Tax breaks for Con Dao islanders

Personal income tax for Vietnamese and foreigners who work on the islands of Con Dao has been reduced by 50 per cent, in a proposed draft of preferential policies by the Ministry of Planning and Investment.

The draft aims to turn Con Dao into a high-quality tourism destination in the region. The Con Dao archipelago of 16 islands, 185km away from southern Ba Ria-Vung Tau Province and 230km from HCM City, also has potential in seafood manufacturing, oil and maritime services.

The draft includes many preferences to encourage investment, covering corporate and personal income tax, import and value added tax together with land use and rental fees.

Following the draft, enterprises in the area will receive the highest level of corporate income tax preference.

Meanwhile, foreign-invested enterprises are allowed to forward losses for five years.

Accordingly, no VAT is applied to costs of supplies and materials used for construction project infrastructure.

Planning projects in Con Dao are also to receive exemption or reduction of land use fees, land rent and water rent at the highest preference which applies to all investment projects in areas of economic, social difficulties and special economic zones.

Besides, it also recommends a rise of 70 per cent in salary for officials and public servants, especially those who are in the armed forces.

The limit on duty free products for tourists in Con Dao is expected to raise from VND500,000 (US$24) to VND2 million ($95). — VNS

Tags: Vietnam taxes

Posted by VBN on May 24 2011. Filed under Economy News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry