PROCEDURES FOR APPLYING INVESTMENT INCENTIVES

Domestic and foreign investors have the right to conduct investment activities in Vietnam in accordance with the law and may be entitled to investment incentives if they belong to the specified target group. So, how are the procedures for applying corresponding investment incentives?

1. Which investors are entitled to investment incentives?

Enterprises and projects in Vietnam including domestic and foreign investors are entitled to investment incentives if they are eligible for investment incentives.

Therein, investors are defined as organizations and individuals carrying out the following business investment activities:

– Domestic investor means an individual holding Vietnamese nationality or a business organization whose members or shareholders are not foreign investors (including enterprises, cooperatives, cooperative unions and other organizations that carry out business investment activities).

– Foreign investor means an individual holding a foreign nationality or an organization established under foreign laws and carrying our business investment activities in Vietnam.

– Foreign-invested business organization means an organization whose members or shareholders are foreign investors.

2. What are the procedures of application for investment incentives?

a. General regulations on procedures of application for investment incentives

Investment incentives apply to each specific subject determined based on the written approval for investment guidelines (if any), the investment registration certificate (if any) and other relevant regulations of law.

Accordingly, investors determine their own investment incentives and carry out procedures to enjoy investment incentives at tax authorities, financial agencies, customs authorities and other competent agencies corresponding to each type of investment incentives.

b. Basis for applying investment incentives:

According to the investment incentives specified in the decision on approval for investment guidelines, investment registration certificate or decision on investor approval, the investor shall follow receiving investment incentives at incentive-applying authorities corresponding to each type of incentive.

– The basis for application of investment incentives to several enterprises and investment projects:

+ The certificate of science and technology enterprise, regarding a science and technology enterprise;

+ The certificate of hi-tech agricultural enterprise, regarding a hi-tech agricultural enterprise;

+ The certificate of hi-tech project, regarding a hi-tech project;

+ The incentive certificate of manufacture of supporting industry products, regarding a supporting industry project;

+ The certificate of transfer of technology the transfer of which is encouraged under the Prime Minister’s regulations, regarding a project involving transfer of technology on the List of technologies the transfer of which is encouraged.

– Investors in projects other than those specified above shall determine their investment incentives and follow procedures for receiving investment incentives at incentive-applying authorities corresponding to each type of incentive according to the objects entitled to investment incentives.

>> BUSINESS LINES ELIGIBLE FOR INVESTMENT INCENTIVES, HOW ARE REGULATED? https://linconlaw.vn/business-lines-eligible-for-investment-incentives-how-are-regulated/

>> WHAT PROCEDURES DO SPORT BUSINESS ENTERPRISES NEED TO DO? https://linconlaw.vn/what-procedures-do-sport-business-enterprises-need-to-do/

3. What to be noted when carrying out procedures to apply investment incentives?

– Investment incentives shall be given to new investment projects and expansion projects.

– The level of each type of incentives shall be specified by regulations of the Law on Taxation, the Law on Accounting and the Law on Land.

– Investment incentives applied for a fixed term and on the basis of results of project execution. Noted that, every investor must satisfy conditions for investment incentives in accordance with regulations of law during the period of enjoying investment incentives.

– An investment project that is eligible for various levels of investment incentive, including investment incentive specified by Law may apply the highest level.