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THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 164/2003/ND-CP
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Hanoi, December 22, 2003
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DECREE
DETAILING
THE IMPLEMENTATION OF THE LAW ON ENTERPRISE INCOME TAX
THE GOVERNMENT
Pursuant to the December 25, 2001 Law on
Organization of the Government;
Pursuant to the June 17, 2003 Law No. 09/2003/QH11 on Enterprise Income Tax;
At the proposal of the Minister of Finance,
DECREES:
Chapter I
APPLICATION
SCOPE OF ENTERPRISE INCOME TAX
Article 1.- Organizations and individuals engaged in goods production
and trading and/or service provision (hereinafter referred collectively to as
business establishments) with incomes shall have to pay enterprise income tax
according to the provisions in this Decree.
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2. Vietnamese individuals engaged in goods
production and/or trading and/or service provision, including:
a/ Business individuals and groups of
business individuals;
b/ Individual business households;
c/ Independent professional practitioners:
medical doctors, lawyers, accountants, auditors, painters, architects,
musicians, and others;
d/ Individuals leasing such properties as
houses, land, transport means, machinery and equipment or other kinds of
property;
3. Foreign individuals doing business and
having incomes generated in Vietnam, regardless of whether their business
activities are carried out in Vietnam or in foreign countries.
4. Foreign companies doing business through
their resident establishments in Vietnam.
Resident establishments are business
establishments through which foreign companies conduct part or all of their
income-generating business activities in Vietnam. Foreign companies’ resident
establishments mainly take the following forms:
a/ Branches, executive offices, factories,
workshops, goods-forwarding warehouses, transport means, mines, oil or gas
fields or natural resource- exploring and -exploiting sites or equipment and
facilities in service of natural resource exploration;
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c/ Establishments providing services,
including consultancy services provided by their employees or other subjects;
d/ Agents of foreign companies;
e/ Vietnam-based representatives in cases
where:
- They are competent to sign contracts on
behalf of foreign companies;
- They are not competent to sign contracts on
behalf of foreign companies but regularly perform the delivery of goods or the
provision of services in Vietnam.
In cases where a double taxation avoidance
agreement which the Socialist Republic in Vietnam has signed otherwise provides
for resident establishments, the provisions of such agreement shall apply.
Article 2.- Subjects not liable to pay enterprise income tax include
households, individuals, cooperation groups and cooperatives engaged in
agricultural production with incomes from cultivation, husbandry and
aquaculture products, except for peasant households and individuals engaged in large-scale
commodity production with high incomes.
The payment of enterprise income tax
applicable to peasant households and individuals engaged in large-scale
commodity production with high incomes from cultivation, husbandry and/or
aquaculture products shall be prescribed separately. The Ministry of Finance
shall be assigned to assume the prime responsibility for, and coordinate with
the Ministry of Agriculture and Rural Development and the Ministry of Aquatic
Resources in, submitting to the Government for promulgation regulations on
payment of enterprise income tax, applicable to these subjects.
Chapter II
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Article 3.- Tax
calculation bases are taxable incomes in the tax-calculation period and tax
rates.
Enterprise income tax-calculation period
shall be determined according to calendar year or fiscal year.
Article 4.- Turnover for calculation of taxable income shall be
determined as follows:
1. Turnover for calculation of taxable income
shall be the total proceeds from goods sale and/or service provision, including
price subsidies, surcharges and additional amounts enjoyed by business
establishments, regardless of whether such amounts are collected or not.
For business establishments that pay value
added tax according to tax deduction method, the turnover for calculation of
taxable income shall be the turnover without value added tax. For business
establishments that pay value added tax directly on the added value, the
turnover for calculation of taxable income shall be the turnover inclusive of
value added tax.
2. For goods sale and/or service provision
activities, the time for determining the turnover for calculation of taxable
income shall be the time of transferring the right of ownership over goods,
completing services or compiling invoices on goods sale and/or service
provision.
3. Turnover for calculation of taxable income
in some cases is specified as follows:
a/ For goods sold by mode of installment
payment, the turnover for calculation of taxable income shall be determined
according to the sale price paid in lump sum, excluding the interests on
deferred payment;
b/ For goods and/or services used for barter,
presentation, donation or internal consumption, the turnover for calculation of
taxable income shall be determined according to the sale prices of goods and/or
services of the same or similar categories at the time of barter, presentation,
donation or internal consumption;
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d/ For property-leasing activities, the
turnover for calculation of taxable income shall be the rentals paid by the
lessees for each term under leasing contracts. In cases where the lessees pay
rentals in advance for several years, the turnover for calculation of taxable
income shall be divided for the number of years for which rentals have been
paid in advance or be determined according to the rentals paid in lump sum.
The Ministry of Finance shall guide in detail
the methods of determining turnover from the advance payment of rentals
for several years in order to determine taxable income suitable to each kind of
business establishments defined at this Point;
e/ For credit activities, the turnover for
calculation of taxable income shall be the amounts of retrievable loan
interests arising in the tax-calculation period;
f/ For other activities, the turnover for calculation
of taxable income shall be prescribed by the Ministry of Finance.
Article 5.- Reasonable expenses allowed to be subtracted for the
calculation of taxable income include:
1. Depreciation of fixed assets used for
goods production and trading and/or service provision activities. The fixed
assets’ depreciation rates shall be determined according to the value of fixed
assets and depreciation duration. Establishments producing and/or dealing in
goods and services with high economic efficiency may apply quicker depreciation
rates which, however, must not exceed two times the prescribed depreciation
rate, in order to quickly renew their technologies.
The Ministry of Finance shall specify fixed
asset standards, as well as duration and rate of depreciation and quick
depreciation prescribed in this Clause.
2. Costs of raw materials, supplies, fuel,
energy and goods volume actually used in goods production and trading and/or
service provision related to turnover and taxable income in a period, which
shall be calculated according to a reasonable consumption norm and actual
ex-warehousing prices determined by enterprises themselves for which they shall
take responsibility before law.
Business establishments, that purchase
products made of rattan, bamboo, rush, coconut fibers or palm leaves from their
makers, handicraft and fine-art articles from non-business artisans; earth,
stone, sand and gravel directly from exploiters; discarded materials directly
from gatherers and some services from non-business individuals without
invoices and vouchers, may make lists thereof according to the Finance
Ministry’s regulations on the basis of the payment requests of goods sellers
and/or service providers. Directors of business establishments who approve the
payments according to such lists shall have to bear responsibility before law
for the accuracy and truthfulness thereof.
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a/ Wages, remuneration and allowances paid to
laborers in State enterprises shall be calculated into reasonable expenses
according to the current regimes;
b/ Wages, remuneration and allowances paid to
laborers in other business establishments shall be calculated into reasonable
expenses under labor contracts;
c/ Expenses for mid-shift meals for
laborers, which shall be calculated into reasonable expenses, must not exceed
the minimum wage level prescribed by the State for State officials;
d/ Food rations for laborers working in some
special branches and lines shall comply with the State-prescribed regimes.
4. Expenses for scientific and technological
research; innovations and modifications, healthcare and laborers’ training
according to the prescribed regimes; financial donation for education.
5. Expenses for services purchased from
outside: electricity, water, telephone, repair of fixed assets; rentals of
fixed assets; audit; legal services; designing, establishment and protection of
trademarks; property insurance; payments for use of technical documents;
patents; technological licenses not belonging to fixed assets, technical
services and other services purchased from outside.
6. Payments:
a/ Expenses for female laborers, including:
- Expenses for re-training of female workers
and officials in cases where their former professions are no longer suitable in
order to shift them to other professions under business establishments’
development plannings.
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- Payment of wages and allowances (if any) to
teachers in nurseries and kindergartens organized and managed by enterprises.
The number of these teachers shall be determined according to the norms
prescribed by the education and training system;
- Expenses for organizing an additional
health check in a year such as examination of occupational, chronic or
gynecological diseases for female workers and employees;
- Payment of allowances for female laborers
after childbirth. The allowance levels must not exceed VND 300,000 for business
establishments based in cities, townships or towns or VND 500,000 for business
establishments located in geographical areas defined in List B and List C of
the Appendix to this Decree, aiming to help the mothers partly overcome
difficulties.
