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THE GOVERNMENT
OF VIETNAM
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THE SOCIALIST
REPUBLIC OF VIET NAM
Independence-Freedom-Happiness
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No. 04/2018/ND-CP
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Hanoi, January
04, 2018
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DECREE
PRESCRIBING
INCENTIVE POLICIES AND MECHANISMS FOR DA NANG HI-TECH PARK
Pursuant to the Law on Government Organization
dated June 19, 2015;
Pursuant to the Law on Organization of Local
Governments dated June 19, 2015;
Pursuant to the Law on State Budget dated June
25, 2015;
Pursuant to the Law on High Technologies dated
November 13, 2008;
Pursuant to the Law on Science and Technology
dated June 18, 2013;
Pursuant to the Land Law dated November 29,
2013;
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Pursuant to the Law on Investment dated November
26, 2014;
Pursuant to the Law on Export and Import Duties
dated April 06, 2016;
Pursuant to the Law on Housing dated November
25, 2014;
Pursuant to the Law on Non-Agricultural Land Use
Levies dated November 25, 2014;
Pursuant to the Law on Corporate Income Tax
dated June 03, 2008, and the Law on Amendments to the Law on Corporate Income
Tax dated June 19, 2013;
Pursuant to the Law on amendments to the Laws on
taxation dated November 26, 2014;
At the request of the Minister of Science and
Technology of Vietnam;
The Government herein promulgates a Decree
prescribing incentive policies and mechanisms for Da Nang Hi-Tech Park.
Chapter I
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Article 1. Scope
This Decree introduces some incentive policies and
mechanisms for Da Nang Hi-Tech Park (DHTP).
Investors are entitled to incentive policies and
mechanisms laid down in this Decree or other relevant regulations in compliance
with the law of Vietnam.
Article 2. Regulated entities
1. Vietnamese organizations and individuals,
overseas Vietnamese, and foreign organizations and individuals having
operations in DHTP.
2. Da Nang Hi-Tech Park management board (DHTP
management board).
3. Regulatory agencies and relevant specialized
agencies.
Chapter II
MECHANISMS FOR RAISING FUNDS FOR MAKING INVESTMENT IN
AND DEVELOPMENT OF DA NANG HI-TECH PARK
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1. Allocation of sufficient dedicated additional
funding (which will be allocated by the central-government budget in each
period as committed) to Da Nang city’s budget for execution of projects and
constructions in DHTP and national programs for development of DHTP will be
prioritized.
2. Every year, if there is an increased amount of
the central-government budget, the Government shall submit a report thereon and
request the Standing Committee of the National Assembly of Vietnam to consider
allocating funding to DHTP with the aim of completing investment in
infrastructure and technical facilities of DHTP by 2020.
3. The Government prioritizes the mobilization of
the official development assistance (ODA) funding for Da Nang city to make
investment in and construction of technical and social infrastructure
facilities and necessary public utility projects, training centers, technology
research and development centers, and high-tech business incubation centers.
Reciprocal capital for these projects or works shall be derived from Da Nang
city’s budget.
4. Every year, the People's Committee of Da Nang
city will focus on allocation of sufficient investment funding which is derived
from the local-government budget for completing projects and constructions in
DHTP according to the approved plan; DHTP management board shall be allowed to
mobilize capital from domestic sources as prescribed by law for making
investment in construction and development of DHTP.
Article 4. Projects and works in DHTP for which
investment capital will be raised
1. Make investment in construction of technical
infrastructure facilities in DHTP, including the following items: site
leveling, runner system, water drainage system, wastewater drainage system,
waste treatment system, technical ditches and tunnels, transportation system,
water supply system, information technology system, power supply system,
lighting system, sidewalks, fences, gateways, greenery, and public landscape.
2. Pay costs of compensation, land clearance and
relocation for projects and works in DHTP according to the plan approved by a
competent authority.
3. Make investment in construction of the following
works in DHTP:
a) Area for research and development, business
incubation and training, including: training center, high-tech business
incubation center, and technology research and development center under the
management of DHTP management board;
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c) Key technical infrastructure area.
