Vietnam to reduce tax incentives for casinos in SEZs

Vietnamese officials are planning to reduce tax incentives previously promised for casino operators in the country’s special economic zones (SEZs).

The Standing Committee of the National Assembly, while discussing the draft law for Vietnam’s SEZs, is expected to announce this. This is following criticism from some Assembly delegates that plans to offer tax incentives to gaming operators in Van Don in Quang Ninh Province in the north, Bac Van Phong in Khanh Hoa Province and Phu Quoc in Kien Giang Province in the south are too generous.

Under the previous proposal, projects in Vietnam’s SEZs would be granted a 100 per cent tax deduction for the first four years of operation, 50 per cent for the next five years and 10 per cent for another 21 years before reverting to the standard tax rate.

The new proposal would see them paying preferential corporate income tax of 17 per cent from the day of opening for the first five years and a higher excise tax, up from 10 to 15 per cent, for the first 10 years. Unlimited land and sea lease exemptions would also be scrapped and the exemption period slashed to a maximum of 30 years in Van Don and Bac Van Phong and 20 years in Phu Quoc, according to local media.

Source: asgam.com