Business Relations and Investment Guide to Italy, Singapore, and Vietnam

ITALYSINGAPOREVIETNAM BusinessPelationsandInvestmentGuide ITALYSINGAPOREVIETNAM BusinessPelationsandInvestmentGuide ThiseditionanticipatesanewinstitutionalmissioninVietnamandSingaporeandreiteratestheCNDCEC’scommitmentinthefieldofinternationalisation,topromoteandstrengthentheacquisitionofuseful(andIwouldsay,indispensable)expertiseandexperienceforsupportingourclientstoday. Theproductionandfinancialprocessesofbusinessactivitiesoccurtodayinincreasinglyglobalisedandcomplexcontextsandrequirenotonlyinterdisciplinaryexpertise,butalsotheabilitytointegrateknowledgeofmodelsandopportunitiespresentinothermarkets.ThenewNationalCouncil,formedon1June,havethefirmintentiontopursueandstrengthenactivitiesassociatedwithinternationalisationthroughawideprogrammeofspecialisttrainingwithtargetedmissions.AspecificObservatoryhasbeensetupwhichwillinvolvetheparticipationofmajorinstitutions,consolidatingpastexperiencesoffruitfulcollaboration,whichwillcarryoutresearchanddrawupdocumentationdedicatedtodifferentsegmentsandsectorsofinteresttoourprofession.Weworkinacontextthatisseeinganincreaseinbusinessrisk,digitalisation,thedrivetowardssustainabilityandtheinterlappingofdifferentlegislationsthatrequiresustobe,asalways,abletogivepreciseandusefulresponses.Iam,therefore,confidentthatthispublicationandtheassociatedmission,abouttogetunderway,willprovideconcreteandnecessaryhelpfornumerouscolleagues. ElbanodeNuccio PresidentoftheConsiglioNazionaledeiDottoriCommercialisti edegliEspertiContabili ISBN978-88-99517-35-9 ©CopyrightFondazioneNazionaledeiCommercialisti.EditedbyFondazioneNazionaledeiCommercialisti. ThankstoIntesaSanpaoloforthecollaborationandsupport. WethankDezanShira&AssociatesforthepreciouscontributionsprovidedinrelationtoinformationontheVietnamandSingaporeEconomicSystems. Thanksforthesupport:PrintedinNovember2022. 5 ItalySingaporeVietnam TableofContents TableofContents Presentation9 THEITALIANECONOMICSYSTEM13 1.Countrypresentation15 1.1.Formofgovernment15 1.2.TheParliament15 1.3.TheGovernment16 1.4.TheJudiciary17 1.5.Languageandcurrency18 1.6.EconomicOutlook18 2.StartingabusinessactivityinItaly25 2.1.Therepresentativeoffice25 2.2.Thepermanentestablishment26 2.3.Incorporatingacompany28 3.Thetaxationsystem34 3.1.IRES34 3.2.IRAP36 3.3.IRPEF36 3.4.IVA(VAT)37 4.Labourrelationsinthemarket38 5.Formsofincentivesandsupporttoinvestorsandenterprises41 5.1.Innovativestart-upsandSMEs41 5.2.Taxcreditforinvestmentsincapitalgoods42 5.3.TaxcreditforinvestmentsintheSouthofItalyandSpecialEconomicZones (“ZES”)43 5.4.AidforEconomicGrowth(so-called“ACE”)45 5.5.Taxcreditforresearchanddevelopment45 5.6.CapitalGoods–“NuovaSabatinifinancing”tool47 6 ItalySingaporeVietnam TableofContents 5.7.Patentbox47 5.8.EcobonusandSismabonus48 5.9.GuaranteefundforSMEs’accesstocredit49 5.10.EuropeanFunds49 5.11.Otherincentivesandconcessions49 6.Anumberofcustomsissues:“origin”andfreetradeagreements50 6.1.Preferentialandnon-preferentialorigin51 6.2.Freetradeagreements53 SINGAPORE’SECONOMICSYSTEM55 1.Countrypresentation57 1.1.Thepoliticalsystem57 1.2.Thelegalsystem58 1.3.Theeconomicsystem59 1.4.Thebankingsystem60 1.5.Theflagandthecurrency60 1.6.SingaporeinASEAN61 1.7.EconomicrelationswithItaly61 1.8.Theprotectionofintellectualproperty63 2.StartingabusinessinSingapore64 2.1.Privatecompanieslimitedbyshares64 2.2.Branch65 2.3.Representativeoffices67 2.4.VariableCapitalCompanies68 3.Thetaxationsystem70 3.1.Corporateincometax70 3.2.Individualincometax72 3.3.Goodsandservicestax(GST)73 3.4.Withholdingandothertaxes74 3.5.Auditandfulfilments75 7 ItalySingaporeVietnam TableofContents 4.Thelabourmarket79 4.1.EmploymentLaw79 4.2.Employmentcontracts81 4.3.Visasandworkpermits83 4.4.Terminationoftheemploymentcontract84 5.Formsofincentivesandsupportforinvestorsandenterprises86 5.1.GovernmentAgenciesandthereferencesectors86 5.2.ProgressiveWageCreditScheme(PWCS)87 5.3.Start-uptaxexemption(SUTE)88 5.4.PartialTaxExemption(PTE)88 5.5.Loansforenterprises–theFinancingScheme-Tradeloan,theFinancing Scheme-ProjectloanandtheTemporaryBridgingloan88 5.6.LoansforSMEs:SMEworkingcapitalloanandSMEfixedassetsloan89 5.7.TheVentureDebtloanandtheMergerandAcquisitionloan90 5.8.The100%investmentallowancescheme91 5.9.TheEnterpriseDevelopmentgrant(EDG)91 5.10.ThePioneerCertificateIncentive(PC)andtheDevelopmentandExpansionIncentive(DEI)92 5.11.Furtherincentives:digitaltransformationandpostCOVID-1992 6.FreetradeagreementsandSingapore’sstrategy94 6.1.ThefreetradeagreementbetweentheEUandSingapore97 6.2.Rulesoforigin99 6.3.Proofoforigin100 VIETNAM’SECONOMICSYSTEM101 1.Countrypresentation103 1.1.Politicalframework103 1.2.Thelegalsystem104 1.3.Language,currencyandreligion105 1.4.Datieconomiciefinanziari106 1.5.Thebankingsystem109 1.6.Industrialproduction109 8 ItalySingaporeVietnam TableofContents 2.StartingabusinessactivityinVietnam112 2.1.Therepresentativeoffice112 2.2.Thebranch112 2.3.Lasocietà113 2.4.Jointventures113 2.5.Internationalcooperationagreements(PublicPrivatePartnershipsPPP)114 2.6.Themainrequirementsforsett