Tax incentives always create significant opportunities for businesses to operate and develop sustainably. Discover the attractive tax incentive in Saigon Hi Tech Park for businesses, including corporate taxes.

What is the tax incentive in Saigon Hi Tech Park?

What are corporate tax incentives?

Corporate tax incentives are special tax policies applied for businesses to reduce or exempt taxes in order to encourage business activities, investment, and economic development. The objective of corporate tax incentives is to attract investment, create favorable conditions for business development, enhance competitiveness, and promote economic growth.

Corporate tax incentives may include corporate income tax reduction, exemption of income tax from sources, value-added tax (VAT) reduction, import tax reduction, and various other forms depending on the regulations of each country.

The current forms of tax incentives for businesses may vary depending on the regulations of each country and territory. Specifically, for businesses operating in Vietnam, the tax incentives include the following:

• Corporate income tax reduction (CIT): Businesses are eligible for a reduced corporate income tax rate. However, the specific tax rate depends on the industry and geographic location of the business.
• Exemption of income tax from sources: Businesses may be exempted from income tax on specific sources of income, such as profits from export activities, dividends from foreign investments, or profits from significant investment projects for the country.
• Exemption of income tax from scientific and technological activities.
• Import tax exemption.
• Value-added tax (VAT) exemption.
• Preferential sales tax exemption
• Land tax exemption: Businesses investing in economic zones, industrial parks, export processing zones, or other special areas may be exempted from or receive a reduction in land tax for a certain period.
• Property tax exemption: Businesses participating in significant investment projects may be exempted from or receive a reduction in property tax.

Tax incentive in Saigon Hi Tech Park for businesses

Saigon Hi Tech Park is a special area with specific tax incentives aimed at attracting and providing favorable conditions for businesses operating in the information technology sector. Here are some common types of tax incentives applied in Saigon Hi Tech Park.

Corporate income tax incentive

The purpose of this incentive is to encourage and support the development of businesses, create favorable conditions for investment, business expansions, employment, and contribution to national economic development.

Businesses operating in Saigon Hi Tech park will be exempted from or enjoy a very low preferential corporate income tax rate for a certain period. The duration of incentives and the extent of tax reduction will depend on the type of business and its location.

Corporate income tax incentive

Import tax exemption

This incentive aims to encourage and support businesses in enhancing production activities, improving competitive capacity, attracting investment, and providing favorable conditions for expanding business operations. Additionally, import tax exemption helps businesses save input costs and increase value.

For most businesses operating in Saigon Hi Tech park, the tax-exempted items will include electronic components, equipment, spare parts, and more. It is worth noting that to enjoy this incentive, businesses need to comply with the regulations on conditions, procedures, and strict restrictions of the law.

Preferential sales tax exemption

Preferential sales tax exemption refers to a type of tax that businesses have to pay when registering their business and obtaining a business license. The exemption of this tax helps businesses reduce initial cost pressures, making it easier for them to start and develop operations. Furthermore, asset transfer transactions and sales of goods within Saigon Hi-Tech Park may also be exempted from sales tax or enjoy reduced tax rates.

Opportunities for businesses from tax incentive in Saigon Hi Tech park

When businesses receive tax incentives, they essentially gain many financial benefits. In addition, enjoying these tax incentives also creates significant opportunities for businesses to leverage in the following ways:

• Increased competitiveness: By reducing taxes, businesses have alleviated a significant burden on costs. Therefore, businesses operating here will have more opportunities to invest in internal resources and enhance competitiveness in the market.
• Increased investment attractiveness: Not only do businesses operating in Saigon Hi-Tech Park have development opportunities, but investors in this area also have the chance to attract investment from foreign talents.
• Increased scale and production: Enjoying corporate tax incentives here helps businesses expand their production scale, invest in technology and infrastructure, thereby increasing productivity and efficiency in business operations.
• Access to high-quality human resources: With the existing scale and professionalism in the high-tech park, this is an opportunity for businesses to have additional funds to attract experts, professionals, and highly skilled workers in the field of technology and engineering.

Integrated business park – OneHub Saigon

Conclusion

Tax incentives in Saigon Hi Tech park are not only encouraging policies but also opportunities for businesses to develop and establish offices here. If your business is looking for office spaces in Saigon Hi-Tech Park, explore OneHub Saigon, a grade campus-style business park, to find more detailed information!