HOW TO BENEFIT FROM INVESTMENT INCENTIVES?

After learning about the provisions of the current law on investment incentives that provided to shape benefits for investors when conducting business investment in Vietnam. The question is: How can investment incentives apply to the project? In this article, we are going to provide information to help investors carry out the procedures for applying investment incentives to their projects.

1. Conditions

Investment incentives are applied to new investment projects and expansion investment projects in one of the following cases:

Investment projects pertain to sectors and industries eligible for investment incentives:

"Article 16. Sectors and trades eligible for investment incentives and geographical areas eligible for investment incentives.

1. Business lines eligible for investment incentives:

a) Hi-tech activities, hi-tech supporting industry products, research, manufacturing and development of products formed from science and technology results in accordance with regulations of law on science and technology;

b) Manufacturing of new materials, new energy, clean energy, renewable energy; manufacturing of products with an added value of 30% or more; energy-saving products;

c) Manufacturing of key electronics, mechanical products, agricultural machinery, automobiles, automobile parts; shipbuilding;

d) Manufacturing of products on the List of prioritized supporting industry products;

đ) Manufacturing of IT products, software products, digital contents;

e) Breeding, growing and processing of agriculture products, forestry products, aquaculture products; afforestation and forest protection; salt production; fishing and fishing logistics services; production of plant varieties, animal breeds and biotechnology products;

g) Collection, treatment, recycling or re-use of waste;

h) Investment in development, operation, management of infrastructural works; development of public transportation in urban areas;

i) Pre-school education, general education, vocational education, higher education;

k) Medical examination and treatment; manufacturing of medicinal products and medicinal materials, storage of medicinal products; scientific research into preparation technology and biotechnology serving creation of new medicinal products; manufacturing of medical equipment;

l) Investment in sports facilities for the disabled or professional athletes; protection and promotion of value of cultural heritage;

m) Investment in geriatric centers, mental health centers, treatment for agent orange patients; care centers for the elderly, the disabled, orphans, street children;

n) People's credit funds, microfinance institutions;

o) Manufacturing of goods and provision of services that create or participate in value chains and industry linkage clusters."

Area investment project:

Article 16. Sectors and trades eligible for investment incentives and geographical areas eligible for investment incentives

2. Areas eligible for investment incentives:

a) Disadvantaged areas and extremely disadvantaged areas;

b) Industrial parks, export-processing zones, hi-tech zones and economic zones ".

Investment projects with a capital scale of 6,000 billion VND or more, disbursed at least 6,000 billion VND within 3 years from the date of issuance of the Investment Registration Certificate or approval of investment policies, Simultaneously, having one of the following criteria: having a total revenue of at least 10,000 billion VND per year within 03 years at the latest from the year of revenue or employing more than 3,000 employees;

Investment projects on construction of social housing; investment projects in rural areas employing 500 or more employees; investment projects employing people with disabilities following the law on people with disabilities;

High-tech enterprises, science and technology enterprises, science and technology organizations; projects involving technology transfer on the list of technologies encouraged to be transferred following the law on technology transfer; technology incubators, science and technology business incubators according to the provisions of the law on high technology and the law on science and technology; enterprises that manufacture and supply technology, equipment, products and services to meet the requirements of environmental protection in accordance with the provisions of the law on environmental protection;

Innovative start-up investment projects, innovation centers, research and development centers;

Investing in the business of product distribution chains of small and medium-sized enterprises; business investment in technical facilities to support small and medium-sized enterprises, small and medium-sized business incubators; invest in a business in the co-working space to support small and medium-sized enterprises and start-ups by the law on supporting small and medium-sized enterprises.

2. Principles of application of investment incentives

Investment incentives are applied for a limited time and on the basis of the investor's project performance. Investors must satisfy the conditions for enjoying incentives as prescribed by law during the time of bềniting investment incentives.

Investment projects that satisfy the conditions for benefiting different levels of investment incentives, including investment incentives as prescribed in Article 20 of Law on Investment 2020, are entitled to the highest investment incentives.

3. Procedures for interesting investment incentives

Step 1: Determine the basis for applying investment incentives

For investment projects subject to the issuance of an Investment Registration Certificate or a decision on investment policies, the decision on investor approval Investors based on the contents of investment incentives specified in one of the following documents: Approval decision of investment policies, Certificate of investment registration, Decision on investor approval, Certificate of enterprise science and technology (For science and technology enterprises), Certificate of the hi-tech applied agricultural enterprise (For hi-tech applied agricultural enterprises), Certificate of application project high technology (For hi-tech application projects), Certificate of incentives for the production of supporting industry products (For supporting industry projects), Certificate of technology transfer to encourage transfer (For projects with technology transfer) to determine the content of investment incentives to which their projects are applied.

For investment projects that are not subject to the issuance of an Investment Registration Certificate.

Investors base on the conditions for benefiting investment incentives to determine incentives and carry out procedures for benefiting investment incentives at agencies applying investment incentives corresponding to each type of incentive.

Step 2: Submit an application for investment incentives by post/directly at the head office of the agency applying investment incentives.

Profile includes:

Declare/request for application of investment incentives.

Investment registration certificate, Investment policy decision; Certificate of science and technology enterprise… in case of being granted one of these papers.

They will then follow procedures for enjoying investment incentives at the tax authority, finance authority, customs authority or other competent authority corresponding to each type of investment incentive.

Step 3: Competent state agencies apply investment incentives to investors who meet the conditions.

The time limit for processing procedures: Depending on the settlement time limit of each agency applying investment incentives for each type of investment incentive.

Note:

For investment projects currently benefiting from investment incentives and meeting additional conditions for enjoying higher incentives or enjoying additional incentives in the form of new incentives, investors shall carry out procedures for adjusting incentives. invest to enjoy higher incentives or enjoy additional incentives in the form of new incentives for the remaining incentive period. Same procedure as mentioned above.

Newly established economic organizations or implementing investment projects from the transformation of the type of economic organization, ownership transformation, division, separation, merger, consolidation or transfer of investment projects that inherit the investment incentives of investment projects before conversion, division, separation, merger, consolidation or transfer.

The article above is the entire information about How to benefit from investment incentives which LVI Law Firm wants our customers to comprehend. If you need any further information, please contact us to get the most effective consultancy.

Best regards!