The document issued by the Provincial Tax Department of Bac Ninh on May 2, 2024, under Official Letter No. 2583/CTBNI-TTHT:
In the case where a company has an investment project (new investment or expansion) to manufacture products listed in the priority development Industrial Support Product List and the income from this project has already enjoyed corporate income tax (CIT) incentives under different conditions (other than the conditions for incentives for supporting industrial product manufacturing projects), if the project meets the conditions for supporting industrial product manufacturing projects as stipulated in Law No. 71/2014/QH13 and is granted a confirmation certificate of incentives for supporting industrial product manufacturing by the competent authority, it shall enjoy CIT incentives according to the conditions of the supporting industrial product manufacturing project for the remaining period. The remaining incentive period is determined based on the following principles:
Regard to incentive tax rate
For new investment projects, a incentive tax rate of 10% is applicable for a period of 15 years. The remaining years eligible for the incentive tax rate are calculated by subtracting the number of years the company has already enjoyed a incentive tax rate under different conditions from the total years of the incentive tax rate for supporting industrial product manufacturing projects. If the company has not previously enjoyed a incentive tax rate under different conditions, the number of years for which the incentive tax rate has been enjoyed is considered as 0.
For expansion investment projects, the incentive tax rate is not applicable.
Regard to tax exemption and tax reduction
The tax exemption and reduction period is determined for each project (new investment project and expansion investment project) with the following incentives: tax exemption for 4 years and a 50% reduction of the payable tax amount for the subsequent 9 years for income derived from supporting industrial product manufacturing.
After determining the tax exemption and reduction levels for each project according to the mentioned criteria, the Company establishes the remaining tax exemption/reduction period based on the conditions of the supporting industrial product manufacturing project as follows:
The remaining tax exemption/reduction period is equal to the tax exemption/reduction period based on the conditions of the supporting industrial product manufacturing project, minus the tax exemption/reduction period already enjoyed under other incentive conditions for each project (new investment project or expansion investment project). If the company has not previously enjoyed tax exemption/reduction incentives under different conditions, the number of years for which tax exemption/reduction has been enjoyed is considered as 0.
During the period of enjoying corporate income tax incentives, if the company engages in multiple production and business activities, the company must separately determine the income from the priority development supporting industrial product manufacturing project to enjoy corporate income tax incentives as prescribed.
