The Ministry of Finance (MoF) on 17 June 2016, issued Circular No. 83/2016/TT-BTC which provided guidance on the implementation of investment tax incentives with regard to corporate income tax, import tax and non-agricultural land use tax.
The key features of the Circular are as follows:
-Under the Corporate income tax, qualified scientific and technological enterprises are entitled to an income tax exemption for 4 years or a 50% deduction from CIT for 9 years with certain conditions.
– There will be an import tax exemption for a period of 5 years from the start of the production date on imported materials and components (which have not yet been produced in the country).
-Sectors that are subject to special investment incentives, having projects or operations in areas with “very difficult” socio-economic conditions, will be entitled to import tax exemption on imported fixed assets.
– First-time projects investing in hotels, offices, residences, audit and consulting services, technical services, supermarkets, golf courses, resorts, amusement parks, clinics and training, and financial institutions will be exempt from import tax on imported goods.
Sectors that are subject to special investment incentives, having projects or operations in areas of “very difficult” socio-economic conditions, will be exempt from non-agricultural land use tax.
–There will be also a 50% reduction in non-agricultural land use tax for qualifying sectors in “difficult” socio-economic conditions.
This Circular shall take effect on 1 August 2016.