Luong Dien – Ngoc Lien Industrial Park is a multi-sector industrial park invested in by Luong Dien Ngoc Lien Industrial Park Joint Stock Company to build basic infrastructure and provide support services for production and business activities.

1. Preferential tax rates

The tax rate is the basis for the tax payable on a specified unit value of the tax base for a type of taxpayer, expressed as a percentage, depending on the type of entity and related conditions, the applicable tax rate will vary.

Preferential tax rates are the tax rates applied to certain specific items and are usually lower than the normal tax rates.

Based on Article 6, Clause 1 of the Corporate Income Tax Law (Amended in 2013), Luong Dien – Ngoc Lien Industrial Park enjoys a Corporate Income Tax Incentive rate of 20%.

Corporate Income Tax Incentives at Luong Dien – Ngoc Lien Industrial Park

2. Incentives for tax exemption and reduction

Tax exemption and reduction incentives are state policies for enterprises, organizations, and individuals in certain sectors or areas. This incentive is implemented by exempting or reducing corporate income tax, personal income tax, value-added tax, import-export tax, etc., for a certain period of time.

Luong Dien – Ngoc Lien Industrial Park in Hai Duong province is entitled to tax exemption for 2 years and a 50% reduction in tax for the next 4 years for income from implementing new investment projects specified in Clause 4, Article 19 of Circular No. 78/2014/TT-BTC dated June 18, 2014, of the Ministry of Finance and income of enterprises from implementing new investment projects in Industrial Parks.

* Based on Article 1 and Article 2, Clause 16 of Decree No. 218/2013/ND-CP and Clause 16, Article 1 of Decree No. 12/2015/ND-CP, Luong Dien – Ngoc Lien Industrial Park is entitled to corporate income tax incentives: Exemption for 4 years, 50% reduction in tax payable for 9 years, the income of enterprises from implementing new investment projects in the following sectors:

Research and development of technology;

• Application of high technology prioritized for investment according to the Law on High Technology;
• Incubation of high technology, incubation of high-tech enterprises;
• Venture investment in high technology development projects prioritized according to the law on high technology;
• Investment in the construction and operation of high-tech incubators, high-tech enterprise incubators;
• Investment in the development of water plants, power plants, water supply and drainage systems;
• Bridges, roads, railways;
• Airports, seaports, river ports;
• Airports, terminals, and other extremely important infrastructure projects decided by the Prime Minister;
• Software production;
• Production of composite materials, lightweight construction materials, rare materials;
• Renewable energy production, clean energy, energy from waste disposal;
• Development of biotechnology.

According to Circular No. 153/2011/TT-BTC of the Ministry of Finance, the tax incentives for non-agricultural land use in Luong Dien – Ngoc  Industrial Park are as follows:

• For projects in specially incentivized sectors: Exempt from tax
• For projects in incentivized sectors: Exempt from tax
• For ordinary projects: 50% reduction in tax payable

Tax exemption and reduction incentives at Luong Dien – Ngoc Lien Industrial Park

3. Import-export tax and VAT

Import-export tax, or customs duty, includes two types of taxes: export tax and import tax.

Import tax and export tax can be understood as follows:

• The Export tax is a tax levied on goods that the state wants to restrict from being exported.
• Import tax is a type of tax that a country or territory imposes on goods originating from abroad during the importation process.

3.1. Import tax

• FDI enterprises:

According to Clause 7, Article 103 of Circular No. 38/2015/TT-BTC, FDI enterprises (enterprises with foreign direct investment capital) are exempt from import tax when importing goods to create fixed assets for projects eligible for incentives.

Items eligible for tax reduction or exemption are listed in the HS code list. FDI enterprises that do not export are not eligible for import-export tax exemption.

• EPE enterprises:

According to the regulations in Clause 3, Article 26 of Decree No. 35/2022/ND-CP, export processing enterprises are entitled to investment incentives and tax policies for non-customs zones from the time of investment target establishment for export processing enterprises recorded in the Investment Registration Certificate, amended Investment Registration Certificate, or Confirmation of Registration of Export Processing Enterprises issued by the competent investment registration authority.

Based on Point C, Clause 4, Article 2 of the Export Tax and Import Tax Law 2016; goods imported (machinery, equipment) from abroad into non-customs zones and only used within non-customs zones; goods transferred from this non-customs zone to another non-customs zone are not subject to tax.

3.2. Export tax

• FDI enterprises:

Under the Export Tax and Import Tax Law 2016, FDI enterprises are entitled to a refund of export tax.

• EPE enterprises:

According to the regulations in Clause 3, Article 26 of Decree No. 35/2022/ND-CP, export processing enterprises are entitled to investment incentives and tax policies for non-customs zones from the time of investment target establishment for export processing enterprises recorded in the Investment Registration Certificate, amended Investment Registration Certificate, or Confirmation of Registration of Export Processing Enterprises issued by the competent investment registration authority.

Based on Point C, Clause 4, Article 2 of the Export Tax and Import Tax Law 2016, goods exported from non-customs zones to foreign countries; only used within non-customs zones; goods transferred from this non-customs zone to another non-customs zone are not subject to tax.

Decree 36 has affirmed that the activities between the export processing zone and the outside are import-export activities, considered outside the country, goods are not subject to import tax, not subject to VAT, and not subject to GST. Goods from the export processing stage also do not incur any taxes, including export tax and GST. Regarding direct taxes, enterprises investing in export processing zones enjoy corporate income tax, with the lowest tax rate being 10%, for the project’s entire lifespan (if the license is for 50 years, this tax rate is enjoyed for 50 years).

Import-export tax in Luong Dien – Ngoc Lien Industrial Park

4. Land rent paid to the state

The policy of exempting land rent for infrastructure investors – Luong Dien Ngoc Lien Industrial Park Joint Stock Company is stipulated in Article 19 of Decree No. 46/2014/ND-CP as follows:

• Exemption from land rent for 7 years after the period of land rent exemption for investment projects for ordinary projects.
• Exemption from land rent for 11 years after the period of land rent exemption for investment projects eligible for incentives.
• Exemption from land rent for 15 years after the period of land rent exemption for investment projects eligible for special investment incentives.

Land rent tax paid to the state

With attractive investment incentives, Luong Dien – Ngoc Lien Industrial Park not only provides modern infrastructure and professional support services but also creates favorable conditions to attract a high-quality labor force and promote effective production and