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Incentives issued for border zones
Projects investing in border gate economic zones and non-tariff areas will enjoy a series of incentive policies, according to a new Government decision.
Decision No.33/2009/QD-TTg, issued last week, states that businesses and individuals who invest in border gate economic zones (EZ) and non-tariff areas will be offered priorities on tax, land rental and finance.
Individuals and businesses from home and abroad can invest directly in the zones.
According to the decision, the Government will use State budget to partly aid important infrastructure construction projects in the border gate economic zones and non-tariff areas. Large-sized projects of this kind will be allowed to issue revenue bonds.
Projects investing in important infrastructure and public works in the border gate EZs will be listed among Government projects calling for official development assistance (ODA) capital sources.
Newly-licensed projects will enjoy priority tax level of 10 per cent within 15 years. An exemption of income tax for four years is also included, which gives investors a 50 per cent tax reduction in the next nine years from the first year the investors have taxable income.
Vietnamese and foreign workers employed at the border gate EZs will also receive a 50 per cent reduction in income tax.
As for non-tax areas, commodities and services that are produced, consumed in, or imported to the areas will be exempted from value added tax (VAT), as will commodities and services exported from the areas.
The VAT exemption will be also applied to commodities and services transferred from local market to the tax-free areas.
All projects in the border gate EZs and tax-free areas will not have to pay fees for land rental for the first 11 years. Investment projects that receive special encouragement from the Government will not have to pay land rental, white projects that are encouraged by the Government will receive 15 years exemption.
The decision, which will take effect from May 1 this year, is expected to spur investment and promote domestic production in the economic downturn.
The decision is part of a development plan for the country's border gate EZs until 2020, approved by Prime Minister Nguyen Tan Dung.
Under the plan, the country will have 30 border gate EZs by 2020, helping total commodity and service export-import revenue through Vietnamese border gates with neighboring countries reach US$42-43 billion by 2020.
In terms of tourism, border gates are expected to welcome 7.8-8 million tourists by 2020.
VietNamNet, Viet Nam News
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