Industrial Zone Enterprises |
Preferential tax rate |
Tax rate applied in the following years
(%) |
Tax exemption, reduction |
Tax rate
(%) |
Application duration
(year) |
Years of tax exemption |
Consecutive years of 50% tax reduction |
Processing |
10 |
15 |
28 |
4 |
7 |
Manufacturing |
15 |
12 |
28 |
3 |
7 |
Services |
20 |
10 |
28 |
2 |
6 |
2. Preferences on import – export tax:
The Enterprise shall be exempt from import tax for the following goods:
a. Goods imported to create fixed assets of projects entitled to investment encouragement specified in Appendix I or Appendix II to this Decree, investment projects funded with official development assistance (ODA) sources, which are exempted from import tax, including:
+ Equipment and machinery (a)
+ Special-use means of transport included in technological lines, which are certified by the Ministry of Science and Technology; worker-transporting vehicles, including cars of 24 seats or more and waterway vehicles (b)
+Components, details, knocked down parts, spare parts, fittings, molds and accessories accompanying machinery, equipment and special-use means of transport defined at Points (a) and (b) of this Clause for assembly or use (c);
+Raw materials and supplies used for manufacture of equipment and machinery included in technological lines or for manufacture of components, details, knocked down parts, spare parts, fittings, molds and accessories accompanying equipment and machinery defined at Point (a) of this Clause for assembly or use (d);
+ Building materials which cannot be produced at home (e).
b. Raw materials, supplies and accessories imported for production activities of investment projects on the list of domains in which investment is particularly encouraged defined in Appendix I or the list of geographical areas meeting with exceptional socio-economic difficulties in Appendix II to this Decree or investment projects in the domains of producing mechanical, electric or electronic accessories and spare parts shall be exempt from import tax for 5 (five) years after the commencement of production.
c. Raw materials, supplies and semi-finished products which cannot be produced at home and are imported in service of production activities of investment projects on the list of domains in which investment is encouraged in Appendix I; semi-finished products which cannot be produced at home and are imported in service of production activities of investment projects on the list of domains in which investment is particularly encouraged in Appendix I or the list of geographical areas meeting with exceptional socio-economic difficulties in Appendix II to this Decree, shall be exempt from import tax for 5 (five) years after the commencement of production.
d. Enterprise producing goods for export shall be permitted to temporarily defer payment of import duties in respect of raw materials imported for manufacturing goods for export in a time regulated by the State.
e. Goods (*) imported into processing enterprises from overseas and exported overseas from processing enterprises will be exempt from export and import duties.
3. Loss transfer:
- - For investment projects inflicted with losses upon losses after finalizing the taxes with the taxation authorities, the business shall be allowed to transfer and deduct the losses from the taxable income of the following years. The duration for loss transfer must not exceed 5 years
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