Preferred tax rates
In general, preferential tax rates apply from the first revenue-generating year, excluding high-tech enterprises and projects.
Tax exemption
In general, the tax exemption period is calculated in the first year of profit generation or the fourth year of revenue generation; except for high-tech enterprises.
BY LOCATION
| LOCATION |
BUSINESS TAX INCENTIVES |
| PREFERRED TAX RATE |
REDUCTION |
| • High-tech zone, including information technology zones established according to the Prime Minister's Decision. |
10% for 15 years
|
Tax exemption for 4 years; and 50% reduction for the following 9 years |
• Under difficult economic and social conditions
|
17% for 10 years
|
Tax exemption for 2 years; and 50% reduction for the following 4 years |
| • Industrial zones (not in preferential economic - social areas) |
Not applicable
|
Tax exemption for 2 years; and 50% reduction for the following 4 years |
BY INDUSTRY SECTOR
The current preferential regime is applied to priority investment sectors according to the government's development policy.
| INDUSTRY SECTOR |
BUSINESS TAX INCENTIVES |
| PREFERRED TAX RATE |
REDUCTION |
• High-tech enterprises (including science and technology enterprises); research, application, and incubation of high-tech projects.
• Environmental protection
• Investment in infrastructure development (water plants, electricity, roads, ports, etc.)
• Software production
• Support industries
|
10% for 15 years
|
Tax exemption for 4 years; and 50% reduction for the following 9 years |
BY BUSINESS SCALE
Investment incentives are applied to large-scale manufacturing projects for the following cases (except for projects producing products subject to special consumption tax or projects exploiting mineral resources):
1. Total capital of 6,000 billion VND or more, disbursed within 3 years from the date of issuance of the investment license:
- Minimum annual revenue of 10,000 billion VND by the end of the 4th year of revenue generation;
- Regularly employing over 3,000 workers by the end of the 4th year of operation.
2. Total capital of 12,000 billion VND or more, disbursed within 5 years from the date of issuance of the investment license, and using technology certified under the High Technology Law, Science, and Technology Law.
| BUSINESS SCALE |
BUSINESS TAX INCENTIVES |
| PREFERRED TAX RATE |
PREFERRED TAX RATE |
| • Project with capital of 6,000 billion VND |
10% for 15 years
|
Tax exemption for 4 years; and 50% reduction for the following 9 years |
| • Project with capital of 12,000 billion VND |