DECREE

Detailed Implementation Rules for the Law on Corporate Income Tax

THE GOVERNMENT

Pursuant to the Law on Government Organization dated December 25, 2001;
Amending and supplementing some articles of Decree No. 164/2003/NĐ-CP
At the proposal of the Minister of Finance,

DECREE

PART I

SCOPE OF APPLICATION OF CORPORATE INCOME TAX

Article 1. Organizations and individuals engaged in producing and trading goods and services (collectively referred to as business entities) that generate income must pay corporate income tax as prescribed in this Decree.

1. Organizations engaged in producing and trading goods and services include: State-owned enterprises; limited liability companies; joint-stock companies; partnerships; foreign-invested enterprises and Foreign Parties participating in joint venture contracts under the Law on Investment by Foreign Investors in Vietnam; foreign companies and organizations conducting business in Vietnam not under the Law on Investment by Foreign Investors in Vietnam; private businesses; cooperatives; production cooperatives; economic organizations of political organizations, political-social organizations, social organizations, social-professional organizations, and people's armed units; administrative agencies and public institutions with business operations producing and trading goods and services.

2. Domestic individuals engaged in production and business of goods and services include:

a) Individuals and groups of individuals engaged in business;

b) Individual business households;

c) Independent professionals: doctors, lawyers, accountants, auditors, painters, architects, musicians, and other independent professionals;

d) Individuals leasing assets such as houses, land, transportation means, machinery and equipment, and other types of assets.

3. Foreign individuals conducting business and generating income in Vietnam, regardless of whether the business activities are carried out in Vietnam or abroad.

4. Overseas companies conducting business through a permanent establishment in Vietnam.

A permanent establishment is a business entity through which an overseas company carries out part or all of its business activities in Vietnam that generate income. The main forms of a permanent establishment of an overseas company include:

a) Branches, management offices, factories, production workshops, warehouses, transportation means, mines, oil wells or gas fields, exploration sites or natural resource extraction sites, or equipment and means serving natural resource exploration;

b) Construction sites; construction projects, installation, assembly projects; construction supervision activities, construction projects, installation, and assembly;

c) Service-providing entities, including consulting services provided through employees or another entity;

d) Agents for overseas companies;

đ) Representatives in Vietnam in the following cases:

- Having authority to sign contracts in the name of the overseas company;

- Not having authority to sign contracts in the name of the foreign company but regularly delivering goods or providing services in Vietnam.

In the case where a Double Taxation Avoidance Agreement signed by the Socialist Republic of Vietnam provides different provisions regarding permanent establishments, those provisions shall be followed.

Article 2. Entities not subject to corporate income tax include household families, individuals, production cooperatives, agricultural cooperatives generating income from crop production, animal husbandry, and aquaculture products, except for large-scale farming households and high-income individuals.

The payment of corporate income tax for large-scale farming households and high-income individuals generating income from crop production, animal husbandry, and aquaculture products will be regulated separately. The Ministry of Finance shall take the lead, coordinate with the Ministry of Agriculture and Rural Development, and the Ministry of Fisheries to submit regulations on the payment of corporate income tax applicable to these entities to the Government for issuance.

Chapter II

BASIS FOR TAXATION AND TAX RATE

Article 3. The tax base is the taxable income during the tax period and the tax rate.

The corporate income tax period is determined according to the Gregorian calendar year or the fiscal year.

Article 4. Revenue for calculating taxable income is determined as follows:

1. Revenue for calculating taxable income includes all proceeds from sales and service provision, including subsidies, surcharges, and premiums that the business entity enjoys, regardless of whether payment has been received or not.

For businesses subject to value-added tax under the deduction method, revenue for calculating taxable income is revenue excluding value-added tax. For businesses subject to value-added tax under the direct method on value-added, revenue for calculating taxable income includes value-added tax.

2. The time point for determining revenue for calculating taxable income for sales activities and service provision is the time when ownership of goods is transferred, services are completed, or invoices for sales and service provision are issued.

3. Revenue for calculating taxable income in certain cases is specified as follows:

a) Revenue for calculating taxable income for goods sold on installment basis is determined based on the price of goods paid in full, excluding late interest.

b) Revenue for calculating taxable income for goods and services used for exchange, gift, donation, or internal consumption is determined based on the selling price of similar products, goods, or services at the time of exchange, gift, donation, or internal consumption.

c) Revenue for calculating taxable income for processing activities is the money received from processing activities, including labor costs, fuel, power, auxiliary materials, and other expenses serving the processing of goods.

d) Revenue for calculating taxable income for leasing activities is the amount paid by the lessee according to the lease contract. In case the lessee pays rent in advance for multiple years, the revenue for calculating taxable income can be allocated over the number of years paid in advance or calculated as a lump sum payment.

The Ministry of Finance will provide specific guidelines on how to determine advance rental payments for multiple years to calculate taxable income suitable for each type of business entity as stipulated herein.

đ) Revenue for calculating taxable income for credit activities is the interest receivable from loans generated within the tax period.

e) Revenue for calculating taxable income in other cases shall be prescribed by the Ministry of Finance.

Article 5. Reasonable deductible expenses for calculating taxable income include:

1. Depreciation costs of fixed assets used for production and business operations of goods and services. The depreciation rate of fixed assets is determined based on the value of fixed assets and the depreciation period. Businesses with high economic efficiency may accelerate depreciation but not more than twice the standard depreciation rate to quickly update technology.

The Ministry of Finance will prescribe standards for fixed assets, depreciation periods, rates, and accelerated depreciation as stipulated in this clause.

2. Costs of raw materials, materials, fuels, energy, and goods actually used in production and business operations related to revenue and taxable income during the period are calculated based on reasonable consumption levels and actual prices from inventory records established by the business entity, which bears responsibility before the law.

Business entities purchasing products made directly by farmers from bamboo, rattan, straw, coconut, palm leaves; handicrafts from artisans who do not engage in business; land, stone, sand, gravel mined by individuals; scrap collected directly by individuals; and some services provided by non-business individuals without invoices or receipts must prepare a detailed list based on the payment request forms of sellers or service providers. The business entity's director must approve expenditures based on the list and bear legal responsibility for its accuracy and honesty.

3. Wages, salaries, allowances payable to employees according to the Labor Code, meal allowances during work shifts, and fixed meal allowances:

a) Wages, salaries, and allowances payable to employees in state-owned enterprises are included in reasonable expenses according to current regulations.

b) Wages, salaries, and allowances payable to employees in other business entities are included in reasonable expenses according to employment contracts.

c) Meal allowances during work shifts for employees are included in reasonable expenses up to the maximum level of the minimum wage set by the State for civil servants.

d) Fixed meal allowances paid to employees working in certain special industries according to State regulations.

4. Expenses for scientific research, technological innovation, health care, labor training according to prescribed regulations, and educational sponsorship.

5. External service fees: electricity, water, telephone, repair of fixed assets; rental fees for fixed assets; auditing; legal services; design, establishment, and protection of trademarks; asset insurance; payment for technical documents; patents; technology licenses not included in fixed assets, and other external services.

6. Other expenses:

a) Expenses for female workers, including:

- Training costs for female workers transitioning to new jobs if their original jobs are no longer suitable according to the business entity's development plan.

Additional expenses include: tuition fees (if applicable) + salary difference (ensuring 100% salary for those studying).

- Salary and allowance (if applicable) for teachers working in kindergartens organized and managed by enterprises. The number of teachers is determined according to the quota set by the education system.

- Costs for additional health check-ups once a year, such as occupational diseases, chronic illnesses, or gynecological examinations for female workers.

- Allowance for female workers after childbirth. The amount of allowance shall not exceed three hundred thousand Vietnamese dong for business establishments located in cities, towns, and districts, and not more than five hundred thousand Vietnamese dong for business establishments located in areas listed in Appendix B and C accompanying this Decree to assist mothers in overcoming some difficulties due to childbirth.

- During breastfeeding time, if for objective reasons, female workers cannot take leave as prescribed and continue working at the business establishment, they shall be paid overtime compensation according to regulations for the working hours during this period.

