Vietnam unveils tax incentives for international financial centers

Effective September 1, this resolution establishes the framework for the establishment, operation, governance, supervision, and implementation of special mechanisms and policies applicable to IFCs in Vietnam.

The resolution provides incentives, including corporate income tax (CIT), personal income tax (PIT), and preferential import-export tariffs for businesses operating within the IFCs.

Enterprises launching new investment projects in priority industries at an IFC will qualify for a CIT rate of 10 percent, applicable for 30 years.

Additionally, they are eligible for a full tax exemption for up to four years, followed by a 50 percent reduction in payable tax amounts for no more than the subsequent nine years.

Projects outside priority sectors will receive a CIT rate of 15 percent for 15 years, with a full exemption for no more than two years and a 50 percent reduction for up to four years thereafter.

Enterprises entitled to multiple CIT incentives may choose the most advantageous option.

Businesses expanding existing projects will be entitled to tax benefits according to the Law on CIT.

Both Vietnamese and foreign managers, experts, scientists, and highly qualified professionals working within the IFCs are exempt from PIT on salaries earned from IFC-related work until the end of 2030.

Additionally, individuals earning income through the sale or transfer of shares, capital contributions, or membership rights in IFC enterprises benefit from the same PIT exemption through 2030.

The timing and duration of these CIT and PIT incentives are governed by the current legislation on the two taxes.

Besides, goods and services imported into or exported from the IFCs will enjoy preferential tariff rates and streamlined procedures under Vietnam’s current trade regulations and international trade agreements to which Vietnam is a signatory.