Question: We are FDI company in Hoai Nhon district, Binh Dinh province and is located in the area where we may have the tax incentive, we are expecting to apply for the Tax incentive
Could you consult us any way to apply for that following the guidance from Government?
Answer: SBLAW would like to advise as follows:
1. Under Vietnam Law, investment incentives can be granted to an enterprise if the enterprise operates in either of
a) Hi-tech activities, hi-tech ancillary products, research, manufacturing and development of from science and technology products in accordance with regulations of law on science and technology;
b) Manufacturing of new materials, new energy, clean energy, renewable energy; manufacturing of products with an added value of 30% or more; energy-saving products;
c) Manufacturing of key electronics, mechanical products, agricultural machinery, automobiles, automobile parts; shipbuilding;
d) Manufacturing of products on the List of prioritized supporting products;
đ) Manufacturing of IT products, software products, digital contents;
e) Breeding, growing and processing of agriculture products, forestry products, aquaculture products; afforestation and forest protection; salt production; fishing and fishing logistics services; production of plant varieties, animal breeds and biotechnology products;
g) Collection, treatment, recycling or re-use of waste;
h) Investment in development, operation, management of infrastructural works; development of public transportation in urban areas;
i) Pre-school education, general education, vocational education, higher education;
k) Medical examination and treatment; manufacturing of medicinal products and medicinal materials, storage of medicinal products; scientific research into preparation technology and biotechnology serving creation of new medicinal products; manufacturing of medical equipment;
l) Investment in sports facilities for the disabled or professional athletes; protection and promotion of value of cultural heritage;
m) Investment in geriatric centers, mental health centers, treatment for agent orange patients; care centers for the elderly, the disabled, orphans, street children;
n) People’s credit funds, microfinance institutions;
o) Manufacturing of goods and provision of services for the purposes of creating or participating in value chains and industrial clusters.
Please note that in order to confirm that your business activities fall into item a) or b) above, you shall have to apply with the Ministry of Science and Technology and they shall verify and examine whether your products/technology can satisfy the conditions mentioned in item a) or b) above.
Again, we would like to note that only incomes incurred from above said business activities are entitled to tax incentives.