For business establishments engaged in production, construction, transportation that employ many female workers, if they can separately account for and track expenses incurred for female workers, they may reduce corporate income tax according to Article 45 of this Decree.

b) Expenditure on labor protection as stipulated by the Labor Code;

For certain business establishments that require employees to wear uniform attire at work, the expenditure on purchasing uniforms shall be considered a reasonable expense.

c) Security expenditure for business establishments; travel expenses;

d) Contributions to social insurance; health insurance under the responsibility of the business establishment employing labor; union fees; expenses supporting activities of the Party and mass organizations within the business establishment; amounts allocated to form sources of management costs for higher levels and funds of associations according to prescribed regulations.

7. Interest payments on loans for production, business, and service activities from credit institutions, financial organizations, and economic organizations based on actual interest rates; interest payments on loans from other entities based on actual interest rates, but not exceeding 1.2 times the lending interest rate of commercial banks at the time of borrowing.

8. Provision for reserves according to prescribed regulations.

9. Severance pay for employees according to prescribed regulations.

10. Expenses related to consumption of goods and services including storage costs, packaging costs, transportation, handling, warehouse rental, product warranty, and service guarantee.

11. Advertising, marketing, promotional, reception, ceremonial, transactional, brokerage commission, conference, and other expenses directly related to the production, business, and service activities are limited to a maximum of ten percent of the total expenses from items 1 to 10 of this Article. For trading activities, the total reasonable expenses for determining the limit do not include the purchase value of sold goods.

12. Taxes, fees, and land lease payments required to be paid in relation to production, business, and service activities (excluding corporate income tax), including:

a) Export duties, import duties;

b) Special consumption taxes;

c) Value-added tax for businesses taxed on value-added directly; value-added tax for businesses taxed on value-added through deduction when purchasing or importing goods or services for production or provision of services not subject to value-added tax; input value-added tax in cases of export of goods or services without conditions to deduct and refund tax according to the Value-Added Tax Law; input value-added tax not deductible due to late declaration beyond the prescribed deadline;

d) Business license tax;

đ) Natural resource tax;

e) Agricultural land use tax;

g) Property tax;

h) Fees and charges as prescribed by law;

i) Land rent;

13. Business management expenses allocated by foreign companies to their permanent establishments in Vietnam based on the ratio of revenue of the permanent establishment in Vietnam to the total revenue of the foreign company including revenue from permanent establishments in other countries.

Permanent establishments of foreign companies in Vietnam that have not implemented accounting, invoices, and tax documentation submission procedures according to the declaration method shall not be considered as reasonable expenses for business management expenses allocated by foreign companies according to the provisions of this paragraph.

Article 6. The following items shall not be included in reasonable expenses:

1. Wages and salaries paid by the business due to non-compliance with labor contracts as stipulated by labor laws, except for cases of hiring workers on a project basis.

Wages and salaries of the owner of a private enterprise, general partners of a limited partnership, individual households, and individuals engaged in business activities, and remuneration paid to founders and board members of limited liability companies and joint-stock companies who do not directly participate in managing production and business operations.

2. Pre-deducted amounts from expenses that were not actually incurred, including pre-deductions for major repairs of fixed assets, warranty fees for products and goods, construction projects, and other pre-deductions.

3. Expenses without invoices or receipts, or with illegal invoices or receipts.

4. Penalties for administrative violations such as traffic law violations, registration system violations, accounting and statistics violations, tax violations, and other administrative violations.

5. Expenses unrelated to revenue and taxable income, such as basic construction investment expenses; support expenses for localities; support expenses for social organizations outside the business; charitable expenses, and other expenses unrelated to revenue and taxable income.

6. Expenses covered by other sources of funding, such as public service expenses; regular and emergency hardship allowances.

Article 7. Reasonable revenues, expenses, and taxable income shall be determined in Vietnamese Dong. In cases where the business has revenues, reasonable expenses, and taxable income in foreign currency, they must be converted into Vietnamese Dong according to the exchange rate published by the State Bank of Vietnam at the time of occurrence of foreign currency revenues and expenses, except where otherwise provided by law. For foreign currencies without an exchange rate against the Vietnamese Dong, conversion must be made through a foreign currency that has an exchange rate against the Vietnamese Dong.

Article 8. Taxable income includes income from production and business activities of goods and services and other income within the tax period, including income obtained from production and business activities of goods and services abroad.

1. Taxable income from production and business activities of goods and services is calculated by deducting (-) reasonable expenses related to production and business activities of goods and services within the tax period from the revenue.

In cases where the business receives income from capital contributions to joint stock, joint ventures, and economic associations, if such income has already been taxed by the entity receiving the capital contribution, the business does not need to pay corporate income tax on this income.

2. Other taxable incomes within the tax period include:

a) Differences from buying and selling securities;

b) Income from activities related to industrial property rights and copyright;

c) Other income from ownership and use of assets;

d) Income from transferring land use rights and land leases;

đ) Profits from transferring and liquidating assets;

e) Interest from deposits, loans, and deferred payment sales;

g) Differences from selling foreign currency and interest from exchange rate differences;

h) Year-end balances of provisions as prescribed;

i) Collection of receivables previously written off but now recovered;

k) Collection of debts owed to unidentified creditors;

l) Income from production and business activities of goods and services from previous years that were overlooked and only discovered later;

m) Income received from production and business activities and services abroad.

If the income received has already been taxed abroad, the business must determine the amount of income before paying foreign income tax to calculate domestic corporate income tax. When determining the total annual tax, the amount of tax paid abroad will be deducted, but the deduction cannot exceed the domestic corporate income tax calculated under the Corporate Income Tax Law for that income.

n) Income from the sale of goods and provision of services not included in revenue, after deducting expenses as prescribed by the Ministry of Finance to generate such income;

o) Other income not detailed in this Article.

3. Where a Double Taxation Avoidance Agreement signed by the Socialist Republic of Vietnam provides a different method for determining taxable income for permanent establishments than the provisions of Clause 1 and Clause 2 of this Article, the provisions of the Agreement shall apply.

Article 9. The corporate income tax rate applicable to business establishments is as follows:

1. The corporate income tax rate applicable to business establishments is 28%.

2. The corporate income tax rate applicable to business establishments conducting exploration, exploitation of oil and gas, and rare resources ranges from 28% to 50%.

The Prime Minister decides the specific tax rate appropriate for each business establishment engaged in exploration, exploitation of oil and gas, and rare resources based on the proposal of the Minister of Finance.

3. For lottery activities, corporate income tax is paid at a rate of 28%. The Ministry of Finance shall specify the financial mechanism applicable to post-tax income from lottery activities.

Chapter III

DETERMINATION OF INCOME SUBJECT TO TAX AND INCOME TAX FROM TRANSFER RIGHTS TO USE LAND AND LEASE RIGHTS TO LAND

Article 10. Income from the following activities of transferring rights to use land and lease rights to land must be subject to income tax from transfer rights to use land and lease rights to land:

1. Cases of transferring rights to use land:

a) Transferring rights to use land without infrastructure or architectural works on the land;

b) Transferring rights to use land together with infrastructure on the land;

c) Transferring rights to use land together with architectural works on the land;

d) Transferring rights to use land together with infrastructure and architectural works on the land.

2. Cases of transferring lease rights to land.

a) Transferring lease rights to land without infrastructure or architectural works on the land;

b) Transferring lease rights to land together with infrastructure on the land;

c) Transferring lease rights to land together with architectural works on the land;

d) Transferring lease rights to land together with infrastructure and architectural works on the land.

Article 11. Cases of transferring rights to use land and lease rights to land that are not subject to income tax from transfer rights to use land and lease rights to land include:

1. State allocation of land or leasing of land to business establishments;

2. Organizations producing goods and services returning land to the state or having land reclaimed by the state according to the provisions of the law;

3. Organizations producing goods and services selling factories together with transferring rights to use land or lease rights to land for relocation according to planning;

4. Organizations producing goods and services contributing capital through rights to use land to cooperate in production and business with domestic and foreign organizations and individuals according to the provisions of the law;

5. Organizations producing goods and services transferring rights to use land and lease rights to land due to division, merger, bankruptcy;

6. Individual business owners transferring rights to use land in cases of inheritance, divorce according to the provisions of the law; transferring rights to use land between spouses; parents and children; grandparents and grandchildren; siblings;

7. Organizations producing goods and services donating rights to use land and lease rights to land to the state or organizations for the construction of cultural, health, sports facilities; transferring rights to use land for charitable purposes benefiting social policy beneficiaries.