- During the period of breast-feeding, if,
for objective reasons, female laborers do not take rests for feeding their
children according to the prescribed regimes but stay to work for business
establishments, they shall enjoy allowances for overtime work according to the
prescribed regimes.
For business establishments engaged in
production, construction or transportation activities involving large numbers
of female laborers, if they can separately account and monitor the actual
payments for female laborers, they shall enjoy enterprise income tax reduction
according to Article 45 of this Decree.
b/ Expenses for labor safety protection
according to the Labor Code.
In some business establishments where
laborers have to wear uniforms at working places, expenses for the purchase of
uniforms shall be calculated into reasonable expenses.
c/ Expenses for protection of business
establishments; working mission allowances;
d/ Deductions for contribution to social
insurance and heath insurance funds under the responsibility of labor-employing
business establishments; trade union funding; support of Party’s and mass
organizations’ activities at business establishments; deductions for forming
the source to cover managerial costs for superior levels and setting up
associations’ funds according to the prescribed regimes.
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8. Deductions for reserve amounts according
to the prescribed regimes.
9. Severance allowances for laborers
according to the prescribed regimes.
10. Expenses for goods sale and/or service
provision, including: expenses for preservation, packaging, transportation,
portage, renting of warehouses and storing yards and product warranty for goods
and/or services.
11. Expenses for advertisement, marketing,
sale promotion, guest reception, festivities, transaction expenses,
payment of brokerage commissions, expenses for conferences and other expenses
directly related to goods production and trading and/or service provision,
which must not exceed 10% of the total expenses listed from Clause 1 to Clause
10 of this Article. For trading activities, the total reasonable expenses used
for determining the controlled level shall exclude the purchase prices of goods
sold out.
12. Payable taxes, charges, fees and land
rents which are related to goods production and trading and/or service
provision (except enterprise income tax), including:
a/ Export tax, import tax;
b/ Special consumption tax;
c/ Value added tax for business
establishments which pay value added tax directly on the added value; value
added tax for business establishments which pay value added tax according
to tax deduction method in cases of purchasing and/or importing goods and/or
services for the production of goods and/or provision of services, which are
not subject to value added tax; input value added tax in cases of exporting
goods and/or services but failing to fully meet conditions for tax deduction
and reimbursement according to law provisions on value added tax; input value
added tax not allowed to be deducted due to late declaration as compared with
prescribed time limit;
d/ Excise tax;
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f/ Agricultural land use tax;
g/ House and land tax;
h/ Charges and fees according to law
provisions;
i/ Land rents.
13. Business management expenses allocated by
foreign companies to their resident establishments in Vietnam according to the proportion of such resident establishments’ turnover to the total
turnover of such foreign companies, including turnover of resident
establishments in other countries.
Vietnam-based resident establishments of
foreign companies, which have not yet applied the regimes of accounting,
invoices and vouchers and pay tax according to their declaration, shall not be
allowed to account the business management expenses allocated by such foreign
companies into reasonable expenses as prescribed in this Clause.
Article 6.- The following expenses must not be accounted into reasonable
expenses:
1. Wages and remuneration paid by business
establishments due to their failure to strictly observe the labor contract
regimes as prescribed by labor legislation, except for cases of hiring laborers
for piece work.
Wages and remuneration of owners of private
enterprises, members of partnerships, heads of business households and business
individuals, remuneration paid to founding members and members of the managing
boards of limited liability companies or joint-stock companies, who do not
directly participate in the administration of goods production and trading
and/or service provision.
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3. Expenditures without invoices and vouchers
or with invalid invoices and vouchers.
4. Fines for administrative violations such
as violations of traffic law, violations of business registration
regimes, violations of accounting and statistic regulations, violations of tax
legislation and other administrative violations.
5. Expenses not related to turnover and
taxable income such as expenses for capital construction investment; support
for localities, mass organizations and social organizations outside business
establishments; expenses for charity purposes and other expenses not related to
turnover and taxable income.
6. Expenses covered by other funding sources
such as non-business expenses, allowances for regular and unexpected
difficulties.
Article 7.- Turnover, reasonable expenses and taxable income shall be
determined in Vietnam dong. In cases where business establishments have
turnover, reasonable expenses and taxable income in foreign currencies, such
foreign currency amounts must be converted into Vietnam dong at the exchange
rates announced by Vietnam State Bank at the time such foreign currency
turnover and expenses arise, except for cases where otherwise provided for by
law. For foreign currencies without exchange rates with Vietnam dong, the
conversion must be effected through a foreign currency with exchange rate with
Vietnam dong.
Article 8.- Taxable
incomes shall include: incomes from goods production and trading and/or service
provision activities and other incomes in the tax-calculation period, including
those generated from goods production and trading and/or service provision
activities overseas.
1. Taxable incomes from goods production and
trading and/or service provision activities shall be the turnover for the
calculation of taxable income minus (-) reasonable expenses related goods
production and trading and/or service provision activities in the
tax-calculation period.
In cases where business establishments earn
incomes from activities of share capital and/or joint-venture capital
contribution, for which enterprise income tax has been paid by business
establishments receiving such share capital and/or joint-venture capital, these
incomes shall not be subject to enterprise income tax.
2. Other taxable incomes in the
tax-calculation period include:
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b/ Incomes from activities related to
industrial property right and copyrights;
c/ Other incomes from property ownership and
use rights;
d/ Incomes from the transfer of land use
right or land rent right;
e/ Profits from the transfer or liquidation
of property;
f/ Interests on deposits, loans and goods
sale with deferred payment;
g/ Differences from the sale of foreign
currencies, profits from foreign exchange rate differences;
h/ Year-end balances of reserves according to
the prescribed regimes;
i/ Bad debts already written off from the
accounting books but now recovered;
j/ Payable debts with unidentifiable
creditors;
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l/ Incomes from goods production and trading
and/or service provision activities overseas.
For incomes for which income tax has been
paid overseas, business establishments shall have to determine income amounts
before paying income tax abroad so as to calculate the enterprise income tax.
When determining the income tax for the whole year, the income tax already paid
overseas by business establishments shall be subtracted, but the subtracted
amounts must not exceed the income tax amounts on such received incomes
calculated according to the Law on Enterprise Income Tax.
m/ Incomes related to the sale of goods and
provision of services, which are not yet accounted into turnover, after
subtracting expenses for the generation of such incomes according to the
Finance Ministry’s regulations;
n/ Other incomes not yet specified in this
Article.
3. In cases where a double taxation agreement
which the Socialist Republic of Vietnam has signed prescribes the methods of
determining taxable income for resident establishments different from the
provisions in Clause 1 and Clause 2 of this Article, the provisions of such
agreement shall apply.
Article 9.- Enterprise
income tax rates applicable to business establishments shall be as follows:
1. The enterprise income tax rate applicable
to business establishments is 28%.
2. The enterprise income tax rates applicable
to business establishments conducting activities of prospection, exploration
and exploitation of oil and gas and/or other precious and rare natural
resources range from 28% to 50%.
The Prime Minister shall decide on specific
tax rates, suitable to the production and business situation of each business
establishment conducting activities of prospection, exploration and
exploitation of oil and gas and other precious and rare natural resources at
the proposal of the Minister of Finance.
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Chapter III
DETERMINATION
OF TAXABLE INCOME FROM AND INCOME TAX ON THE TRANSFER OF LAND USE RIGHT AND
LAND RENT RIGHT
Article 10.- The following incomes from the transfer of land use right
and land rent right shall be subject to income tax on the transfer of land use
right and land rent right:
1. Cases of land use right transfer:
a/ Transfer of land use right without
infrastructures or architectural works on land;
b/ Transfer of land use right associated with
infrastructures on land;
c/ Transfer of land use right associated with
architectural works on land;
d/ Transfer of land use right associated with
infrastructures and architectural works on land.
2. Cases of land rent right transfer:
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b/ Transfer of land rent right associated
with infrastructures on land;
c/ Transfer of land rent right associated
with architectural works on land;
d/ Transfer of land rent right associated
with infrastructures and architectural works on land.
Article 11.- Cases of land use right transfer and land rent right
transfer not subject to income tax on the transfer of land use right or land
rent right
1. The State assigns or leases land to
business establishments.
2. Organizations engaged in goods production
and trading and/or service provision return land to the State or have their
land recovered by the State according to law provisions.
