14 June 2016
VIETNAM: 10 % CIT Rate Extended Indefinitely for Investors in IT Sector
Vietnam has announced an immediate and indefinite extension to its existing scheme for a preferential corporate income tax (CIT) rate of 10% for companies investing in the information technology (IT) sector. Companies were previously only allowed to claim the preferential rate for a maximum of 15 years. All qualifying projects must also employ at least 1,000 people.
In addition to companies currently benefiting from the preferential CIT rate, retroactive extensions will also be applied to any previously qualifying investors who have continued operations in Vietnam past the expiry of the initial 15-year period.
The move is part of the government’s campaign to promote sustained growth in the high-tech sector. In order to qualify, projects must relate to software, IT consulting, IT management and maintenance, business process outsourcing (BPO) exports, or network security.