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Vietnam to Grant Income Tax Exemption in 3 Upcoming Special Economic Zones

Vietnam’s future special economic zones (SEZ) might be the mecca for locals to achieve an unprecedented amount of income.

Vietnam’s National Assembly are currently holding an ongoing session to discuss the new Law on Special Economic and Administrative Units, reports VnExress. In the near future, the country will designate three areas as its upcoming SEZs, including areas on Phu Quoc Island, in Quang Ninh and Khanh Hoa Provinces.

The regulations are expected to be approved by the next session in May next year. From the Ministry of Planning and Investment, Director of the Economic Zone Management Department Tran Huy Dong shared with the news source that these new zones will enjoy more incentives than the rest of the country.

Specifically, workers in the three zones will be exempted from paying income tax for five years. Foreigners will be allowed to lease properties in the three areas for 99 years – twice the duration granted elsewhere in Vietnam.

Dong was also confident that with the proposed benefits, employees of the SEZs can stand to earn US$13,000 in income annually. Saigon, Vietnam’s best-performing locality, is only expected to reach US$9,800 of per capita income by 2020.

Earlier in September, an official also suggested establishing red-light districts in the three SEZs.

[Photo via Xa Hoi Thong Tin]

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