Promoting the development of international financial centers.

The Ministry of Finance has just proposed tax incentives for international financial centers in Ho Chi Minh City and Da Nang, which could last up to 30 years.

According to the draft Decree on financial policies for international financial centers (IFCs) in Vietnam, which is currently being finalized, the Ministry of Finance has proposed several tax policies to support businesses.

Apply a corporate income tax rate of 10%.

According to Resolution 222/2025 of the National Assembly, Vietnam will have International Finance Centers located in Ho Chi Minh City and Da Nang City, where it will test digital asset control, sandboxes, etc. The State will have specific and superior mechanisms and policies to encourage and facilitate the attraction of capital, technology, modern management methods, high-quality human resources, and infrastructure development into the International Finance Centers.

To concretize the above objectives, the Ministry of Finance stated that the draft Decree proposes a financial policy applicable to the international financial market that is unique, superior, modern, efficient, and highly competitive, aiming to attract and maintain the long-term presence of financial institutions, strategic investors, organizations, and individuals both domestically and internationally.

Regarding tax policy, according to the Ministry of Finance's proposal, projects in priority sectors for development within the international financial center are proposed to apply a corporate income tax rate of 10% for a period of 30 years. The maximum tax exemption period is no more than 4 years, and a 50% reduction in tax payable is proposed for a maximum of 9 subsequent years.

For projects not belonging to priority sectors for development in the international trade market, the tax rate is 15% for 15 years, with a maximum tax exemption of 2 years and a 50% reduction in tax payable for a maximum of 4 subsequent years. The period of application of the preferential tax rate on income from the implementation of a new investment project of the enterprise is calculated from the first year the new investment project of the enterprise generates revenue; the tax exemption and reduction period is calculated from the first year taxable income is generated from the investment project.

According to Professor Hoang Van Cuong, a National Assembly representative from Hanoi , Resolution 222 has allowed for the implementation of many specific policies to develop the international financial market in Vietnam. These policy groups focus on foreign exchange, banking, tax incentives, capital market development, finance, land, labor, and employment. Therefore, the proposals on corporate income tax incentives as outlined in the draft are very necessary.

Professor Hoang Van Cuong stated that financial centers in countries around the world all have tax incentives. Therefore, the tax incentives we offer need to be attractive and competitive enough to attract investment. The proposed 10% corporate income tax incentive for 30 years is a strong "invitation," demonstrating the long-term commitment and determination of the Government, ministries, and localities in attracting investment to the International Financial Center.

Emphasizing that the proposed mechanisms and policies are groundbreaking compared to current laws, Minister of Finance Nguyen Van Thang stated that the tax, human resource, and infrastructure policies are superior to many other international financial centers. The development and implementation of specific tax incentives as outlined in the draft aim to attract financial corporations, investment institutions, and fintech companies. These tax policies will be accompanied by policies on fees, land, and administrative procedure support, aiming to create an attractive investment and business environment within the international financial center.

The plot of land at the intersection of Vo Nguyen Giap and Vo Van Kiet streets, where the International Finance Center in Da Nang is planned to be located. Photo: HAI DINH

Income tax exemption for experts and scientists.

According to Mr. Nguyen Trung Nam, Deputy Director of the Vietnam Mediation Center (VMC) and arbitrator at the Vietnam International Arbitration Center (VIAC), it is necessary to develop superior tax incentives applicable to businesses in international arbitration centers.

Regarding corporate income tax incentives, Mr. Nam stated that specific incentive levels and durations have been defined for each industry. Therefore, businesses can choose the highest tax incentive level if their project meets multiple incentive conditions. These policies are expected to promote the development of new financial products and services, such as green finance and digital assets, thereby attracting investment capital, financial institutions, and advanced financial technology from the international community.

Notably, in the draft decree on personal income tax, the Ministry of Finance proposes that managers, experts, scientists, and highly qualified professionals working at the International Finance Corporation (including both Vietnamese and foreign nationals) be exempt from personal income tax on income from salaries and wages earned from performing work at the International Finance Corporation until the end of 2030. The tax exemption period is calculated continuously from the month the income is generated. If income is generated within a month, the tax exemption period is calculated for the full month.

Individuals with income from the transfer of shares, capital contributions, capital contribution rights, share purchase rights, or capital contribution rights in member companies are exempt from personal income tax on this income until the end of 2030. In the case of selling the entire business owned by an individual through capital transfer, and involving real estate, personal income tax must be declared and paid according to the real estate transfer activity.

Economist Associate Professor Ngo Tri Long believes that tax incentives for income from salaries and wages for experts and scientists will increase the attractiveness and competitive advantage in attracting high-quality human resources – a crucial factor for the International Finance Corporation. Professor Long notes that with relatively high incomes in the finance sector, experts, scientists, and managers will be subject to high personal income tax brackets. Therefore, tax exemption policies will be important, creating stability and confidence for experts to choose to work at the International Finance Corporation.

The Ministry of Finance affirms that the procedures for exemption and reduction of corporate income tax, personal income tax, export tax, and import tax are built on the basis of specialized tax laws to utilize the current legal framework, create consistency, and avoid the emergence of new administrative procedures.

Source: https://nld.com.vn/thuc-day-trung-tam-tai-chinh-quoc-te-phat-trien-196250928215133669.htm