Period 1996 – 2004
Industrial parks were considered to be preferred areas for investment. Doing business – production and processing inside industrial parks, was considered as investing into preferred fields and would enjoy tax incentives in corporate income tax and import-export tax under Government regulations.
Period 2004 – 2006
Corporate income tax incentive under regulation of Law on Corporate Income Tax 2003, Decree no. 164/2003/ND-CP dated 22 December 2003 and Decree no. 152/2004/ND-CP. In detail the incentive includes: 1. New service establishment of projects inside Industrial parks are exempted from tax for two years, reduce 50% of tax for the next 6 years, apply tax of 20% in 10 years. 2. New service establishment of projects from Export Processing Zones, new business establishment of projects from industrial parks exempt from tax for 3 years, reduce 50% of tax for the next 7 years, apply tax of 15% in 12 years. 3. Export processing enterprises in production fields (regardless of inside or outside export processing zones) exempt from tax for 4 years, reduce 50% of tax for the next 7 years, and apply tax of 15% in 15 years.
Period 2007 – 2008
Follow the Decree no. 24/2007/ND-CP dated 14 Feb 2007 of the Government and Decree no. 108/2006/ND-CP dated 22 Sep 2006 of the Government.
Decree no. 108/2006/ND-CP regulates: production projects, inside industrial parks approved by Prime Minister, under preferred investment fields; Industrial parks established under decision of Prime Minister inside area with social-economic difficulties; Industrial parks, high-tech parks with incentives under Establishment Decision of Prime Minister for areas with special socio-economic difficulties.
Therefore, new business establishment from projects inside industrial parks, economic zones, high-tech parks all apply tax incentives in corporate income tax under regulation of Decree no. 24/2007/ND-CP.
Period 2009 – present
Under the Decree no. 124/2008/ND-CP dated 11 Dec 2008 of the Government, from 2009, new business enterprises from projects inside economic zones, high-tech parks enjoy tax exemption in 4 years, reduce 50% of tax for the next 9 years, apply tax of 10% in 15 years. The Decree did not have incentives for enterprise establishment inside the industrial parks, so do not promote investment into industrial parks.
Referring to incentives for the most prioritized under List A or B Appendix I or Appendix II attached with Decree no. 108/2006/ND-CP, most enterprises in Binh Duong province enjoy tax incentives in two fields: project using 500 – 5,000 workers and projects inside industrial parks approved by the Prime Minister.
(Source: Report no. 55/BC-UBND dated 12 June 2012 of the People’s Committee of Binh Duong Province on the operation of Industrial Parks, Industrial Clusters inside the province and incentives in tax and finance for enterprises inside Industrial parks, industrial clusters)