I. Overview of procedures for the application of investment incentives
1. Definition of procedures for the application of investment incentives
Procedures for the application of investment incentives refer to the process by which an enterprise implements the necessary steps to enjoy incentive policies on taxation, land use, credit, and other forms of support in accordance with law.
Such procedures include identifying eligibility for incentives, preparing dossiers, submitting them to competent authorities, and completing required steps to obtain approval. The objective is to facilitate investors while ensuring compliance with legal regulations.
2. Importance of procedures for the application of investment incentives to enterprises
Procedures for the application of investment incentives play an important role in enabling enterprises to fully benefit from State support policies, thereby reducing costs, enhancing competitiveness, and optimizing profits.
Proper and complete implementation of these procedures not only safeguards enterprises’ lawful interests but also ensures compliance with legal regulations and helps prevent legal risks.
At the same time, these procedures contribute to attracting investment and promoting sustainable economic development.
II. Legal regulations on procedures for the application of investment incentives
1. What are procedures for the application of investment incentives?
Currently, procedures for the application of investment incentives are stipulated in Article 17 of the Law on Investment 2020, as follows:
Based on the eligible subjects prescribed in Clause 2, Article 15 of this Law, the investment policy approval decision (if any), the Investment Registration Certificate (if any), and other relevant legal provisions, investors shall self-determine applicable investment incentives and implement procedures to enjoy such incentives at tax authorities, financial authorities, customs authorities, and other competent authorities corresponding to each type of investment incentive.
In addition, pursuant to Article 23 of Decree No. 31/2021/ND-CP guiding the implementation of Article 17 of the Law on Investment 2020, procedures for the application of investment incentives are conducted as follows:
- The investment policy approval decision, the Investment Registration Certificate, and the approval decision specify the form, basis, and conditions for applying investment incentives in accordance with Articles 15 and 16 of the Law on Investment 2020 and Article 19 of Decree No. 31/2021/ND-CP.
- Based on the investment incentive contents stated in the investment policy approval decision, the Investment Registration Certificate, or the approval decision, investors shall implement procedures to enjoy investment incentives at the competent authorities applying the corresponding incentives.
- The basis for applying investment incentives to certain enterprises and investment projects as prescribed in Clause 5, Article 19 of Decree No. 31/2021/ND-CP includes:
- For science and technology enterprises: the Certificate of Science and Technology Enterprise;
+ For high-tech agricultural enterprises: the Certificate of High-Tech Agricultural Enterprise;
+ For high-tech application projects: the Certificate of High-Tech Application Project;
+ For supporting industry projects: the Certificate of Incentives for the Production of Supporting Industry Products;
+ For projects involving technology transfer included in the List of Technologies Encouraged for Transfer: the Certificate of Technology Transfer Encouraged for Transfer issued in accordance with the Prime Minister’s regulations.
+ For investment projects not falling into the above cases, investors shall, based on the eligible subjects for investment incentives as prescribed in Article 19 of Decree No. 31/2021/ND-CP and other relevant legal provisions, self-determine applicable investment incentives and implement procedures to enjoy such incentives at the competent authorities corresponding to each type of incentive.
2. Which authorities provide guidance and receive dossiers for the application of investment incentives?
Pursuant to Clause 4, Article 2 of Decree No. 31/2021/ND-CP, authorities responsible for applying investment incentives include:
- Tax authorities: Responsible for providing guidance and implementing incentives related to corporate income tax, value-added tax, import-export tax, and other related taxes;
- Financial authorities: Managing policies on exemption or reduction of land rental fees, credit support, and other financial incentives;
- Customs authorities: Receiving and processing incentives related to customs clearance procedures and exemptions or reductions of import-export duties;
- Other competent authorities: Depending on each specific type of investment incentive, these may include Departments of Planning and Investment, Management Boards of Industrial Parks or Economic Zones, or other specialized authorities.
Accordingly, depending on the form of investment incentives, enterprises must contact the appropriate competent authorities for guidance and application of incentives in accordance with law.
