The Ministry of Industry and Trade has listed a host of incentives related to corporate and personal income taxes and import tariffs for individuals and organisations in a draft decree on developing supporting industries, the Saigon Times Daily reported.
The ministry suggested a pilot scheme applicable until 2020 for the draft decree to halve personal income tax for a maximum period of one year for individuals working as specialists or trainers in technology transfer in supporting industries.
The ministry also proposed a corporate income tax break for a maximum of four years and a 50 percent tax reduction in the nine following years for organisations from the first profitable year. If enterprises do not have taxable incomes in the first three years of operations, they will enjoy tax exemptions and reductions from the fourth year.
The incentives also include tariff exemptions on goods imported to create fixed assets for production and products of supporting industries. Enterprises will also get financial support if they invest in technologies in pollution treatment and environmental protection.
The draft decree also contains incentives for investment credit, land rent and taxes for small and medium enterprises (SMEs) operating in the sector.
The lending rate for SMEs in supporting industries will be preferential and will not exceed 80 percent of normal rates for loans with maturity periods of up to 10 years. These loans may be guaranteed by a supportive credit fund for SMEs.
In addition, the SMEs would have their projects subject to a tax payment extension for six months from the first deadline as stipulated in the Law on Value Added Tax.
For hi-tech supporting projects, the ministry proposed a preferential corporate income tax of 10 percent for 15 years, tax exemptions for a maximum of four years and 50 percent tax reductions in the nine following years.
If projects in the supporting industries are located outside industrial zones, land rent would be reduced by 50 percent for 11 years. Existing projects will also benefit from this incentive if they are renovated with production capability improvement by at least 20 percent, according to the draft decree.
The draft decree also envisages a corporate income tax of 10 percent for 15 years, tax exemptions for a maximum of four years and 50 percent tax reductions in the nine following years for high-tech projects in the supporting industries.
Despite strong commitments of the Government and local authorities to developing supporting industries, some enterprises bemoaned that they have yet to receive any significant assistance from their policies so far.
Decision No.12/2011/QD-TTg dated February 22, 2011 is considered the Government’s first statement to encourage development of supporting industries.
In fact, many enterprises have claimed a series of difficulties in production expansion due to higher lending rates than other countries.-VNA
The ministry suggested a pilot scheme applicable until 2020 for the draft decree to halve personal income tax for a maximum period of one year for individuals working as specialists or trainers in technology transfer in supporting industries.
The ministry also proposed a corporate income tax break for a maximum of four years and a 50 percent tax reduction in the nine following years for organisations from the first profitable year. If enterprises do not have taxable incomes in the first three years of operations, they will enjoy tax exemptions and reductions from the fourth year.
The incentives also include tariff exemptions on goods imported to create fixed assets for production and products of supporting industries. Enterprises will also get financial support if they invest in technologies in pollution treatment and environmental protection.
The draft decree also contains incentives for investment credit, land rent and taxes for small and medium enterprises (SMEs) operating in the sector.
The lending rate for SMEs in supporting industries will be preferential and will not exceed 80 percent of normal rates for loans with maturity periods of up to 10 years. These loans may be guaranteed by a supportive credit fund for SMEs.
In addition, the SMEs would have their projects subject to a tax payment extension for six months from the first deadline as stipulated in the Law on Value Added Tax.
For hi-tech supporting projects, the ministry proposed a preferential corporate income tax of 10 percent for 15 years, tax exemptions for a maximum of four years and 50 percent tax reductions in the nine following years.
If projects in the supporting industries are located outside industrial zones, land rent would be reduced by 50 percent for 11 years. Existing projects will also benefit from this incentive if they are renovated with production capability improvement by at least 20 percent, according to the draft decree.
The draft decree also envisages a corporate income tax of 10 percent for 15 years, tax exemptions for a maximum of four years and 50 percent tax reductions in the nine following years for high-tech projects in the supporting industries.
Despite strong commitments of the Government and local authorities to developing supporting industries, some enterprises bemoaned that they have yet to receive any significant assistance from their policies so far.
Decision No.12/2011/QD-TTg dated February 22, 2011 is considered the Government’s first statement to encourage development of supporting industries.
In fact, many enterprises have claimed a series of difficulties in production expansion due to higher lending rates than other countries.-VNA