3. Organizations engaged in goods production
and trading and/or service provision sell their workshops and transfer their
land use right or land rent right for their relocation under plannings.
4. Organizations engaged in goods production
and trading and/or service provision contribute capital with the land use right
for production and business cooperation with Vietnamese or foreign
organizations and/or individuals according to law provisions.
5. Organizations engaged in goods production
and trading and/or service provision transfer their land use right or land rent
right due to their division, separation, merger or bankruptcy.
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7. Organizations engaged in goods production
and trading and/or service provision donate their land use right or land rent
right to the State or other organizations for construction of cultural, medical
and physical training and sport works; transfer of land use right for charity
purposes to social policy beneficiaries.
Article 12.- Payers of income tax on the transfer of land use right or
land rent right are organizations engaged in goods production and trading
and/or service provision with incomes from the transfer of land use right or
land rent right
Business households and individuals engaged
in goods trading and/or service provision, that have incomes from the transfer
of land use right or land rent right, shall not have to pay income tax on the
transfer of land use right and land rent right under this Decree, but pay
income tax on high-income earners.
Article 13.- Taxable income from the transfer of land use right or land
rent right shall be determined as being equal to the turnover for calculation of
taxable income minus reasonable expenses related to the transfer of land use
right or land rent right.
1. The turnover for the calculation of
taxable income shall be determined according to the actual prices of transfer
between organizations engaged in goods production and trading and/or service
provision, which transfer their land use right or land rent right, and the
transferees at the time of transfer.
The actual transfer prices shall be
determined as follows:
- Being the prices inscribed in invoices or
the money amounts actually paid by the land use right or land rent right
transferees to the transferors.
In cases where the actual transfer prices are
lower than the prices decided by the provincial/municipal People’s Committees,
the turnover for calculation of income subject to tax on the transfer of land
use right or land rent right shall be based on the prices decided by the
provincial/municipal People’s Committees.
- Being the auction-wining prices in cases
where the land use right or land rent right is auctioned.
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a/ In cases of transferring the land use
right or land rent right associated with infrastructures on land, the turnover
for calculation of taxable income shall include the turnover from the transfer
of ownership right over the infrastructures and the turnover from the lease of
infrastructures on land;
b/ In cases of transferring the land use
right and/or land rent right associated with architectural works on land, the
turnover from the sale of architectural works on land must be separated. For
cases where this turnover cannot be separated, the turnover for calculation of
taxable income shall include the turnover from the sale of architectural works
on land.
2. Expenses for the transfer of land use
right or land rent right:
a/ Expenses for obtaining the land use right
or land rent right, including:
- The cost prices of land subject to right
transfer, which shall be determined as follows:
+ For land assigned by the State with the
collection of land use levy or land rents, vouchers on the collection of land
use levy or land rents by the State shall be based on.
+ For land for which the land use right is
received from other organizations or individuals, contracts and valid payment
vouchers upon the reception of land use right or land rent right shall be based
on.
+ In cases where organizations engaged in
goods production and trading and/or service provision exchange works for the
State’s land, the cost prices shall be determined according to the value of
exchanged works.
+ Auction-winning prices in cases where land
use right or land rent right is auctioned.
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+ For land of organizations engaged in goods
production and trading and/or service provision, which are inherited under
civil legislation, donated or presented, with their cost prices being unable to
be determined, the cost prices shall be determined according to the land prices
decided by the provincial/municipal People’s Committees on the basis of the
land price bracket, prescribed by the Government at the time of inheritance,
donation or presentation.
In cases where land of organizations engaged
in goods production and trading and/or service provision is inherited, donated
or presented before 1994, the cost prices shall be determined according to the
land prices decided by the provincial/municipal People’s Committees in 1994 on
the basis of the land price bracket, prescribed in the Government’s Decree No.
87/CP of August 17, 1994.
- Compensation for land damage not yet
accounted into land use levy or land rents;
- Compensation for crop damage;
- Support for relocation to new residential
places;
- Support for tomb removal;
- Other support for ground clearance.
- Assorted charges and fees related to the
granting of land use right according to law provisions.
b/ Expenses for soil improvement and ground
leveling;
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d/ Expenses prescribed in Article 5 of this
Decree. In cases where organizations engaged in goods production and trading
and/or service provision deal in different branches and lines, these expenses
shall be allocated according to the proportion of the turnover earned from the
transfer of land use right or land rent right to the total turnover earned from
goods production and trading and/or service provision activities.
e/ If the turnover for calculation of taxable
income cover architectural works on land, such expenses shall include the value
of architectural works on land.
Article 14.- Rates of income tax on the transfer of land use right or
land rent right
1. The tax rate on income from the transfer
of land use right or land rent right shall be 28%.
2. After calculating income tax at the tax
rate prescribed in Clause 1 of this Article, the remaining income shall be
subject to additional income tax according to the following table of partially
progressive tax rates
Table of partially progressive tax rates
Grade
Ratio of the
remaining income to expenses
Tax rate
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Up to 15%
0%
2
Between over 15% and 30%
10%
3
Between over 30% and 45%
15%
4
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20%
5
Over 60%
25%
Article 15.- The preferential tax rates, tax exemption and reduction
prescribed in Chapter V of this Decree shall not apply to income earned from
the transfer of land use right or land rent right.
Article 16.- Organizations engaged in goods production and trading
and/or service provision, which transfer the ownership right over architectural
works or infrastructures on land, shall have to carry out procedures for the
transfer of land use right or land rent right associated with infrastructures
or architectural objects on land.
Article 17.- Tax
declaration and payment procedures applicable to organizations engaged in goods
production and trading and/or service provision which do not regularly carry
out the transfer of land use right or land rent right shall be prescribed as
follows:
Basing themselves on dossiers and documents
on the transfer of land use right or land rent right sent by land-managing
agencies, the tax offices shall request organizations engaged in goods
production and trading and/or service provision to declare turnover, expenses,
taxable income and payable tax amounts according to form prescribed by the
Ministry of Finance and submit the declaration forms to their managing tax
offices within 10 days after receiving the tax offices’ requests. Basing
themselves on invoices and vouchers reflected on business establishments’
accounting books, the tax offices shall check and verify the accuracy of the
tax declaration forms and issue notices on the amounts of tax on the transfer
of land use right or land rent right and deadlines for payment thereof. The
tax-payment deadline inscribed in the tax notices shall be 15 days counting
from the date of issuing the tax notices at the latest. The transferees of land
use right or land rent right shall be granted land use right or land rent right
certificates only after they obtain receipts or vouchers on the payment of tax
on the transfer of land use right or land rent right for the transferred land
areas
Article 18.- Organizations engaged in goods production and trading
and/or service provision, which are specialized in dealing in land and house,
as well as infrastructures and architectural objects on land shall pay and
settle tax according to Chapter IV of this Decree, but they must make separate
settlement of the income tax on the transfer of land use right or land rent
right. If the temporarily-paid tax amounts are lower than the payable tax
amounts as stated in the tax settlement reports, organizations engaged in goods
production and trading and/or service provision shall have to fully pay the
deficit tax amount within 10 days as from the date of submitting their tax
settlement reports. If the temporarily-paid tax amounts are higher than the
payable tax amounts as stated in the tax settlement reports, organizations
engaged in goods production and trading and/or service provision shall be
allowed to account such surplus amounts into the deficit enterprise income tax
amounts for other business activities or into the payable enterprise income tax
amounts for the transfer of land use right or land rent right in the subsequent
period. If organizations engaged in goods production and trading and/or service
provision suffer from loss in the transfer of land use right or land rent
right, they may transfer such loss into the taxable income from the transfer of
land use right or land rent right in subsequent years for a duration prescribed
in Article 46 of this Decree.
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Chapter IV
TAX
REGISTRATION, DECLARATION, PAYMENT AND SETTLEMENT
Article 20.- Business establishments shall have to register enterprise
income tax together with the registration of value added tax payment. The tax
registration procedures shall comply with the provisions in Article 11 of the
Government’s Decree No. 158/2003/ND-CP of December 10, 2003 detailing the
implementation of the Value Added Tax Law and the Law Amending and
Supplementing a Number of Articles of the Value Added Tax Law.
