Expanding investment project of investor in Nam Dinh Vu Industrial Park Is it possible to enjoy corporate income tax incentives?

In order to answer the above question, the following legal provisions should be considered:

Pursuant to Article 15 and Article 16 of Decree No. 218/2013 / ND-CP dated December 26, 2018 of the Government detailing and guiding the Law on Enterprise Income Tax (CIT), which specifies preferential tax rates tax exemption and reduction; Pursuant to Clause 16 Article 1 of Decree No. 12/2015 / ND-CP dated February 12, 2015 amending and supplementing Point a Clause 1 Article 16 of Decree No. 218/2013 / ND-CP dated December 26, 2018 of the Government ;

Pursuant to Clause 4, Article 10 of Circular No. 96/2015 / TT-BTC of June 22, 2015 amending and supplementing a number of contents in Clause 6, Article 18 of Circular No. 78/2014 / TT-BTC of June 18, 2015 In 2014, the Ministry of Finance provides regulations on open investment as follows:

6. On expansion investment

  1. a) Enterprises with investment projects on development of investment projects in operation such as expanding production scale, raising capacity, renewing production technologies (collectively referred to as expansion investment projects) in the field areas or areas eligible for enterprise income tax incentives under the provisions of Decree No. 218/2013 / ND-CP (including economic zones, hi-tech parks, industrial parks except industrial parks located in urban districts of special-grade urban centers, grade-I urban centers directly under the central government and industrial parks located in provincial-level urban centers of grade I) if meeting one of the three criteria specified at this Point, choose to enjoy enterprise income tax incentives under the current projects for the remaining time (including tax rates, exemption and reduction periods if c) ) or apply the tax exemption or reduction period for the additional income generated by expansion investment (not enjoying the preferential tax rate) equal to the tax exemption or reduction duration applicable to the project new investment projects in the same area or field of corporate income tax incentives. In case an enterprise chooses to enjoy enterprise income tax incentives under an operating project for the remaining time, such expansion investment project must be in the field or geographical area eligible for enterprise income tax incentives according to the provisions of Decree No. 218/2013 / ND-CP is also in the field or area with the project in operation.

Expansion investment projects prescribed at this Point must meet one of the following criteria:

– The cost of fixed assets increases when the investment project is completed and put into operation, at least from VND 20 billion for expansion investment projects in the field of enjoying enterprise income tax incentives under the provisions of Decree No. 218/2013 / ND-CP or from VND 10 billion for expansion investment projects implemented in areas with difficult or extremely difficult socio-economic conditions according to the provisions of the Decree Decision 218/2013 / ND-CP.

– The proportion of the original cost of additional fixed assets reaches at least 20% of the total cost of fixed assets before investment.

– The designed capacity of expanded investment shall increase at least 20% compared to the designed capacity according to the technical and economic feasibility study before the initial investment.

In case the enterprise chooses to enjoy incentives under the scope of expanded investment, the additional income from expansion investment shall be separately accounted. In case the enterprise cannot separately account the additional income generated by expansion investment, the income from expansion investment is determined by the ratio of the original cost of fixed assets of newly invested and put into use. for production and business on the total cost of fixed assets of the enterprise. … ”;

Pursuant to the Law on Investment No. 76/2014 / QH13 dated November 26, 2014 of the National Assembly of the Socialist Republic of Vietnam (effective from July 1, 2015):

“Article 17. Procedures for application of investment preferences For projects that are granted investment registration certificates,

1. investment registration agencies shall write the contents of investment incentives, bases and conditions for application of investment preferences in the investment registration certificates. For projects not in the case of being granted investment registration certificates, investors shall be entitled to investment preferences if they meet the conditions for enjoying investment preferences without having to carry out the procedures for grant of registration certificates. invest.

2. In this case, the investor shall, based on the conditions for investment incentives prescribed in Articles 15 and 16 of this Law, other relevant laws, determine the investment incentives by themselves and execute the procedure manually. continue enjoying investment preferences at tax agencies, financial agencies and customs offices corresponding to each type of investment preferences. “;


“Article 36. Cases of carrying out procedures for grant of investment registration certificates Cases subject to carrying out procedures for grant of investment registration certificates:

a) Investment projects of foreign investors;

b) Investment projects of economic organizations prescribed in Clause 1, Article 23 of this Law.

Cases not required to carry out procedures for the grant of an investment registration certificate:

a) Investment projects of domestic investors;

…”;

“Article 40. Adjustment of the Investment Registration Certificate

1. When wishing to change the contents of an investment registration certificate, the investor shall carry out procedures for adjusting the investment registration certificate.

2. A dossier of modification of an investment registration certificate comprises:

…”;

From the above grounds, the case of investors sub-leasing land associated with infrastructure in Nam Dinh Vu Industrial Park, Dinh Vu – Cat Hai Economic Zone to implement new investment projects. In the course of operation, investors wishing to carry out investment projects for development of investment projects are operating such as expanding production scale, raising capacity, renewing production technology (collectively). is an expanded investment project) in a field or area eligible for CIT incentives under Decree No. 218/2013 / ND-CP if it meets one of the three criteria specified in Clause 4, Article 10 of Circular No. 96/2015 / TT-BTC is entitled to choose to enjoy CIT incentives under the active project for the remaining period (including tax rates, exemption and reduction periods, if any) or apply the tax exemption period, tax reduction for the additional income brought about by expansion investment (not enjoying preferential tax rates) is equal to the tax exemption or reduction period Regarding new investment projects in the same area or domains eligible for CIT incentives (except for incomes specified in Clause 1, Article 10 of Circular No. 96/2015 / TT-BTC of June 22, 2015 of the Ministry of Finance main).

Expansion investment projects eligible for CIT incentives under the above guidance are operating investment and development projects by expanding their scale, raising capacity, renewing technologies, reducing pollution or improve the environment and at the same time comply with the provisions of the Investment Law and its guiding documents. In particular, for cases where procedures for issuance of investment registration certificates are required (such as investment projects of foreign investors, investment projects of economic organizations prescribed in Clause 1 of Article 23 of the Investment Law), when implementing an expanded investment project, the investor must make adjustments to the information in the granted Investment Registration Certificate.

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