Special tax incentives for National Innovation Centre from early October
Special tax incentives for National Innovation Centre from early October
Research and development and investment activities in the National Innovation Centre will enjoy special tax incentives from October 5, 2020.
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The government issued Decree No.94/2020/ND-CP dated August 21 governing the incentive policies for the National Innovation Centre (NIC) to create the most conducive environment for research and development (R&D), business, and investment activities.
Accordingly, the incentive policies include an exemption of the import duty on goods and products to develop fixed assets; those directly used for R&D, sci-tech development, technology incubator, incubation of high-tech firms, and technology innovations in line with the related import-export regulations.
For the establishments in Hoa Lac High-tech Park (HHTP), recipients will be able to enjoy a corporate income tax (CIT) of 10 per cent for 30 years from the first year of making a revenue, four years of tax exemption, and a 50 per cent reduction in payable tax in the following nine years from the date of receiving payable income. They will also be exempted from import duty for materials and spare parts used for manufacturing that are not produced domestically, from the date of beginning manufacturing.
Establishments outside HHTP can enjoy a CIT of 10 per cent for 30 years from the first year of having revenue, an exemption of tax for four years, and a reduction of 50 per cent of payable tax in the following nine years dating, counted from the date of getting payable income.
The decree will take effect from October 5, 2020.
