Agriculture investments entitled to incentives

May 21, 2015 | 09:39
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Exemption and reduction in land rent, cost support for advertising, vocational training, and base construction investment are among the incentives and facilitation that enterprises enjoy while investing in agriculture and rural areas.

Enterprises shall receive certain incentives and support for implementing investment projects in the application of biotechnology and high technology in production; production of materials and processing of cattle and poultry feeds; production of handicrafts; and protection services of plants and animal health in rural areas; etc. The PLF aggregates and classifies the incentives and facilitation as follows:

For investment projects implemented in geographical areas that have extremely difficult socio-economic conditions:

Land use levy shall be exempt if the land is allocated by the State Land and water surface rents shall be exempt from the date of project commencement

Land use levy shall be exempt when enterprises modify land use purpose for project execution

For investment projects implemented in geographical areas with difficult socio-economic conditions:

Enterprises shall be entitled to a 70 per cent reduction on land use levy if the land is allocated by the State

Land and water surface rents shall be exempt within the first 15 years from the date of project commencement

Land use levy shall be reduced by 50 per cent when enterprises modify land use purpose for project implementation

For investment projects implemented in rural areas, which include neither wards nor districts under towns and cities:

Enterprises shall be entitled to a 50 per cent reduction on land use levy if the land is allocated by the State

Land and water surface rents shall be exempt within the first 11 years from the date of project commencement

In addition, the aforementioned projects shall enjoy the following incentives and support:

Land rent shall be exempt for areas allotted for workers' condominiums, planting trees, and public welfare

In case where enterprises are subject to both land rent exemption and reduction, after land rent exemption is applied, they shall continue to receive land rent reduction for the next rent period

A 70 per cent grant on the expenses of domestic vocational training for the employees of the enterprises

A 50 per cent grant on the cost of advertising in mass media; 50 per cent grant on the cost of participation in domestic exhibitions and fairs; 50 per cent grant on charges for accessing market information and service charges from trade promotion agencies

A 70 per cent grant on the costs of researching new technologies or purchasing copyrighted technology for project execution; and a 30 per cent grant on the total new investment cost for pilot production

Additionally, enterprises shall receive support on base construction investment if they satisfy all conditions for scale, planning, and use of local labour, etc.

It is essential to note that within the same period of time, enterprises having investment projects subject to many different preferential rates and support are permitted to select the most beneficial incentives and support. Furthermore, enterprises will not be able to receive exemption and reduction on land and water surface rents without carrying out certain procedures stipulated by law. Last but not least, a dossier requesting support on land and water surface rent includes: a written request, a decision on incentives issued and approved by the provincial People's Committee, a lease contract, an acceptance minutes, and a Business Registration Certificate.

VNS

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