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Official Gazette

Tuesday, July 14, 2020

Exclusive incentives proposed for special economic zones

Updated: 17:35’ - 06/09/2017
The Ministry of Planning and Investment has submitted to the Government a draft law on special administrative-economic units, proposing a series of land and tax incentives to attract more investment for three special economic zones in Quang Ninh, Khanh Hoa and Kien Giang provinces.

As per the draft, individuals who earn taxable incomes in Van Don, Bac Van Phong and Phu Quoc special economic zones in the above provinces will enjoy exemption from personal income tax for five years but not beyond 2030 and 50-percent reduction of this tax for subsequent years.

Ecofarm’s employees mow the lawn at a pepper farm in Phu Quoc district, Kien Giang province__Photo: Hong Nhung/VNA 

Managers, scientists, and specialists with high professional qualifications who earn taxable incomes in these zones will also be exempted from personal incomes tax through 2030 and entitled to 50-percent reduction of this tax for subsequent years.

Meanwhile, foreign investors’ projects to be implemented for at least 10 years and satisfying the condition on investment capital in certain sectors will enjoy corporate income tax exemption for two more years and 50-percent reduction of this tax for four more years as compared to other projects.

Such incentives will also apply to projects of foreign investors listed among 500 largest groups worldwide and those of wholly foreign-owned credit institutions, financial companies or investment funds.

If an investor is eligible for different incentives of corporate income tax for the same project, he may select the most beneficial one.

The draft also suggests allowing domestic and foreign-invested economic organizations to mortgage their land-attached assets at foreign credit institutions, or directly receive land use rights transferred from organizations or individuals that have land use rights for performance of investment projects.

Moreover, the use term of land for production and business purpose in special administrative-economic units would be 99 years for such sectors as science and technology and new technology, innovation startup support zones, research and development centers, and key sectors prioritized for development. This term is 70 years for other sectors.

Particularly for Phu Quoc special economic zone, the draft recommends grant of permanent residence cards (as valid as visas) to foreigners who are law-abiding and have investment projects worth at least USD 5 million and stayed in Phu Quoc for five or more years.

In addition, the allowance level will be increased to 50 percent from 30 percent of the base salary for cadres, civil servants and public employees working in this zone.

Under the draft, Phu Quoc will be invested to become an international-standard commercial, service and shopping center only where fishing, aquaculture, aquatic product processing and fishing logistics services will be prioritized for development.

Meanwhile, sea and island tourism, innovative industry and hi-tech agriculture will be developed in Van Don, and a deep-water port, and logistics and high-quality health and convalescent care services will be developed in Van Phong.- (VLLF)

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