Circular 08/2007/TT-BTC: Regulations on tax policies for Nghi Son Economic Zone, Thanh Hoa Province

Circular 08/2007/TT-BTC: Regulations on tax policies for Nghi Son Economic Zone, Thanh Hoa Province (Illustrative Image)

Circular 08/2007/TT-BTC stipulates the corporate income tax policies applicable to the Nghi Son Economic Zone, Thanh Hoa Province:

- The investment projects of Vietnamese and foreign organizations and individuals in new production and business establishments in the Nghi Son Economic Zone are eligible for the corporate income tax rate of 10% for 15 years as from the commencement of the investment projects; exempted from corporate income tax for 04 years as from earning taxable income; eligible for 50% reduction in the tax payable for the next 09 years.

- The investment projects of Vietnamese and foreign organizations and individuals in Nghi Son Economic Zone belonging to hi-tech disciplines that satisfy Clause 2 Article 5 of the Government's Decree No. 99/2003/ND-CP; the large investment projects of Vietnamese and foreign organizations and individuals in Nghi Son Economic Zone, that are highly significant to the sectoral development or the local socio-economic development, are eligible for the corporate income tax rate of 10% during the entire execution of the project.

Notes: To enjoy the corporate income tax incentives, the organizations and individuals having investment projects in the Nghi Son Economic Zone must submit copies of their business registration certificates (for Vietnamese enterprises), investment licenses (for foreign-invested enterprises) to the tax authority where they declare and pay tax. The corporate income tax incentives are only applicable to business entities that fully comply with the accounting policies and invoices and have declared and paid tax. 

During the operation, if an enterprise suffers a loss after the finalization, it may transfer the loss to the succeeding years to deduct them from taxable income. The loss transfer period must not exceed 5 years.

Enterprises must register the period of corporate income tax exemption or reduction with the tax authority where they declare and pay tax.

More details may be found in Circular 08/2007/TT-BTC effective from March 3, 2007.

Ty Na

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