Official Letter 96/TCT-CS 2025 on Corporate Income Tax Policy.

To: People's Committee of Gia Lai Province

The General Department of Taxation has received Official Letter No. 2603/UBND-KTTH dated November 6, 2024, from the People's Committee of Gia Lai Province regarding the determination of corporate income tax incentives for farm leasing activities of businesses in Gia Lai Province. Regarding this issue, the General Department of Taxation provides the following response:

• Pursuant to Article 1 of Law No. 71/2014/QH13 dated November 26, 2014, of the National Assembly on amendments and supplements to certain provisions of tax laws;

• Pursuant to Articles 15 and 16 of Decree No. 218/2013/ND-CP dated December 26, 2013, of the Government guiding corporate income tax;

• Pursuant to Clause 17, Article 1 of Decree No. 12/2015/ND-CP dated February 12, 2015, of the Government amending and supplementing certain provisions of tax decrees;

• Pursuant to Point b, Clause 4, Article 17 of Decree No. 118/2015/ND-CP dated November 12, 2015, of the Government on procedures for applying investment incentives;

• Pursuant to Article 7 of Circular No. 78/2014/TT-BTC dated June 18, 2014, of the Ministry of Finance guiding corporate income tax;

• Pursuant to Clause 1, Article 11 of Circular No. 96/2015/TT-BTC dated June 22, 2015, of the Ministry of Finance amending and supplementing Clause 1, Article 19 of Circular No. 78/2014/TT-BTC guiding the Corporate Income Tax Law;

The corporate income tax laws stipulate that income from businesses engaged in farming, animal husbandry, aquaculture, agricultural and fishery processing in areas with particularly difficult socio-economic conditions is exempt from corporate income tax. Income from new investment projects in particularly difficult social areas enjoys a tax rate of 10% for 15 years, with a 4-year tax exemption and a 50% reduction in corporate income tax for the next 9 years.

In case a business does not comply with the objectives of the project (such as animal husbandry projects) as stated in the investment registration certificate or the investment policy decision, the business will not be entitled to corporate income tax incentives for income from farm leasing activities.

The General Department of Taxation responds for the People's Committee of Gia Lai Province to be informed.

See details here.