Operational period of an investment project in Vietnam ?

How many years of operational period can a company producing software products be granted an investment registration certificate for ?

Law firm in Da Nang advises on relevant provisions of Law on Investment  regarding operational duration and tax incentives for new investment projects of software product development companies ?

Operational period of the first investment project:

The operational period of investment projects outside economic zones must not exceed 50 years (Clause 2, Article 44 of the Law on Investment No. 61/2020/QH14 dated June 17, 2020);

At the end of the investment project's operational period, if the investor wishes to continue implementing the investment project and meets the conditions prescribed by law, the project's operational period will be considered for extension but not exceeding the maximum term specified in Clause 2 of this Article (Clause 4, Article 44 of the Law on Investment No. 61/2020/QH14 dated June 17, 2020);

Adjusting investment projects:

Investors carry out procedures to adjust the Investment Registration Certificate in cases where the investment project adjustment changes the content of the Investment Registration Certificate (Clause 2, Article 41 of Law on Investment  No. 61/2020 /QH14 dated June 17, 2020);

For enterprises currently operating in production and business, if there is a change in the Enterprise Registration Certificate or Investment Certificate but that change does not change such project's satisfaction of tax incentive conditions according to regulations, the enterprise continues to enjoy tax incentives for the remaining time or incentives in the form of expanded investment if it meets the prescribed incentive conditions (Point c, Clause 5, Article 18 of Circular No. 78/ 2014/TT-BTC, amended and supplemented in Clause 3, Article 10 of Circular 96/2015/TT-BTC dated June 22, 2015);

Therefore, within the time limit of implementing an investment project, if the enterprise carries out procedures for adjusting the Investment Registration Certificate, investor's name, or project’s implementation location and extending the project’s operational period according to the provisions of Clause 2, Article 41 of Law on Investment  No. 61/2020/QH14, Clauses 1 and 2, Article 47 of Decree No. 31/2021/ND-CP, but the procedures for these adjustments and changes do not change the satisfaction of tax incentive conditions for new investment projects, business line and trade with special investment incentives and the owner of the new investment project specified in Clause 6, Article 3, Point dd Clause 1 Article 16, Clause 1 Article 21 of the Law on Investment  No. 61/2020/QH14 dated June 17, 2020, Article 13, Article 14 of the Law on Enterprise Income Tax No. 14/2008/QH12 dated June 3, 2008, then the enterprise will continue to enjoy tax incentives for the remaining time if it meets the incentive conditions as prescribed in Point c, Clause 5, Article 18 of Circular No. 78/2014/TT-BTC, which have been amended and supplemented in Clause 3, Article 10 of Circular 96/2015/TT-BTC dated June 22, 2015./.

Contact:

Call: 0914 165 703

Email: dmslawfirm@gmail.com

DMS LAW LLC

Director

(Signed)

Lawyer Do Minh Son