Article 12. The entity liable for income tax from transfer rights to use land and lease rights to land is an organization producing goods and services that has income from transferring rights to use land and lease rights to land.

Households and individuals engaged in business and services that have income from transferring rights to use land and lease rights to land are not subject to income tax from transfer rights to use land and lease rights to land under this Decree but are subject to high-income individual income tax.

Article 13. Taxable income from transfer rights to use land and lease rights to land is determined by gross revenue for calculating taxable income minus reasonable expenses related to the activity of transferring rights to use land and lease rights to land.

1. Gross revenue for calculating taxable income is determined based on the actual transfer price between organizations producing goods and services transferring rights to use land and lease rights to land and the party receiving the rights to use land at the time of transfer.

The actual transfer price is determined as follows:

- According to the price stated on the invoice or the actual amount received by the party transferring rights to use land and lease rights to land from the party receiving the rights to use land and lease rights to land.

If the actual transfer price is lower than the price decided by the People's Committee of the province or centrally-administered city, the gross revenue for calculating taxable income from transfer rights to use land and lease rights to land is based on the price decided by the People's Committee of the province or centrally-administered city.

- According to the auction price in the case of auctioning transfer rights to use land and lease rights to land.

Some cases for determining gross revenue for calculating taxable income are as follows:

a) In the case of transferring rights to use land and lease rights to land together with infrastructure on the land, gross revenue for calculating taxable income includes both the revenue from transferring ownership of infrastructure and rental revenue from infrastructure on the land;

b) In the case of transferring rights to use land and lease rights to land together with architectural works on the land, the revenue from selling architectural works on the land must be separated. If separation is not possible, gross revenue for calculating taxable income includes the revenue from selling architectural works on the land.

2. Expenses for transferring rights to use land and lease rights to land:

a) Expenses to acquire rights to use land and lease rights to land include:

- The cost of land transferred is determined as follows:

+ For state-allocated land with payment for land use rights or lease rights, it is based on the receipt of payment for land use rights or lease rights from the state.

+ For land acquired from other organizations or individuals, it is based on the contract and legal receipts for payment when acquiring rights to use land and lease rights to land.

+ In the case where organizations producing goods and services exchange buildings for state-owned land, the cost is determined based on the value of the exchanged building.

+ The auction price in the case of auctioning transfer rights to use land and lease rights to land.

In the case where limited liability companies or joint-stock companies transfer land use rights or lease land, and such land originates from joint venture capital contributions, the capital cost shall be determined based on the minutes of the board of directors' capital contribution.

For land belonging to organizations engaged in production and business of goods and services with origins from inheritance according to civil law; or received as gifts without a determinable capital cost, it shall be determined based on the price of various types of land decided by the People's Committee of provinces and centrally governed cities, based on the Land Price Framework Table prescribed by the Government at the time of inheritance, gift, or donation.

In the case where land belonging to organizations engaged in production and business of goods and services was inherited, received as gifts, or donated before 1994, the capital cost shall be determined based on the price of various types of land decided by the People's Committee of provinces and centrally governed cities in 1994, based on the Land Price Framework Table stipulated in Decree No. 87/CP dated August 17, 1994 issued by the Government.

- Compensation costs for land damage not deducted from land use fees or land rental fees;

- Compensation costs for crop damage;

- Relocation support costs to new residences;

- Relocation support costs for graves;

- Other relocation support costs for land clearance;

- Various fees and charges as prescribed by law related to granting land use rights;

b) Costs for land improvement and site leveling;

c) Construction investment costs for infrastructure and architectural works on the land;

d) Expenses specified in Article 5 of this Decree. In cases where organizations engaged in production and business of goods and services operate in multiple industries, these expenses shall be allocated according to the proportion of revenue from land use right transfers and land rental right transfers over total revenue from production and business activities;

đ) If the income subject to tax includes architectural works on the land, the costs shall include the value of the architectural works on the land;

Article 14. The tax rate for income tax from land use right transfers and land rental right transfers;

1. The tax rate for income from land use right transfers and land rental right transfers is 28%;

2. After calculating the income tax at the rate specified in Clause 1 of this Article, the remaining income must pay additional income tax according to the following progressive tax schedule:

PROGRESSIVE RATE TAX TABLE

Article 15. The preferential tax rate, tax exemption, and tax reduction provisions set forth in Chapter V of this Decree shall not apply to income from land use right transfers and land rental right transfers;

Article 16. Organizations engaged in production and business of goods and services transferring ownership of architectural works on the land, transferring ownership of infrastructure on the land must go through procedures for transferring land use rights and land rental rights together with the infrastructure and architectural structures on the land;

Article 17. Procedures for declaration and payment of taxes for organizations engaged in production and business of goods and services that do not regularly engage in land use right transfers and land rental right transfers are as follows:

Based on the documents and materials regarding land use right transfers and land rental right transfers transferred by the land management agency, the Tax Authority requires organizations engaged in production and business of goods and services to declare revenue, expenses, taxable income, and the amount of tax payable according to the form prescribed by the Ministry of Finance and submit the declaration to the directly managing Tax Authority within 10 days from the date of receipt of the Tax Authority's request. The Tax Authority will verify the accuracy of the tax declaration based on invoices and accounting records of the business and issue a notice of the tax amount and the tax payment deadline. The tax payment deadline stated in the tax notice shall not exceed 15 days from the date of issuance of the tax notice. Only when there is a tax payment receipt or proof of tax payment for the area of land transferred, the transferee of land use rights and land rental rights will be granted the Certificate of Land Use Rights and Land Rental Rights according to the law.

Article 18. Organizations engaged in production and business of goods and services specializing in real estate, infrastructure, and architectural structures on the land shall pay and settle taxes according to the provisions of Chapter IV of this Decree, but they must separately settle the tax on income from land use right transfers and land rental right transfers. If the provisional tax paid is less than the tax payable according to the tax settlement report, the organization engaged in production and business of goods and services must pay the outstanding tax within 10 days from the date of submission of the tax settlement report. If the provisional tax paid exceeds the tax payable according to the tax settlement report, the organization engaged in production and business of goods and services may deduct the excess tax paid from the outstanding corporate income tax of other business activities or deduct it from the corporate income tax payable for land use right transfers and land rental right transfers in the next period. If the land use right transfers and land rental right transfers result in losses, the organization engaged in production and business of goods and services may carry forward the losses to taxable income from land use right transfers and land rental right transfers in subsequent years according to the time limit stipulated in Article 46 of this Decree.

Article 19.The Tax Authority has the right to impose administrative penalties for tax violations on businesses that delay filing tax declarations, finalizing land use rights transfer income tax, and land lease income tax; imposing late payment penalties according to the provisions of the law. During the process of inspecting and auditing tax declarations, finalizing land use rights transfer income tax, and land lease income tax, if it discovers that the transfer prices, costs, and taxable income from land use rights transfer and land lease reported by the business are inaccurate, the Tax Authority has the right to re-determine the transfer price based on the actual market transfer price, reasonable costs, and income to ensure the correct and full collection of land use rights transfer income tax and land lease income tax; at the same time, penalize the business for false declaration and tax evasion according to the provisions of the law.

Chapter IV

REGISTRATION, DECLARATION, PAYMENT, AND SETTLEMENT OF TAXES

Article 20. Businesses are responsible for registering corporate income tax together with the registration of value-added tax payment. The procedures for tax registration shall be carried out in accordance with Article 11 of Decree No. 158/2003/NĐ-CP dated December 10, 2003, of the Government detailing the implementation of the Law on Value Added Tax and the Law Amending and Supplementing Certain Provisions of the Law on Value Added Tax.

Article 21. Businesses are responsible for declaring revenue, expenses, taxable income, total tax payable for the year, divided quarterly according to the tax declaration form of the Tax Authority and submit to the directly managing Tax Authority no later than the 25th day of January each year or the 25th day of the month following the end of the fiscal year for businesses with a fiscal year different from the calendar year. The Ministry of Finance prescribes the corporate income tax declaration form.

In cases where the Tax Authority inspects and audits and finds that the tax declaration of the business does not match the actual production and business operations of goods and services, the Tax Authority will base its determination of the annual provisional tax payable, quarterly, on the ratio of taxable income to revenue of the previous consecutive year of the business or on the taxable income of businesses in the same industry with similar scale of operations, and notify the business to implement.

