DONG NAI PROVINCE - ADVANTAGES OFFERED TO INVESTORS

In addition to advantages prescribed specifically in the investment license, the enterprise benefits more other advantages in conformity with Decree No 24/2000/ND-CP dated July 31, 2000 of Government, which are:

1. Import Tax:

a) Enterprises with FDI capital and partners of Joint-Ventures are exempt from the Import Tax for goods imported to constitute fixed assets, such as:

• Equipment, machinery

• Specialized transportation means belonging to technological lines and transportations means to bring workers to work and take them home (cars or buses with 24 seats and over, waterway means)

• Components, details, spare parts, fixture, moulds. Accessories attached to equipment and machinery, transportation means and specialized transportation means belonging to technological lines

• Raw materials and materials imported for making equipment, machinery of technological lines or making components, details, spare parts, accessories, fixtures, moulds attached to equipment and machinery

• Building materials which cannot be produced at home.

b) Raw materials and materials imported to implement BOT, BTO and BT projects; seeds, livestock, special agricultural medicine approved for import to implement agricultural, forestry and fishery projects.
c) The exemption from import tax for imported goods mentioned in points (a) and (b) above also applies to cases of project expansion, technology replacement or renewal
d) Projects on the list "Projects specially encouraged for investment" or those invested in "Regions having particularly difficult social and economic conditions" are exempt from the import tax for raw materials used in production for 5 years from the date on which production begins.

e) Projects for making mechanical, electric and electronic components and accessories are exempt from the import tax for production raw materials for 5 years from the date production begins
f) Raw materials, spare parts, accessories and materials imported for making export products.

g) Other goods and materials to be used in "Projects specially encouraged for investment" as prescribed by the Government

2. Enterprise Income Tax: Reduction of enterprise income tax is applied as follows

a) 20% for projects having one of the following criteria:

• Enterprises located in industrial zones supplying in services

• Projects to which the Petroleum Law provisions do not apply.

b) 15% for projects having one of the following criteria

• Belonging to the list "Projects specially encouraged for investment"

• Invested in "Regions having particularly difficult social and economic conditions"

• Services companies in IZs

• Enterprises in IZs exporting over 50% of their products.

• The enterprise assets will be handed over to the Vietnamese Government without compensation after the enterprise terminates its activities.

c) 10% for projects having one of the following criteria:

• Having 2 criteria listed in point (b) above

• Belonging to "Projects specially encouraged for investment"

• Invested in "Regions having particularly difficult social and economic conditions"

• Enterprises for developing infrastructures in Industrial Zones, Export Processing Zones, High Technology Zones and Export Processing Enterprises.

• Operating in the following fields: disease diagnosis and treatment, education and training, and scientific research

3. Tax on profits transferred abroad

When sending his profits abroad, the foreign investors must pay this tax, equals to 3%, 5% or 7% of the profit amount sent abroad, specifically:
a) 3% for foreign investors in IZs, EPZs, and HTZs, investors whose legal capital or capitals for carrying out business cooperation contracts are USD 10 million or over.
b) 5% for investors whose legal capital or capitals for carrying out business cooperation contracts are from USD 5 million to less than USD 10 million and for investors operating in the following fields: disease diagnosis and treatment, education and training, and scientific research.
c) 7% for foreign investors who contribute legal capitals or capitals for carrying out business operation contracts which do not belong to cases mentioned in points (a) and (b) above

Source: Dong Nai province-industrial parks, Vietnam.

Website: http://www.dongnai.gov.vn

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