Article 21.- Business establishments shall have to declare their
turnovers, expenses, taxable incomes and payable tax amounts for the whole
year, which shall be divided for each quarter according to form set by tax
offices, and submit such declarations to the their managing tax offices no
later than the 25th of January every year or the 25th of the month subsequent
to the last month of the fiscal year, for business establishments with fiscal
year different from calendar year. The Ministry of Finance shall prescribe the
forms of enterprise income tax declaration.
In cases where tax offices conduct the
inspection and examination and detect that the tax declaration by business
establishments is incompatible with the actual goods production and trading
and/or service provision, they shall base themselves on the proportion of
business establishments’ taxable incomes to their turnovers in the previous
year or taxable incomes of other business establishments engaged in the same
branches and lines with equivalent business scale to fix the tax amounts to be
temporarily paid for the whole year and each quarter and notify business
establishments thereof for implementation.
Article 22.- In case of changes in the production, business and/or
service situation, business establishments shall have to report such to their
managing tax offices for adjustment of the tax amounts to be temporarily paid
for the whole year and each quarter. When receiving business establishments’
requests for adjustment of the tax amounts to be temporarily paid for each
quarter and the whole year, the tax offices shall have to consider and notify
the business establishments of the to-be-temporarily paid tax amounts already
adjusted or the reasons for refusal of their requests.
Article 23.- The Ministry of Finance shall guide the determination of
turnover and the proportion of taxable incomes to turnovers applicable to
business establishments which have not yet applied the accounting, invoice and
voucher regimes prescribed in Clause 2, Article 12 of the Law on Enterprise
Income Tax, suitably to each business line and location.
Article 24.- The enterprise income tax payment is stipulated as follows:
1. Business establishments shall temporarily
pay fully and on time into the State budget the quarterly tax amounts according
to their declarations or tax amounts fixed by tax offices. The deadline for tax
payment shall be the last day of the quarter.
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3. Business establishments engaged in
shipment trading shall have to declare and pay tax for each shipment to the tax
offices of the localities where the goods are purchased before transporting
such goods away.
4. For foreign business organizations or
individuals doing business without resident establishments in Vietnam but
having incomes generated in the country, the organizations or individuals in
Vietnam that pay such incomes shall have to deduct the tax amounts at the rates
prescribed by the Finance Ministry from the total amounts to be paid to
foreign organizations or individuals.
Article 25.- Enterprise income tax shall be calculated and paid in
Vietnam dong.
Article 26.- Business establishments shall have to make annual tax
settlements with the tax offices according to form set by the Ministry of
Finance.
The tax-settlement year is calculated
according to the calendar year. In cases where business establishments are
permitted to apply a fiscal year other than the calendar year, they shall be
permitted to make tax settlements according to such fiscal year.
A tax settlement must accurately and fully
reflect turnover; reasonable expenses; taxable income; payable income tax
amount; income tax amount to be exempted or reduced; income tax amount
temporarily paid in the year; income tax amount already paid abroad for income
received therefrom; underpaid or overpaid income tax amount.
Article 27.- Business establishments shall have to submit their
tax-settlement reports to the tax offices within 90 days as from the end of a
calendar year or fiscal year. If the tax amount temporarily paid in the year is
lower than the payable tax amount as prescribed in the tax-settlement reports,
business establishments shall have to fully pay the deficit amount within 10
days after submitting their settlement reports; if the tax amount temporarily
paid in the year is higher than the payable tax amount as prescribed in the
tax-settlement reports, business establishments shall be allowed to subtract
such surplus tax amount from the payable tax amount of the subsequent period.
Article 28.- In cases of enterprise transformation, ownership
conversion, merger, consolidation, division, separation, dissolution or
bankruptcy, business establishments shall have to make tax settlements with the
tax offices and send tax-settlement reports within 45 days as from the date of
issuance of decisions on the enterprise transformation, ownership conversion,
merger, consolidation, division, separation, dissolution or bankruptcy.
Article 29.- After receiving business establishments’ tax-settlement
reports, tax offices shall have to consider and classify them for examination
and inspection.
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Article 30.- In the course of examining and inspecting tax declarations,
payment and settlement by business establishments, if detecting that the
purchase prices, sale prices, business expenses, taxable incomes and other
factors, determined by business establishments, are unreasonable, the tax
offices shall be entitled to re-determine the purchase prices and sale prices
according to domestic and foreign market prices, as well as expenses, taxable
incomes and other factors so as to ensure the accurate and full collection of
enterprise income tax.
The Ministry of Finance shall guide the
methods of determining the purchase prices and sale prices of goods and
services according to market prices as provided for in this Article.
Article 31.- Tax offices shall have the following tasks, powers and
responsibilities:
1. To guide business establishments in
declaring and paying tax in strict accordance with the Law on Enterprise Income
Tax.
2. To notify business establishments, which have
not yet applied the accounting, invoice and voucher regimes, of the monthly
payable tax amounts and tax payment deadline as prescribed in Clause 2 of
Article 24 and cases of tax fixation prescribed in Articles 30 and 32 of this
Decree.
3. To notify business establishments of the
late submission of declaration forms, late tax payment and decisions on
sanctioning tax-related violations; if business establishments fail to fully
pay tax and/or fine amounts according to tax notices, to be entitled to apply or
request competent agencies to apply handling measures prescribed in Clause 4,
Article 23 of the Law on Enterprise Income Tax to ensure the full collection of
tax and fine amounts; in cases where the said handling measures have been
applied, business establishments still fail to fully pay tax and fine amounts,
to transfer the dossiers thereof to competent State agencies for handling
according to law provisions.
4. To inspect and
examine tax declarations, payment and settlements by business establishments.
5. To handle tax-related administrative
violations and settle tax-related complaints.
6. To request business establishments to
provide accounting books, invoices, vouchers and other dossiers and documents
related to tax calculation and payment; to request credit institutions, banks
and other organizations and individuals to provide documents related to tax
calculation and payment.
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Article 32.- Tax offices shall be entitled to fix taxable income to
calculate tax for business establishments in the following cases:
1. Failing to observe or improperly observing
the accounting, invoice and voucher regimes.
2. Failing to declare or improperly declaring
bases for tax calculation or being unable to prove the bases already stated in
their declarations at the tax offices’ requests.
3. Refusing to produce accounting books,
invoices, vouchers and necessary documents related to tax calculation.
4. Doing business without business
registration.
Tax offices shall base themselves on the
investigation documents on the business situation of business establishments or
on the taxable incomes of business establishments engaged in the same business
lines with equivalent business scale to fix the taxable incomes.
In cases where business establishments
disagree with the fixed taxable income levels, they may lodge complaints to the
immediate superior tax offices or initiate lawsuits at courts according to law
provisions; pending the settlement, business establishments shall still have to
fully pay tax at the fixed levels.
Chapter V
ENTERPRISE
INCOME TAX EXEMPTION AND REDUCTION
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Investment projects meeting one the following
conditions shall be entitled to enjoy enterprise income tax preferences:
1. Making investment in branches, lines
and/or domains defined in List A of the Appendix to this Decree.
2. Making investment in branches, lines
and/or domains, which are not banned by law, and employing an average number of
laborers in a year at least as follows:
a/ In grade-1 and grade-2 urban centers: 100
laborers;
b/ In geographical areas where investment is
encouraged as defined in List B and List C, issued together with this Decree:
20 laborers;
c/ In other geographical areas: 50 laborers.
Article 34.- Geographical areas where investment is encouraged shall be
eligible for enterprise income tax preferences.
1. Geographical areas meeting with
socio-economic difficulties defined in List B of the Appendix to this Decree.
2. Geographical areas meeting with
exceptional socio-economic difficulties defined in List C of the Appendix to
this Decree.
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1. The preferential tax rates are specified
as follows:
a/ The tax rate of 20%, for newly-established
cooperatives in geographical areas outside List B and List C of the Appendix to
this Decree; business establishments newly established under investment
projects in branches, lines and/or domains defined in List A of the Appendix to
this Decree;
b/ The tax rate of 20%, for business
establishments newly set up under investment projects in geographical areas
defined in List B of the Appendix to this Decree;
c/ The tax rate of 15%, for cooperatives
established in geographical areas defined in List B of the Appendix to this
Decree; business establishments newly-set up under investment projects in
branches, lines and/or domains defined List A, which are implemented in
geographical areas defined in List B of the Appendix to this Decree;
d/ The tax rate of 15%, for business
establishments newly set up under investment projects in geographical areas
defined in List C of the Appendix to this Decree;
e/ The tax rate of 10%, for cooperatives
established in geographical areas defined in List C of the Appendix to this
Decree; business establishments newly set up under investment projects in branches,
lines and/or domains defined in List A, which are implemented in geographical
areas defined in List C of the Appendix to this Decree.
