(Vietnam Insider) – Businesses and high-skilled professionals operating in Vietnam’s planned International Financial Center (IFC) could enjoy generous tax breaks of up to 30 years, according to a draft decree by the Ministry of Finance now open for public consultation.
Licensing Conditions for Securities Firms
The draft decree proposes that domestic securities companies must have a minimum charter capital and equity of VND 5,000 billion (~USD 190 million) to qualify for licenses to operate within the IFC. Foreign investors would need to meet the same capital threshold, equivalent to about USD 190 million.
In addition to capital requirements, both domestic and foreign firms must demonstrate at least two consecutive years of profitability, no accumulated losses, and a minimum charter capital of VND 800 billion (~USD 32 million) for newly established entities within the IFC. Each licensed unit must also employ a general director and at least 10 staff members holding securities practice licenses.
Permitted activities would include brokerage, investment advisory, proprietary trading, underwriting, and fund management. However, these firms would be restricted from providing financial services or products to clients outside the IFC’s administrative boundaries.
Corporate and Personal Tax Incentives
For priority sectors, corporate income tax (CIT) would be set at 10% for up to 30 years, with exemptions of up to 4 years and a 50% reduction for up to 9 subsequent years. For non-priority projects, CIT would be 15% for 15 years, with up to 2 years of exemptions and a 50% reduction for up to 4 years thereafter.
On the personal income tax (PIT) side, managers, experts, scientists, and high-skilled workers — both Vietnamese and foreign — employed at the IFC will be exempt from PIT on income from wages and salaries until the end of 2030. The exemption will be calculated continuously from the month the income arises, with any partial month counted as a full month.
In cases where an individual sells a wholly owned business involving capital transfer linked to real estate, PIT will be declared and paid under existing real estate transfer tax rules.
The draft clarifies that any corporate or personal income taxes not specifically covered by the decree will continue to follow Vietnam’s current tax laws and regulations.
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Source: Vietnam Insider