On June 12th, 2024, the Government’s Electronic Information Portal published the Draft of the Corporate Income Tax Law (amended) to get opinions. Accordingly, the draft has some amendments to the current regulations on corporate income tax incentives, specifically as follows:
Amendments to the industries eligible for incentives include:
– Adding the following industries to the list of incentive-eligible industries:
+ Manufacturing and assembling cars;
+ Research and development centers;
+ Providing technical support to small and medium enterprises, incubating small and medium enterprises, and developing co-working spaces to support small and medium enterprises.
– Removing new investment projects with an investment capital of 6 trillion VND or more from the list of incentive-eligible.
Proposals to amend the areas eligible for incentives:
– Removing industrial zones from the list of areas eligible for incentives. Accordingly, new investment projects and expansion investment projects in industrial zones no longer enjoy the current incentives of 2 years of tax exemption and a 50% reduction in corporate income tax for the following 4 years from the time of taxable income generation.
The Draft Corporate Income Tax Law is expected to be submitted to the National Assembly in the October 2024 session and approved at the May 2025 session.