Article 22. Businesses must report to the directly managing Tax Authority to adjust the annual provisional tax and quarterly provisional tax if there are changes in production, business, and service activities. When receiving requests to adjust quarterly and annual provisional tax payments from businesses, the Tax Authority must review and notify the business of the adjusted provisional tax amount or the reasons for not accepting the business's request.

Article 23. The Ministry of Finance guides the determination of revenue and the applicable ratio of taxable income based on revenue to determine the tax payable for businesses that have not implemented accounting systems, invoices, and documents as stipulated in Clause 2, Article 12 of the Corporate Income Tax Law, suitable for each type of business and location.

"d) Within no more than one working day from the date of receiving the dossier submitted for administrative procedures by the specialized agency assigned by the Provincial People's Committee, the Chairman of the Provincial People's Committee shall issue a notification of the result of the inspection of plant-based food exports or a certificate at the request of the importing country.". The payment of corporate income tax is regulated as follows:

1. Businesses temporarily pay taxes according to self-declared amounts or the amounts determined by the Tax Authority quarterly, fully and on time into the state budget. The deadline for tax payment shall not exceed the last day of the quarter.

2. Businesses that have not implemented accounting systems, invoices, and documents as stipulated in Clause 2, Article 12 of the Corporate Income Tax Law must pay taxes monthly according to notifications from the Tax Authority. The tax payment deadline for the month shall not exceed the 25th day of the following month as recorded in the notification.

3. Businesses engaged in occasional trading must declare and pay taxes for each shipment to the Tax Authority before transporting goods.

4. Foreign organizations and individuals conducting business without a permanent establishment in Vietnam but generating income within Vietnam, the Vietnamese organizations and individuals paying such income are responsible for withholding tax at the rate prescribed by the Ministry of Finance calculated on the total amount paid to foreign organizations and individuals.

Article 25. Corporate income tax is calculated and paid in Vietnamese dong.

Article 26. Businesses must finalize corporate income tax annually with the Tax Authority according to the form prescribed by the Ministry of Finance.

The tax settlement year is calculated according to the Gregorian calendar. In cases where business establishments are permitted to apply a fiscal year different from the Gregorian calendar, they may settle taxes according to their fiscal year.

The tax finalization must accurately and completely reflect the following items: Revenue; Reasonable Expenses; Taxable Income; Corporate Income Tax Payable; Corporate Income Tax Exempted and Reduced; Corporate Income Tax Temporarily Paid in the Year; Corporate Income Tax Paid Abroad for Income Received from Abroad; Overpaid or Underpaid Corporate Income Tax.

Article 27. Businesses must submit the tax finalization report to the Tax Authority within ninety days from the end of the calendar year or fiscal year. If the provisional tax paid during the year is less than the tax payable according to the tax finalization report, the business must pay the remaining tax within ten days from the date of submitting the tax finalization report; if the provisional tax paid during the year exceeds the tax payable according to the tax finalization report, the business may offset the overpaid tax against the tax payable in the next period.

Article 28. In cases of converting business types, changing ownership forms, merging, consolidating, splitting, dissolving, or bankruptcy, businesses must complete tax finalization with the Tax Authority and submit the finalization report within forty-five days from the date of the decision to convert business types, change ownership forms, merge, consolidate, split, dissolve, or go bankrupt.

Article 29. After receiving the tax finalization reports from businesses, the Tax Authority must review and classify them to organize inspections and audits.

The Ministry of Finance guides the classification method of tax finalization reports and the inspection and audit procedures as stipulated in this provision.

Article 30.. During the process of inspecting and auditing tax declarations, tax payments, and tax finalizations of businesses, if it is found that the purchase prices, sale prices, business expenses, taxable income, and other factors determined by the business are unreasonable, the Tax Authority has the right to re-determine the purchase prices, sale prices based on domestic and international market prices, expenses, taxable income, and other factors to ensure the correct and full collection of corporate income tax.

The Ministry of Finance guides the method of determining purchase prices and sale prices of goods and services based on market prices as stipulated in this provision.

Article 31. The Tax Authority shall have the following tasks, powers, and responsibilities:

1. Guide business establishments to declare and pay taxes in accordance with the provisions of the Law on Corporate Income Tax.

2. Notify businesses that have not implemented accounting systems, invoices, and supporting documents about the amount of tax due and the deadline for monthly tax payment as prescribed in Clause 2 of Article 24 and the case of tax assessment prescribed in Articles 30 and 32 of this Decree.

3. Notify businesses about late submission of tax declarations, late tax payment, and decisions on administrative penalties for tax violations; if the business still fails to pay the full amount of tax and fines as notified, it has the right to apply or request the competent authority to apply the measures provided for in Clause 4 of Article 23 of the Law on Corporate Income Tax to ensure the collection of the full amount of tax and fines; if such measures have been applied but the business still fails to pay the full amount of tax and fines, transfer the file to the competent state agency for handling in accordance with the provisions of the law.

4. Inspect and audit the declaration, payment, and settlement of taxes by businesses.

5. Handle administrative violations related to taxes and resolve tax complaints.

6. Require businesses to provide accounting books, invoices, supporting documents, and other relevant files related to tax calculation and payment; require financial institutions, banks, and other organizations and individuals to provide relevant documents related to tax calculation and payment.

7. Retain and use data and documents provided by businesses and other entities in accordance with prescribed regulations.

Article 32. The Tax Authority has the right to determine taxable income for tax calculation for businesses in the following cases:

1. Not complying with or improperly complying with accounting regulations, invoices, and documents.

2. Not declaring or incorrectly declaring the bases for tax calculation or failing to prove the bases recorded in the declaration as required by the tax authority.

3. Refusing to present accounting books, invoices, documents, and other necessary materials related to tax calculation.

4. Conducting business without registration and being discovered.

The Tax Authority bases its determination of taxable income on investigation materials regarding the business's operating activities or on the taxable income of similar businesses in the same industry with comparable scale of operations.

In the event that a business disagrees with the determined level of taxable income, it has the right to appeal to the higher-level Tax Authority or initiate litigation at the court in accordance with the law; while waiting for resolution, the business must still pay the full tax according to the determined tax rate.

Chapter V

EXEMPTION FROM AND REDUCTION OF CORPORATE INCOME TAX

Article 33. Conditions for corporate income tax incentives

Investment projects meeting one of the following conditions shall enjoy corporate income tax incentives:

1. Investing in industries and sectors specified in Appendix A attached to this Decree.

2. Investing in industries and sectors not prohibited by law and employing an average number of workers annually of at least:

a) In cities classified as Type 1 and Type 2: 100 people;

b) In investment-promoted areas specified in Appendix B or Appendix C attached to this Decree: 20 people;

c) In other areas: 50 people.

Article 34. Investment-promoted areas eligible for corporate income tax incentives.

1. Areas with difficult economic and social conditions specified in Appendix B attached to this Decree.

2. Areas with particularly difficult economic and social conditions specified in Appendix C attached to this Decree.

Article 35. Corporate income tax rates for cooperatives and newly established businesses from investment projects

1. The specific rates of preferential tax are as follows:

a) A tax rate of 20% for cooperatives established in areas not included in Appendix B and Appendix C attached to this Decree; newly established businesses from investment projects in industries and sectors specified in Appendix A attached to this Decree;

b) A tax rate of 20% for newly established businesses from investment projects in areas specified in Appendix B attached to this Decree;

c) A tax rate of 15% for cooperatives established in areas specified in Appendix B attached to this Decree; newly established businesses from investment projects in industries and sectors specified in Appendix A and operating in areas specified in Appendix B attached to this Decree;

d) A tax rate of 15% for newly established businesses from investment projects in areas specified in Appendix C attached to this Decree;

e) A tax rate of 10% for cooperatives established in areas specified in Appendix C attached to this Decree; newly established businesses from investment projects in industries and sectors specified in Appendix A and operating in areas specified in Appendix C attached to this Decree.

2. The duration of application of preferential corporate income tax rates is as follows:

a) The corporate income tax rate of 10% is applicable for 15 years, starting from when the cooperative and newly established businesses from investment projects begin their business operations;

b) The corporate income tax rate of 15% is applicable for 12 years, starting from when the cooperative and newly established businesses from investment projects begin their business operations;

c) The corporate income tax rate of 20% is applicable for 10 years, starting from when the cooperative and newly established businesses from investment projects begin their business operations.

