Dong Nai Portal

Industrial zones’ names	Area	Hire price of land with infrastructure (USD/m2/year)
		First 5 years		From the sixth year on
		Land price	Fee of infrastructure	Land price	Fee of infrastructure
Amata Industrial Zone	361 ha	Negotiated price		Negotiated price
Loteco Industrial Zone	100 ha	Negotiated price		Negotiated price
Bien Hoa 1 Industrial Zone	335 ha	0,80	0,40	0,80	0,40
Bien Hoa 2 Industrial Zone	365 ha	2,25	1,00	2,25	0,50
Long Thanh Industrial Zone	510 ha	0,05	22USD/50years	0,05	22USD/50years
Tam Phuoc Industrial Zone	323 ha	Negotiated price		Negotiated price
An phuoc Industrial Zone	130 ha	Negotiated price		Negotiated price
Go Dau Industrial Zone	184 ha	1,00	1,00	1,00	0,75
Song May Industrial Zone	227 ha	0,09	1,45	0,09	1,01
Ho Nai Industrial Zone	230 ha	0,09	1,45	0,09	1,01
Nhon Trach 1 Industrial Zone	430 ha	0,09	1,45	0,09	1,01
Nhon Trach 2 Industrial Zone	350 ha	0,09	1,45	0,09	1,01
Nhon Trach 3 Industrial Zone	720 ha	0,09	1,45	0,09	1,01
Nhon Trach 5 Industrial Zone	302 ha	0,09	1,45	0,09	1,01
Nhon Trach Textile Industrial Zone (Vinatex-Tan Tao)	184 ha	Negotiated price		Negotiated price
Dinh Quan Industrial Zone	54ha	Negotiated price		Negotiated price

 

Note: It’s up to the area of  the project, the land price can be adjusted with the agreement from the enterprises that are investing into the infrastructure of the zone.

1.2. Other areas:

In towns and cities, the land price ranks from 0,09 - 9,6 USD/m2/year depending on the location, other areas, which have no infrastructure, the land price is from 0,01- 0,09 USD/m2/year, in which the popular price is from 0,030- 0,045 USD/m2/year. In mountainous, poor land area, the land price is from 0,003- 0,010 USD/m2/year for projects that do not belong to the fields of industrial production, services, travel, trade, mineral exploitation..

1.3. The exemption and reduction on land-lease rent:

- Land-lease rent exemption is applied in the time when the enterprises are in the period of basic construction.

- Land-lease rent exemption is applied in case that the enterprises face difficulties and stop the projects.

- After the period of basic construction, the enterprises will be exempted from land-lease rent for 7 years (applied for plans invested into the difficult area in List B, or plans in the occupational list promoted by Vietnamese Government or in the occupational list that is specially encouraged to invest into).

2. Incentive to the income of enterprise

(According to the Decree 164/2003/NĐCP on 22/12/2003, the Decree 152/2004/NĐCP on 06/8/2004 of our Government and Decision 53/2004/QĐ.TTg on 5/4/2004 of the Prime Minister)

2.1. In the industrial zones, the processing and exported zones and high-tech zones 

Investment fields	Enterprise income tax
Services in the industrial zones	20% in 10 years, a full remission of 2 years and a remission of 50% in the following 6 years. From the 11th year on, the tariff is 28%.
Production in the industrial zones (IZ), Services in the processing and exporting zones (PEZ)	15% in 12 years, a full remission in 3 years and a remission of 50% in the 7 following years. From the 13th year on, the tariff is 28%.
Enterprises in IZ and PEZ	10% in 15 years, a full remission in 4 years an 50% in the following 7 years. From the 16th year on, the tariff is 28%.
Projects of specially promoted field	10% in 15 years, a full remission in 4 years and 50% in the following 9 years. From the 16th year on, the tariff is 28%.
High tech enterprises investing into high tech zone	10% in the period of operation, a full remission in 4 years an 50% in the following 9 years.

              2.2. Other locations:

           2.2.1. Tariff of incentive enterprise tax:

- A tariff of 20% is applied in 10 years from the beginning of operation for projects of the fields promoted by the Government, or in areas mentioned in List.

- A tariff of 15% is applied in 12 years from the beginning of operation for projects of the fields both promoted by the Government and in List B.

