Vietnamese digital technology businesses are about to enjoy unprecedented incentives
Enterprises participating in the production of digital technology products and services will be exempted from corporate income tax by the State for the first 2 years, reduced by up to 50% for the next 4 years and exempted from land rent for 3 years. This is just one of a series of incentives that digital technology enterprises will enjoy when the Law on Digital Technology Industry officially takes effect from January 1, 2026...
Mr. Nguyen Khac Lich, Director of the Department of Information Technology Industry, pointed out the breakthroughs of the Law on Digital Technology Industry.
At the press conference held by the Ministry of Science and Technology on the afternoon of July 7, Mr. Nguyen Khac Lich, Director of the Department of Information Technology Industry (Ministry of Science and Technology), said that digital technology enterprises will soon enjoy unprecedented incentives.
OUTSTANDING INCENTIVE MECHANISM FOR BUSINESSES
Firstly, businesses that participate in the production of digital technology products and services will be exempted from corporate income tax for the first two years and land rent for three years by the State.
The second special incentive for priority areas such as key digital technology products, semiconductors, artificial intelligence (AI), high-performance computing (HPC), or investing in concentrated digital technology zones, businesses will be subject to a preferential corporate income tax rate of 10% for 15 years, and will be exempted from corporate income tax for the first four years and reduced by 50% for the next nine years. In addition, businesses will also be exempted from land rent for 11 years, or even up to 15 years if the project is located in a particularly difficult area.
In particular, for large-scale projects with a total investment capital of VND 6,000 billion or more in the fields of key digital technology products, semiconductors, AI or HPC, investors will enjoy incentives equivalent to projects with a scale of VND 30,000 billion according to the provisions of Vietnamese law.
Specifically, the preferential corporate income tax rate is only 5% for 37 years, tax exemption for the first 6 years and a 50% reduction for the next 13 years. Regarding land and water surface rental costs, the project is exempted completely for 22 years and continues to be reduced by 75% for the remaining period. These are outstanding incentive policies to attract investment in the country's strategic digital technology fields.
In addition to preferential policies for enterprises, the State also pays special attention to input human resources for the digital technology industry. Students studying in this field will enjoy support policies such as: preferential credit, appropriate loan interest rates, academic scholarships, social subsidies and tuition fee exemptions; and support for the cost of training high-quality digital technology human resources. At the same time
, the State prioritizes investment in training facilities and provides additional funding for businesses to participate in training students or developing human resources in accordance with practical requirements.
HIGH-TECH WORKERS CAN BE ADMITTED TO BE CIVIL SERVANTS WITHOUT RECRUITMENT EXAMINATION
In particular, to develop human resources, especially high-quality human resources, the Law on Digital Technology Industry stipulates that foreigners working in Vietnam and meeting the criteria for high-quality human resources will be granted temporary residence cards with a term of up to 5 years, instead of only 2 years as before.
Their spouses and accompanying children under 18 years of age will also be granted temporary residence cards with an equivalent term, and will be facilitated and supported by local authorities and competent agencies in procedures when looking for jobs and enrolling and studying at educational and training institutions in Vietnam.
In addition, similar to other Vietnamese high-tech human resources, these human resources are also exempt from personal income tax for the first 5 years of working in Vietnam.
Notably, Vietnamese citizens working in organizations and enterprises that meet the criteria for high-quality human resources can be accepted as civil servants and public employees without having to undergo exams or selection. These individuals are also considered for appointment to positions without having to meet the usual working time requirements.
The State will apply a special mechanism on salary and bonus with international competitiveness, while supporting living space, working facilities and suitable living conditions to attract and retain elite human resources in the digital technology industry.
In addition, high-quality digital technology industry human resources in digital technology organizations and enterprises can be accepted for a limited period of time to work at state agencies or public service units, if there is a consensus guarantee from the leaders. Conversely, civil servants can also work for a limited period of time at private organizations if there is approval from the leaders on both sides.
Ngo Huyen
According to VnEconomy