Tax incentives in building high-tech parks
The Ministry of Finance has given their opinions in a draft on approving the high-tech park development master plan based on Office Notice 17240/BTC-CST.
The Ministry of Finance has agreed with the building of the high-tech park development master plan outlined by the Ministry of Science and Technology in a draft submitted to the prime minister.
However, according to Item 2, Section IV-Methodology and high-tech zone selection, criteria for income per capita need clear and specific rules.
The country currently has three high-tech parks, including the Hoa Lac Hi-Tech Park, Saigon Hi-Tech Park and Da Nang Hi-Tech Park. The Ministry of Science and Technology needs to have overall assessment in terms of investment, difficulties and obstacles of current hi-tech parks in order to create a legal foundation for the building of a master plan.
The prime minister also issued Decision 201/QD-TTg dated January 25, 2014 approving a task of adjusting a construction planning of the Hoa Lac Hi-Tech Park. Therefore, the Ministry of Science and Technology needs to review and compare to existing regulations in this decision to ensure consistent proposals in a master plan.
The Ministry of Finance has currently issued a number of regulations on tax incentives for businesses investing in high-tech parks. Particularly, in terms of the corporate income tax (CIT) as defined in Item 7 and 8, Article 1 of the amended law, business incomes from the implementation of new investment projects in particularly difficult socioeconomic zones, research projects, high-tech applications stipulated in the High-Tech Law, venture capital for high-tech development and investment in construction and trading of high-tech incubators will be applied a tax rate of 10 percent in 15 years, enjoyed tax exemption in four years and reduced 50 percent of the CIT in the nine following years.
As stipulated in Appendix I of Decree 87/2010/ND-CP, investment in construction and development of high-tech infrastructure, economic zones and key projects decided by the prime minister is encouraged and is enjoyed incentives under the provisions of Item 6, 8 and 14, Article 12 of Decree 87/2010/ND-CP.
Land rent exemption and reduction for high-tech development projects are stipulated in Article 18, 19 and 20 of Decree 46/2014/ND-CP. In addition, land rent incentives will just apply to specific administrative boundaries.
High-tech infrastructure development and investment projects are also exempted from non-agricultural land use tax as defined in the 2010 law on non-agricultural land use tax.
The contents of tax incentives for businesses investing in high-tech zones are defined in legal documents. Therefore, the Ministry of Finance has offered recommendations to remove this ministry’s tasks stipulated in Point c, Item 2, Article 2 of a draft decision.
Hanoi accelerates deployment of amended laws
Hanoi City People’s Committee sent office notices to departments and agencies directly under the city and district people’s committees to accelerate the deployment of the amended laws on taxation.
To effectively implement the amended laws on taxation, the city people’s committee requires departments and agencies directly under the city, district people’s committees and Hanoi Department of Taxation within December 2014 to urgently establish a steering committee and standing group for planning and directing the deployment of the amended law on taxation.
The city people’s committee also asks the tax authorities to deploy tax management solutions for individual business households and cooperate with district people’s committees to timely overcome difficulties.
Hanoi City People’s Committee assigns Hanoi Department of Industry and Trade directing market management agencies to review and inspect commercial fraud, smuggling and tax evasion cases and cooperation with the tax authorities to handle violation. In addition, Hanoi City People’s Committee also assigns Hanoi Department of Information and Communications directing related agencies to propagandize and popularize the contents of the amended laws on taxation to economic sectors in the city.