[LEGAL ARTICLE]

From January 1, 2020, the 2020 Law on Investment replacing the 2014 Law on Investment will take effect. Here are the updates to be taken notice of:

1. Prohibition of debt collection service business;
2. Adding many industries and professions to enjoy investment incentives;
3. Additional forms of investment incentives;
4. Reduce the number of conditional business lines.

Prohibit debt collection services onwards

According to the provisions of Point h, Clause 1, Article 6 of the Law on Investment 2020, the following activities are prohibited from business investment:

• Debt collection service business.

Pursuant to Clause 5, Article 77 of the 2020 Investment Law, debt collection service contracts signed before January 1, 2021 will be invalidated from January 1, 2021; The parties to the contract may perform activities to liquidate the debt collection service contract in accordance with civil law and other relevant law provisions.

A number of business lines enjoying investment incentives are added

In accordance with the provisions of Clause 1, Article 16 of the 2020 Law on Investment, the business lines eligible for investment incentives are added, including:

• University education;
• Producing products formed from scientific and technological results in accordance with the law on science and technology;
• Manufacturing products on the list of supporting industry products prioritized for development;
• Preservation of drugs, production of medical equipment;
• Producing goods, providing services to create or participate in value chains, industry clusters.

Forms of investment incentives are added

In accordance with the provisions of Clause 1, Article 15 of the 2020 Law on Investment, an additional form of investment incentives include:

• Fast depreciation, increasing the amount of expenses deductible when calculating taxable income.

+ Reducing conditional business lines

In accordance with Appendix IV of the 2020 Law on Investment, the number of business lines subject to conditional business investment is 227.

Compared to the 2014 Law on Investment, the number of conditional business lines decreases from 243 to 227 business lines.

Above is the article “NEW POINTS OF INVESTMENT LAW 2020” ". If you ever need free legal consultancy service, please message us on the Fanpage or contact us through the hotline (84–28) 2253 7956 or website www.medlaw.vn.