The non-preferential corporate income tax rate is 25%. However, enterprises in industrial parks in Bac Ninh province will be given the following incentives:

Overview of Yen Phong industrial zone

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.

quyết định chủ trương đầu tư dự án khu công nghiệp Yên Phong

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.

Bắc Ninh giao thêm hơn 27 ha đất cho Viglacera đầu tư KCN Yên Phong II-C - Ảnh 1.

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.