1. Policies of the Central Government
1.1. Incentives on rental of land and water surface
- Exemption from rental of land and water surface in the following cases: the investment projects in the sectors of special encouragement investment put in the extremely difficult socio-economic locations; the projects using land to build accommodation for IZ workers; the projects using land to develop public works with business goals (socialized projects) in the fields of education, health care, culture, sports and science – technology...
- Exemption from rental of land water surface from 3 to 15 years depending on the type of projects invested in different investment incentive locations.
1.2. Incentives on corporate income tax
Newly-established enterprises from investment projects, depending on investment sector and investment incentive locations enjoy the preferential tax rate of 10% or 17% applied within 10 years or over the operation time, at the same time, enjoy the exemption from tax in 2 – 4 years and 50% tax reduction within 4 - 9 following years.
1.3. Import, export tax incentives
Investors enjoy tax exemption in cases:
- Temporarily imports for re-exporting or temporarily exports for re-importing for participating in trade fairs, exhibitions and product introduction.
- Goods are the assets of foreign and Vietnamese organizations or individuals brought in or out of Vietnam within the regulated limits.
- Imports for processing goods for foreign partners.
- Imports for generating fixed assets of the projects invested in the preferential import tax sectors.
- Tax exemption for imports serving the operation of oil and gas industry.
1.4. Incentives for projects invested in agriculture and rural areas
- Agricultural projects of special incentive investment: Exemption from land use fee, land rent.
- Agricultural projects of incentive investment: 70% reduction of the land use fee; exemption from the rental of land and water surface in the first 15 years.
- Investment encouraged agricultural projects: 50% reduction of the land use fee, exemption from rental of land and water surface in the first 11 years.
- Investment incentive and investment encouraged agricultural projects: Able to lease at the lowest price in the land rent framework set out by the provincial People’s Committee.
1.5. Incentives and Socialization encouragement policies for activities in education, vocational training, health care, culture, sports and environment
- Clean land is given to the socialized units for use or lease to develop socialized works in the forms: assigning land without land use fee; renting land out and land rent exemption; assigning land with land use fee and land use fee exemption.
- The socialized units having income from socialized activities are applied the corporation income tax rate of 10% over their lifetime.
- Newly-established socialized units are exempted from corporation income tax in 4 years since they have taxable income and enjoy 50% reduction of corporation income tax in 5 following years.
2. Incentive policies of Thanh Hoa province
2.1. Development encouraging policies and mechanism for small scale industries and crafts on the locations of Thanh Hoa province (Decsion No. 2409/2006/QD-UBND and Decision No. 2541/2008/QD-UBND)
- Support to investment in the infrastructure of industrial and craft complexes.
- Support by 20-30% of total compensation for site clearance to organizations and individuals leasing raw land for infrastructure development investment in small industry and craft complexes depending on locations.
- Project investors benefitting from this policy are able to rent land at the lowest price in the local land price framework set out by the provincial People’s Committee at the time of signing land use contract.
- Provision of favorable conditions to borrow loans at preferential interest rate.
- Support in vocational training and labor attraction: VND1million per person attracted and VND 400,000 for training each.
2.2. Investment supporting policies to construction of markets, supermarkets and trade centers (according to the Decision 4670/2010/QĐ-UBND)
- The support equals the land use fee, land rent in the whole project implementation period.
- Investors developing new or upgrading markets in urban areas, constructing new supermarkets and trade centers, will be assigned land or able to lease land at the lowest price in accordance with the land price for non-agriculture production and business.
- Supporting the investment in constructing essential infrastructure works to the factory gate.
2.3. Socialization encouragement policy for activities in education, vocational training, health care, culture, sports and environment in the provincial localities (according to the Decision 4294/2011/QĐ-UBND)
- For culture, sports and environment projects: 100% exemption from land use fee and land rent.
- For education, vocational training and health care projects:
+ The units implementing investment socialization in the traditional medicine, convalescence and functional rehabilitation, social sponsoring, care for disabled and orphans, vocational training for disabled and children in extremely difficult circumstances: 100% exemption from land use fee and land rent not depending on investment localities.
+ The units implementing investment socialization in the remaining aspects of education, vocational training, and health care:
* 60% reduction of land use fee, land rent for the projects invested in the wards of Thanh Hoa city.
* 80% reduction of land use fee, land rent for the projects invested in the communes of Thanh Hoa city, in the wards of Bim Son and Sam Son county towns.
* Exemption from land use fee, land rent for the projects invested in Nghi Son EZ, in the remaining communes and towns of Sam Son, Bim Son county towns and other districts of Thanh Hoa province.
- Other policies are implemented in accordance to the regulations of the Decree No. 69/2008/NĐ-CP dated May 30, 2008 of the Government on the socialization policy in education, vocational training, health care, culture, sports and environment.