Chapter III
INVESTMENT INCENTIVE POLICIES
Article 5. Incentives on non-agricultural land
rental and land use levies
1. Land rental shall be exempted for the entire
lease term in the following cases:
a) Land used for constructing traffic and technical
infrastructure works, greenery land, land with water surface, and public parks
according to approved general planning and zoning planning;
b) Land used for administrative works of public
administrative units;
c) Land used for construction of high-tech
personnel training institutions as prescribed by the law on high technologies;
d) Land used for construction of houses to be
leased to experts and workers who work at DHTP according to the planning
approved by a competent authority;
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2. The projects other than those defined in clause
1 of this Article shall be eligible for the land rental exemption and reduction
as follows:
a) The land rental shall be exempted for the
capital construction period which shall not exceed 03 years from the issuance
date of the land lease decision (except cases of innovation and expansion of
business and production establishments);
b) After the capital construction period during
which the land rental is exempted, the land rental shall be further exempted
for 15 years in respect of the investment projects which are not included in
the list of fields and sectors eligible for investment incentives, and
investment projects on construction and operation of infrastructure facilities
in DHTP;
c) After the capital construction period during
which the land rental is exempted, the land rental shall be further exempted
for 19 years in respect of the investment projects which are included in the
list of fields and sectors eligible for investment incentives;
d) The land rental shall be exempted for the period
during which business operations are suspended due to natural disasters,
conflagration or other force majeure events.
3. The list of fields and sectors eligible for
investment incentives, and the list of fields and sectors eligible for special
investment incentives shall comply with the law on investment.
4. Users of leased land within DHTP for
implementing projects with private sector involvement in education, vocational
training, healthcare, culture, sports or environment shall be entitled to land
rental exemption and reduction in accordance with the Government’s incentive
policies for private sector involvement in such fields.
5. Non-agricultural land use levies shall be
exempted for the entire land use period.
Article 6. Payment of compensation and land
clearance costs
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a) The land user is allocated land without
collecting land use levies or leases land without paying the land rental during
the lease period and has received land from the DHTP management board before
July 01, 2014;
b) Land and land areas with water surface are used
for construction of traffic works, technical infrastructure works, greenery
area and/or public parks according to approved general construction planning
and zoning planning (including the cases where land has been used before the
effective date of this Decree);
c) DHTP management board and its affiliated units
use land for building their working offices, administrative works and works
serving the management and operation of infrastructure facilities (including
the cases where land has been used before the effective date of this Decree);
dd) The land user leases land with annual land
rental payment and is eligible for land rental exemption and reduction but
refuses to enjoy such land rental exemption and reduction incentives;
dd) For projects whose capital is at least VND
3.000 billion, land users must not pay compensation and land clearance costs.
2. Land users in the cases other than those defined
in clause 1 of this Article must make payment of compensation and land
clearance costs as prescribed.
Article 7. Corporate income tax (CIT) incentives
1. CIT rates
a) 10% CIT shall be applied for 15 years to incomes
earned by an enterprise that implements a new investment project in DHTP.
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c) Incomes earned by an enterprise that implements
a project on construction of social housing for sale, lease or lease purchase
to workers who work at enterprises within DHTP and are eligible for social
housing policies as those working within and outside industrial parks as
prescribed in clause 5 Article 49 of the Housing Law shall be subject to 10% CIT.
2. CIT exemption and reduction
a) Tax exemption for 4 years and 50% tax reduction
for the next 9 years shall be applied to incomes earned by enterprises that
implement new investment projects in DHTP.
b) Other cases of tax exemption and tax reduction shall
comply with provisions of the Law on Corporate Income Tax and relevant
documents.
Article 8. Import duty incentives
1. The following goods that are imported as fixed
assets of the projects located within DHTP shall be exempted from import
duties:
a) Machinery and equipment; components, parts,
spare parts for assembly or operation of machinery and equipment; raw materials
for manufacture of machinery and equipment, components, parts, or spare parts
of machinery and equipment;
b) Special-use vehicles in a technological line
directly used for a manufacture project;
c) Building materials that cannot be domestically
produced.
