Propose tax exemptions to attract strategic technology

According to the Draft Law on Science, Technology and Innovation, these investors will be exempted from income tax for 5 years and 50% reduction of payable taxes in the next 10 years.

Foreign investors invest in projects using strategic technology and technology transfer to Vietnamese enterprises will be entitled to 9% preferential income tax rate in 30 years. In addition, they also have 50% reduction of land rent and water surface rent from the date of granting technology transfer certificates.

For technology to encourage transfer, investors are entitled to a 15% preferential tax rate in 20 years, 4 -year income exemption and 50% reduction of payable taxes in the next 9 years. They also have 50% reduction of land rent, water surface for 20 years from the date of being granted technology transfer certificates.

The drafting agency also proposed many policies to support organizations and individuals in Vietnam to receive technology transfer. With strategic technology, Vietnamese units are entitled to a 10% preferential tax rate in 20 years, 5 -year tax exemption and 50% reduction of income tax in the next 9 years. They are also supported with land rent and water surface similar to foreign investors.

In particular, Vietnamese enterprises receive technology transfer technology transfer, storage of carbon, reducing greenhouse gas emissions entitled to a 15% preferential tax rate in 15 years, 4 -year tax exemption and 50% reduction of income tax in the next 9 years. Vietnamese enterprises with investment projects are granted a certificate of technology transfer registration to enjoy a preferential tax rate of 15% in 7 years from the date of taxable income.

The Ministry of Science and Technology expects the above policies to encourage enterprises to apply science, technological innovation, improve production and business efficiency and corporate governance. At the same time, this is also a measure to promote knowledge transfer, training of scientific and technological human resources and innovation through foreign direct investment enterprises (FDI).

The incentives will also attract domestic and foreign businesses in Vietnam, especially in infrastructure investment, research and development investment (R&D); Cooperation in scientific research, technological development with countries with scientific and technological qualifications, and transformation of development numbers.