3. Documents and dossiers required for procedures for the application of investment incentives
When implementing procedures for the application of investment incentives, enterprises must prepare complete documents and dossiers as prescribed, including:
- Application for investment incentives: An application submitted in accordance with the form prescribed by the competent authority;
- Investment Registration Certificate (if any): Applicable to conditional investment projects under the Law on Investment;
- Documents proving eligibility based on business lines or investment locations:
+ For business line incentives: Reports describing project activities, lists of products or services, and relevant supporting documents;
+ For location-based incentives: Maps and documents certifying that the project is located in an area eligible for investment incentives. - Enterprise legal documents:
+ Enterprise Registration Certificate;|
+ Company charter;
+ Establishment decision or other relevant licenses (if any). - Financial statements and business plans: For certain incentives, competent authorities may require financial statements or investment plans to assess project feasibility.
- Other documents as required for each type of incentive: Including documents evidencing compliance with commitments on investment, technology, labor, or environmental protection.
Depending on the type of incentive, enterprises should contact the competent authority for detailed guidance on required dossiers and procedures.
III. Common issues regarding procedures for the application of investment incentives
1. How are procedures for applying investment incentives to the salt-making industry currently implemented?
The procedures for applying investment incentives to the salt-making industry are implemented t in accordance with Article 17 of the Law on Investment 2020.
Accordingly, to be entitled to investment incentives, salt-making projects must have an investment policy approval decision (if any), an Investment Registration Certificate (if any), and comply with relevant legal regulations. Investors shall self-determine applicable incentives and implement procedures at tax authorities, financial authorities, customs authorities, and other competent authorities corresponding to each type of incentive.
2. Which authority has the competence to apply investment incentives? Is it mandatory for investors to implement procedures at such authorities?
Pursuant to Clause 4, Article 2 of Decree No. 31/2021/ND-CP, competent authorities for applying investment incentives include:
- Tax authorities;
- Financial authorities;
- Customs authorities;
- Other authorities competent for each specific type of investment incentive.
Investors are required to implement procedures at the competent authorities applying investment incentives, including tax, financial, customs, and other relevant authorities. Completion of such procedures is a prerequisite for enjoying investment incentive policies in accordance with law.
3. Is it possible to authorize a consulting entity to implement procedures for the application of investment incentives?
Investors may authorize consulting entities or legal representatives to implement procedures for the application of investment incentives. Such authorization must be made in the form of a valid written authorization in accordance with law, clearly specifying the scope of authorization and the rights and obligations of the authorized party. The consulting entity shall act on behalf of the investor in dealing with competent authorities to ensure lawful enjoyment of investment incentives.
4. If an enterprise has been operating for a period of time but has not registered for investment incentives, can it apply for supplementary procedures?
An enterprise that has been operating but has not registered for investment incentives may still implement supplementary procedures if it satisfies the conditions prescribed by the Law on Investment 2020 and Decree No. 31/2021/ND-CP.
- Conditions for supplementary registration of investment incentives:
+ The project falls within incentivized business lines or locations;
+ The enterprise has not previously enjoyed such incentives;
+ All statutory criteria are fully satisfied. - Implementation procedures:
- Preparing a dossier:
+ An application for investment incentives;
+ The Investment Registration Certificate or documents evidencing eligibility for incentives;
+ Other relevant documents as required. - Submitting the dossier to the competent authority (tax, financial, customs authorities, etc.).
- The competent authority shall appraise and confirm; if the dossier is valid, the enterprise may apply the incentives from the time the eligibility conditions are satisfied.
Enterprises should review applicable registration deadlines or seek assistance from consulting entities to avoid missing out on lawful benefits.
IV. Legal consultancy services related to procedures for the application of investment incentives
NP Law provides in-depth consultancy on procedures for the application of investment incentives, assisting enterprises in identifying eligibility, preparing dossiers, and working with competent authorities. We are committed to delivering optimal solutions to help enterprises effectively utilize incentive policies in accordance with law.
