Corporate Income Tax Incentive


On August 02nd , 2019, General Department of Taxation has issued Official Letter No. 3042/TCT-CS giving guidelines on corporate income tax (“CIT”) incentives with content as follow:

In principle, for enterprises having investment projects eligible for CIT incentives for being located in geographical areas eligible for investment incentives, income eligible for CIT incentives are all incomes from their production and business activities in such geographical areas, except for incomes not applied to CIT incentives in accordance with Law on corporate income tax (namely income from transfer of investment projects, real estate transfer, exploration of rare natural resources, or production and trading of goods and services which are subject to excise Tax).

In case, Operating enterprises that enjoy tax incentives and adding production and business lines and enterprises do not increase capital, or make expansion investment to increase their assets, then incomes from additional commercial activities shall not be applied to CIT incentives.