Hoa Cam Industrial Zone Invesment Joint Stock Company

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Hoa Cam IZ

Investment Policies

Investment Policy

Country intrinsically and exterior investor invests in Danang industrial zones receivable to investment favors according to government's ordinance about business income tax, import and export duties and another preferences depend on subscription enterprise type invested, place investment scale, product export scale, investment place...

Policies favored investment

1. Favor about business income tax

20% tax rate applies during 10 years, since initiated tax rate level come in business movement with respect to commercial establishment newly who founded.

15% tax rate applies during 12 years, since starting in business movement with respect to newly commercial establishment that founded from investment project into profession, field belong to field catalogue favored invest according to number investment law's ordinance 59/ 2005/QH11.

10% tax rate applies during 15 years as starting in business movement such: Commercial establishment newly who founded from investment project into profession, field belong to catalogue field special favored invest according to number investment law ordinance 59/ 2005/QH11.

End period of time applied preferential rates level, recent commercial establishments that founded from investment project have to deliver over business income tax with tax rate level is 28%.

2. Favor of income tax

Duty-free imported investor with respect to means of transportation plant, materials, and goods is different to implement investment project in Viet Nam according to export duty Law's ordinance, tax is imported.

3. Operating deficit Throw-over

After investor balanced tax with tax agency deficit is transferred for next year, this deficit number is subtracted into proceeds of business taxable earnings according to business income tax Law's ordinance. The deficit be transferred less than five years.

4. Fixed assets depreciation

Accelerated depreciation investment project in field, favored locality investment and effective business project applies with respect to capital assets which ordinance depreciated maximum that be twice according to fixed assets depreciation ordinance.

COMPARISON TABLE OF ENTERPRISE INCOME TAX

In industrial zone

Article 19 municipal ordinances for 36/CP date 24/04/1997

a. Export under 50% products

Tax rate: 15%
02 year since businesses earnings free of duty make a profit.

b. 50%<export<80% products

Tax rate: 15%
02 years since businesses earnings free of duty make a profit.
50% income-tax reduction in next 02 years.

c. Export > 80% products.

Tax rate: 10%
Eearnings exemption from duties is 02 year since there is taxable earnings (business make a profit).
Detract from 50% income tax have to deliver over next 02 years.

In addition to industrial zone

Article 10 and article 32, section 1.2 decree 30/1998/NÐ.CP

a. Export < 50% products

Tax rate: 25 – 32%
Neither to remit taxed.

b. 50%<export<50% products

Tax rate: 10% in first 10 years.
Tax rate: 25% from 11th year.
Neither to remit taxed .
01 year since businesses earnings free of duty make a profit.
50% income-tax reduction in next 02 years.

c. Export>80% products

Tax rate: 15% in 12 years is first.
Tax rate: 25% as of 13 year.
Free of income tax is 02 year since there is taxable earnings (business make a profit.
50% income-tax reduction in next 03 years.