WHAT ARE THE BENEFITS OF FOREIGN-INVESTED ENTERPRISES?
QUESTION
Dear TLK Law Firm, we hope to have your answer to the following question: I am a Korean investor. Currently, I need to establish a Korean business in Vietnam. However, I still do not understand the benefits and incentives that foreign businesses in Vietnam enjoy. So, lawyer, let me ask: What are the benefits of foreign-invested enterprises? Looking forward to your company's answer. Thank you!
RELATED ARTICLES
1. Can foreign individuals establish a company in Vietnam? What are conditions?
2. Can a foreign company establish a subsidiary in Vietnam? What are conditions?
3. Where to submit an application to establish a foreign-invested enterprise?
Thank you for your trust and sending questions to TLK Law Firm. Based on legal regulations and practical solutions, we would like to send you the following consulting content:
LEGAL BASIS
1. Investment Law No. 61/2020/QH14 passed by the National Assembly on June 17, 2020;
2. Decree No. 31/2021/ND-CP issued by the Government on March 26, 2021 detailing and guiding the implementation of a number of articles of the Investment Law;
3. Decree No. 122/2021/ND-CP issued by the Government on December 28, 2021 regulating penalties for administrative violations in the field of planning and investment;
4. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
Currently, our State has been introducing policies to promote trade activities between Vietnam and countries around the world to attract foreign investment capital to promote the development of the national economy. That's why more and more foreign investors come to Vietnam to invest in the form of establishing foreign-invested enterprises. When foreign-invested enterprises carry out business and investment activities, they will enjoy tax incentives, capital resources, etc. when meeting the conditions prescribed by Vietnamese law. However, most foreign investors when establishing foreign enterprises in Vietnam do not understand all the legal regulations on incentives and benefits that foreign-invested enterprises enjoy. Through the article below, we - TLK Law Firm will help you answer questions related to the benefits of foreign-invested enterprises.
Photo 1. What are the benefits of foreign-invested enterprises?_ Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO THE RIGHTS OF FOREIGN INVESTED ENTERPRISES
1. What is a foreign-invested enterprise?
The Investment Law 2020 regulates a number of issues related to foreign-invested enterprises as follows:
(1) Economic organization is an organization established and operating under the provisions of Vietnamese law, including enterprises, cooperatives, cooperative unions and other organizations carrying out business investment activities;
(2) Economic organization with foreign investment capital is an economic organization with foreign investors as members or shareholders;
(3) Investment capital is money and other assets according to the provisions of civil law and international treaties to which the Socialist Republic of Vietnam is a member to carry out business investment activities.
Thus, a foreign-invested enterprise is understood as an enterprise established under the provisions of Vietnamese law. In which the founder of the enterprise or the shareholder of this enterprise is a foreign investor.
=> See more: What industries can foreign-invested enterprises operate in?
2. Benefits of foreign-invested enterprises
Pursuant to the Investment Law 2020, foreign-invested enterprises in Vietnam enjoy the following benefits:
(1) Carry out investment and business activities like Vietnamese enterprises, except for some industries on the list of restricted market access for foreign investors;
(2) Autonomously decide on business investment activities in accordance with the law, have access to and use credit sources, support funds, and use land and other resources in accordance with the law;
(3) The State recognizes and protects ownership of assets, investment capital, income and other legal rights and interests of investors;
(4) Choose an investment form in accordance with the law, establish an economic organization, contribute capital, buy shares, buy capital contributions, sign BCC contracts, and various types of PPP contracts;
(5) If a foreign-invested economic organization has been established in Vietnam, if it has a new investment project, it must carry out procedures to implement that investment project without necessarily establishing a new economic organization;
(6) Adjusting investment projects: During the implementation of investment projects, investors have the right to adjust goals, transfer part or all of the investment project, merge projects or divide, Split a project into multiple projects, use land use rights and assets on land under the investment project to contribute capital to establish an enterprise, business cooperation or other contents and must be in accordance with the provisions of the Law on Investment;
(7) Investment project proposals, including proposals for investment incentives according to legal regulations;
(8) Establishment of branches, representative offices, locations, and business headquarters in the country and abroad.
Note: In addition to the above benefits, foreign-invested enterprises also have the right to enjoy tax incentives when meeting the conditions prescribed by the Tax Law.
=> See more: What types of periodic reports must be submitted by foreign companies?
II. SUMMARY OF ANSWER SECTION: BENEFITS OF FOREIGN INVESTED ENTERPRISES?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Currently, our country's laws have been developing many preferential policies to attract foreign investment capital. Therefore, foreign-invested enterprises established in Vietnam will enjoy the following benefits:
(1) Carry out investment and business activities like Vietnamese enterprises, except for some industries on the list of restricted market access for foreign investors;
(2) Autonomously decide on business investment activities in accordance with the law, have access to and use credit sources, support funds, and use land and other resources in accordance with the law;
(3) The State recognizes and protects ownership of assets, investment capital, income and other legal rights and interests of investors;
(4) Choose an investment form in accordance with the law, establish an economic organization, contribute capital, buy shares, buy capital contributions, sign BCC contracts, and various types of PPP contracts;
(5) If a foreign-invested economic organization has been established in Vietnam, if it has a new investment project, it must carry out procedures to implement that investment project without necessarily establishing a new economic organization;
(6) Adjusting investment projects: During the implementation of investment projects, investors have the right to adjust goals, transfer part or all of the investment project, merge projects or divide, Split a project into multiple projects, use land use rights and assets on land under the investment project to contribute capital to establish an enterprise, business cooperation or other contents and must be in accordance with the provisions of the Law on Investment;
(7) Investment project proposals, including proposals for investment incentives according to legal regulations;
(8) Establishment of branches, representative offices, locations, and business headquarters in the country and abroad.
