Incentives when investing in Bac Ninh industrial zones

There are many investment incentives for businesses when investing in one of industrial zones of Bac Ninh province for business or production...

1. Incentives on CIT (Corporate income tax):

1.1. Preferential tax rate of 10% within 15 years applies to:

- New enterprises are established from investment projects in the following fields:

+ High technology; Scientific research and technological development.

+ Investment in development of water plants, water supply and drainage system.

+ Software production.

- Tax exemption of 04 years, reduction 50% of the payable tax in the next 9 years.

1.2. Preferential tax rate of 10% during the operation time applies to:

- Newly established enterprises from investment projects operating in the socialized sector (decided by the Prime Minister) on: Education - Training, vocational training, health, culture, sports and environment .

- Exemption of 04 years, reduction of 50% of the payable tax in the next 5 years.

1.3. Time to apply preferential tax rates and tax exemptions for Section 1.1 and 1.2 refered above as following:

- Time to apply preferential tax rate is calculated from the first year having revenue from activities eligible for tax incentives.

- Time of tax exemption is calculated continuously from the first year with taxable income from investment projects; in case business have no taxable income during the first 3 years, from the first year with income, the tax exemption period is calculated from the fourth year.

1.4. Tax reduction for other cases:

- Enterprises in manufacturing, construction, transportation, with many female workers are reduced corporate income tax equal to additional expenses for female workers, including:

Expenses for re-training; Health care in the year; allowances for female workers after childbirth; wages and allowances for female workers after childbirth, maternity leave under the regime but still working.

2. Tax on profit transfer to foreign countries: The tax rate is 0%.

3. Exemption from import duty on goods

- For equipment and machinery (accompanying accessories) and specialized means of transportation in the technological line, construction materials can not be produced domestically.

- A special project which is encouraged to invest; components production projects, mechanical parts production, electrical and electronic materials is free on imported duty for 05 years from the date of production and business.

- Raw materials, spare parts and materials imported for production of export goods.

4. Exemption from VAT: in cases of equipment import, machinery, specialized means locating in the technological chain which can not be produced domestically.

5. Incentives for land rental exemption:

- Exemption from land rental for 07 years applies to: services business projects in the industrial park if paying directly to the state.

- Exemption from land rental for 11 years to:

+ Projects on infrastructure development and business of IPs, if the Ips investor directly pay to the state;

+ Production and business projects in the IZs (when directly paying rental to the state).