After the period of application of preferential tax rates stipulated herein, cooperatives and newly established businesses from investment projects must pay corporate income tax at a rate of 28%.

Article 36.  Newly established businesses from investment projects and businesses relocating their location are exempted from tax and granted tax reductions as follows:

1. Exempted from tax for two years, starting from when they generate taxable income, and granted a 50% reduction in the tax payable for the next two years for new production facilities established from investment projects and businesses relocating their locations out of urban areas as planned and approved by the competent authority;

2. Exempted from tax for two years, starting from when they generate taxable income, and granted a 50% reduction in the tax payable for the next three years for newly established businesses from investment projects in industries and sectors specified in Appendix A attached to this Decree or meeting the labor usage conditions stipulated in Article 33 of this Decree.

3. Shall be exempted from tax for two years starting from the year when taxable income is generated, and shall have their tax payable reduced by 50% for the next five years, for new business establishments established from investment projects in industries and fields specified in Appendix A accompanying this Decree and meeting the labor utilization conditions stipulated in Article 33 of this Decree.

4. Shall be exempted from tax for two years starting from the year when taxable income is generated, and shall have their tax payable reduced by 50% for the next six years, for new business establishments established from investment projects in areas specified in Appendix B accompanying this Decree and business establishments that move to areas specified in Appendix B accompanying this Decree.

5. Shall be exempted from tax for two years starting from the year when taxable income is generated, and shall have their tax payable reduced by 50% for the next eight years, for new business establishments established from investment projects in areas specified in Appendix C accompanying this Decree and business establishments that move to areas specified in Appendix C accompanying this Decree.

6. Shall be exempted from tax for three years starting from the year when taxable income is generated, and shall have their tax payable reduced by 50% for the next seven years, for new business establishments established from investment projects in industries and fields specified in Appendix A accompanying this Decree and implemented in areas specified in Appendix B accompanying this Decree.

7. Shall be exempted from tax for three years starting from the year when taxable income is generated, and shall have their tax payable reduced by 50% for the next eight years, for new business establishments established from investment projects in industries and fields specified in Appendix A accompanying this Decree and implemented in areas specified in Appendix B accompanying this Decree, provided they meet the labor utilization conditions stipulated in Article 33 of this Decree.

8. Shall be exempted from tax for three years starting from the year when taxable income is generated, and shall have their tax payable reduced by 50% for the next nine years, for new business establishments established from investment projects in industries and fields specified in Appendix A accompanying this Decree and implemented in areas specified in Appendix B accompanying this Decree, provided they meet the labor utilization conditions stipulated in Article 33 of this Decree and the number of workers belonging to ethnic minorities accounts for more than 30% of the average number of workers used annually by the business establishment.

9. Shall be exempted from tax for four years starting from the year when taxable income is generated, and shall have their tax payable reduced by 50% for the next seven years, for new business establishments established from investment projects in industries and fields specified in Appendix A accompanying this Decree and implemented in areas specified in Appendix C accompanying this Decree.

10. Shall be exempted from tax for four years starting from the year when taxable income is generated, and shall have their tax payable reduced by 50% for the next eight years, for new business establishments established from investment projects in industries and fields specified in Appendix A accompanying this Decree and implemented in areas specified in Appendix C accompanying this Decree, provided they meet the labor utilization conditions stipulated in Article 33 of this Decree.

11. Shall be exempted from tax for four years starting from the year when taxable income is generated, and shall have their tax payable reduced by 50% for the next nine years, for new business establishments established from investment projects in industries and fields specified in Appendix A accompanying this Decree and implemented in areas specified in Appendix C accompanying this Decree, provided they meet the labor utilization conditions stipulated in Article 33 of this Decree and the number of workers belonging to ethnic minorities accounts for more than 30% of the average number of workers used annually by the business establishment.

12. Shall be exempted from tax for four years starting from the year when taxable income is generated, and shall have their tax payable reduced by 50% for the next nine years, for new business establishments established from investment projects under Build-Operate-Transfer (BOT), Build-Transfer-Operate (BTO), or Build-Transfer (BT) contracts.

New business establishments established from investment projects that are exempted from tax or have their tax reduced according to the provisions of this Article are independent economic accounting business establishments and registered to pay taxes based on declarations.

For new business establishments that are exempted from tax or have their tax reduced and engage in multiple business activities, they must separately account for the income from the business activities that are exempted from tax or have their tax reduced. In cases where it is not possible to separately account for the income from the business activities that are exempted from tax or have their tax reduced, the amount shall be determined based on the proportion of revenue from the business activities that are exempted from tax or have their tax reduced over the total revenue of the business establishment.

Article 37. For economic zones and special investment projects encouraged by the Prime Minister's decision, the preferential tax rate and tax exemption period shall not exceed four years of tax exemption starting from the year when taxable income is generated, and a reduction of 50% of the tax payable for the next nine years.

Article 38. Business establishments investing in building new production lines, expanding scale, updating technology, improving ecological environment, and enhancing production capacity shall be exempted or granted tax reductions on additional income generated from such investments as follows:

1. Exempted for one year and granted a 50% reduction in taxes payable for the next two years for investment projects installing new production lines not falling within the encouraged industries, sectors, or areas specified in Appendices A, B, and C issued together with this Decree.

2. Exempted for one year and granted a 50% reduction in taxes payable for the next four years for investment projects in industries or sectors specified in Appendix A issued together with this Decree.

3. Exempted for three years and granted a 50% reduction in taxes payable for the next five years for investment projects in industries or sectors specified in Appendix A issued together with this Decree and implemented in areas specified in Appendix B issued together with this Decree.

4. Exempted for four years and granted a 50% reduction in taxes payable for the next seven years for investment projects in industries or sectors specified in Appendix A issued together with this Decree and implemented in areas specified in Appendix C issued together with this Decree.

The Ministry of Finance shall provide guidance on how to determine the additional income generated from new investments that are subject to tax exemptions and reductions as stipulated in this Article.

Article 39. Export-oriented business establishments specified in Section III, Appendix A issued together with this Decree, in addition to being exempted or granted corporate income tax reductions as provided for in Articles 36, 37, and 38 of this Decree, shall also enjoy additional corporate income tax benefits as follows:

1. Granted a 50% reduction in taxes payable for the income obtained in the following cases:

a) Direct export in the first year;

b) Export of new products with economic and technical features, or usage features different from those of previously exported products;

c) Export to a new country or territory different from the previous market.

2. Granted a 50% reduction in corporate income tax payable for the additional income generated from exports in the fiscal year for investors whose export revenue in the subsequent year exceeds that of the previous year.

3. Granted a 20% reduction in corporate income tax payable for the income obtained from exports in the fiscal year for the following cases:

a) Achieving an export turnover ratio exceeding 50% of total revenue; Tax reduction consideration will be made annually;

b) Maintaining a stable export market in terms of quantity or value of goods exported over the past three consecutive years.

4. Granted an additional 25% reduction in taxes payable for the income obtained from exports in the fiscal year for investors mentioned in Clause 1, 2, or 3 of this Article implementing investment projects in areas specified in Appendix B issued together with this Decree.

5. Exempted from all corporate income tax payable for the income obtained from exports in the fiscal year for investors mentioned in Clause 1, 2, or 3 of this Article implementing investment projects in areas specified in Appendix C issued together with this Decree.

Article 40. Business entities are exempted from corporate income tax for the following cases:

1. Income from performing scientific research and technological development contracts; scientific and technological information services.

2. Income from sales revenue during the trial production period according to the production process, but not exceeding six months from the start date of trial production.

3. Income from sales revenue generated from new technology first applied in Vietnam, but not exceeding one year from the start date of applying this new technology for production.

4. Income from performing technical service contracts directly serving agriculture.

5. Income from vocational training activities exclusively for ethnic minority people.

6. Income from production, business, and service activities of business entities exclusively for disabled workers.

7. Income from vocational training activities exclusively for disabled persons, children with special difficulties, and social delinquents.

Article 41. Business cooperatives with average monthly income per worker below the minimum wage set by the State for civil servants are exempted from corporate income tax.

