Công văn 36/CTAGI-TTHT về chính sách ưu đãi thuế thu nhập doanh nghiệp

GENERAL DEPARTMENT OF TAXATION ANG GIANG PROVINCIAL TAX DEPARTMENT No: 36 /CTAGI-TTHT Regarding Corporate Income Tax Incentive Policy

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness An Giang, January 3, 2025

 

To:	Nam Viet Binh Phu Aquaculture Single Member LLC Address: 19D Tran Hung Dao, My Quy Ward, Long Xuyen City, An Giang Province Tax Code: 1602085059

The An Giang Tax Department has received Official Letter No. 84/CV-KTTC dated December 23, 2024, from Nam Viet Binh Phu Aquaculture Co., Ltd. regarding corporate income tax (CIT) issues. The Tax Department has the following comments on this matter:

According to Item 51, Appendix III of the List of Investment Areas with Preferential Policies in Decree No. 31/2021/ND-CP dated March 26, 2021, of the Government, which provides detailed regulations and instructions for implementing some provisions of the Investment Law, Chau Phu district is classified as an area with difficult socio-economic conditions.

According to Decree No. 218/2013/ND-CP dated December 26, 2013, of the Government, which provides detailed regulations and instructions for implementing the Corporate Income Tax Law (amended and supplemented by Decree No. 12/2015/ND-CP dated February 12, 2015, of the Government detailing the implementation of the Law amending and supplementing some provisions of the tax laws, and Decree No. 91/2014/ND-CP dated October 1, 2014, of the Government amending and supplementing some provisions in tax-related decrees):

• Item (d), Clause 2, Article 15 (amended and supplemented by Clause 13, Article 1 of Decree 12/2015/ND-CP) provides preferential tax rates based on industries: “2. Apply a 10% tax rate on income from the following: ... d) Income from: growing, caring for, and protecting forests; income from crop cultivation, animal husbandry, aquaculture, and processing agricultural and aquatic products in areas with difficult socio-economic conditions; aquaculture in such areas; producing, breeding, and creating new plant and animal species; producing, mining, and refining salt, except for salt production as stipulated in Clause 1, Article 4 of this Decree; investment in post-harvest agricultural products preservation, agricultural, aquatic products, and food preservation, including investment in direct preservation or investment in renting preservation services for agricultural products, aquatic products, and food.”

• Clause 3, Article 15 regulates the preferential tax rate for new investment projects based on location: 3. A 20% tax rate applies for ten years to: a) Income from a business carrying out a new investment project in an area with difficult socio-economic conditions as defined in the Appendix attached to this Decree; ... Businesses carrying out new investment projects in the fields and areas specified in Points a, b of this Clause from January 1, 2016, will apply a 17% tax rate.

• Clause 6, Article 15 stipulates: “6. The preferential tax rate under this Article is applied continuously from the first year the business generates revenue from the new investment project.”

• Clause 3, Article 16 (amended by Clause 6, Article 1 of Decree No. 91/2014/ND-CP) provides for tax exemption and reduction: “3. Tax exemption for 2 years and a 50% reduction of the tax to be paid for the following 4 years for income from carrying out a new investment project as defined in Clause 3, Article 15 of this Decree.”

• Clause 3, Article 19 regulates conditions for applying CIT incentives: “3. If a business is eligible for multiple tax incentives for the same income within the same period, the business may choose the most favorable tax incentive.”

According to Circular 78/2014/TT-BTC dated June 18, 2014, of the Ministry of Finance (amended and supplemented by Circular 96/2015/TT-BTC dated June 22, 2015, of the Ministry of Finance), which guides the implementation of Decree No. 218/2013/ND-CP of the Government on details of some provisions of the Corporate Income Tax Law and the amended and supplemented Law on Corporate Income Tax.

• Clause 1 and Clause 2 of Article 18 regulate the conditions for applying CIT incentives: “1. Corporate income tax incentives apply only to businesses that comply with accounting, invoicing, documentation, and tax declaration obligations. 2. During the period of enjoying CIT incentives, if a business carries out multiple production and business activities, the business must separately calculate income from activities that enjoy two levels of CIT incentives (including preferential tax rates, tax exemptions, reductions) and income from activities that do not benefit from CIT incentives to declare and pay taxes separately.”

• Clause 5, Article 18 (amended and supplemented by Clause 3, Article 10 of Circular 96/2015/TT-BTC) provides for new investment projects: “5. New investment projects eligible for CIT incentives under Articles 15, 16 of Decree No. 218/2013/ND-CP are:

  • Projects granted an Investment Registration Certificate for the first time from January 1, 2014, and generating revenue after being granted the Investment Registration Certificate;
  • Domestic investment projects linked to the establishment of new businesses with a capital investment of under 15 billion VND and not included in the list of investment sectors with conditions, granted a business registration certificate from January 1, 2014;
  • Independent investment projects of businesses that are already operational (even in cases of investments under 15 billion VND and not in restricted investment areas), with an Investment Registration Certificate from January 1, 2014.”

Based on the above regulations, in the case of the company being involved in domestic aquaculture and carrying out a new investment project in Chau Phu District (an area with difficult socio-economic conditions), with an Investment Certificate or Investment Registration Certificate granted by the competent authorities, the company may choose one of two CIT incentive conditions:

• CIT Incentive by Location: New investment projects in areas with difficult socio-economic conditions that meet the conditions specified in Clause 1, Clause 2, and Clause 5, Article 18 of Circular 78/2014/TT-BTC (amended by Circular 96/2015/TT-BTC) will enjoy the following CIT incentives:
  • Tax exemption for 2 years and 50% reduction of tax payable for the next 4 years as per Clause 3, Article 16 of Decree No. 218/2013/ND-CP (amended by Clause 6, Article 1 of Decree No. 91/2014/ND-CP).
  • Preferential tax rate of 17% for 10 years as per Point 3, Article 15 of Decree No. 218/2013/ND-CP.
• Tax Incentives by Industry: If the new investment project generates income from aquaculture activities in an area with difficult socio-economic conditions, it will benefit from a 10% tax rate as per Point (d), Clause 2, Article 15 of Decree No. 218/2013/ND-CP (amended by Clause 13, Article 1 of Decree No. 12/2015/ND-CP).

In principle, during the period of CIT incentives, if the company is eligible for multiple tax incentives for the same income, the company may choose to apply the most favorable tax incentive; it cannot apply both the CIT incentive by location and the CIT incentive by industry simultaneously. To enjoy CIT incentives, the company must fully comply with accounting, invoicing, and tax declaration obligations. If the company engages in multiple production and business activities, it must separately calculate income from activities that enjoy CIT incentives.

The company is advised to study the actual situation and determine tax obligations, carry out tax declaration, and make payments according to legal regulations. If any issues arise during the tax implementation process, the company may consult the Tax Department’s guidance documents on the website http://angiang.gdt.gov.vn or contact the Taxpayer Support Department (02963.945.120) for further assistance.

The An Giang Tax Department hereby notifies Nam Viet Binh Phu Aquaculture Co., Ltd. to comply with the applicable tax laws.

 

Recipients: As above; The leadership of the Tax Department; Departments: KTNB, TTKT2; Website: http://angiang.gdt.gov.vn; Electronic portal of An Giang Province; Archive: VT, TTHT (9b).

DIRECTOR       Nguyen Tri Dung

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