2. The duration of application of the
preferential enterprise income tax rates is prescribed as follows:
a/ The enterprise income tax rate of 10%
shall be applied for 15 years after newly-established cooperatives and business
establishments newly set up under investment projects start their business
operations;
b/ The enterprise income tax rate of 15%
shall be applied for 12 years after newly-established cooperatives and business
establishments newly set up under investment projects start their business
operations;
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After the duration of application of the
preferential tax rates prescribed in this Article, newly-established
cooperatives and business establishments newly set up under investment projects
shall have to pay enterprise income tax at the rate of 28%
Article 36.- Business establishments newly set up under investment
projects and relocated business establishments shall enjoy tax exemption and/or
reduction as follows:
1. Production establishments newly set up
under investment projects and business establishments relocated out of urban
centers under the plannings approved by competent agencies shall enjoy tax
exemption for 02 years after taxable income is generated and the 50% reduction
of the payable tax amount for 02 subsequent years;
2. Business establishments newly set up under
investment projects in branches, lines and/or domains defined in List A of the
Appendix to this Decree and those satisfying conditions on labor employment
prescribed in Article 33 of this Decree shall enjoy tax exemption for 02 years
after taxable income is generated and the 50% reduction of the payable tax
amount for 03 subsequent years;
3. Business establishments newly set up under
investment projects in branches, lines and/or domains defined in List A of the
Appendix to this Decree, which satisfy conditions on labor employment
prescribed in Article 33 of this Decree shall enjoy tax exemption for 02 years
after taxable income is generated and the 50% reduction of the payable tax
amount for 05 subsequent years;
4. Business establishments newly set up under
investment projects in geographical areas defined in List B of the Appendix to
this Decree and business establishments relocated thereto shall enjoy tax
exemption for 02 years after taxable income is generated and the 50% reduction
of the payable tax amount for 06 subsequent years;
5. Business establishments newly set up under
investment projects in geographical areas defined in List C of the Appendix to
this Decree and business establishments relocated thereto shall enjoy tax
exemption for 02 years after taxable income is generated and the 50% reduction
of the payable tax amount for 08 subsequent years;
6. Business establishments newly set up under
investment projects in branches, lines and/or domains defined in List A, which
are implemented in geographical areas defined in List B of the Appendix to this
Decree, shall enjoy tax exemption for 03 years after taxable income is
generated and the 50% reduction of the payable tax amount for 07 subsequent
years;
7. Business establishments newly set up under
investment projects in branches, lines and/or domains defined in List A, which
are implemented in geographical areas defined in List B of the Appendix to this
Decree and satisfy conditions on labor employment prescribed in Article 33 of
this Decree, shall enjoy tax exemption for 03 years after taxable income is
generated and the 50% reduction of the payable tax amount for 08 subsequent
years;
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9. Business establishments newly set up under
investment projects in branches, lines and/.or domains defined in List A, which
are implemented in geographical areas defined in List C of the Appendix to this
Decree, shall enjoy tax exemption for 04 years after taxable income is
generated and the 50% reduction of the payable tax amount for 07 subsequent
years;
10. Business establishments newly set up
under investment projects in branches, lines and/or domains defined in List A,
which are implemented in geographical areas defined in List C of the Appendix
to this Decree and satisfy conditions on labor employment prescribed in Article
33 of this Decree, shall enjoy tax exemption for 04 years after taxable income
is generated and the 50% reduction of the payable tax amount for 08 subsequent
years;
11. Business establishments newly set up
under investment projects in branches, lines and/or domains defined in List A,
which are implemented in geographical areas defined in List C of the Appendix
to this Decree and satisfy conditions on labor employment prescribed in Article
33 of this Decree with the number of ethnic minority laborers accounting for
more than 30% of the total average number of laborers employed in the year,
shall enjoy tax exemption for 04 years after taxable income is generated and
the 50% reduction of the payable tax amount for 09 subsequent years;
12. Business establishments newly set up
under investment projects in forms of build-operate-transfer (BTO),
build-transfer-operate (BTO) and build-transfer (BT) contracts shall enjoy tax
exemption for 04 years after taxable income is generated and the 50% reduction
of the payable tax amount for 09 subsequent years.
Business establishments newly set up under
investment projects, which are entitled to tax exemption and reduction
prescribed in this Article, are independent cost-accounting business
establishments which register for tax payment according to their declarations.
Business establishments newly set up under
investment projects, which are entitled to tax exemption and reduction and
engaged in many business activities, shall have to separately monitor and
account incomes earned from business activities entitled to tax exemption and
reduction. In cases where business establishments cannot account separately
incomes earned from business activities entitled to tax exemption and
reduction, the tax exemption and reduction shall be determined according to the
proportion of the turnover from business activities entitled to tax exemption
and reduction to their total turnover.
Article 37.- For economic zones and investment projects of particular
encouragement, the Prime Minister shall decide on the preferential tax rates as
well as duration for enterprise income tax exemption and reduction, but they
shall be entitled to tax exemption for 04 years at most after their taxable
incomes are generated, and a 50% reduction of the payable tax amounts for 09
subsequent years at most.
Article 38.- Business establishments investing in building new
production chains, expanding their scale, renewing technology, improving the
ecological environment and raising their production capacity shall enjoy
exemption and reduction of the tax on their increased income portions brought
about by such investment as follows:
1. Investment projects in the installation of
new production chains not belonging to branches, lines, and geographical areas,
where investment is encouraged as defined in Appendices A, B and C to this
Decree, shall enjoy tax exemption for 01 year and the 50% reduction of the
payable tax amount for 02 subsequent years.
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3. Investment projects in branches, lines
and/or domains defined in List A of the Appendix to this Decree, which are
implemented in geographical areas defined in List B of the Appendix to this
Decree, shall enjoy tax exemption for 03 years and the 50% reduction of the
payable tax amount for 04 subsequent years.
4. Investment projects in branches, lines
and/or domains defined in List A of the Appendix to this Decree, which are
implemented in geographical areas defined in List C of the Appendix to this
Decree, shall enjoy tax exemption for 04 years and the 50% reduction of the
payable tax amount for 07 subsequent years.
The Ministry of Finance shall guide the
methods of determining the increased income portions brought about by
investment, which are entitled to tax exemption and reduction prescribed
in this Article.
Article 39.- Business establishments dealing in export goods defined in
Section III, List A of the Appendix to this Decree, apart from exemption and
reduction of enterprise income tax as prescribed in Articles 36, 37 and 38 of
this Decree, shall also enjoy enterprise income tax preferences as follows:
1. 50% reduction of the payable tax on the
turnover earned in the following cases:
a/ Export in the first year is conducted by
mode of direct export;
b/ Export of new commodities with
economic-technical and utility properties different from those of the
commodities already exported by the enterprises;
c/ Export to a new country or new territories
other than the former markets.
2. 50% reduction of the payable income tax on
the additional income arising from export in the fiscal year, for investors
whose export turnover of the current year is higher than that of the previous
year.
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a/ The export turnover accounts for more than
50% of the total turnover; the tax reduction shall be considered annually.
b/ The export markets are maintained in a
stable manner with regard to volume or export value for previous three
consecutive years.
4. An additional 25% reduction of the payable
tax on the income earned from export in a fiscal year, for investors mentioned
in Clause 1, 2 or 3 of this Article, who implement their investment projects in
geographical areas defined in List B of the Appendix to this Decree.
5. Full exemption of the enterprise income
tax amount payable on the income earned from export in a fiscal year, for
investors mentioned in Clause 1, 2 or 3 of this Article, who implement their
investment projects in geographical areas defined in List C of the Appendix to
this Decree.
Article 40.- Business establishments shall be exempt from enterprise
income tax payable on the income earned in the following cases:
1. Income from the performance of contracts
on scientific research and technological development; provision of scientific
and technological information services.