Article 42. Individual households engaged in production and business activities with average monthly income per worker below the minimum wage set by the State for civil servants are exempted from corporate income tax.

Article 43. Investors contributing capital in the form of patents, technical secrets, technological processes, and technical services are exempted from corporate income tax.

Article 44. Corporate income tax payable on income from transferring foreign investors' equity stakes to businesses established in accordance with Vietnamese laws is reduced by 50%.

Article 45. Business entities employing between 10 and 100 female workers, where female workers account for more than 50% of the total number of regularly present or frequently employed workers, or employing over 100 female workers accounting for more than 30% of the total number of regularly employed workers, are entitled to a reduction in corporate income tax corresponding to the costs incurred for female workers.

Article 46 |||. After settling taxes with tax authorities, if a business entity incurs losses, it may carry forward such losses and deduct them from taxable income in subsequent years. The carry-forward period shall not exceed five years.

Article 47. Preferential tax rates, exemptions, reductions, and loss carry-forwards as stipulated in Articles 35, 36, 37, 38, 39, 40, 41, 43, 44, 45, and 46 of this Decree apply only to business entities that have properly maintained accounting records, invoices, and other documents and have registered for tax declaration and payment. Business entities determine their eligibility for tax benefits, exemption amounts, reduction amounts, and deductible losses and notify the tax authority in writing along with the annual tax return filing time.

The starting point for calculating the tax exemption and reduction period under this Decree is the first fiscal year when the business entity has taxable income before deducting carried-over losses as specified in Article 46 of this Decree. In cases where the first fiscal year of tax exemption and reduction has less than six months of production and business activity, the business entity may choose to enjoy tax exemption and reduction in that year or register with the tax authority to begin enjoying tax exemption and reduction from the next fiscal year. The tax exemption and reduction period is calculated continuously from the first fiscal year when the business entity has taxable income before deducting carried-over losses.

Within the same period, if there is income eligible for tax exemption and reduction under multiple different cases, the business entity may choose the most advantageous case and inform the Tax Authority.

Chapter VI

REWARD AND VIOLATION HANDLING

Article 48. Tax Authorities, tax officers who perform their duties well; business entities and other organizations and individuals who achieve success in implementing the Law on Corporate Income Tax are rewarded according to the general reward system of the State.

Article 49.Business entities, tax officers, and other individuals violating the Law on Corporate Income Tax will be subject to handling according to Article 23 and Article 25 of the Law on Corporate Income Tax and administrative violation handling regulations in the field of taxation.

Chapter VII

IMPLEMENTATION

Article 50. This Decree takes effect fifteen days after its publication in the Official Gazette and applies to tax periods starting from 2004.

Decrees No. 30/1998/NĐ-CP dated May 13, 1998, and No. 26/2001/NĐ-CP dated June 4, 2001, of the Government detailing the implementation of the Law on Corporate Income Tax cease to be effective from January 1, 2004.

1. Abolish provisions regarding refund of corporate income tax paid on reinvested income, tax on transfer of income abroad, and preferential tax rate, exemption, and reduction provisions for corporate income tax stipulated in Decree No. 24/2000/NĐ-CP dated July 31, 2000, and Decree No. 27/2003/NĐ-CP dated March 19, 2003, of the Government detailing the implementation of the Law on Foreign Investment in Vietnam.

Abolish preferential tax rate, exemption, and reduction provisions for corporate income tax in Decrees No. 51/1999/NĐ-CP dated July 8, 1999, and No. 35/2002/NĐ-CP dated March 29, 2002, of the Government detailing the implementation of the Law on Encouraging Domestic Investment, and provisions on corporate income tax in Decree No. 81/2002/NĐ-CP dated October 17, 2002, of the Government detailing certain provisions of the Law on Science and Technology.

Abolish provisions on land transfer tax for business entities in Decree No. 19/2000/NĐ-CP dated June 8, 2000, of the Government detailing the implementation of the Law on Land Transfer Tax and the Law Amending and Supplementing Certain Provisions of the Law on Land Transfer Tax.

2. Foreign-invested enterprises that have been granted Investment Licenses and domestic business establishments that have been granted Investment Incentive Certificates shall continue to enjoy tax incentives specified in their Investment Licenses and Investment Incentive Certificates. In cases where the corporate income tax incentives stipulated in the Investment Licenses and Investment Incentive Certificates are lower than those prescribed in this Decree, such business establishments shall enjoy the corporate income tax incentives prescribed in this Decree for the remaining period of the incentive. Foreign-invested enterprises that have completed the period of tax incentives under their Investment Licenses shall be subject to a tax rate of 25%, and if they are currently paying taxes at a rate of 25%, they may continue to apply this tax rate until the expiration date of the issued Investment License. Domestic business establishments that have completed the period of tax rate incentives and other domestic business establishments currently applying a tax rate of 32% shall switch to a tax rate of 28% from January 1, 2004.

3. The resolution of outstanding tax issues, finalization of tax returns, tax exemptions and reductions, and administrative penalties for corporate income tax prior to January 1, 2004, shall be carried out in accordance with the corresponding provisions in the legal documents on corporate income tax, foreign investment laws in Vietnam, domestic investment encouragement laws, and other regulatory legal documents promulgated before the effective date of this Decree.

Article 51. The Ministry of Finance shall provide guidance on the implementation of this Decree;

The Ministers, Heads of Ministries equivalent to Ministers, Heads of Government Agencies, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree.

ANNEX

ISSUED TOGETHER WITH DECREE NO. 164/2003/NĐ-CP OF THE GOVERNMENT DATED DECEMBER 22, 2003 PROVIDING GUIDELINES FOR THE IMPLEMENTATION OF THE LAW ON ENTERPRISE INCOME TAX

 

Public goods and services, defense and security tasks performed by companies
INDUSTRIES AND SECTORS ELIGIBLE FOR INVESTMENT INCENTIVES

 

Investment projects in the following industries, trades, and sectors are eligible for incentives:

I. Planting forests, protecting and regenerating forests; planting perennial crops on degraded land, barren hills and mountains; reclamation; salt production; aquaculture in unexploited waters:

1. Planting and caring for forests.

2. Planting long-term industrial crops and fruit trees on degraded land, barren hills and mountains.

3. Reclamation for agricultural, forestry, and fisheries production.

4. Producing and processing salt.

5. Raising and cultivating aquatic species in unexploited waters.

II. Infrastructure construction, public transport development; education, training, health care, and cultural development:

1. Investing in new construction and modernization of power plants, electricity distribution, and transmission systems. Building facilities using solar energy, wind energy, and biogas.

2. Investing in water treatment plants, water supply systems for daily use and industry; investing in drainage systems.

3. Investing in new construction and modernization of: bridges, roads, inland waterways, railways, airports, ports, stations, parking lots, and vehicle depots.

4. Constructing technical infrastructure for concentrated residential areas located in Categories B or C as attached to this Decree.

5. Developing public transportation: investing in railway, maritime, road passenger transport by buses with more than 17 seats, and water passenger transport by mechanical means.

6. Providing Internet connection services, Internet access services, and Internet application services in Categories B and C as attached to this Decree; postal service and parcel delivery service.

7. Establishing private and public schools at various levels: kindergarten, primary and secondary education, vocational high school, college, and university.

8. Setting up vocational training centers to improve workers' skills.

9. Investing in building museums, libraries, cultural houses, ethnic music, dance, and theater groups; producing, manufacturing, and repairing traditional musical instruments; maintaining and preserving museums, libraries, and cultural houses.

10. Establishing private and private hospitals for medical examination and treatment, centers for disease prevention and control, centers for concentrated care of disabled people and orphans, geriatric centers.

III. Production and trade of export goods:

Projects producing and trading goods with an export value exceeding 50% of the total value of goods produced and traded by the project in the fiscal year.

IV. Fishing in distant sea areas; processing agricultural, forestry, and aquatic products; technical services directly serving agricultural, forestry, and fisheries production:

1. Fishing in distant sea areas.

2. Processing agricultural products from domestic raw materials: processing livestock and poultry; processing and preserving fruits and vegetables; producing vegetable oil, essential oils, fats; producing liquid milk and dairy products; producing coarse flour; producing animal feed for livestock, poultry, and aquaculture; producing bottled and canned fruit drinks.

