Tran Thi Nhu Quy - Junior Associate

According to Resolution No. 136/2024/QH15 of the National Assembly of the Socialist Republic of Vietnam, promulgated on June 24, 2024, regarding the organization of urban government and the pilot implementation of special mechanisms and policies for the development of Da Nang City (“Resolution No. 136/2024/QH15”), along with Resolution No. 59/2024/NQ-HDND of the People’s Council of Da Nang City, issued on December 13, 2024, stipulating the criteria for recognizing enterprises operating in the fields of semiconductors and artificial intelligence within Da Nang City ("Resolution No. 59/2024/NQ-HDND"), tax incentive policies for enterprises operating in the semiconductor and artificial intelligence sectors have been clearly defined.
These regulations provide a crucial legal basis for promoting investment and development in the fields of semiconductor and artificial intelligence in Da Nang during the new phase.

Tax Incentive Policy

According to Article 14 of Resolution No. 136/2024/QH15, enterprises operating in the fields of semiconductors, artificial intelligence, and related sectors such as information and communication technology, science and technology, and innovation, will enjoy the following tax incentives:

1. Corporate Income Tax (CIT) Exemption: A 5-year exemption from corporate income tax, starting from the time of arising of payable income tax on income from innovative start-up activities of start-up, semiconductor and AI enterprises, science and technology organizations, and income from supporting activities of Innovation Startup Support Centre in Da Nang.

2. Personal Income Tax (PIT) and Corporate Income Tax (CIT) Exemption on Capital Contribution: A 5-year exemption from personal income tax and corporate income tax, starting from the time as individuals and organizations make capital contributions to innovation startups, semiconductor, and artificial intelligence enterprises in Da Nang. The exemption is applicable to income from the transfer of shares, contributed capital, or rights to contribute capital to these enterprises, provided they have not yet conducted a public offering of securities.

3. Personal Income Tax (PIT) Exemption for Experts and Talents: A 5-year exemption from personal income tax on income from salaries and wages earned by experts, scientists, talents, and individuals working in the fields of innovation startups, semiconductors, and artificial intelligence at relevant organizations and enterprises in Da Nang.

4. Non-Refundable Financial Support from the City Budget: Financial support will be provided for the development of innovation startup projects, covering costs such as project selection activities, hiring experts, direct labor costs, innovation startup support services, use of technical facilities, incubation facilities, co-working spaces, costs for incubation, research and development, technology refinement, and pilot production of innovative startup products.

5. Further Regulations by the People’s Council: Da Nang People’s Council shall define the priority sectors, criteria, conditions, procedures, and levels of support for innovation startup activities, semiconductors, and artificial intelligence as outlined in points (a), (b), (c), and (d) of this clause; as well as the procedures, conditions, number, content, and support levels provided under point (d).

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