Official Document
- Document Title: Decision No. 29/2021/QĐ-TTg
- Signed by: Standing Deputy Prime Minister Phạm Bình Minh
- Date of Issuance: 2021
Special Investment Incentives
According to Clause 2, Article 20 of the Law on Investment, special investment incentives are applied to certain investment projects and are implemented based on the provisions of Clause 6, Article 20 of Decree No. 31/2021/NĐ-CP. Special investment incentives apply primarily to new investment projects and expansion projects, including the following specific incentives:
Incentive Levels
- Incentive Level 1:
- Corporate Income Tax: 9% tax rate, with a 30-year preferential period; 5 years of tax exemption and a 50% tax reduction for the next 10 years.
- Land and Water Surface Rent: Exemption for 18 years, with a 55% reduction for the subsequent years.
- Incentive Level 2:
- Corporate Income Tax: 7% tax rate, with a 33-year preferential period; 6 years of tax exemption and a 50% tax reduction for the next 12 years.
- Land and Water Surface Rent: Exemption for 20 years, with a 65% reduction for the subsequent years.
- Incentive Level 3:
- Corporate Income Tax: 5% tax rate, with a 37-year preferential period; 6 years of tax exemption and a 50% tax reduction for the next 13 years.
- Land and Water Surface Rent: Exemption for 22 years, with a 75% reduction for the subsequent years.
Applicable Conditions
- Incentive Level 1:
- Applies to income generated from investment projects specified in Point b, Clause 2, Article 20 of the Law on Investment.
- Incentive Level 2:
- Applies to new or expanded projects such as innovation centers, research and development centers with a total investment of at least VND 3 trillion and disbursement of at least VND 1 trillion within 3 years from the date of receiving the investment registration certificate or approval of the investment policy.
- Also applies to projects meeting one of the following criteria: Level 1 high-tech project; participation of Vietnamese enterprises in the supply chain at Level 1; value-added ratio of 30% to 40% in the total cost of the final output product supplied by the economic entity; compliance with Level 1 technology transfer criteria.
- Incentive Level 3:
- Applies to income from activities of national innovation centers established under the Prime Minister’s decision.
- Also applies to projects meeting one of the following criteria: Level 2 high-tech project; participation of Vietnamese enterprises in the supply chain at Level 2; value-added ratio exceeding 40% in the total cost of the final output product supplied by the economic entity; compliance with Level 2 technology transfer criteria.
Legal Basis
- Law on Investment, Article 20
- Decision No. 29/2021/QĐ-TTg
- Decree No. 31/2021/NĐ-CP
- Decree No. 163/2017/NĐ-CP