2. Income from the sale of products during
the period of trial production in strict accordance with production process,
but for no more than 6 months after the trial production.
3. Income from the sale of products turned
out by new technologies applied for the first time in Vietnam, but for no more than 1 year after the application of these new technology to the
production.
4. Income from the performance of technical
service contracts in direct service of agriculture.
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6. Income from goods-producing and trading
and/or service-providing activities of business establishments reserved for
laborers being disabled people.
7. Income from job-training reserved for
disabled people, children in exceptionally difficult plights and social-evil
doers.
Article 41.- Enterprise income tax shall be exempt for cooperatives
with the level of monthly average income of each laborer being lower than the
minimum wage level prescribed by the State for State officials.
Article 42.- Enterprise income tax shall be exempt for households
engaged in goods production and trading and/or service provision with the level
of monthly average income of each laborer being lower than the minimum wage
level prescribed by the State for State officials.
Article 43.- Enterprise income tax shall be exempt for investors
contributing capital with patents, technical know-hows, technological processes
or technical services.
Article 44.- Enterprise income tax shall be reduced by 50% for the
income earned from the transfer of the value of capital portions of foreign
investors to enterprises set up under the provisions of Vietnamese law.
Article 45.- Business establishments engaged in production, construction
or transport activities and employing between 10 and 100 female laborers who
account for more than 50% of their regular laborers or regularly employing more
than 100 female laborers who account for more than 30% of their total regular
laborers shall enjoy enterprise income tax reduction corresponding to the level
of expenses for female laborers.
Article 46.- If business establishments, after making the tax
settlements with tax offices, suffer from losses, they shall be entitled to
carry forwards such losses to, and deduct them into, their taxable incomes of
the subsequent years. The loss-transferring duration shall not exceed 5 years.
Article 47.- The preferential tax rates, tax exemption, tax reduction
and loss transfer prescribed in Articles 35, 36, 37, 38, 39, 40, 41, 43, 44, 45
and 46 of this Decree shall apply only to business establishments which have
strictly observed the accounting, invoice and voucher regimes and registered
and paid tax according to their declarations. Business establishments shall
determine by themselves the conditions for enjoying tax preferences, the level
of tax exemption and reduction and loss amounts to be subtracted from taxable
income and notify them in writing to the tax offices when submitting the annual
enterprise income tax declarations.
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In a period, if there appears an income
amount eligible for tax exemption and/or reduction under different cases,
business establishments shall select by themselves the most beneficial tax
exemption and reduction cases and notify the tax offices thereof.
Chapter VI
COMMENDATION
AND HANDLING OF VIOLATIONS
Article 48.- Tax offices and tax officials that well fulfill their
assigned tasks; business establishments as well as other organizations and
individuals that record achievements in the implementation of the Law on
Enterprise Income Tax shall be commended and/or rewarded according to the
State’s general commendation and reward regime.
Article 49.- Business establishments, tax offices and other individuals,
that violate the Law on Enterprise Income Tax shall, depending on their
violation acts and seriousness, be handled according to Articles 23 and 25 of
the Law on Enterprise Income Tax and the legal documents on sanctions against
administrative violations in the field of taxation.
Chapter VII
IMPLEMENTATION
PROVISIONS
Article 50.- This Decree takes effect 15 days after its publication in
the Official Gazette and applies to tax-calculation period from 2004.
The Government’s Decree No. 30/1998/ND-CP of
May 13, 1998 and Decree No. 26/2001/ND-CP of June 4, 2001 detailing the
implementation of the Law on Enterprise Income Tax shall cease to be effective
as from January 1, 2004.
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To annul the regulations on preferences
regarding enterprise income tax rates, exemption and reduction prescribed in
the Government’s Decree No. 51/1999/ND-CP of July 8, 1999 and Decree No.
35/2002/ND-CP of March 29, 2002 detailing the implementation of the Law on
Domestic Investment Promotion and the provisions on enterprise income tax in
the Government’s Decree No. 81/2002/ND-CP of October 17, 2002 detailing the
implementation of the Law on Science and Technology.
To annul the
regulations on tax on land use right transfer, applicable to business
establishments prescribed in the Government’s Decree No. 19/2000/ND-CP of June
8, 2000 detailing the implementation of the Law on Tax on the Transfer of Land
Use Right and the Law Amending and Supplementing a Number of Articles of the
Law on Tax on the Transfer of Land Use Right.
2. Foreign-invested enterprises, which have
been granted investment licenses, and domestic business establishments, which
have been granted investment preference certificates, shall continue enjoying
the enterprise income tax preferences stated in their investment licenses or
investment preference certificates. In cases where the preferential rates
inscribed in their investment licenses or investment preference certificates
are lower than the preferential enterprise income tax rates under the
provisions of this Decree, the business establishments shall enjoy the
preferential enterprise income tax rates under this Decree for the remaining
duration. For foreign-invested enterprises, if the duration eligible for tax
preferences under investment licenses has expired, they shall shift to the tax
rate of 25%; for cases where the tax rate of 25% is being applied, they shall
continue enjoying this tax rate till the expiration of their licenses. Domestic
business establishments with the duration of enjoying the preferential
enterprise income tax rates having expired and other domestic business
establishments being subject to the tax rate of 32%, shall shift to the tax
rate of 28% as from January 1, 2004.
3. The settlement of tax-related problems,
tax settlement, exemption and reduction, and handling of administrative
violations related to enterprise income tax arising before January 1, 2004
shall comply with corresponding provisions of legal documents on enterprise
income tax, foreign investment in Vietnam, domestic investment promotion and
other legal documents already issued before the effective date of this Decree.
Article 51.- The Ministry of Finance shall guide the implementation of
this Decree.
The ministers, the heads of the
ministerial-level agencies, the heads of the agencies attached to the
Government and the presidents of the provincial/municipal People’s Committees shall
have to implement this Decree.
ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Phan Van Khai
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APPENDIX
(Issued together with the Government’s Decree No. 164/2003/ND-CP of December
22, 2003 detailing the implementation of the Law on Enterprise Income Tax)
List A
BRANCHES,
LINES AND DOMAINS ELIGIBLE FOR INVESTMENT PREFERENCES
Investment projects in the following
branches, lines and/or domains shall be eligible for preferences:
I. Afforestation, zoning for forest
regeneration; planting perennial trees on unused land, bare hills or mountains;
land reclamation; salt-making; and aquaculture in unexploited water areas:
1. Forest planting, tending.
2. Planting long-term industrial trees or
fruit trees on unused land, bare hills or mountains.
3. Land reclamation in service of
agricultural, forestry or fishery production.
4. Producing, exploiting and refining salt.
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II. Infrastructure construction, mass-transit
development; development of education and training, healthcare and national
culture:
1. Investing in the construction and
modernization of electric power plants as well as electricity distribution and
transmission. Building establishments operated by solar energy, wind power and
bio-gas.
2. Investing in the construction of water
plants and water-supply systems in service of daily-life and industrial
activities; investing in the construction of water-drainage systems
3. Investing in the construction and
modernization of bridges, roads, inland waterways, railways, airports, harbors,
railway stations, car terminals, and car-parks;
4. Building technical infrastructures in
concentrated population quarters in geographical areas defined in List B or
List C, issued together with this Decree.
5. Developing mass transit: investing in
railway and sea transport means, land passenger transport by over-17 seat cars,
and waterway passenger transport by motorized means.
6. Investing in the provision of Internet
connection, accession and application services in geographical areas defined in
List B and List C, issued together with this Decree; providing services of
postal articles and parcels.
7. Opening semi-public, people-founded and
private schools at different levels: pre-school education, general education,
intermediate vocational education, as well as collegial and university
training.
8. Setting up job-training establishments and
establishments for raising workers’ professional skills.
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10. Setting up people-founded and private
hospitals for medical examination and treatment, setting up establishments for
epidemic prevention and combat; setting up social-relief centers for caring for
disabled people and orphans and geriatric centers.
III. Export goods production and trading:
Projects for production of, and trading in,
export goods with the export value exceeding 50% of the total value of goods
produced and/or traded in a fiscal year.
