30 December 2022
Tax Policies to Promote Green Growth in Vietnam
Tax Policies to Promote Green Growth in Vietnam

Around the world, many countries have used tax policy as a way to promote green growth, and in Vietnam, in order to follow the commitment of Prime Minister Pham Minh Chinh at COP 26 to achieve net zero by 2050, many tax policies have also been introduced to support green growth in Vietnam. And in this video, we will introduce to you a few outstanding tax policies to support businesses to switch to using renewable energy sources, for sustainable development.

  1. Import and export taxes

Clause 6, Section I, Part A of Decree No. 118/2015/ND-CP dated November 12, 2015 of the Government, and Clause 11 Article 16 of the Law on Import Tax and Export Tax No. 107/2016/QH13, the import tax exemption for imported goods specified in this Clause is applicable to both new investment projects and expansion investment projects.

  1. Corporate income tax

Accordingly, the Law amending and supplementing a number of articles of the Law on corporate income tax No. 32/2013/QH13 dated June 19, 2013 and related documents to adjust and expand the scope of incentives and support to encourage green production enterprises such as:

  • Applying the tax rate of 10% to enterprises' incomes from socializing activities in the field of environment, enterprises' incomes from planting, tending and protecting forests.
  • Apply a tax rate of 10% for 15 years to enterprises' incomes from implementing new investment projects, producing renewable energy, clean energy, developing biotechnology, and protecting the environment. Enterprises are entitled to tax exemption for up to 4 years and 50% reduction of tax payable for up to the next 9 years.
  • Apply the tax rate of 20% for 10 years (from January 1, 2015 to apply the tax rate of 17%), exempt from CIT for 12 years, reduce 50% of payable CIT for the next 4 years for enterprises' incomes from implementing new investment projects in the field of producing energy-saving products, CIT exemption for incomes from transferring emission reduction certificates.
  • Applying the tax rate of 10% to the income of enterprises from carrying out socialization activities in the field of environment.

Accordingly, corporate income tax, special consumption tax, import-export tax, value-added tax have been gradually improved in the direction of focusing on encouraging investment, and production according to energy-saving clean technology and supporting the implementation of the country's green growth strategy. GreenYellow is known as an expert in decentralized solar photovoltaic production, energy efficiency and energy services. GreenYellow offers customers a unique, global cooperation model, a one-stop service to ensure the most optimal energy conversion realization, as well as help businesses make their energy transition a success.

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Chính sách thuế hỗ trợ tăng trưởng xanh ở Việt Nam

To help reduce your electricity expense, GreenYellow provides a one-stop solar service solution (Solar PPA) where we finance 100% of the capital, design, construct, operate, and maintain the entire solar energy system tailored to your needs.

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Energy Efficiency Solutions with end-to-end approach (turnkey solution) to reduce your energy consumption such as Lightning optimization, Chiller and boiler retrofit, HVAC solutions, Monitoring and BMS, Refrigeration optimization. GreenYellow Contractual Scheme are flexible with different approach such as the Energy Efficiency Agreement (EEA) or the Utility as a Service (UAAS).

At GreenYellow Vietnam, we can help you obtain I-RECs in the most efficient way and in a speedy manner. GreenYellow will assist in Setting up Client Participant Account or Redemption Account, I-REC Transactions and find partners interested in purchasing them.

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