“Preferential” tax rate would be 17 percent
Vietnamese lawmakers may reduce tax incentives offered to casinos and other gaming-related ventures in special economic zones planned for the country, according to VN Express.
The move followed criticism from assembly delegates and economists who said the government’s SEZ plan was “overly generous.” The tax breaks were offered to casino businesses in Van Don in northern Quang Ninh Province; Bac Van Phong in central Khanh Hoa Province; and Phu Quoc in southern Kien Giang Province.
The original proposal granted these projects a 100 percent tax reduction for four years, followed by a 50 percent reduction for the next five years, and finally a 10 percent reduction for another 21 years before the casinos would pay the normal tax rate, which now ranges from 20 percent to 22 percent.
Under the revised plan, casino resorts would pay a “preferential” corporate income tax of 17 percent for the first five years of taxable income, but only until 2030. Such projects would also pay a higher excise tax compared to the previous proposed rate of 10 percent to 15 percent during the first 10 years.
Plans for unlimited exemptions on leases linked to land plots and waterfronts would be shelved.
Based on the originally plan, the Ministry of Planning and Investment estimated taxes and land-related fees amounting to US$9.5 billion each year. In 2030, the total number of jobs created in the three areas was estimated to be over 760,000, helping to push up income per capita in those areas to US$13,000, or 5.4 times the current level, reported GGRAsia.
