Taxes and preferential rates Foreign investors are tax exempt on the import of machinery, equipment, and production tools, since these are regarded as permanent assets and materials. The following taxes do apply: Corporate income tax Import-export tax Value added tax Personal tax Additional taxes regulated by the Vietnamese Government However, foreign investors enjoy preferential rates on: Corporate taxes (exempt or reduced) Selling and buying foreign currencies for doing business according to regulations of the State Bank of Vietnam Leasing land Hiring labor Transferring technology Chapter IV of the Bilateral Trade Agreement between Vietnam and the U.S. has specific provisions for U.S. investment in Vietnam. Vietnam continues a series of commitments that will simplify investing, reduce paperwork, and, in almost all cases, ensure national treatment for foreign investors. These commitments include protection against expropriation of the foreign investments in Vietnam and in the U.S., and rights to repatriate profits and conduct other financial transfers on a national treatment basis. In an effort to encourage foreign investment in Vietnam, there is a strong dedication to: Phasing out measures such as local-content requirements and export-performance requirements within five years or by the date required under the terms and conditions of Vietnam's accession to the WTO, whichever occurs first Ending almost all investment screening and double pricing Reducing Government controls and screening requirements for joint ventures Maximizing flexibility in the terms of investment forms Business Advisor Guidelines | Taxes/Rates | Export/Import | Laws | Offices | Forex | IP/Copyright