Preferential income taxes offered in EZs

VGP – Individuals working for economic zones (EZs) in Việt Nam will enjoy a 50% reduction of their yearly income tax, stipulates the Ministry of Finance’s (MoF) Circular 176/2009/TT-BTC.

September 11, 2009 6:08 PM GMT+7

The Vân Phong Economic Zone in the central coastal province of Khánh Hòa – Illustration photo

The beneficiaries include both Vietnamese and foreign residents or non-residents directly working in management boards, State management agencies, and business enterprises in EZs.

Especially, employees who serve for organizations or individuals operating outside EZs and are assigned to work in EZs will enjoy the tax reduction policy.

However, the MoF also noted that employees, serving for organizations and individuals within EZs but not working there are not beneficiaries of the policy.

Organizations and individuals have to pay income taxes imposed on their salaries, wages and revenues from business and production activities conducted within EZs.

The regulation is eligible for income taxes arising since January 1, 2009.

So far, a series of concentrated EZs have been set up in along the coast and in border areas of Việt Nam. These zones are granted with many special incentive policies, including income tax reduction, in order to draw more domestic and foreign investors.

By Kim Loan