CIT incentives for special investment projects

On October 6, 2021, the Prime Minister issued Decision 29/2021/QD-TTg on special investment incentives, including regulations on tax incentives.
Specifically, the preferential CIT tax rate of 7% for a period of 33 years applies to the following cases:

- Newly established investment (including project expansion for the newly established project) in innovation centers, research and development centers with a total investment capital of 3,000 billion VND or more, disbursement for the project at least 1,000 billion VND within 3 years from the date of issuing the registration certificate or a decision on approval of investment policies. 

- The investment project falls under the subjects specified at Point b, Clause 2, Article 20 of the Law on Investment and meets one of the following four criteria:

+ It is a level 1 high-tech project;
+ There are Vietnamese enterprises participating in the level 1 chain; 
+ Having added value accounted for over 30% to 40% of the total cost of the final output products provided by the economic organization; 
+ Satisfy the criteria for technology transfer level 1.

Details are stated in Decision 29/2021/QD-TTg dated October 6, 2021.

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