Preferential corporate income tax rates

1. A preferential tax rate of 10 percent for 15 years shall apply to:

a) Income of enterprises from implementing new investment projects specified in Points a, b, c, d, and dd, Clause 2, Article 12 of this Law; income of enterprises specified in Point e, Clause 2, Article 12 of this Law;

b) Income of enterprises from implementing investment projects specified in Points g and h, Clause 2, Article 12 of this Law;

c) Income of enterprises from implementing new investment projects in areas specified in Point a, Clause 3, Article 12 of this Law:

d) Income of enterprises from implementing new investment projects in high-tech zones, high-tech agricultural zones, concentrated digital technology zones; new investment projects in economic zones located in incentivized geographical areas specified in Points a and b, Clause 3, Article 12 of this Law. Where an investment project in an economic zone spans both incentivized and non-incentivized geographical areas, tax incentives shall be determined under Government regulations.

2. A preferential tax rate of 10 percent shall apply to:

a) Income of enterprises from activities in sectors/business lines specified in Points k and I, Clause 2, Article 12 of this Law in incentivized geographical areas specified in Point b, Clause 3, Article 12 of this law;

b) Income of enterprises from activities in sectors/business lines specified in Points i, r, and s, Clause 2, Article 12 of this Law;

c) Income of publishers from activities in sectors/business lines specified in Point t, Clause 2, Article 12 of this Law;

d) Income of cooperatives and cooperative unions specified in Point q, Clause 2, Article 12 of this Law not located in geographical areas specified in Clause 3, Article 12 of this law.

dd) Income of press agencies in sectors/business lines specified in Point u, Clause 2, Article 12 of this Law;

3. A preferential tax rate of 15 percent shall apply to income of enterprises from activities in sectors/business lines specified in Point l, Clause 2, Article 12 of this Law not located in geographical areas specified in Clause 3, Article 12 of this Law.

4. A preferential tax rate of 17 percent for 10 years shall apply to:

a) New investment projects in incentivized sectors/ business lines specified in Points m, n, and o, Clause 2, Article 12 of this Law;

b) New investment projects implemented in geographical areas specified in Point b, Clause 3, Article 12 of this Law;

c) New investment projects in economic zones not located in geographical areas specified in Points a and b, Clause 3, Article 12 of this Law.

5. A preferential tax rate of 17 percent shall apply to income of enterprises specified in Point p, Clause 2, Article 12 of this Law.

6. Extension of preferential tax rate periods and reduced tax rate application are as follows:

a) The Prime Minister may decide to extend the period of preferential tax rate application for an additional duration not exceeding 15 years for the following projects:

a1) New investment projects specified in Points a, b, d, and dd, Clause 2, Article 12 of this Law, with a minimum investment capital of VND6,000 billion, having significant socio-economic impacts requiring special encouragement;

a2) Investment projects specified in Point g, Clause 2, Article 12 of this Law meeting one of the following criteria:

- Producing goods with global competitiveness, achieving annual revenue of over VND20,000 billion at the latest within 5 years from generating project revenue;

- Regularly employing over 6,000 workers determined under labor law;

- Investment projects in technical infrastructure sectors, including: water plants, power plants, water supply/drainage systems, bridges, roads, railways, airports, seaports, river ports, airfields, stations, new energy, clean enery, energy-saving industries, and petrochemical projects;

b) For new investment projects specified in Point h, Clause 2, Article 12 of this Law, the Prime Minister may decide to apply a reduced tax rate of not more than 50 percent of the tax rate specified in Clause 1 of this Article; the duration of preferential tax rate application shall not exceed 1.5 times the standard duration in Clause 1 of this Article, and may be extended by up to 15 years, not exceeding the term of the investment project.

7. The period of preferential tax rate application for income from implementing new investment projects under this Article (including projects specified in Point g, Clause 2, Article 12 of this Law) shall be calculated from the first year the new investment project generates revenue.

Where an enterprise is granted a high-tech enterprise certificate, high-tech agricultural enterprise certificate, science and technology enteprise certificate, high-tech application project certificate, or certificate of incentives for projects manufacturing supporting industry products after generating revenue, the preferential tax rate period shall be calculated from the year of certificate issuance./.