Organizations and individuals on Phu Quoc Island are subject to what corporate income tax rate?

Organizations and individuals in Phu Quoc Island enjoy how many % of Corporate Income Tax? (Illustrative photo)

Circular 10/2007/TT-BTC stipulates the corporate income tax policy applicable to domestic and foreign organizations and individuals in Phu Quoc Island as follows:

- Investment projects by domestic and foreign organizations and individuals to establish new business production facilities in Phu Quoc Island shall enjoy a 10% corporate income tax rate throughout the project duration; corporate income tax exemption for 04 years from the time taxable income is generated; and a 50% reduction in payable tax for the next 09 years.- Business production facilities investing in new production lines, scale expansions, technological innovations, ecological environment improvements, and production capacity enhancements shall comply with current laws on corporate income tax.- Taxable income from land use right transfers and land lease transfers must pay income tax in accordance with current laws on corporate income tax.- To avail corporate income tax incentives, organizations and individuals with investment projects in Phu Quoc Island must submit a copy of the Business Registration Certificate (for domestic enterprises) or the Investment License (for foreign-invested enterprises) to the tax authorities where the enterprise declares and pays tax. Corporate income tax incentives only apply to business production facilities that fully implement accounting policies, invoices, receipts as registered, and tax payments as declared.- During their operations, after settling with tax authorities and incurring losses, enterprises are allowed to carry forward the losses to subsequent years to offset against taxable income in accordance with current laws.- Enterprises bear the responsibility for notifying the tax authorities where they declare and pay taxes about the duration of corporate income tax exemption and reduction as specified in this section.

Details can be found at Circular 10/2007/TT-BTC, effective from March 07, 2007.

Ty Na

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