Official Letter No. 87/CTHDU-TTHT on Corporate Income Tax Incentives

GENERAL TAX DEPARTMENT HAI DUONG PROVINCIAL TAX DEPARTMENT No: 87 /CTHDU-TTHT Regarding Corporate Income Tax Incentives

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Can Tho, January 03, 2025

 

To:	Branch of Astee Horie VN Hai Duong Co., Ltd Tax code: 3701007457-001 Address: Trụ Hamlet, Lai Cách Town, Cẩm Giàng District, Hai Duong Province

The Hai Duong Provincial Tax Department has received Document No. 26122024/CV-AHHD dated December 26, 2024, from the Branch of Astee Horie VN Hai Duong Co., Ltd (hereinafter referred to as the Company) regarding the "Corporate Income Tax Exemption and Reduction Regime." The Hai Duong Provincial Tax Department provides the following response:

Based on Clause 6, Article 1 of Decree No. 91/2014/ND-CP dated October 1, 2014, from the Government amending and supplementing Clause 3 of Article 16 of Decree No. 218/2013/ND-CP dated December 26, 2013, from the Government:

"3. Exemption of tax for 2 years and a 50% reduction in the tax payable for the next 4 years for income from implementing new investment projects specified in Clause 3, Article 15 of this Decree and income from businesses carrying out new investment projects in industrial zones (except for industrial zones located in areas with favorable socio-economic conditions).
Favorable socio-economic conditions are defined in this Clause as the inner-city districts of special-grade urban areas, type I urban areas directly under the central government, and type I urban areas directly under provincial governments, excluding newly established districts from January 1, 2009. In cases where an industrial zone is located in both favorable and non-favorable areas, the tax incentives for the industrial zone shall be based on the actual location of the investment project. The classification of special-grade and type I urban areas is governed by the Government’s regulations on urban classification."

Based on Clause 18, Article 1 of Decree No. 12/2015/ND-CP dated February 12, 2015, from the Government amending and supplementing Clause 5, Article 19 of Decree No. 218/2013/ND-CP dated December 26, 2013, stipulating the conditions for applying corporate income tax incentives:

"5. New investment projects (including notary offices established in areas with difficult socio-economic conditions or particularly difficult socio-economic conditions) entitled to tax incentives as per Clause 1, Clause 3, Article 15, and Clause 1, 2, 3, Article 16 of this Decree must be projects implemented for the first time or independent investment projects, excluding the following cases: New investment projects entitled to tax incentives under Articles 15 and 16 of this Decree must be granted an investment license or an investment certificate by the competent authority, or be allowed to invest according to the provisions of the investment law."

Based on the above provisions and the inquiry from Document No. 26122024/CV-AHHD from the Branch of Astee Horie VN Hai Duong Co., Ltd:

In the case where the Company was established from a new investment project located at Trụ Hamlet, Lai Cách Town, Cẩm Giàng District, Hai Duong Province (an area not eligible for investment incentives) and was granted an investment registration certificate by the Hai Duong Department of Planning and Investment (project code: 8745535331, first granted on January 13, 2023). The Company then switched from a non-export enterprise to an export enterprise and moved the project to Lai Vu Industrial Zone, Lai Vu Commune, Kim Thành District. The project of the Company does not qualify for corporate income tax incentives because it does not meet the conditions for new investment projects as defined in Clause 18, Article 1 of Decree No. 12/2015/ND-CP.

The Hai Duong Provincial Tax Department responds to inform the Branch of Astee Horie VN Hai Duong Co., Ltd.

Recipient: As above; Leadership of the Department; Departments: TTKT1,2,3,4; KK; Website of the Tax Department; Archives: VT, TTHT.

KT. CỤC TRƯỞNG PHÓ CỤC TRƯỞNG       Vũ Doãn Ngọc Hưng

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