In addition, foreign-invested enterprises also have the right to enjoy tax incentives when meeting the conditions prescribed by the Tax Law.
Photo 2. What are the benefits of foreign-invested enterprises?_ Hotline: 0972118764
III. HOW SHOULD YOU BEST CHOOSE AN ORGANIZATION THAT PROVIDES LEGAL SERVICES?
An organization providing quality and reputable legal services should have the following criteria:
First: Must be an official legal organization with a legal operating license;
Second: It is better if the Board of Directors must be lawyers, experienced and have high degrees;
Third: Have a team of lawyers and a systematic, professional, and thoroughly trained human resources system;
Fourth: Friendly, dedicated and make every effort for the benefit of customers. Consider customer satisfaction and work quality as your own honor;
Fifth: Professional, thoughtful, flexible and logical service provision process to optimize work performance and save customers' time;
Sixth: Reasonable and competitive service prices;
Seventh: Rich services in both fields of supply and service packages in the same field for customers to choose the appropriate service package, as well as comprehensive support for customers throughout the operation process. movement;
Eighth: Have the ability to Connect - Promote commercial relationships for customers if customers have needs,...
Finding a comprehensive, professional and reputable legal consulting organization is what every customer wants. Because no one wants to risk losing both money and time when the results are not as expected. However, finding such an organization is not easy because the number of service providers in the Vietnamese market today is very large with varying quality.
A suggestion for you: Although our TLK Law Firm does not dare to claim to be the best legal service provider on the market, we satisfy all of the above criteria and more will definitely be a good choice for you.
=> See more: What is direct investment to establish a foreign enterprise?
IV. SOME QUESTIONS RELATED TO THE BENEFITS OF FOREIGN INVESTED ENTERPRISES
Question 1: My company is a foreign enterprise. Currently, if a company is implementing a new investment project in an area with difficult socio-economic conditions, is it eligible for corporate income tax incentives?
Reply:
The answer is yes.
Pursuant to the Law on Corporate Income Tax 2008 (amended and supplemented in 2013, 2014, 2020), foreign-invested enterprises when implementing new investment projects in areas with difficult socio-economic conditions are entitled to corporate income tax incentives as follows:
(1) Apply a tax rate of 10% to corporate income for a period of fifteen years;
(2) Tax exemption for a maximum of no more than four years and a 50% reduction in tax payable for a maximum of no more than the next nine years
Question 2: How can my business apply for investment incentives?
Reply:
Pursuant to the Investment Law 2020, to apply for investment incentives, businesses need to carry out the procedures to apply investment incentives as follows:
(1) Determine the investment incentives your business is entitled to based on the following factors: subjects eligible for investment incentives, investment policy approval document, Investment registration certificate;
(2) Carry out procedures for enjoying investment incentives at competent agencies corresponding to each type of investment incentives such as tax authorities, financial agencies, customs agencies, etc.
Question 3: My business is entitled to corporate income tax incentives in the case of tax incentives for businesses implementing new investment projects. Currently, I need to separate my business into two new businesses. So after separation, will both separated businesses still enjoy tax incentives?
Reply:
The answer is that only businesses that directly implement investment projects can enjoy tax incentives.
Pursuant to the Law on Corporate Income Tax 2008 (amended and supplemented in 2013, 2014, 2020), corporate income tax incentives in the form of new investment projects do not apply to cases of division, separation, or merger. merger, consolidation, transformation of business form, ownership conversion and other cases according to the provisions of law.
Above is some general advice that we would like to offer to our customers. As a service provider, we always understand and are ready to accompany and solve the needs and difficulties that customers are facing. If you still have questions or need more in-depth advice, please contact the hotline: 0972118764 to receive direct advice from a lawyer (completely free consultation).
Thank you very much!
Administrative Procedures Department - TLK Law Firm
WORK PERFORMED BY TLK LAW FIRM
1. Advise customers on all legal issues related to social life, individuals, organizations, businesses and investors.
2. Providing to customers, representing all legal services related to social life, individuals, organizations, businesses and investors.
INCENTIVES
1. Support customers in connecting and promoting trade during operations.
2. % discount on service fee when customers use the service for the second time.
3. Free legal advice on corporate law for one year (if you are an organization or business).
4. Care and free legal advice on tax and accounting laws for businesses within one year (if you are an organization or business).
5. Provide an internal business management system (if Customer is an organization or business).
LATEST PROMOTION POLICY HERE
We are always ready to be a dedicated companion and a solid legal fulcrum for our customers.
We wish our customers good health and prosperous development!
In case you need advice or use the service, please contact us with the information below:
TLK LAW FIRM
- Tel: +(84) 243 2011 747 Hotline: 097 211 8764
- Email: info@tlklawfirm.vn Website: tlklawfirm.vn