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 supporting crop cultivation, industrial crop cultivation, and forestry; activities supporting animal husbandry; forestry support activities; aquaculture services; pet protection services; seed breeding and hybridization; services for preserving agricultural, forestry, and aquatic products; construction of warehouses for storing agricultural, forestry, and aquatic products.

V. Scientific research and technological development; scientific and technological services; legal, investment, business, enterprise management consulting; intellectual property rights protection and technology transfer:

1. Investing in constructing technical facilities: laboratories, test stations to apply new technologies in production; producing new materials and rare materials.

2. Investing in producing computers and software products.

3. Providing services: researching information technology, training human resources in information technology.

4. Investing in producing semiconductors and electronic components; producing telecommunications and Internet equipment; applying new technologies to produce information and telecommunications equipment.

5. High-tech applications; new biotechnology applications in: healthcare services, seed production, livestock breeding, bio-fertilizers, biological pest control agents, veterinary vaccines; waste collection, waste treatment, environmental pollution control, recycling of scrap materials and waste.

6. Applications involving machinery and equipment using or producing renewable energy sources such as biomass, wind, solar, geothermal, tidal energy.

7. Legal advice, investment, business, corporate management, consulting services on science and technology; protection of intellectual property rights and technology transfer.

VI. Other industries and trades:

1. Sugarcane cultivation, cotton cultivation, tea cultivation for processing industries; medicinal plant cultivation; seed production for crops and livestock.

2. Children's toy manufacturing; textile weaving, finishing textile products; silk and fiber production; leather tanning and preliminary processing.

3. Livestock and poultry farming, aquaculture under agricultural economic restructuring programs at farm scale or larger.

4. Basic chemical production, pure chemicals, specialized chemicals, dyes.

5. Investment in production: human pharmaceuticals; medical equipment, orthopedic devices, vehicles, and special equipment for disabled persons; construction of drug storage warehouses; stockpiling medicines for people to prevent floods, natural disasters, dangerous epidemics; plant protection chemicals; animal and aquatic disease prevention and treatment drugs.

6. Investment in production: medium and high voltage electrical equipment; diesel engines; equipment, machinery, and spare parts for transport vessels, fishing boats; machine tools, machinery, equipment, spare parts, machines for agriculture and forestry production; food processing machines; machines for the textile industry; machines for the leather industry; mining machines; construction machines; industrial robots; locomotives and carriages; various types of automobiles and automobile spare parts; generators; precision mechanical equipment; inspection and safety monitoring equipment for industrial production processes; production of molds for metal and non-metal products; shipbuilding and repair; production of waste treatment equipment and key industrial products according to the Prime Minister's Decision in each period.

7. Production of high-quality steel, alloys, colored metals, rare metals, foams used in industry; production of specialty cement, soundproofing, insulating, heat-resistant materials, wood-replacement composite materials, construction plastics, fiberglass, fire-resistant materials; coke, activated carbon; fertilizer production.

8. Traditional handicraft industries: carving; mother-of-pearl inlay; lacquer painting; stone engraving; rattan, bamboo, and palm leaf product manufacturing; carpet, silk, brocade, embroidery, and lace production; ceramic and decorative bronze product manufacturing; handmade paper production.

9. Construction of first-class markets, exhibition areas; promotion of trade; securities trading activities; fundraising and lending activities of People's Credit Funds.

10. Maritime, air, rail, road, and inland waterway transportation services.

11. Investment in national tourist area development, ecological tourism areas; national parks; construction and operation of cultural parks including sports, entertainment, and leisure activities.

12. Investment in infrastructure development for industrial zones, export processing zones, high-tech zones, small and medium-sized industrial zones, and industrial clusters. Production, processing, and high-tech service provision within industrial zones, export processing zones, high-tech zones, small and medium-sized industrial zones, and industrial clusters.

13. Investment through build-operate-transfer (BOT) contracts, build-transfer-operate (BTO) contracts, and build-transfer (BT) contracts.

LIST B

ECONOMICALLY AND SOCIO-CULTURALLY DIFFICULT AREAS ENJOY INVESTMENT INCENTIVES

 

I. Counties in mountainous highland provinces:

1. Bac Kan Province

- Bac Kan City.

Province of Cao Bang

- Cao Bang City.

3. Ha Giang Province

- Bac Quang District

- Ha Giang City.

4. Province

- Dien Bien Phu City

- District of Dien Bien

- Lai Chau City.

Province of Lao Cai

- Bao Thang District

- Cam Duong City

- Lao Cai City.

Province of Son La

- Mai Son District

- Son La City

- Yen Chau District.

II. Counties in mountainous and delta provinces:

7. Bac Giang Province

- Luc Ngan District

- Luc Nam District

- Yen The District.

8. Hoa Binh Province

- Kim Boi District

- Ky Son District

- Lac Son District

- Luong Son District

- Lac Thuy District

- Tan Lac District

- Yen Thuy District

- Cao Phong District.

9. Lang Son Province

- Bac Son District

- Cao Loc District

- Chi Lang District

- Hue Luong District

- Loc Binh District

- Trang Ding District

- Van Lang District

- Van Quan District.

10. Phu Tho Province

- Doan Hung District

- Ha Hoa District

- Song Tao District

- Thanh Ba District

- Tam Than District

- Phu Ninh District.

11. Quang Ninh Province

- Hoanh Bo District

- City of Mong Cai

- Tien Yen District

- Van Don District

- Hai Ha District

- Dam Ha District.

12. Tuyen Quang Province

- Ham Yen District

- Son Yang District

- Yen Son District

- Tuyen Quang City.

13. Thai Nguyen Province

- Dong Hoi District

- Dai Tu District

- Dinh Hoa District

- Phu Luong District.

 

14. Yen Bai Province

- Tran Yen District

- Van Yen District

- Van Chan District

- Yen Binh District

- Nghia Lo City.

15. Binh Phuoc Province

- Dong Phu District

- Phuoc Long District

- Binh Long District

- Chon Thanh District.

16. Dak Lak Province

- District of Cu Jut

- Cu M'Gar District

- District of Dak Rlai

- District of Dak Mil

- Ea H'Leo District

- Ea Kar District

- Krong Pach District

- Krong Buk District

- Krong Ana District

- Krong Nang District.

17. Gia Lai Province

- An Khê District

- Ayun Pa District

- Chu Se District.

18. Kon Tum Province

- Kon Tum City.

19. Lam Dong Province

- District of Bao Lam

- Cat Tien District

- Di Linh District

- Da Te District

- Don Duong District

- Duc Trong District

- Da Huoai District

- Lam Ha District.

20. Binh Thuan Province

- Bac Binh District

- Duc Linh District

- Ham Thuong Bac District

- Tanh Linh District

- Ham Thuong Nam District.

21. Binh Dinh Province

- Hoai An District

- Phu My District

- Phu Cat District

- Tay Son District.

22. Hai Duong Province

- Chi Linh District

- Kinh Mon District.

23. Ha Tinh Province

- Huong Ke District

- Huong Son District

- Ky Anh District

- Nghi Xuan District

- Vu Quang District.

24. Ninh Binh Province

- Tam Diep City

- Nho Quan District

- Yen Mo District.

25. Nghe An Province

- Anh Son District

- Nghia Dan District

- Tan Ky District

- Thanh Chuong District.

26. Ninh Thuan Province

- Ninh Hai District

- Ninh Phuoc District.

27. Phu Yen Province

- Song Cau District

- Tuy Hoa City

- Tuy An District.

28. Quang Tri Province

- Dak Rong District

- Vinh Linh District

- Gio Linh District

- Cam Lo District

- Trieu Phong District

- Hai Lang District.

29. Quang Nam Province

- Dai Loc District

- Que Son District.

30. Quang Ngai Province

- Nghia Hành District

- Son Tinh District.

31. Province of Thanh Hoa

- District of Thach Thanh.

32. Province of Thua Thien Hue

- District of Nam Dong

- District of Quang Dien

- District of Phong Dien

- District of Huong Tra

- District of Phu Loc

- District of Phu Vang.

33. Province of An Giang

- District of An Phu

- District of Tri Ton

- District of Tinh Bien

- District of Thoai Son.

34. Province of Bac Lieu

- Town of Bac Lieu

- District of Vinh Loi.

