Special investment incentives and supports - All new regulations

1. Projects supported with special investment incentives and supports

Pursuant to the Clause 2, Article 20 of the Law on Investment 2020, projects eligible for special investment incentives and supports, including

- Investment projects ((including also the expansion of such investment projects):

+ The new innovation centers or research and development centers capitalized at VND 3 trillion or more, and have disbursed at least VND 1 trillion in 3 years after obtaining an investment registration certificate or written approval of investment policy;

+ The National Innovation Center was established under the Prime Minister’s decision;

- Investment projects in sectors or trades eligible for special investment incentives capitalized at VND 30 trillion or more, having disbursed at least VND 10 trillion in 3 years after obtaining an investment registration certificate or written approval of investment policy. 

2. The level and duration for the application of special incentives

Clause 3, Article 20 of the Law on Investment prescribes:

The level and duration of application of special incentives must comply with the Law on Enterprise Income Tax and the land law.

Accordingly, point a Clause 6, Article 20 of the Decree No. 31/2021/ND-CP prescribes that:

The level and duration of application of special incentives in terms of enterprise income tax, land rentals, and water surface rentals shall comply with the Law on Enterprise Income Tax and the land law;

The Prime Minister shall decide the level and duration of application of special incentives, however, they must ensure the conditions such as:

- Incentives in tax rate: Reduce but not exceed 50% of normal tax incentives

- Application time for tax incentives: Shall not exceed 1.5 times compared with the application time for tax incentives. 

3. Projects not supported with special investment incentives and supports

The investment incentives shall not apply to the subjects prescribed in Clause 5, Article 20 of the Law on Investment:

- Investment projects which have been granted an investment certificate or investment registration certificate, investment policy decision before January 01, 2021 - the effective date of the Law on Investment;

- Investment projects to exploit minerals

- Investment projects to produce or trade-in excise tax-liable products or services specified in the Law on Excise Tax, except projects to manufacture automobiles, aircraft, or cruises

- Investment projects to build commercial houses.