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2. Raw materials, supplies and components that
cannot be domestically manufactured and are imported to serve manufacturing
activities of investment projects in DHTP shall be exempted from import
duties for 05 years.
3. Import duties on machinery, equipment, parts and
supplies that cannot be domestically manufactured, scientific documents and
books serving scientific research, technological development, development of
technology incubation, science and technology enterprise incubation, and
technological innovation in DHTP shall be exempted.
Article 9. Investment credit incentives
Enterprises, business organizations and
revenue-generating administrative units that implement investment projects
included in the list of projects eligible for investment credits shall comply
with regulations of law in force.
Chapter IV
OTHER INCENTIVES
Article 10. Infrastructure use fees
1. Infrastructure use fee means an amount collected
for offsetting costs of construction, repair, maintenance, assurance of service
conditions or restoration of technical and social infrastructure facilities.
2. Investors that have business and production
projects in DHTP and use technical and social infrastructure facilities therein
must pay infrastructure use fees.
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a) The enterprise in charge of investment in and
operation of technical - social infrastructure facilities in DHTP shall manage,
operate and collect infrastructure use fees from investors in DHTP; carry out
maintenance, repair and assurance of service conditions of these infrastructure
facilities in accordance with regulations of law;
b) The fee for use of technical - social infrastructure
facilities shall be decided by the enterprise in charge of investment in and
operation of technical - social infrastructure facilities in DHTP as a
percentage of total export revenue, total revenue from production and service
provision, or total rental of land with infrastructure.
4. Regarding facilities which are not built by
enterprises making investment in and operation of technical - social
infrastructure facilities in DHTP:
a) DHTP management board shall manage, operate,
repair, maintain, and collect infrastructure use fees from investors in DHTP;
the collected fees shall be used for covering costs of repair, maintenance and
assurance of service conditions of these infrastructure facilities, and
management costs as prescribed by law;
b) The fee for use of technical - social
infrastructure facilities in DHTP which are not built by enterprises making
investment in and operation of technical - social infrastructure facilities
shall be decided by the People's Committee of Da Nang city in accordance with
regulations of the Law on Prices and relevant laws. The method for determining
the infrastructure use fee adopted by the People's Committee of Da Nang city
must be conformable with local social and economic conditions, and the State
policies and guidelines.
5. Enterprises making investment in and operation
of technical - social infrastructure facilities and DHTP management board are
entitled to manage and use the entire collected amounts of infrastructure use
fees for covering their expenses and tax liabilities in accordance with
regulations of law. When collecting fees for use technical - social
infrastructure facilities, enterprises making investment in and operation of
technical - social infrastructure facilities and DHTP management board must
issue invoices to payers; record collected amounts in separate accounts, and
manage and use the entire collected amounts in accordance with regulations of
law. Invoices issued by enterprises making investment in and operation of
technical - social infrastructure facilities and DHTP management board to
payers of infrastructure use fees are considered valid documents which can be
used as the basis for recording the paid amounts of infrastructure use fees as
business expenses and deducting VAT upon determination of tax liabilities in
accordance with regulations of law.
Article 11. Entry and exit
Investors, experts and workers who are overseas
Vietnamese or foreigners and are directly working in DHTP, and their family
members (including their fathers, mothers, spouse, biological children and
adopted children under 18 years old) shall be eligible for multiple entry visas
whose validity period shall be suitable for entry purposes as prescribed by
law.
Chapter V
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Article 12. Effect and responsibility for implementation
1. This Decree comes into force from February 20,
2018.
2. Ministers, heads of ministerial agencies, heads
of Governmental agencies, Chairperson of the People’s Committee of Da Nang
City, head of DHTP management board, and heads of relevant agencies shall be
responsible for implementing this Decree./.
ON BEHALF OF
THE GOVERNMENT
THE PRIME MINISTER
Nguyen Xuan Phuc