ANNOUNCEMENT 11 Dec 2014In December 2014, the government of Vietnam announced a targeted tax change.
NUMBER OF INTERVENTIONS
On 11 December 2014, the People's council of Thai Nguyen province in Vietnam approved incentives for Samsung Electronics' second phase hi-tech production complex in the Yen Binh Industrial Park in Thai Nguyen.
The incentives include extended 50% exemption on the corporate income tax and 50% exemption on land fee rentals in the industrial park. Samsung is expected to invest USD 3 billion in the second phase after having already invested USD 2 billion for the first phase.
According to news reports, the province had also provided in March full tax exemptions for 4 years and 50% exemption for following 9 years for the initial phase of this factory.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.