OFFICIAL LETTER NO. 12024/BTC-TCT DATED 27 AUGUST 2014 OF MOF IN GUIDANCE OF CIT INCENTIVE BY AREA
According to Official letter No. 12024/BTC-TCT:
In case, enterprises newly established from a invested project in an incentive area (the area where the enterprises are established) but generating business activities and the income arising in the other area, they must recognize separately the income of each area.
Tax incentive for the income from the income of business activities in other area is determined with each area on basis of time and CIT incentive level of enterprises at their established enterprises.
For example:
In 2009, Company Y is the newly-established enterprise from the invested project in the A area with socio-economic conditions.
In 2011, Company Y has income in A area, B area with special socio-economic conditions, C area with socio-economic conditions and in D area without the investment incentive area.
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The income in A,B,C areas applying to CIT incentive with the remaining level and time of the Company in A area.
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The income in D area is not entitled to CIT incentive
