Proposal to pilot investment support in high-tech sector

The Ministry of Planning and Investment (MPI) has just sent a document requesting the Ministry of Justice's opinion on the dossier for drafting a Resolution on piloting investment support policies in the high-tech sector.

Pursuant to the provisions of the Law on promulgation of legal documents on the drafting of resolutions of the National Assembly, Resolution No. 123 of the Government on the proposal to draft a resolution of the National Assembly on the pilot application of investment support policies in the high-tech sector and the direction of the Prime Minister, the Ministry of Planning and Investment has drafted a report to the Government on the draft Resolution of the National Assembly on the pilot application of investment support policies according to simplified procedures.

Accordingly, the Ministry of Planning and Investment believes that changing the approach, adding new forms of incentives and investment support in the high-tech sector in the context of implementing global minimum tax is necessary to ensure the competitiveness and attractiveness of the investment environment in Vietnam in the coming time.

This Ministry proposed the content of the draft resolution of the National Assembly to pilot the application of investment support policies to 4 groups of enterprises.

That is, enterprises with investment projects with capital scale of over 12,000 billion VND or achieving revenue of over 20,000 billion VND/year in the field of manufacturing high-tech products.

High-tech enterprises have investment projects with capital scale of over 12,000 billion VND or revenue of over 20,000 billion VND/year.

Enterprises with high-tech application projects with capital scale of over 12,000 billion VND or revenue of over 20,000 billion VND/year.

Enterprises investing in research and development center projects with capital scale of over 3,000 billion VND.

The draft resolution proposes four forms of investment support, including: Support for training and human resource development; support for investment costs to create fixed assets and social infrastructure systems; support for high-tech product production costs and support for research and development.

Regarding the method of investment support, the drafting agency proposed that investment support amounts be deducted from the tax obligations of enterprises or paid directly with money drawn from the state budget.

The state budget is allocated in the annual budget estimate to implement investment support policies prescribed in this article.

The reason for the proposal, according to the Ministry of Planning and Investment, is consistent with the recommendations of the Organization for Economic Cooperation and Development (OECD) in the process of building mechanisms and policies to support investment when the global minimum tax is applied.

At the same time, these are forms of investment support that countries in the region are applying, while in Vietnam they are not yet specified in legal documents.

According to the draft, the resolution will take effect for 5 years, starting from January 1, 2024. During the pilot implementation period, if the Investment Law, the State Budget Law and other relevant laws are amended and issued to replace the provisions of this resolution, those provisions will be implemented.

Global Minimum Tax: Vietnam wants to apply from 2024 Vietnam supports and proactively applies the Global Minimum Tax regulation from 2024, creating a favorable mechanism to encourage businesses to pay additional taxes in Vietnam.

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