IV. Offshore fishing; processing of
agricultural, forestry and aquatic products; technical services in direct
service of agricultural, forestry and fishery production
1. Offshore fishing.
2. Processing farm produce from domestic raw
materials: processing livestock and poultry; processing and preserving
vegetables and fruits; producing vegetable oils, essential oils and fats;
producing milk and dairy products; producing crude powder; producing feeds for
livestock, poultry and aquatic animals; producing bottled and canned fruit
juices.
3. Producing pulp, paper, cardboard and
artificial boards directly from domestic agricultural and forestry raw materials.
4. Processing and preserving aquatic products
from domestic raw materials.
5. Services in support of planting
agricultural, industrial and forestry trees; activities in support of husbandry
and forestry; aquacultural services; services of protection of domestic
animals; hybridization and multiplication of new strains and breeds; services
of preserving agricultural, forestry and aquatic products; building warehouses
for preservation of agricultural, forestry and aquatic products.
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1. Investing in the construction of technical
establishments and works: laboratories and experimental stations for
application of new technologies to production; producing new as well as rare
and precious materials.
2. Investing in the production of computers
and software products.
3. Providing services of information
technology research and training human resources in information technology
industry.
4. Investing in the production of
semiconductors and electronic components; producing telecommunication and
Internet equipment; applying new technologies to the production of information
and telecommunication equipment.
5. Applying high technologies; applying new
biological technologies to healthcare, production of plant varieties, animal
breeds, bio-fertilizers, bio-insecticides, and veterinary vaccines; garbage
gathering, treatment of waste and environmental pollution, recycling of
discarded materials and waste.
6. Applying technologies using or producing
machinery and equipment operated by bio energy, wind power, solar, geothermal
or tidal energy.
7. Providing consultancy on legal matters,
investment, business, business administration, scientific and technological
consultancy; intellectual property right protection and technology transfer.
VI. Other branches and lines:
1. Planting sugarcane, cotton and tea in
service of processing industry; planting pharmaceutical plants; producing plant
varieties and animal breeds.
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3. Raising livestock, poultry and aquatic
animals under programs on agricultural restructuring at farm or larger scales.
4. Producing base chemicals, pure chemicals,
special-use chemicals and dyes.
5. Investing in the production of medicines
for human use; medical equipment, orthopedic equipment, vehicles and devices
for disabled people; building warehouses for preservation of pharmaceuticals;
reserving curative medicines for human use for prevention and combat of flood
and storms, natural disasters and dangerous epidemics; plant protection drugs,
preventive and curative drugs for domestic animals and aquatic animals.
6. Investing in the production of medium- and
high-voltage electricity devices; diesel engines; equipment, machinery and
spare parts for transport ships and fishing ships; machine tools, machinery,
equipment and spare parts in service of agricultural and forestry production;
foodstuff-processing machines; machinery for textile and garment industry;
machinery for leather industry; machinery for mine exploitation; construction
machines; industrial robots; locomotives and carriages; assorted automobiles
and spare parts; generators; precise mechanical equipment; equipment and
machinery for safety inspection and control in industrial production; producing
moulds for metal and non-mental products; ship building and repair; producing
waste-treating equipment and key industrial products under the Prime Minister’s
decision in each period.
7. Producing high-quality steels, alloys,
non-ferrous metals, rare and precious metals and porous irons for industrial
use; producing special-type cement, sound-proof, and electric-insulated and
heat-resistant materials, wood substitute composite materials, construction
plastic, glass fibers, fire-proof materials; coke, activated chars;
producing fertilizers.
8. Traditional lines of producing handicrafts
and fine art articles: carving; mother-of-pearl inlaying; lacquer ware;
intaglio; products made of rattan and bamboo; carpet making, silk weaving,
brocade weaving, lacework, embroidery; pottery and ceramics; producing fine art
bronze articles and poonah paper.
9. Investing in the construction of grade-1
marketplaces and exhibition sites; trade promotion; securities trading
activities; capital mobilization and lending by people’s credit funds.
10. Maritime, airway, railway, land-road and
inland waterway services.
11. Investing in the construction of national
tourist sites, eco-tourism resorts; national parks; investing in the
construction of cultural parks for physical training, sports, recreation and
entertainment activities.
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13. Making investments in the forms of
build-operate-transfer (BOT); build-transfer-operate (BTO); and build-transfer
(BT) contracts.
List B
GEOGRAPHICAL
AREAS MEETING WITH SOCIO-ECONOMIC DIFFICULTIES, WHICH ARE ENTITLED TO
INVESTMENT PREFERENCES
I. Districts of highland provinces:
1. Bac Kan province
- Bac Kan provincial capital.
2. Cao Bang province
- Cao Bang provincial capital.
3. Ha Giang province
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- Ha Giang provincial capital.
4. Lai Chau province
- Dien Bien Phu provincial town
- Dien Bien rural district
- Lai Chau provincial capital.
5. Lao Cai province
- Bao Thang rural district
- Cam Duong provincial town
- Lao Cai provincial capital
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- Mai Son rural district
- Son La provincial capital
- Yen Chau rural district.
II. Rural districts of mountainous and delta
provinces
7. Bac Giang province
-Luc Ngan rural district
- Luc Nam rural district
- Yen The rural district.
8. Hoa Binh province
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- Ky Son rural district
- Lac Son rural district
- Luong Son rural district
- Lac Thuy rural district
- Tan Lac rural district
- Yen Thuy rural district
- Cao Phong rural district.
9. Lang Son province
- Bac Son rural district
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- Chi Lang rural district
- Huu Lung rural district
- Loc Binh rural district
- Trang Dinh rural district
- Van Lang rural district
- Van Quan rural district.
10. Phu Tho province
- Doan Hung rural district
- Ha Hoa rural district
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- Thanh Ba rural district
- Tam Thanh rural district
- Phu Ninh rural district.
11. Quang Ninh province
- Hoang Bo rural district
- Mong Cai rural district
- Tien Yen rural district
- Van Don rural district
- Hai Ha rural district
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12. Tuyen Quang province
- Ham Yen rural district
- Son Duong rural district
- Yen Son rural district
- Tuyen Quang provincial capital.
13. Thai Nguyen province
- Dong Hy rural district
- Dai Tu rural district
- Dinh Hoa rural district
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14. Yen Bai province
- Tran Yen rural district
- Van Yen rural district
- Van Chan rural district
- Yen Binh rural district
- Nghia Lo provincial town.
15. Binh Phuoc province
- Dong Phu rural district
- Phuoc Long rural district
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- Chon Thanh rural district.
16. Dak Lak province
- Cu Jut rural district
- Cu M’gar rural district
- Dak RLap rural district
- Dak Mil rural district
- Ea H’ Leo rural district
- Ea Kar rural district
- Krong Pac rural district
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- Krong A na rural district
- Krong Nang rural district.
17. Gia Lai province
- An Khe rural district
- Ayun Pa rural district
- Chu Se rural district.
18. Kon Tum province
- Kon Tum provincial capital
19. Lam Dong province
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- Cat Tien rural district
- Di Linh rural district
- Da Teh rural district
- Don Duong rural district
- Duc Trong rural district
- Da Huoai rural district
- Lam Ha rural district.
20. Binh Thuan province
- Bac Binh rural district
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- Ham Thuan Bac rural district
- Tanh Linh rural district
- Ham Thuan Nam rural district.
21. Binh Dinh province
- Hoai An rural district
- Phu My rural district
- Phu Cat rural district
- Tay Son rural district.
22. Hai Duong province
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- Kinh Mon rural district.
23. Ha Tinh province
- Huong Khe rural district
- Huong Son rural district
- Ky Anh rural district
- Nghi Xuan rural district
- Vu Quang rural district.
24. Ninh Binh province
- Tam Diep provincial town
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- Yen Mo rural district.
25. Nghe An province
- Anh Son rural district
- Nghia Dan rural district
- Tan Ky rural district
- Thanh Chuong rural district.
26. Ninh Thuan province
- Ninh Hai rural district
- Ninh Phuoc rural district.
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- Song Cau rural district
- Tuy Hoa rural district
- Tuy An rural district.
28. Quang Tri province
- Dak Rong rural district
- Vinh Linh rural district
- Gio Linh rural district
- Cam Lo rural district
- Trieu Phong rural district
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29. Quang Nam province
- Dai Loc rural district
- Que Son rural district.
30. Quang Ngai province
- Nghia Hanh rural district
- Son Tinh rural district.
