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Under the Special Tax Treatment control Law, when specific conditions are met, foreign invested companies are exempted from taxes including corporate tax.
Exemptions for advanced technology FDIs
 Business carrying advanced technology or service businesses supporting domestic industry (shall satisfy all of certain requirements)
| Tax
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Incentives
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| Individual and Corporate Income Tax
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Full Exemption for 5 years, 50% reduction for the following 2 years
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Local Taxes: Acquisition tax, Property tax, Registration tax
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Full exemption for 5 years, 50% reduction for the following 2 years ( local government can extend the applicable period up to 15 years)
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| Customs duties, Special Excise Tax, VAT
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Full exemption for 3 years on imported capital goods by foreign-invested companies |
FDI entering Foreign Investment Zone(FIZ)
An Individual or a corporation entering FIZ, when specific conditions are met, is eligible tax incentives for FDI.
| Tax |
Incentives |
| Individual and Corporate Income Tax |
Full Exemption for 5 years, 50% reduction for the following 2 years |
Local Taxes: Acquisition tax, Property tax, Registration tax |
Full exemption for 5 years, 50% reduction for the following 2 years ( local government can extend the applicable period up to 15 years) |
| Customs duties, Special Excise Tax, VAT |
Full exemption for 3 years on imported capital goods by foreign-invested companies |
FDIs Entering the Free Economic Zone(FEZ), Industrial Complex Exclusively for Foreign Companies or the Development district of enterprise New town.
An individual or a corporation entering FEZ, when certain conditions are met, is eligible for tax incentives for FDI.
| Tax |
Incentives |
| Individual and Corporate Income Tax |
Full Exemption for 3 years, 50% reduction for the following 2 years |
Local Taxes: Acquisition tax, Property tax, Registration tax |
Full exemption for 3 years, 50% reduction for the following 2 years ( local government can extend the applicable period up to 15 years) |
| Customs duties, Special Excise Tax, VAT |
Full exemption for 3 years on imported capital goods by foreign-invested companies |
Other Cases
Application for Tax Reduction or Exemption:
Any foreigner shall, when he desires the reduction or exemption of the corporate tax, income tax, acquisition tax, registration tax and property tax, make an application for such reduction or exemption to the Minister of Strategy and Finance not later than the closing date of the taxable year whereto belongs the date of commencing business by the relevant foreign-invested enterprise.
Application for Modification of Contents of Tax Reduction or Exemption:
In case a person modifies the business contents on which a decision of tax reduction or exemption is made and desires the reduction or exemption for such modified business contents, he shall make an application for modified business contents of tax reduction or exemption to the Minister of Strategy and Finance not later than the date on which 2 years elapsed from the date on which such cause for alteration has occurred.
Application of Prior Confirmation:
Any foreigner may request the Minister of Strategy and Finance to confirm whether or not the relevant business corresponds to the business eligible for a reduction or exemption before making a report of the acquisition of newly issued stocks or investment equities
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