Preferential corporate income tax for Vietnamese enterprises in Nam Dinh Vu Industrial Park

If a new investment project of a Vietnamese investor in Nam Dinh Vu Industrial Zone does not apply for an Investment Registration Certificate, will it be eligible for enterprise income tax incentives?

 

To answer the above question, it is necessary to consider the following legal provisions:

Pursuant to Decree No. 218/2013 / ND-CP dated December 26, 2013:

Article 15: Preferential tax rates

– A preferential tax rate of 10% for 15 years is applicable to: Incomes of enterprises from the execution of new investment projects in geographical areas with exceptionally difficult socio-economic conditions specified in the Appendix to this Decree, economic zones and hi-tech parks including concentrated information technology zones established under decisions of the Prime Minister.

Article 16: Tax exemption and reduction

– 4-year tax exemption, 50% reduction of payable tax amounts for 9 subsequent years, for: Incomes of enterprises from execution of new projects of investment prescribed in Clause 1 Article 15 of this Decree. Pursuant to Clause 18, Article 1 of Decree 12/2015 / ND-CP of February 12, 2015 amending and supplementing Clause 5 Article 19 of Decree No. 218/2013 / ND-CP of December 26, 2013 of the Government such as after:      

– New investment projects (including notarization offices established in areas with difficult socio-economic conditions or areas with exceptionally difficult socio-economic conditions) are entitled to tax incentives. The provisions of Clauses 1, 3, Article 15 and Clauses 1, 2 and 3, Article 16 of this Decree are projects implemented for the first time or independent investment projects with ongoing projects.

– New investment projects eligible for tax incentives under Articles 15 and 16 of this Decree must be granted investment licenses or investment certificates by competent state agencies or according to regulations. regulations of law on investment.

– 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 incentives

– For projects that are granted investment registration certificates, 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. sign the investment. 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 incentives.

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:

– Investment projects of foreign investors

– 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:

– Investment projects of domestic investors

– Pursuant to Clause 3, Article 10 of Circular No. 96/2015 / TT-BTC dated June 22, 2015 amending and supplementing a number of contents in Clause 5, Article 18 of Circular No. 78/2014 / TT-BTC of June 18, 2015 In 2014, the regulations on new investment projects for expansion investment are as follows:

Regarding new investment projects:

– New investment projects eligible for enterprise income tax incentives specified in Articles 15 and 16 of Decree No. 218/2013 / ND-CP are:

– The project is granted the first investment certificate from January 1, 2014 and generates revenue from that project after obtaining the investment certificate.

– For enterprises currently enjoying enterprise income tax incentives under the category of businesses newly established from an investment project, only applicable to incomes from production and business activities that meet the investment incentive conditions stated in the enterprise registration certificate or the first investment certificate of the enterprise. For enterprises operating in production and business activities, if there is a change in business registration certificate or investment certificate, such change does not change the project’s eligibility for tax incentives. According to the regulations, the enterprise will continue to enjoy tax incentives for the remaining period or the incentive for expansion investment if it satisfies the prescribed preferential conditions.

– Pursuant to Decision No. 69/2011 / QD-TTg dated December 13, 2011, Decision No. 1438 / QD-TTg dated October 3, 2012, Decision No. 39/2013 / QD-TTg June 27 / 2013 by the Prime Minister

– Pursuant to Appendix II List of geographical areas eligible for investment incentives in Decree No. 118/2015 / ND-CP dated November 12, 2015 of the Government.

– According to the instruction in Official Letter No. 4996 / TCS-CS dated October 27, 2016 of the General Department of Taxation “Regarding the CIT policy”

– From the grounds mentioned above, in case the Vietnamese investor implements a new investment project in Nam Dinh Vu Industrial Park, at the same time the investor carries out the procedures for enterprise establishment registration or operation registration If the branch operates and has been granted a business registration certificate or branch operation registration certificate to implement this new investment project, the income from the new project will be based on the new business registration certificate. for the first time, the certificate of branch operation registration for the first time arising in the area of ​​Dinh Vu – Cat Hai Economic Zone, including Nam Dinh Vu Industrial Park (except for incomes specified in Clause 1, Article 10 of the Circular) Circular No. 96/2015 / TT-BTC, incomes not generated in geographical areas eligible for CIT incentives, No investment registration certificate is required, specifically as follows:

– Applying 10% CIT for 15 years from the year the new investment project has revenue;

– CIT exemption for 4 years from the first year of a new investment project with taxable income and a 50% reduction of payable tax amounts for the next 9 years (or from the 4th year if the project has no taxable income). in the first three years);

New investment projects eligible for CIT incentives mentioned above are first-time or independent investment projects which are being implemented at the same time and meet the provisions of the Investment Law and guiding documents. enforce.

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