Prime Minister's decision on special investment incentives promulgated

The Prime Minister has recently promulgated the decision No. 29/2021/QD-TTg on special investment incentives, which provides details guiding the implementation of a number of provisions of the Law on Investment.

Prime Minister's decision on special investment incentives promulgated
Prime Minister's decision on special investment incentives promulgated

The decision offers three packages for special incentives in terms of corporate income tax (CIT) and fees for renting land and water surfaces.

According to the regulation, projects in business sectors eligible for special investment incentives with capital of at least VND30 trillion will enjoy a CIT rate of 9% for 30 years.

A preferential CIT rate of 7% over a period of 33 years will be applied for new and expanded projects of innovation centres and R&D centres with capital of at least VND3 trillion and a minimum capital amount of VND1 trillion disbursed within three years from the issuance date of the investment registration certificate or the approval date of the investment policy.

Meanwhile, CIT rate of 5% over a period of 38 years will be applied for national innovation centres which are established under the Prime Minister’s decisions.

Projects listed in Point b, Clause 2, Article 20 of the Law on Investment are also eligible to enjoy the CIT rate of 7% or 5% depending on one of four specific criteria, including high technology, the share of Vietnamese businesses participating in the value chain, added value, and tech transfer.