Manufacturers of products for supporting industries will enjoy a corporate income tax of 10% for 15 years like enterprises in the hi-tech sector and investors in localities with socio-economic disadvantages.
Manufacturers of products for supporting industries will enjoy a corporate income tax of 10% for 15 years like enterprises in the hi-tech sector and investors in localities with socio-economic disadvantages.
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| An employee is at work at a foreign invested firm manufacturing supporting items for the automobile industry in Dong Nai Province |
The Government’s Decree 12/2015/ND-CP clarifies that to enjoy the preferential tax rate, enterprises should have products recognized as items for the hi-tech field as regulated in hi-tech regulations and for apparel, electronics, automobile, and mechanics sectors, and these products had not been manufactured in Vietnam as of January 1 this year.
The Government has introduced the tax policy in an effort to attract investments in supporting industries which are still underdeveloped.
At a conference held in HCMC in October last year to gather comments on the draft decree on developing supporting industries, Truong Thanh Hoai, deputy head of the Heavy Industry Department under the Ministry of Industry and Trade, said the decree would provide small- and medium-sized enterprises (SMEs) with a lot of tax and capital incentives.
According to the industry ministry, although the Government issued Decision 12 on development of supporting industries and Decision 1483 on priority products for the industries, businesses have not benefited from incentives in these decrees.
The Industrial Policy and Strategy Institute under the ministry said Decision 12 disappointed local enterprises as the incentives provided in the decision were the same as those provided for SMEs and did not contain a clear list of priority products.
The corporate income tax of 10% for 15 years will be applied to investors of manufacturing projects worth at least VND12 trillion and capital disbursements within five years from the date of licenses being issued.
(Source:SGT)
