DETERMINING CORPORATE INCOME TAX INCENTIVES FOR SUPPORTING INDUSTRY PRODUCTS

DETERMINING CORPORATE INCOME TAX INCENTIVES FOR SUPPORTING INDUSTRY PRODUCTS

1. Income of enterprises from execution of new investment projects in manufacturing of products on the List of ancillary products given priority and satisfying one of the following conditions:

- Ancillary products supporting high-technology defined in the Law on High-technology;

- Ancillary products serving the manufacturing of the following industries: textile – garment; leather - footwear; electronic - IT; automobile manufacturing & assembling; mechanical engineering, provided they cannot be manufactured in Vietnam up to January 01, 2015, or can be manufactured in Vietnam and satisfy technical standards established by EU or the equivalent.

2. Certificate of preferential treatment for manufacturing priority supporting industrial products is the basis for applying corporate income tax incentives under supporting industrial conditions.

3. Income from new investment projects in manufacturing of supporting industrial products is subject to a preferential corporate income tax rate of 10% for a period of 15 years, corporate income tax exemption for 4 years and a 50% reduction in corporate income tax payable for the next 9 years.

- Determining the time to apply corporate income tax incentives to supporting industrial products is based on the time the product is granted a Certificate of Incentive by the Ministry of Industry and Trade.

- In case an enterprise has a project to produce supporting industrial products and the income from this project is enjoying or has fully enjoyed corporate income tax incentives under other preferential conditions (other than preferential conditions for projects to produce supporting industrial products), it will enjoy corporate income tax incentives under the conditions of the project to produce supporting industrial products for the remaining period from the tax period in which the competent authority issues a Certificate of incentives for the production of supporting industrial products. The remaining incentive period is determined by the corporate income tax incentive period under the conditions of the project to produce supporting industrial products minus the number of years of tax exemption, the number of years of tax reduction, and the number of years of preferential tax rates that have been enjoyed under other preferential conditions.