On August 10th ,2020, The General Department of Taxation issued Official Letter No. 3218/TCT-CS on providing guidance of determining the income from production and business activities that are entitled to enjoy incentives by area as follows:
In case the Company has an investment project in Industrial zone (meeting the conditions of the preferential investment area) and hires another enterprises to process outside the preferential areas, the income from the aforementioned activities shall not be eligible for enjoying the CIT incentives under the conditions of incentives by area.
The Company must separately calculate the income from production and business activities entitled to the CIT incentives and from the production and business activities income not entitled to the CIT incentives to make tax declaration and tax payment separately. In case that the company can not calculate separately, the company shall comply with the regulation in Clause 1 Article 9 Decree No. 218/2013/ND-CP dated December 26th ,2020 by the Government.
