The non-preferential corporate income tax rate is 25%. However, enterprises in industrial parks in Bac Ninh province will be given the following incentives:
1. Corporate income tax rate incentives:
1.1. Preferential tax rate of 10% for a period of 15 years, applicable to:
– Newly established enterprises which invest in the following fields:
+ High technology as prescribed by law; scientific research and technological development.
+ Water plants and water supply and drainage systems.
+ Software production.
– Tax exemption for 04 years, 50% reduction of payable tax for the next 9 years.
1.2. The preferential tax rate of 10% during the operation period applies to:
– Newly established enterprises which operate in the field of socialization (decided by the Prime Minister) on education – training, vocational training, healthcare, culture, sports and environment.
– Exemption for 04 years, reduction of 50% of tax payable in the next 5 years.
1.3. The time period for application of preferential tax rates and tax exemption to the projects mentioned in Sections 1.1 and 1.2 above is as follows:
– The period of application of the preferential tax rate is calculated continuously from the first year of revenue from activities entitled to tax incentives.
– The tax exemption and reduction period is calculated continuously from the first year of having taxable income from the investment project; in case the enterprise has no taxable income in the first 3 years, counting from the first year of revenue, the tax exemption and reduction period is counted from the fourth year.
1.4. Tax reduction for other cases:
– Manufacturing, construction and transportation enterprises that employ many female employees are entitled to corporation income tax reduction. This incentive bases on the additional expenditures for female employees, including:
Expenses for vocational retraining; expenditure on health check in the year; expenses for fostering female employees after giving birth; wages and allowances for female employees who are entitled to take leave after childbirth or breastfeeding according to the regime but still work.
– The maximum spending for setting up an enterprise’s science and technology development fund is 10%, according to Article 17 of the Law on Corporate Income Tax.
2. Tax on transferring profits abroad: The tax rate is 0%.
3. Exemption from import tax on goods
– For equipment, machinery (attached accessories), special-use means of transport in technological lines, construction materials that cannot be produced domestically.
– Special projects which produce mechanical products, electrical and electronic components and spare parts are exempted from material import tax for the first 5 years from the date of production.
– Raw materials, spare parts which are imported for export production.
4. Exemption from VAT: Applied to the importation of specialized equipment, machinery which are in the technological line which cannot be produced domestically.
5. Incentives on land rental exemption and reduction:
– Exemption from land rent for 07 years for: Business projects which supply service to industrial zones directly pay land rent to the Government.
– Exemption from land rent for 11 years for:
+ Business projects which develop industrial park infrastructure and the industrial park’s developer directly pays land rent to the Government.
+ Production and business projects in industrial zones which directly pay land rent to the Government.