On November 19th, 2024, the Ha Nam Provincial Tax Department issued Official Letter No. 2915/CTHNA-TTHT, accordingly:
Under current laws, subjects eligible for CIT incentives include new investment projects and expansion investment projects (meeting preferential conditions based on location and sector). Therefore, in principle:
Income from machinery and equipment of the new investment project is considered for CIT incentives under the new investment category; Additional income from machinery and equipment of the expansion investment project is considered for CIT incentives under the expansion investment category.
In case the investment project has completed the investment process and commenced operations; during operations, the Company purchases additional machinery and equipment to serve production and business activities, the income arising from the additional purchased machinery and equipment is determined to be eligible for CIT as follows:
If the Company purchases additional machinery and equipment after the investment project has commenced operations, and the additional purchase activity is not a regular investment activity or does not meet the conditions for expansion investment, the income generated from the above additional machinery and equipment purchases is not eligible for CIT incentives.
