The regulation on special investment incentives and support is one of the most highlights in the Law on Investment 2020.
Accordingly, Article 20 of the Law on Investment 2020 stipulates in detail the form of special investment incentives and support as follows:
1.The purpose of applying special investment incentives and support
Pursuant to Clause 1 Article 20 of the Law on Investment 2020, the Government shall decide to apply special investment incentives and support in order to encourage the development of several investment projects which seriously impact on the socio-economic development.
2. Subjects of special investment incentives and support
– Investment projects for new establishment (including the expansion of such newly established projects) of (i) innovation centers, research and development centers that have a total investment of at least VND 3,000 billion, and implement the disbursement of at least VND 1,000 billion within 03 years from the issuance date of the Investment Registration Certificate or of the investment policy approval; (ii) national innovation centers established under the Prime Minister’s decision;
– Investment projects whose business lines are eligible for special investment incentives have an investment of at least VND 30,000 billion, and implement the disbursement of at least VND 10,000 billion within 03 years from the issuance date of the Investment Registration Certificate or of the investment policy approval.
3. Incentives and the application term for special investment incentives
The Law on Investment 2020 stipulates that the incentives and the application term for special investment incentives shall comply with the Law on Corporate Income Tax and the laws on land.
4. Form of special investment incentives and support
Special investment incentives shall be implemented in accordance with the form of general investment support as set out at Clause 1 Article 18 of the Law on Investment 2020, including:
- Support for the development of socio-technical infrastructure systems inside and outside the barrier of investment projects;
- Support for training and development of human resources;
- Credit support;
- Support to approach the production and business spaces; support the production and business establishments to relocate in accordance with the decision of the state authorities;
- Support for science, technology, and technology transfer;
- Support for the market development, and information provision;
- Research and development support.
5. Cases do not apply for special investment incentives and support
– Investment projects that were granted the Investment Registration Certificate or the investment policy decision before January 1st 2020;
– Investment projects for mineral exploitation;
– Investment projects for the production and trading of goods and services which are taxable subjects of special consumption tax in accordance with the Law on Special Consumption Tax, except for projects on manufacture of cars, aircraft and yachts;
– Investment projects for constructing commercial housings in accordance with the housing laws.
