Corporate Income Tax (CIT)

Tax rate:
•   Taxation of corporate income tax rate is 22 %
•   Enterprises with a total turnover of not exceeding 20 billion shall be applied tax rate of 20 %.
• Revenue as a basis determined eligible for corporate tax rate is 20 % in this paragraph is the revenue of the preceding year.
• Taxaion of CIT will be change to 20% since 1/1/2016.

Tax incentive:
1. Exempt CIT for the first two years and decreason 50% for the next four years on the incoming of enterprise that implements new investment project in the IP (applied from February 15, 2014).
2. This tax preferential policies applicable time is the investment the first year the company generated revenues. High take-enterprise is calculated from a high take-investment certificate issue date.

Tax for the oversea remittance

Free of tax for the oversea remittance.

Value Added Tax (VAT)

Exemption of VAT on goods which include imported raw marterials for producing, processing of exported goods according to the processing contracts signed with foreign Partners.

Import machine and equipment

(Only applied for high-tech enterprises, investment incentive fields). According to Decree No. 87/2010/NĐ-CP

(1) – Import tax exemption for goods to create fixed assets
(2) – Emport exemption for raw material, imported materials to produce exported goods
(3) – Emport exemption for raw material, to manufacture on the list of special incentive investment project in 5 years commencing from manufacturing start (If Enterprises invest in the list of special incentive investment project or invest in place that special difficult condition)