- A tariff of 10% is applied in 15 years from the beginning of the operation for projects invested in the infrastructure of the industrial zones, the processing and exported zones; projects of the specially promoted fields; projects of sickness examination and treatment, education and training and scientific researches; Once higher promotion is needed, the Government decide to apply a tariff of 10% during the time the projects are in operation.

(After the time of the incentive tariff application, the enterprises pay their taxes at a tariff of 28%).

2.2.2. Duration for exemption from Enterprise Income tax:

- New investment projects (no discrimination of invested fields and areas) get a full remission in 02 years, (from the day having income under tax) and a remission of 50% tax for the 02 following years.

- Projects on infrastructure development in IZ and PEZ get a full remission in 04 years, and a remission of 50% tax for the 07 following years.

- Projects of the models of BOT, BTO, BT; projects of specially promoted fields; projects of sickness examination and treatment, education and training and scientific researches get a full remission in 04 years and a remission of 50% tax for the 09 following years.

- Other cases, depending on the projects on the fields that are promoted by the Government, investment areas, or using ethnic labour will get a full remission from 2 to 4 years, and a remission of 50%  in from 3 to 9 years.

- In addition, the Government will consider to have favourable treatment for the projects on investment of scale expanding, technology shift, environmental improving, production ability upgrading; projects to have exported productions and some special cases as regulation.

- When paying tax, if the projects are at loss, the loss will be transmitted into the income under tax of the following years. The time for loss transmission is not as far as 5 years..

3. INDIVIDUAL INCOME TAX

(According Decree 147/2004/NĐCP on 23/7/2004)

Individual income tax in Viet Nam is applied with high- income people. Income that has to pay tax consists of regular income and irregular income, it is paid according to the following specific tax rate:

3.1 Tax rate for regular income:

- For Vietnamese and people from other countries who are settling in Viet Nam apply every section progressive tariff as follow:       

 

Grade	Average income of 1 person/ month	Tax rate (%)
1	VND 5 million	0
2	From VND 5 to 15 million	10
3	From VND 15 to 25 million	20
4	From VND 25 to 45 million	30
5	Above VND 40 million	40

   

      - For foreigners who are living in Viet Nam and Vietnamese who are working abroad apply every section progressive tariff as follow:

 

Grade	Average income of 1 person/ month	Tax rate (%)
1	VND 8 million	0
2	From VND 8 to 20 million	10
3	From VND 20 to 50 million	20
4	From VND 50 to 80millon	30
5	Above VND 80 million	40

- For foreigners who are not living in Viet Nam apply the tax rate of 25% of general income.

3.2 Tax rate for irregular income are determined on general income

- Tax rate of 5% for income from technology conversion.

- Tax rate of 10% for income from lottery winning and promotional winning.

4. IMPORTED TAX:

(According to the Decrees 57, 58, Decree 24/2000/NĐCP on 31/7/2000 and the Decree 27/2003/NĐCP on 19/3/2000)

4.1. The enterprises will be under no imported tax for goods to make fixed properties, including:

+ Equipment, machines;

+ Specially made means of transport in the lines of technologies and for worker carriage (car of 24 seats or more, transportation of waterway);

+ Parts, spare parts, disconnected organs, supporting items, patterns, contrivance, extra objects of equipment, machines, means of transportation and the specially made means of transportation as mention in clause b.

+ Imported materials and means to make equipment, machines in the technology lines or to make parts and spare parts, disconnected organs, supporting items, patterns, contrivance, extra objects of equipment, machines;

+ Construction materials that haven’t produced in our country.

4.2. Imported materials to carry out projects with the models of BOT, BTO, BT; races of plants and animals, special agri-medicine imported to carry out projects of agriculture, forestry, fishery are under no imported taxes.

4.3. Enterprises investing in fields of hotels, offices, houses, services, travel…get remission as ruled in clause 1, except equipment gets free imported tax once as the regulation.

4.4. Enterprises investing in the remote areas, or projects belonging to the specially promoted fields are under no imported taxes for production materials, means, parts and spare parts in 5 years, calculating from the day of operation.

4.5. Enterprises investing into parts, mechanical spare parts, electricity, electronic are under no imported taxes for production materials, parts in 5 years, calculating from the day of operation.

