OFFICIAL LETTER 2583/CTBNI-TTHT ABOUT CIT INCENTIVE POLICY FOR SUPPORTING INDUSTRIAL PRODUCTS
Official letter 2583/CTBNI-TTHT about CIT Incentive policy for support industrial products:
Based on the above regulations and the content of the company's written presentation, in case the company has an investment project (new investment and expansion investment) to produce products on the List of priority industrial products. Development support priority (SXSPCNHT) but the income from this project has been entitled to corporate income tax incentives under other preferential conditions (In addition to preferential conditions for projects producing supporting industrial products). If the project meets the conditions of a production and processing industry project according to the provisions of Law No. 71/2014/QH13 and is granted a Certificate of incentives for production of industrial production and production by a competent authority, it will enjoy incentives in terms of corporate income (CIT). ) according to the conditions of the Production and Industrial Product Production project for the remaining time. The remaining incentive period is determined according to the following principles:
1. Regarding preferential taxes
+ Innovative investment projects enjoy preferential tax rates of 10% for a period of 15 years.
The remaining year of enjoying tax incentives is equal to the number of years of enjoying tax incentives under the conditions of Production and Production of Industrial Products (-) minus the number of years of enjoying tax incentives under other conditions (if the Company has not enjoyed tax incentives under the conditions). Otherwise, the number of years that have enjoyed preferential tax rates is determined as 0);
+ For expansion investment projects, preferential tax rates are not applied;
2. Regarding tax exemption period, income reduction
Tax exemption and tax reduction periods are determined by each project (new investment projects and investment expansion projects), preferential level: 4-year tax area and 50% reduction of tax payable for the next 9 years for income from SXSPCNHT production.
After determining the incentive and corporate income tax reduction of each project according to the above level, the Company determines the remaining tax exemption/reduction period according to the conditions of the project producing supporting industrial products, specifically as follows:
The remaining tax exemption/reduction period is equal to the tax exemption/reduction period under the conditions of projects producing supporting industrial products (4-year tax exemption and 50% reduction of tax payable for the next 9 years for income). of enterprises from manufacturing supporting industrial products) minus the tax exemption/reduction period for enjoying other incentives of each project (new investment project or expansion investment project). In case the company has not enjoyed corporate income tax exemption or reduction incentives under other conditions, the number of years it has enjoyed tax exemption and reduction incentives is determined to be 0.
