Before executing a project in Vietnam, foreign investors must research a wide range of issues, including research on issues related to investment policies and laws, investment incentives as well as potentials development of Vietnamese market, Vietnamese culture and so on. One of important decisions of investors is the location for executing the production project. Investors need to take into consideration the form and correspondingly preferential treatment to best suit their capabilities and needs.
– In case the investor leases the land directly from the state, investors shall enjoy tax incentives in accordance with the provisions of Decree 46/2014/ND-CP and Circular 83/2016/TT-BTC on guidelines for investment incentives. However, the implementation procedure is relatively complicated, costly, and time-consuming.
– In case the investor leases land from the infrastructure company in the industrial park: According to the provisions of the Enterprise Income Tax Law 2008, amended and supplemented in 2013, “case of implementing a new investment project in the industrial park industries (except industrial parks in geographical areas with favorable socio-economic conditions) prescribed by law shall enjoy tax exemption for no more than 2 years and a 50% reduction of payable tax amounts for no more than 4 years next”. For this form, investors must pay service fees throughout the lease term.
– In case the investor leases a workshop of another company and is eligible to rent the factory: The investor will be entitled to enterprise income tax incentives in accordance with the tax law, maximum tax exemption. no more than 2 years and a 50% reduction of payable tax amounts for no more than 4 subsequent years. The sublease of workshops will help investors minimize administrative procedures, balance the financial situation in their company and quickly go into stable production.
=> There exists both advantages and disadvantages regardless of the form that investors choose. So please contact us to best ensure your benefits as well as needs and capabilities of each investor.
Head Office: 6th Floor, Office Building No. 169 Nguyen Ngoc Vu Street, Trung Hoa Ward, Cau Giay District, Hanoi, Vietnam
Branch in Ho Chi Minh City: 4th Floor, Lot A No. 974, Truong Sa Street, Ward 12, District 3, Ho Chi Minh City, Vietnam
Korean Lawyer: +84. 904 537 525.
Vietnamese Lawyer: +84. 9789 38 505
Commitments of Naci Law when performing legal services for customers:
- Always comply with Vietnamese law and International law.
- Update, notify the progress of the stage to customers.
- Always look for ways to minimize risks and fully resolve them if they arise.
- Make a refund in case the job cannot be completed in spite of all our efforts.