35. Province of Ca Mau

- District of Thoi Binh

- District of Tran Van Thoi

- District of Cai Nuoc

- District of Dam Dơi

- District of Ngoc Hien.

36. Province of Dong Nai

- District of Dinh Quan

- District of Tan Phu

- District of Xuan Loc

- District of Long Khanh.

37. Province of Kien Giang

- District of Chau Than

- District of Hon Dat

- District of Giong Riep

- District of An Minh

- District of Tan Hiep

- Town of Ha Tien

- District of Kien Luong.

38. Province of Khanh Hoa

- District of Van Ninh

- District of Cam Ran

- District of Dian Khanh.

39. Province of Soc Trang

- District of Long Phu

- District of My Xuyen

- Town of Soc Trang

- District of Cu Lao Dung.

40. Province of Tra Vinh

- District of Cau Ngang

- District of Cau Ke

- District of Tieu Can.

41. Province of Vinh Phuc

- District of Lap Thach

- District of Tam Duong

- District of Binh Xuyen.

42. Province of Can Tho

- District of Long My

- District of Vi Thuy

- District of Om Mon.

43. Province of Tay Ninh

- District of Tan Bien

- District of Tan Chau

- District of Chau Than

- District of Ben Cau.

44. Province of Thai Binh

- District of Thai Thuy.

45. Province of Long An

- District of Duc Hieu

- District of Tan Hung

- District of Vinh Hung

- District of Moc Hoa

- District of Tan Thanh

- District of Duc Hoa.

46. Province of Dong Thap

- District of Hong Gu

- District of Tan Hong

- District of Tam Nong

- District of Thap Muoi.

47. Province of Tien Giang

- District of Tan Phuoc.

48. Province of Quang Binh

- District of Quang Nin

- District of Le Thuy

- District of Bo Trach

- District of Quang Trach.

49. Province of Ba Ria - Vung Tau

- District of Chau Duc

- District of Xuyen Moc.

50. Province of Vinh Long

- District of Tra On

- District of Tam Binh

- District of Binh Minh.

51. City of Hanoi

- District of Soc Son.

52. City of Ho Chi Minh

- District of Can Gio

- District of Nha Be.

53. Province of Ben Tre

- District of Thanh Phu

- District of Ba Tri

- District of Binh Dai.

54. Province of Bac Ninh

- District of Gia Binh

- District of Que Vo.

55. Province of Ha Tay

- District of Ba Vi.

56. City of Da Nang

- District of Hoa Vang.

57. Province of Ha Nam

- District of Thanh Lien.

58. Province of Hung Yen

- District of An Thi

- District of Phu Cu

- District of Tien Lu.

59. Province of Binh Duong

- District of Phu Giao.

LIST C

AREAS WITH SPECIAL ECONOMIC AND SOCIAL DIFFICULTIES ELIGIBLE FOR INVESTMENT INCENTIVES

 

I. Districts in highland and island provinces:

1. Bac Kan Province

- District of Ba Be

- District of Bach Thong

- District of Cho Moi

- District of Cho Don

- District of Ngan Son

- District of Na Ri

- District of Pac Nam.

Province of Cao Bang

- District of Bao Lac

- District of Ha Lang

- District of Ha Quang

- District of Hoa An

- District of Nguyen Binh

- District of Quang Uyen

- District of Thong Nong

- District of Tra Linh

- District of Thach An

- District of Trung Khanh

- District of Phuc Hoa.

3. Ha Giang Province

- District of Bac Me

- District of Dong Van

- District of Hoang Su Phi

- District of Meo Vac

- District of Quan Ba

- District of Vi Xuyen

- District of Xin Man

- District of Yen Minh.

4. Province

- District of Muong Lay

- District of Muong Te

- District of Phong Tho

- District of Toua Chua

- District of Tuan Giao

- District of Sin Ho

- District of Dien Bien Dong

- District of Muong Nhe

- District of Tam Duong.

Province of Lao Cai

- District of Bac Ha

- District of Bat Sat

- District of Muong Khang

- District of Than Uyen

- District of Van Ban

- District of Sa Pa

- District of Bao Yen.

Province of Son La

- District of Bac Yen

- District of Moc Chau

- District of Muong La

- District of Quynh Nhai

- District of Thuong Chau

- District of Song Ma

- District of Phu Yen.

7. Province of Binh Thuan

- District of Phu Quy.

8. Ba Ria-Vung Tau Province

- District of Con Dao.

9. City of Da Nang

- District of Hoang Sa Island.

10. Hai Phong City

- District of Bach Long Vi

- District of Cat Hai.

11. Province of Khanh Hoa

- District of Truong Sa.

12. Province of Kien Giang

- District of Kien Hai

- District of Phu Quoc.

13. Province of Quang Ninh

- District of Co To.

14. Province of Quang Ngai

- District of Ly Son.

II. Districts in mountainous and plain ethnic minority provinces:

15. Province of Bac Giang

- District of Son Dong.

16. Province of Hoa Binh

- District of Da Bac

- District of Mai Chau.

17. Province of Lang Son

- District of Binh Gia

- District of Ding Lap.

18. Province of Phu Tho

- District of Thanh Son

- District of Yen Lap.

19. Province of Quang Ninh

- District of Ba Che

- District of Binh Lieu.

20. Province of Tuyen Quang

- District of Chiem Hoa

- District of Na Hang.

21. Province of Thai Nguyen

- District of Vo Nhai.

22. Province of Yen Bai

- District of Luc Yen

- District of Mu Cang Chai

- District of Tram Tau.

23. Province of Dak Lak

- District of Dak Nong

- District of Krong No

- District of Kroong Bong

- District of Lak

- District of Buon Don

- District of MDakrak

- District of Ea Sup

- District of Dak Song.

24. Province of Gia Lai

- District of Duc Co

- District of KBang

- District of Kroong Pa

- District of Kon Chro

- District of Mang Yang

- District of IA Grai

- District of Chu Prong

- District of Chu Pah.

25. Province of Kon Tum

- District of Dak To

- District of Dak Glei

- District of Kon Plong

- District of Sa Thay

- District of Dak Ha

- District of Ngoc Hoi

- District of Kon Ray.

26. Province of Lam Dong

- District of Lac Duong

27. Province of Kien Giang

- District of An Bien

- District of Go Quao

- District of Vinh Thuan.

28. Province of Soc Trang

- District of My Tu

- District of Thanh Tri

- District of Vinh Chau.

29. Province of Tra Vinh

- District of Chau Than

- District of Tra Cu.

30. Province of Binh Dinh

- District of An Lao

- District of Vinh Thanh

- District of Van Canh.

31. Province of Khanh Hoa

- District of Khanh Vinh

- District of Khanh Son.

32. Province of Ninh Thuan

- District of Ninh Son.

33. Province of Ba Ria - Vung Tau

- District of Tan Thanh.

34. Province of Bac Lieu

- District of Hong Dan.

35. Province of Binh Phuoc

- District of Bu Dang

- District of Loc Ninh

- District of Bu Dop

36. Province of Ca Mau

- District of U Minh.

37. Province of Thanh Hoa

- District of Quan Hoa

- District of Ba Tho

- District of Lang Chan

- District of Thuong Xuan

- District of Quan Son

- District of Muong Lat

- District of Nhu Xuan

- District of Ngoc Lac

- District of Cam Thuy

- District of Nhu Thanh.

38. Province of Nghe An

- Ky Son District

- District of Tuong Duong

- District of Cong Cuong

- District of Que Phong

- District of Qui Hop

- District of Qui Chau.

39. Province of Quang Binh

- District of Minh Hoa

- District of Tuyen Hoa.

40. Province of Quang Tri

- District of Huong Hoa.

41. Province of Thua Thien Hue

- District of A Luoi.

42. Province of Quang Nam.

- District of Dong Giang

- District of Tay Giang

- District of Giang

- District of Phuoc Son

- District of Bac Tra My

- District of Nam Tra My

- District of Hiep Duc

- District of Tien Phuoc

- District of Nui Thanh.

43. Province of Quang Ngai

- District of Ba To

- District of Tra Bon

- District of Son Tay

- District of Son Ha

- District of Minh Long

- District of Binh Son.

44. Province of Phu Yen

- District of Son Hoa

- District of Song Hinh

- District of Dong Xuan.