On June 28th, 2019, Hanoi Tax Department issued Official Letter No.50769 / CT-TTHT. Whereby:
- In case the company is a new investment project in an industrial zone (except for an industrial zone located in an area with favorable socio-economic conditions), it is available for a 2-year Corporate Income Tax exemption from the time of having taxable income, and a reduction of 50% of CIT for the next 4 years.
- In case the company generates no taxable income in the first three years since the first year having revenue from a new investment project, the period of tax exemption and reduction is calculated from the fourth year. In case the operating time of the project is shorter than the time of being entitled to tax incentives, the income generated from this project is entitled to CIT incentives according to actual conditions. Upon the expiry of the first investment registration certificate, if the company has extended the operation duration, it shall not be entitled to CIT incentives under the new investment project for the extended period.
