Procedures For Applying Investment Incentives

It is important to note that the specific incentives, eligibility criteria, and application procedures can vary depending on factors such as the investment location, industry, and project scale. This article will introduce you to the latest information on the application of investment incentives, giving you an overview of the process and how to apply these incentives. To get detailed and up-to-date information, it is advisable to consult with Apolo Lawyers Law Firm via email contact@apolo.com.vn or hotline - 0903.419.479 for the best advice and support.

1. What are investment incentives?

1.1. According to the law

The law has set out regulations on investment incentives, which are incentives that the State gives investors when they invest in areas or areas that are encouraged. The objective of this investment incentive is to create a change in the economic structure, in line with the socio-economic development strategy of country.

Procedures For Applying Investment Incentives

1.2. The state

The state implements the application of investment incentives through tax policy, credit policy, land and resource use policy, as well as export and import policy. These incentives are given based on the planning and development orientation in each period.

The Government stipulates the lists of industries and occupations in each field eligible for investment incentives, the list of geographical areas eligible for investment incentives, standards on technology and scale of employment, together with regulations on the levels of investment incentives. 

2. Who is eligible for investment incentives in 2023?

According to the provisions of Clause 2, Article 15 of the Investment Law 2020, there are a total of 07 subjects entitled to investment incentives, including:

• Investment projects in industries and trades eligible for investment incentives.

• Investment projects in areas eligible for investment incentives.

• Investment projects with a capital scale of VND 6,000 billion or more and disbursed at least VND 6,000 billion within 3 years from the date of receipt of the Investment Registration Certificate or approval of investment policies, and must meet one of the following criteria: Having a total turnover of at least VND 10,000 billion per year within a maximum of 03 years from the year of revenue; or Employing over 3,000 employees.

• Investment projects on construction of social housing, investment projects in rural areas employing 500 or more employees, investment projects employing persons with disabilities.

• High-tech enterprises, science and technology enterprises, science and technology organizations; projects with technology transfer on the list of technologies encouraged for transfer; technology incubators, science and technology business incubators; enterprises that manufacture and supply technology, equipment, products and services to meet the requirements of environmental protection.

• Innovative start-up investment projects, innovation centers, research and development centers.

• Investing in the business of product distribution chains of small and medium enterprises; business investment in technical facilities to support small and medium-sized enterprises, small and medium-sized business incubators; invest in business in coworking space to support small and medium enterprises in the field of creative start-ups.

3. Procedures for applying investment incentives in 2023

Based on the subjects specified in Clause 2 of Article 15 of this Law, the written approval of the investment policy (if any), the Certificate of investment registration (if any), and other relevant regulations. According to the law, investors will determine and carry out the process of enjoying investment incentives themselves at tax authorities, financial agencies, customs offices and competent authorities corresponding to each type of incentives invest.

• Based on the Investment Policy Approval Decision, Investment Registration Certificate and Investor Approval Decision, the investor shall carry out the process of enjoying investment incentives based on the forms, bases and conditions. apply investment incentives as prescribed in Articles 15 and 16 of the Investment Law 2020 and Article 19 of Decree 31/2021/ND-CP.

• Based on the content of investment incentives specified in the Decision on approval of investment policies, the Certificate of investment registration and the Decision on investor approval, the investor shall carry out procedures for enjoying investment incentives at agencies that apply investment incentives corresponding to each type of incentives.

• For a number of enterprises and investment projects specified in Clause 5 of Article 19 of Decree 31/2021/ND-CP, the process of applying investment incentives includes:

• For science and technology enterprises, there will be Science and Technology Enterprise Certificate.

• For hi-tech agricultural enterprises, there will be certificates of hi-tech agricultural enterprises.

• For high-tech application projects, there will be a certificate of high-tech application project.

• For supporting industry projects, there will be a certificate of incentives for manufacturing supporting industry products.

• For projects with technology transfer on the list of technologies encouraged for transfer, there will be a Certificate of technology transfer encouraged for transfer in accordance with the Prime Minister regulations.

• For investment projects that do not fall into the cases mentioned above, investors will base themselves on the beneficiaries of investment incentives specified in Article 19 of Decree 31/2021/ND-CP and regulations other relevant regulations to determine investment incentives by themselves and carry out the process of enjoying investment incentives at the agency applying investment incentives corresponding to each type of incentive.

4. Forms of investment incentives

Enterprises can enjoy investment incentives through the forms specified in Clause 1 of Article 15 of the Investment Law 2020, including the following points:

• Corporate income tax incentives:

• Apply a lower corporate income tax rate than the normal tax rate for a certain period of time or for the duration of the investment project.

• Tax exemption, tax reduction and other incentives related to corporate income tax, as prescribed by law.

• Import duty free:

• Exemption from import duties on imported goods used to create fixed assets.

• Exemption from import tax for imported raw materials, supplies and components for use in the production process, in compliance with the provisions of the law on import and export taxes.

• Exemption and reduction of land use fees

• Exemption or reduction of land use levy, land rent and fees related to the use of land.

• To apply other policies related to land use, as prescribed by law.

• Accelerated depreciation and deductible expense increases when calculating income tax:

• The policy of accelerated depreciation is applied, which allows a larger amount of expenses to be deducted during the income tax calculation.

• Increase the amount of expenses deductible when calculating income tax, helping to reduce the total tax payable of the business.

These regulations ensure the legality and create more favorable conditions for enterprises in the process of investment and production activities.

Procedures For Applying Investment Incentives

For the convenience of consulting, customers can contact Apolo Lawyers Law Firm via hotline 0903.419.479. In addition, customers can also send detailed requests via email contact@apolo.com.vn. We are committed to support and answer your questions quickly and accurately all your questions as soon as possible. Apolo Lawyers Law Firm sincerely thanks for the cooperation of customers and hopes to have the opportunity to serve you in the best way.

View more: Regulations Banning Debt Collection Services

View more: Procedures For Changing Investor Information On Investment Certificates

APOLO LAWYERS