The Ministry of Finance has proposed special business and financial incentives for special economic zones to fully exploit their potential and competitive advantages and create a new driving force for growth.
The incentives for Van Don in northern Quang Ninh province, Bac (North) Van Phong in central Khanh Hoa province and Phu Quoc in southern Kien Giang province would be land use levy, corporate income tax, personal income tax, import-export duties and value-added tax.
Part of Van Don district in Quang Ninh province__Photo: Internet
Accordingly, for sectors not on the list of sectors and fields eligible for investment incentives, the ministry proposed to offer a 10-percent corporate income tax rate in 30 years together with tax exemption for four years and 50-percent reduction for nine consecutive years following the year of taxable income generation.
For sectors entitled to investment incentives, the corporate income tax rate was proposed at 10 percent for the whole project life together with tax break for four years and 50-percent reduction for nine consecutive years subsequent to the year of taxable income generation.
Corporate income tax from the property business could be at a fixed rate of 17 percent.
The proposed tax rates for the special economic zones were preferential compared to the normal corporate income tax rate of 20 percent.
For personal income tax, the ministry proposed tax exemption for five years but by 2030 at the latest and 50-percent reduction in subsequent years, for both Vietnamese and foreigners.
Regarding export and import duties, the ministry proposed not to apply non-tariff area policies for the whole special economic zones because it might cause difficulties in preventing trade frauds and smuggling.
The ministry said that non-tariff policies should be applied only in certain areas like ports and airports within special economic zones.-(VLLF)