An insight into tax incentives for high tech enterprises in High tech Park in Vietnam

In order to attract investment resources in high-tech parks across the country, the State has introduced tax incentives for high-tech enterprises. The following content will provide more information for businesses about tax incentives in 3 high-tech zones in Vietnam today.

Ho Chi Minh City Hi-Tech Park

Corporate income tax incentives
- Preferential tax rate of 10% for a period of 15 years, of which tax exemption for 4 years, reduction of 50% of tax payable for the next 9 years, for high-tech projects.
- Preferential tax rate of 10% for a total period of up to 30 years for large-scale, high-tech or new technology projects that need special investment attraction, as prescribed by the Prime Minister.
- Preferential tax rate of 10% during the project implementation period for the enterprise's income from activities in the fields of education - training, vocational training and environment (socialization field).

Incentives for Export, Import and Value Added Tax
Import tax exemption for goods imported to create fixed assets of the project, including:
- Equipment;
- Specialized means of transport in technological lines that cannot be produced domestically, means of transport for transporting workers, including cars with 24 seats or more and watercraft;
- Components, details, separate parts, spare parts, jigs, molds and accessories to assemble synchronously with specialized equipment, machinery and means of transport;
- Raw materials and supplies that cannot be produced domestically, which are used to manufacture equipment and machinery in technological lines or to manufacture components, details, separate parts, spare parts, jigs, molds, etc. accompanying accessories for synchronous assembly with equipment and machinery;
- Raw materials, supplies and components that cannot be produced domestically and are imported for production;
- Construction materials that cannot be produced domestically;

Exemption of import tax and value-added tax for goods imported for direct use in scientific research and technological development.
Exemption from export tax and zero Value-added tax for high-tech products.

See related articles: Compilation of a list of high-tech products encouraged for development

Hoa Lac Hi-tech Park

Corporate income tax
- Preferential tax rate of 10% for a period of 15 years for new investment projects.
- Preferential tax rate of 10% for a maximum period of 30 years for the enterprise's income from implementing new investment projects with capital scale of VND 4000 billion or more.
- Exemption of 100% of payable tax for the first 4 years from the date of taxable income, 50% reduction of payable tax for the next 9 years.

Note: The tax exemption and reduction period is calculated continuously from the first year of taxable income. In case there is no taxable income in the first 3 years from the first year of revenue, the tax exemption or reduction period is counted from the 4th year.

Import Tax
- Tax exemption for goods imported to create fixed assets of the project
- Tax exemption for imported goods directly used for scientific research and technological development;
- Tax exemption for a period of 5 years from the date of production for raw materials, supplies and components that cannot be produced domestically.

Hoa Lac Hi-tech Park

More references: Certificate of high-tech enterprise

Da Nang Hi-tech Park

Decree No. 04/2018/ND-CP dated January 4, 2018 stipulating preferential mechanisms and policies for Da Nang Hi-tech Park.

Corporate income tax incentives
- 10% discount for 15 years*
- Tax exemption for the first 4 years
- 50% off for the next 9 years
- Projects from VND 3,000 billion: 100% of compensation and site clearance fees are exempted

Land rental incentives
- During the construction period: Exemption for no more than 03 years from the date of issuance of the land lease decision (excluding cases of investment in construction, renovation and expansion of production and business establishments)

Exemption of the entire rental period for the project:
- CNC application, manufacturing CNC products according to the list specified by TTCP
- Industrial products supporting CNC;
- CNC incubation, CNC business incubation;
- R&D; risky investment
- Investing in the development of water plants and water supply and drainage systems;
- House;
- Building a human resource training base

Exemption 19 years for the project:
- Merchandise exhibition center, supermarket, trade center
- Logistics center, goods warehouse (bonded warehouse, tax-suspension warehouse)
- Fitness and sports center

Exemption for 15 years for the project:
- Investment and business in hi-tech infrastructure
- Residential services (housing for experts, healthcare, cultural activities and other services related to the lives of residents in the Hi-Tech Park)

Import tax incentives
- Tax exemption for goods imported to create fixed assets of the project;
- Tax exemption for imported goods directly used for scientific research and technological development;
- Tax exemption for a period of 5 years from the date of production for raw materials, supplies and components that cannot be produced domestically.

Dual advantages when renting Long Hau Hi-tech Factory - Da Nang
High-tech factory is the largest factory for rent in Da Nang Hi-Tech Park, for high-tech manufacturing and high-tech auxiliary industries. When renting a factory of Long Hau, investors not only receive attractive tax incentives but also receive the support of Long Hau Joint Stock Company:
- Experienced consulting staff
- Provide support services: investment registration in hi-tech park, business registration, workshop repair, security...
- Implement investment registration procedures quickly through the 1-stop process

See more articles: High-tech enterprise certification process

LHC deploys a variety of services to support investors in Da Nang Hi-Tech Park