Prices for rehiring land and other fees

 

A. Price for rehiring land :
 
* The land-leasing price (both for foreign owned capital enterprises and domestic enterprises) as follow :

- Paying yearly                   : 0.98 USD/m2/year
- Paying a sum of 05 years : 0.90 USD/m2/year
- Paying a sum of 10 years : 0.78 USD/m2/year
- Paying a sum of 15 years : 0.68 USD/m2/year
- Paying a sum of 20 years : 0.59 USD/m2/year

* Fee for using infrastructure  : 0.2 USD/m2/year, paying yearly.

* Note : Depending on the preferntial level of each project and the advantagesof the leased land, the parties can discuss about the price and the term of payment in accordance with the policies of Can Tho People’s Committee.

B. Price for electricity, water and telephone :

cost	domestic enterprise	foreign owned capital enterprise
Electricity	850 VND /Kwh	7.5 cent/Kwh
Water (VND/m3)	3,000	3,000
Telephones : - Installment (VND/unit) - Renting (VND/unit/month) Calling is counted separately	820,000 27,000	820,000 27,000

 

Preferential taxation policy
 

1. Business income tax :

a/ Processing enterprises  (export 100%) :
- Production enterprises: 10% on the profits gained; exemption of business income tax for 04 years since the time starting to gain profits and reduction 50% for the next 07 years.
- Service enterprises : 15% on profits gained, exemption of business income tax for 03 years since the time starting to gain profits and reduction 50% for the next 07 years.

b/ The industrial zone enterprises :
- Production enterprises : 15% on profits gained, exemption of business income tax for 03 years since the time starting to gain profits and reduction 50% for the next 07 years.
- Service enterprises : 20% on the profits gained, exemption of business income tax for 02 years since the time starting to gain profits and reduction 50% for the next 06 years.

c/ For the projects in the list of Special Investing Stimulating Projects : 10% on the profits gained for 15 years since the time that the project coming into operation; exemption of business income tax for 04 years since the time starting to gain profits and reduction 50% for the next 09 years.

d/ The Term to apply the above incentive tax rates :
- The tax rate of 10% will be applied 15 years from the time that the project coming into operation.
- The tax rate of 15% will be applied 12 years from the time that the project coming into operation.
- The tax rate of 20% will be applied 10 years from the time that the project coming into operation.
- After the time of enjoying the above tax priorities, the business income tax will be 28% of profits gained.

2.  Import - export tax :
The enterprises enjoy import tax exemption on the following imported goods, which have not been produced or produced in domestic market, but unsatisfying the quality requirements :
- Equipment, machinery and special transports in the imported technological assembly line to use as fixed assets or widen the scale of investment and changing technology.
- Special transports to pick up workers.
- Export processing enterprises will enjoy total exemption of export-import tax (exception for the case that enterprises purchase the products from domestic market to export without processing, must bear export tax).

3. VAT and Special consumption tax:
- Export processing enterprises are not to bear VAT and special consumption tax.
- Industrial zone enterprises are not to pay VAT on equipment, machinery, and special transports in technological assembly line, construction materials that have not produced in the country imported to make up fixed assets.