Revises petroleum law to incentivise investment
01 Jul 2023
On July 1, 2023, the recently enacted Petroleum Law, which received approval from the 15th National Assembly on November 14, 2022, officially came into force. The law applies to both domestic and foreign investors and it entrusts the Ministry of Industry and Trade (MoIT) with the oversight of oil and gas exploration, along with associated activities.
Tax incentives for the sector now encompass a reduced corporate income tax rate of 32 per cent (down from 50 per cent), and a crude oil export tax rate of 10 per cent (as opposed to the previous range of 6 to 25 per cent).
Petroleum projects considered strategic enjoy an even more favorable set of conditions. Notably, a corporate income tax rate of 25 per cent, alongside a significantly diminished crude oil export tax rate of 5 per cent.
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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Manufacturing (Manufacture of coke and refined petroleum products)
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Sources:
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Government of Vietnam, Law No. 12/2022/QH15 dated November 14, 2022 on Petroleum, https://lawnet.vn/en/vb/Law-12-2022-QH15-Petroleum-875C0.html, 14 Nov 2022
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vietnam-briefing, Revised Petroleum Law Offers Improved Extraction Incentives, https://www.vietnam-briefing.com/news/vietnam-petroleum-law-2022.html/, 02 Jun 2023
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Deloitte taxathand, 2022 Petroleum Law includes tax incentives, https://www.taxathand.com/article/29542/Vietnam/2023/2022-Petroleum-Law-includes-tax-incentives, 01 Feb 2023