31. Thanh Hoa province
- Thach Thanh rural district.
32. Thua Thien Hue province
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- Quang Dien rural district
- Phong Dien rural district
- Huong Tra rural district
- Phu Loc rural district
- Phu Vang rural district.
33. An Giang province
- An Phu rural district
- Tri Ton rural district
- Tinh Bien rural district
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34. Bac Lieu province
- Bac Lieu provincial capital
- Vinh Loi rural district.
35. Ca Mau province
- Thoi Binh rural district
- Tran Van Thoi rural district
- Cai Nuoc rural district
- Dam Doi rural district
- Ngoc Hien rural district.
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- Dinh Quan rural district
- Tan Phu rural district
- Xuan Loc rural district
- Long Khanh rural district.
37. Kien Giang province
- Chau Thanh rural district
- Hon Dat rural district
- Giong Rieng rural district
- An Minh rural district
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- Ha Tien rural district
- Kien Luong rural district.
38. Khanh Hoa province
- Van Ninh rural district
- Cam Ranh rural district
- Dien Khanh rural district.
39. Soc Trang province
- Long Phu rural district
- My Xuyen rural district
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- Cu Lao Dung rural district.
40. Tra Vinh province
- Cau Ngang rural district
- Cau Ke rural district
- Tieu Can rural district.
41. Vinh Phuc province
- Lap Thanh rural district
- Tam Duong rural district
- Binh Xuyen rural district.
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- Long My rural district
- Vi Thuy rural district
- O Mon rural district.
43. Tay Ninh province
- Tan Bien rural district
- Tan Chau rural district
- Chau Thanh rural district
- Ben Cau rural district.
44. Thai Binh province
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45. Long An province
- Duc Hue rural district
- Tan Hung rural district
- Vinh Hung rural district
- Moc Hoa rural district
- Tan Thanh rural district
- Duc Hoa rural district.
46. Dong Thap province
- Hong Ngu rural district
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- Tam Nong rural district
- Thap Muoi rural district.
47. Tien Giang province
- Tan Phuoc rural district.
48. Quang Binh province
- Quang Ninh rural district
- Le Thuy rural district
- Bo Trach rural district
- Quang Trach rural district.
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- Chau Duc rural district
- Xuyen Moc rural district.
50. Vinh Long province
- Tra On rural district
- Tam Binh rural district
- Binh Minh rural district.
51. Ha Noi city
- Soc Son rural district.
52. Ho Chi Minh city
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- Nha Be rural district.
53. Ben Tre province
- Thanh Phu rural district
- Ba Tri rural district
- Binh Dai rural district.
54. Bac Ninh province
- Gia Binh rural district
- Que Vo rural district.
55. Ha Tay province
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56. Da Nang city
- Hoa Vang rural district.
57. Ha Nam province
- Thanh Liem rural district
58. Hung Yen province
- An Thi rural district
- Phu Cu rural district
- Tien Lu rural district.
59. Binh Duong province
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List C
GEOGRAPHICAL AREAS
MEETING WITH SPECIAL SOCIO-ECONOMIC DIFFICULTIES, WHICH ARE ENTITLED TO
INVESTMENT PREFERENCES
I. Rural districts of highland or and island
provinces
1. Bac Kan province
- Ba Be rural district
- Bach Thong rural district
- Cho Moi rural district
- Cho Don rural district
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- Na Ri rural district
- Pac Nam rural district.
2. Cao Bang province
- Bao Lac rural district
- Ha Lang rural district
- Ha Quang rural district
- Hoa An rural district
- Nguyen Binh rural district
- Quang Uyen rural district
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- Tra Linh rural district
- Thach An rural district
- Trung Khanh rural district
- Phuc Hoa rural district.
3. Ha Giang province
- Bac Me rural district
- Dong Van rural district
- Hoang Su Phi rural district
- Meo Vac rural district
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- Vi Xuyen rural district
- Xin Man rural district
- Yen Minh rural district.
4. Lai Chau province
- Muong Lay rural district
- Muong Te rural district
- Phong Tho rural district
- Tua Chua rural district
- Tuan Giao rural district
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- Dien Bien Dong rural district
- Muong Nhe rural district
- Tam Duong rural district.
5. Lao Cai province
- Bac Ha rural district
- Bat Sat rural district
- Muong Khuong rural district
- Than Uyen rural district
- Van Ban rural district
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- Bao Yen rural district.
6. Son La province
- Bac Yen rural district
- Moc Chau rural district
- Muong La rural district
- Quynh Nhai rural district
- Thuan Chau rural district
- Song Ma rural district
- Phu Yen rural district.
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- Phu Quy rural district.
8. Ba Ria-Vung Tau province
- Con Dao rural district.
9. Da Nang city
- Hoang Sa island district.
10. Hai Phong city
- Bach Long Vi island district
- Cat Hai island district.
11. Khanh Hoa province
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12. Kien Giang province
- Kien Hai island district
- Phu Quoc island district.
13. Quang Ninh province
- Co To island district.
14. Quang Ngai province
- Ly Son rural district.
II. Rural districts of mountain provinces and
regions inhabited by ethic minority people
15. Bac Giang province
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16. Hoa Binh province
- Da Bac rural district
- Mai Chau rural district.
17. Lang Son province
- Binh Gia rural district
- Dinh Lap rural district.
18. Phu Tho province
- Thanh Son rural district
- Yen Lap rural district.
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- Ba Che rural district
- Binh Lieu rural district.
20. Tuyen Quang province
- Chiem Hoa rural district
- Na Hang rural district.
21. Thai Nguyen province
- Vo Nhai rural district.
22. Yen Bai province
- Luc Yen rural district
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- Tram Tau rural district.
23. Dak Lak province
- Dak Nong rural district
- Krong No rural district
- Krong Bong rural district
- Lak rural district
- Buon Don rural district
- M’Drak rural district
- Ea Sup rural district
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24. Gia Lai province
- Duc Co rural district
- K’Bang rural district
- K’Rong Pa rural district
- Kon Ch’ro rural district
- Mang Yang rural district
- Ia Grai rural district
- Chu Prong rural district
- Chu Pah rural district.
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- Dak To rural district
- Dak Glei rural district
- Kon Phong rural district
- Sa Thay rural district
- Dak Ha rural district
- Ngoc Hoi rural district
- Kon Ray rural district.
26. Lam Dong province
- Lac Duong rural district.
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- An Bien rural district
- Go Quao rural district
- Vinh Thuan rural district.
28. Soc Trang province
- My Tu rural district
- Thanh Tri rural district
- Vinh Chau rural district.
29. Tra Vinh province
- Chau Thanh rural district
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30. Binh Dinh province
- An Lao rural district
- Vinh Thanh rural district
- Van Canh rural district.
31. Khanh Hoa province
- Khanh Vinh rural district.
- Khanh Son rural district.
32. Ninh Thuan province
- Ninh Son rural district.
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- Tan Thanh rural district.
34. Bac Lieu province
- Hong Dan rural district.
35. Binh Phuoc province
- Bu Dang rural district
- Loc Ninh rural district
- Bu Dop rural district.
36. Ca Mau province
- U Minh rural district.
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- Quan Hoa rural district
- Ba Thuoc rural district
- Lang Chanh rural district
- Thuong Xuan rural district
- Quan Son rural district
- Muong Lat rural district
- Nhu Xuan rural district
- Ngoc Lac rural district
- Cam Thuy rural district
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38. Nghe An province
- Ky Son rural district
- Tuong Duong rural district
- Con Cuong rural district
- Que Phong rural district
- Quy Hop rural district
- Quy Chau rural district.
39. Quang Binh province
- Minh Hoa rural district
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40. Quang Tri province
- Huong Hoa rural district.
41. Thua Thien Hue province
- A Luoi rural district.
42. Quang Nam province
- Dong Giang rural district
- Tay Giang rural district
- Giang rural district
- Phuoc Son rural district
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- Nam Tra My rural district
- Hiep Duc rural district
- Tien Phuoc rural district
- Nui Thanh rural district.
43. Quang Ngai province
- Ba To rural district
- Tra Bong rural district
- Son Tay rural district
- Son Ha rural district
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- Binh Son rural district.
44. Phu Yen province
- Son Hoa rural district
- Song Hinh rural district
- Dong Xuan rural district.-