Investment project in industrial and commercial park shall apply 10% CIT for 15 Years in Vietnam

Investment project in industrial and commercial park shall apply 10% CIT for 15 Years in Vietnam (Illustrative Image)

ircular 162/2007/TT-BTC stipulates the corporate income tax policy for industrial and commercial park applicable to the An Giang border-gate economic zone as follows:

- Investment projects in industrial and commercial park are subject to a corporate income tax rate of 10% for 15 years from the commencement of business activities, exempt from corporate income tax for 4 years from the time of taxable income generation; and a 50% reduction in corporate income tax payable for the next 9 years.

- For investment projects involving new production lines, expanding scale, technological innovation, improving the ecological environment, and enhancing production capacity, tax exemption and reduction are applied in accordance with the Law on Corporate Income Tax and its guiding documents.

- Organizations and individuals producing and trading goods and services, foreign-invested enterprises, and foreign parties involved in business cooperation contracts operating in industrial and commercial park, after finalizing with tax authorities and incurring losses, are allowed to carry forward the losses to subsequent years to offset taxable income. They must notify the tax authorities in writing at the time of submitting annual corporate income tax returns. The loss carryforward period shall not exceed 5 years.

- Taxable income from the transfer of land use rights, land lease rights associated with infrastructure, and architectural structures on land must pay corporate income tax in accordance with guiding documents on corporate income tax.

- Enterprises are responsible for registering with the tax authorities where they file their tax returns regarding the timing of corporate income tax exemptions and reductions as stipulated in this section. Corporate income tax incentives and loss carryforwards are only applicable to business establishments that have properly and fully implemented financial-accounting policies and registered to pay tax by declaration.

More details can be found in Circular 162/2007/TT-BTC which is effective in Vietnam from January 29, 2008.

Ty Na

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