Subjects, principles and procedures for application of incentives to investment projects in economic zones must comply with the investment law.
There are many businesses that do not understand clearly these investment incentives when setting up their manufacturing bases here, but ignore them.
In order to encourage investment of entrepreneurs in economic zones, the Government has preferential policies according to Clause 2, Article 1 of Circular 43/2019 / TT-BTC and Clause 4 Article 24 of Decree 82/2018 / ND- CP. Accordingly, businesses can grasp 7 incentives in the economic zone before conducting investment.
Investment incentives in the field of Real Estate and Construction
1. Expenses for investment in new construction, rental of condominiums and social infrastructure works for the purpose of serving the life of employees working in the economic zone are reasonable expenses and may be deducted to calculate taxable income of enterprises having investment projects in industrial or economic zones.
For social expenses, public service works are included in the construction costs. The construction of these infrastructures also helps employees feel more secure in working and living.
IMG: Dong Nai Province
2. Investment projects on construction of houses, cultural and sports works, social infrastructure works in service of workers working in economic zones shall enjoy incentives according to the law on house construction.
For businesses investing in industrial zones, facilities related to cultural, sports, construction to serve the life of workers, etc. are also necessary works. This shows care for workers' life, as well as long-term development of the business.
3. Investors and enterprises having projects of investment in economic zones are supported by competent agencies to carry out administrative procedures for investment, enterprises, land, construction, environment, and labor. Trade under the "one-stop shop, on-site" mechanism, support for labor recruitment and other related issues in project implementation.
Corporate income tax incentives for specific businesses
4. Corporate income tax incentives
Most of the enterprises investing in economic zones in the provinces and cities nationwide are entitled to a corporate income tax rate of 10% for 15 years since the project has operating revenue. tax treatment. Exemption for 04 years, since having taxable income and 50% reduction of tax payable for 9 consecutive years. Income tax reduction of 50% for people whose income is subject to income tax.
Professions with priority for environmental protection, high technology, or supporting industries will be enjoyed. This is also an inevitable trend when the environmental issue has always been raised higher in the past years.
5. Shall be exempted from import duty for 5 years from the date of commencement of production for raw materials, supplies, components and semi-finished products that cannot be domestically produced and imported. Import to serve production in economic zones. Import tax exemption for goods imported to create fixed assets of the project.
Commodities in supporting industries are not a strong point in Vietnam. This is also one of the disadvantages, causing a number of FDI enterprises to falter when conducting investment. Therefore, for supporting industrial products, the government always has tax-free incentives to support enterprises' production activities.
6. Projects investing in economic zones (depending on the fields and sectors of investment) will be entitled to the exemption policy of land rent for infrastructure investment and investment in production and business. At that time, enterprises will be exempt from land rental for the entire lease term with land for construction of infrastructure for common use in the economic zone.
Encourage the development of regions, not focusing only on key economic areas, but also focusing on economic development of other localities. Therefore, in recent years, special economic zones in the Central, Southwestern and North Central have been promoted.
7. Technical infrastructure support.
- The Government will support site clearance and leveling. To speed up the project, the investor is entitled to advance compensation, land clearance, and resettlement and that money will be deducted from the land rental and land use payable.
- The State supports investment in the construction of technical infrastructure works of traffic, electricity and water to the fence of functional areas.
- The economic zone is invested in essential infrastructure such as electricity, water supply and drainage, roads to the fences of functional areas.
In this difficult economic period, there are more policies to support investment incentives from the government. More and more promote FDI enterprises to come to Vietnam. However, in order to truly become an attractive investment destination, more efforts are needed.
Believe that, with the above incentives, there will be more and more investment in projects in the economic zone.