New laws and regulations?
To: Cantho Promotion Agency
My name Hofmann Bertram from Germany, I have questions about investment incentives. If I invest in the present time and receive incentives under applicable laws and regulations.
However, if there are new changes during the project implementation period, will my business continue to enjoy preferences according to the previous laws and regulations?
Dear Mr. Bertram,
We would like to answer your question as follows:
For receiving investment incentives when there is a change in laws and regulations, you can refer to Article 13 of the Law on Investment in 2020 on Assurance of business investment upon changes of laws.
Article 13. Guarantees for business investment upon changes of laws
1. Where a new law provides more favorable investment incentives, investors are entitled to enjoy the new incentives for the remaining period of the incentive enjoyment of the project, except for special investment incentives for the investment projects in the case specified in Point a Clause 5 Article 20 of this Law.
2. Where a new law that provides less favorable investment incentives than those previously enjoyed by investor is promulgated, investors shall keep enjoying the current incentives for the remaining period of the incentive enjoyment of the project.
3. The regulations in Clause 2 of this Article do not apply if regulations of a legal document are changed for reasons of national defense and security, social order and security, social ethics, public health, or environmental protection.
4. Where an investor is no longer eligible for investment incentives prescribed in Clause 3 of this Article, one or more of the following solutions shall be adopted:
a) Deduct the damage actually suffered by the investor from the investor's taxable income;
b) Adjust the objectives of the investment project;
c) Assist the investor in remedying damage.
5. With regard to the investment guarantee measure in Clause 4 of this Article, the investor shall make a written request within 03 years from the effective date of the new legal document.
Investment Promotion Dept - CPA