4.6. Materials, disconnected parts, extra objects and means imported to manufacture exported goods are under no imported

4.7. Goods and other means used for the specially encouraged investment fields as the Prime Minister’s decision are under no imported taxes.

4.8. Enterprises are temporally delayed imported taxes for the imported materials and means used to produce exported products in a defined period. When the products are exported, the taxes on the imported materials and means are refunded with a rate corresponding to the rate of exported production.

5. INCENTIVE OF VALUE ADDED TAX

(According to the Decree 60, Decree 24/2000/NĐCP on 31/7/2000, Decree 27/2003/NĐCP on 19/3/2000, clause 7 of the decree 158/2003/NĐ-CP on 10 /12 / 2003 and Decree 148/NĐCP on 23/7/2004)

5.1. Enterprises are temporally delayed imported taxes for the imported materials and means used to produce exported products in the period of delaying imported tax as regulations.

5.2. Enterprises are under no imported taxes for:

- Equipment, machines, specially made means of transportation in the line of technologies which haven’t been manufactured in our country to build fixed properties of the enterprises.

In cases of the line of equipment, synchronous machines in the categories of no value added tax, among which there are kinds of equipment, machines manufactured in our country, no value added taxes are applied  for the whole line of equipment, synchronous machines;

- Construction means that can’t be manufactured in our country to make fixed properties of the enterprises.

- Imported materials to manufacture products to provide for the industries directly make exported goods.

5.3. A tariff of 0% for the exported goods and services

- Imported services include: services directly provided to organizations, individuals over sea and services used outside the border of Vietnam; services provided to processing and exporting enterprises (except international transportation, goods, services directly provided to international transportation; services of over sea travel; services of re-assurrance to abroad; credits, financial investment, investing stock to abroad).

- Imported goods include: goods exported to abroad, goods exported to the processing and exporting zones and other specific cases are considered as exported as the decision of the government (except exported products are natural resources of crude minerals).

5.4. Others, depending on the fields of operation, VAT includes 2 scales: 5% and 10%.

The tariff of 5% is mainly applied for goods and services in fields:

-  Pure water for household use and production.

- Agricultural products, manufacturing agricultural products, products used in agriculture.

- Products served for culture, health care and education.

- Scientific and technological services.

- Coal, soil, rock, sand, gravel, basic chemicals, mechanical products, products of metallurgy, lamination, pull of ferrous and nonferrous and precious metals.

- Machines of automatic treatment of data and their spare parts (including computers and their spare parts).

(Other goods and services are under a tariff of 10%)

6. SPECIAL CONSUMPTION TARIFFS

 

No	Commodities, services	Tariffs (%)
I.	Commodities
1.	Cigarettes, cigars
	a) Filter cigarettes produced mainly from imported raw materials, cigars	65
	a) Filter cigarettes produced mainly from domestic raw materials	45
	b) Cigarettes without filters	25
2.	Alcohols
	a) Alcohol of more than 40 0	75
	b) from 20 to 40 0	30
	c) Below 20 0, liquors	20
3.	Beers
	a) Bottled, canned, draught beers	75
	b) Draft beers	30
4.	Automobiles
	a) Automobiles of less than 5 seats	80
	b) Automobiles of 6 to 15 seats	50
	c) Automobiles of 16 to 24 seats	25
5.	Petrol, naphtha, reformade components and other components for petrol preparation	10
6.	Conditioners of less than 90 000 BTU power	15
7.	Gambling	40
8.	Votive papers, votive objects	70
II.	Services
1.	Discothèque, massages, karaoke services	30
2.	Casino, jackpot games	25
3.	Gambling entertainment	25
4.	Golf service, selling membership-card, golf tickets	10
5.	Lottery	15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7. OTHER INCENTIVE IN DONG NAI:

7.1  Projects into the industrial zones in Tân Phú , Định Quán, Xuân lộc, Cẩm Mỹ districts and Long Khánh town: will be exempted from infrastructure fee in five years from the day of beginning operation. In addition, if the projects belonging to the promoted and specially promoted fields as defined from the government are exempted land-lease fee during the time of operation; projects of the other fields are exempted land-lease fee in 15 years since signing of the land-lease contract.

7.2. Enterprises which lease land to build houses for their workers (no trade) are exempted land-lease fee during the time of lease land.