We understand that your Korean company is now considering setting up foreign invested company in Vietnam for:
(i) Conduct research and development of software.
(ii) Manufacturing software or developing software
Under Vietnam Law, companies manufacturing software or providing software services shall be entitled to tax incentive. Accordingly, such company can enjoy Corporate Income Tax (CIT) exemption in 4 years, deduction of CIT up to 50% in 9 years after completing period of tax exemption and favored CIT rate of 10% in 15 years.
We therefore highly recommend you to setup wholly foreign invested company for manufacturing software and developing software so that you can enjoy the above said tax incentive.
If your company intends to setup a foreign invested company for trading telecommunication products, we can assist you.
However, in order to provide you accurate advice on this, we shall need you to provide us detailed list of products to be traded in Vietnam and their HS Code. Then, we shall advise you possibility of such plan and if there is any restriction under Vietnam Law for trading such products.
