Personal income tax is exempted for a maximum of 10 years.
According to the latest draft of the Law on Special Economic Administrative Units dated 31/8/2017, the individuals working in special economic administrative units would be subject to exempt from income tax for 5 years but no later than 2030 and would enjoy a 50% reduction of personal income tax payable in subsequent years.
High professional qualifications managers, scientists and experts working in special economic administrative units would enjoy personal income tax exemption for a period of 10 years but no later than 2030 and receive a 50% reduction of personal income tax payable in subsequent years.
Import tax exemption in 7 years for materials that can not be produced domestically
Goods that are imported to create fixed assets are exempted from import tax, for example, machinery and equipment, parts, details, spare parts, etc.
The exemption of import duty on imported goods is applied for both new investment projects and expanded investment projects.
Imported goods would be tax-free for the first time if these goods can not be produced domestically or can be produced domestically but these goods have not yet met the technical requirement or are not suitable for the project
For imported goods which can be produced at home but can not meet the technical specifications or are not suitable for the projects, they must be registered with the head of the special economic administrative units.
Corporate income tax exemption
In term of corporate income tax incentives, investment projects are entitled to a 10% tax rate for a period of 30 years, enjoy tax exemption in next 4 years and a 50% reduction of the tax payable for the next 9 years from the date of taxable income. The types of projects include the innovative start-up support area, research and development center and investment projects.
Investment projects in the fields of education and training, vocational training, health care, culture, sport and environment are subject to the tax rate of 10% throughout the project duration, tax exemption in 4 years and 50% reduction in the next 9 years from the date of generating taxable income.
Investment projects in the lines of production and trading of goods and services which are subject to special consumption tax shall be entitled to a tax rate of 10% for a period of 10 years, tax - free for 2 years and 50% reduction for 5 years from the time of earning taxable income.
Income from real estate investment projects in special economic administrative units is entitled to a corporate income tax rate of 17% for 10 years since these projects have income.
The casino business enjoys a 10% free- tax for 10 years.
Casino business services, electronic games include jackpot games, slots and similar machines and betting services shall be subject to the special consumption tax rate of 10% within 10 years after the turnover from the service.
Upon the expiration of the 10-year period, these services shall be subject to special consumption tax rates in accordance with the Law on Special Consumption Tax.
Tax exemption for nonagricultural land use in investment projects
Land rent or water surface rent would enjoy tax-free during the capital construction period according to projects approved by authorities but must not exceed 36 months from the date of issuance of decisions on land or water surface rent.
