A raft of incentives would be offered to allied industries in textile and garment, footwear and leather, electronics and informatics, automobile manufacture and assembly and mechanical engineering sectors, if a decree drafted by the Ministry of Industry and Trade is approved by the Government.
Allied industries are defined under the 14-article draft paper as industries of producing, processing and manufacturing products, parts, components, accessories and semi-finished products used for assembly of production materials or tools or
consumer goods.
The draft decree introduces five groups of incentives for enterprises of all economic sectors having investment projects in allied industries, including those on investment and marketing, science and technology, infrastructure, human resource training and taxation.
Investment projects on manufacturing industrial support products or building industrial parks exclusively for allied industries may borrow loans of up to 85% of their total fixed capital from the State’s development investment credit. These projects would be entitled to the highest incentives regarding land and water
surface rents.
They would also enjoy exemption from corporate income tax (CIT) for four years after taxable income is generated and a 50% reduction of the payable CIT amounts for the subsequent nine years and enjoy the CIT rate of 10% for 15 years. They would also be offered the highest import and export duty incentives as currently provided under law.
Particularly, foreign employees of enterprises engaged in allied industries would enjoy the highest personal income tax incentives, the draft paper said.-