A. Business Income Tax (BIT).

Bit rate
Based on Decree No. 164/2003/ND- CP

Dated Dec. 22, 2003 and Decree No. 152/2004/ND-CP dated Aug. 06, 2004, Article 35, Clause 1 & Article 36, Clause 13.

Services:

 20%* Applied for 10 years
 Tax exempt for 2 years as from the date of taxable income
 Reducing 50% of tax paid in the following 6 years.

Production:

 15%* Applied for 12 years.
 Tax exempt for 3 years as from the date of taxable income.
 Reducing 50% of tax paid in the following 7 years..

Field of Encouraged Investment (  ) (Decree No. 27/2003 dated Mar. 19, 2003

 10%* Applied for 15 years
 Tax exempt for 4 years as from the date of taxable income
 Reducing 50% of tax paid in the following 7 years.

as from the date the Project begins its trade & production, and 28% in the following years.
Allowed to transfer the after-balance loss to and deduct the same from the taxable income in the following years.
The period of loss transfer shall not be over 5 years.

B. Import tax : Exempted

Business with foreign Investment:

 Raw materials for production, materials, components, for 05 years as from starting production.
 Imported goods for creating fixed assets.
 Raw materials, components, spare parts, and materials, imported for export goods production.

Domestic Businesses:

 Machinery & equipment for creating fixed assets, not yet produced domestically, or already produced with inadequate quality.

(*) Including  :
Establishments dealing in infrastructure development, which are newly set up under investment projects for development of infrastructures of industrial parks.
Export processing enterprises in production fields regardless of whether they are located inside or outside export processing zones.