Vietnam: Updates corporate tax incentives schemes

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Recently, Vietnam’s tax authorities updates and published following guidance in the “official letters” regarding the corporate tax incentives schemes:

No CIT incentive tax rate applicable for investment projects located in industrial parks:

According to official Letter, No. 292/TCT-DNL dated 23 January 2017 by the General Department of Taxation (“GDT”), investment projects located in industrial parks are not entitled to CIT incentive schemes applicable to those located in locations under difficult socio-economic circumstances, following the provisions of current CIT regulations. As such, the investment projects located in the industrial parks are only allowed to enjoy CIT exemption and CIT reduction in accordance with tax incentive policy to projects located in industrial parks. No incentive CIT tax rate is applicable.

A company generating income from agricultural and fishery processing is not entitled to multi-CIT incentive schemes simultaneously:

Under the official Letter No. 3091/BTC- TCT dated 8 March 2017 of the Ministry of Finance (“MoF”), where a company qualifies for CIT incentives for both having income from agricultural and fishery processing activities, and other incentives at the same time, the company is allowed to choose the most optimal incentive scheme following one incentive condition. This guidance supersedes previous guidance as stipulated under Clause 2(i) of Official Letter No. 5181/TCT-CS dated 15 April 2016.

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