Singapore’s Tax Breaks, Incentives in Vietnam’s IT Sector – China Outbound
Our weekly round up of other news affecting foreign investors throughout Asia.
Singapore offers new businesses with a variety of tax incentives. These incentives are particularly beneficial for businesses that can advance local industries or develop higher-value-added products and services.
Plans to Connect Sakhalin Island to Selikin City in Khabarovsk, as well as possibly to Hokkaido have been announced by Valery Limarenko, the Governor of Russia’s Sakhalin Region.
While much is made of China’s project financing and infrastructure build along many of the nations it has signed Belt and Road MoUs with, a lesser known aspect is the Chinese need to source cheaper labor resources from emerging economies. To this end, China has quietly been establishing Chinese-owned, or Chinese joint venture Industrial Parks and Economic Zones across the Belt and Road Initiative.
IT companies in Vietnam are eligible for a corporate income tax exemption for up to four years, followed by a 50 percent tax reduction for up to nine years. Subsequently, only a 10 percent CIT rate (compared to the traditional 20 percent for a period of 15 years) is imposed. The government offers similar CIT incentives for computer programming activities as well, including a value-added tax of zero percent.
Resolution No 41/NQ-CP lays out specific preferential policies for the technology sector, including a 50 percent reduction in personal income tax for IT workers. The government has also set up high-tech parks around the country.
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