CONFIRMATION OF INCENTIVES FOR SUPPORTING INDUSTRIES' PRODUCTS MANUFACTURING PROJECTS
Incentive and supporting policies for factories in the Textile - Garment, Leather - Footwear, Electronics, Automotive, Mechanical Engineering and Supporting Industrial Products for High-Tech Industry according to Decree 111/2015/ND-CP
INCENTIVE POLICIES
Incentive subjects
Supporting industrial products manufacturing projects in the list of priority supporting industrial products for development: Including new investment projects, technology expansion and innovation projects with the application of new equipment, new production processes, manufacturing products with production capacity at least 20% growth.
Applicable incentive policies
Corporate income tax
Tax incentives are applied according to the provisions of Law No. 71/2014/QH13: Tax rate of 10% within 15 years, exemption for 4 years and 50% reduction of tax payable in 9 years from the time of taxable income.
Import tax
Import tax is exempted for imported goods to create fixed assets according to the provisions of the Law on export tax, import tax and guiding documents.
Value-added tax
Revenue from supporting industrial products in the list of supporting industrial products prioritized for development can be selected to declare value added tax monthly, annually, and provisionally declared quarterly. The Ministry of Finance provides detailed instructions on this point.
SUPPORTING INDUSTRIES ENJOYING INCENTIVES
Textile – Garment industry
Fiber; Fabric; Textile yarn; Thread, Garment accessories; Fabric chemicals.
Leather – Footwear industry
Leather; Imitation leather; Tanning chemicals; Salted leather; Shoe soles, shoe tips, shoe laces; Shoe thread; Glue; Accessories
Electronics industry
Basic electronic - optoelectronic components; Quartz components; Electronic microcircuits; Materials for manufacturing electronic components; Electronic product components; Batteries for laptops, mobile phones; Electric wires and cables, LED lights, phone headsets and speakers; Phone battery chargers; Screens
Automotive industry
Engines and engine parts; Lubrication, cooling, fuel supply systems; Frame - body - car doors; Suspension system; Wheels; Transmission system; Steering system; Brake system; Electrical and electronic components; Lighting and signal systems; Automobile exhaust treatment systems; Plastic components for automobiles; Rubber components, shock-absorbing materials; Windshields, wipers, car seats.
Mechanical engineering industry
Molds, fixtures; Tools - cutting knives; Components and spare parts of mechanical processing machines, welding machines; Components and spare parts of power machines, agricultural machines, shipbuilding; Components and spare parts of machines, equipment for processing agricultural, forestry, fishery and salt products; Measuring and testing tools used in mechanics; Machine parts; Manufacturing steel.
Supporting industrial products for High-tech industry
Molds; High-quality standard mechanical parts; Electronic components, microelectronic circuits for developing equipment; Components and spare parts for power generation systems from new energy and renewable energy; High-quality plastic parts; Sensors of all kinds; New generation engines; High precision actuators.
