Vietnam’s Decree 91/2014/ND-CP (Decree 91) on VAT and corporate income tax (CIT) will come into effect on 15 November 2014. This Decree updates and clarifies changes made by Resolution 63 in August 2014. The Decree includes provisions on deductible expenses, tax incentives for manufacturers and high-technology firms. It also introduces measures to reduce the amount of paperwork required for tax filing and save compliance costs for taxpayers. In addition to this the Decree also reduces the corporate tax rate for agricultural businesses. The provisions of Decree 91 are all applicable from the 2014 reporting year.
The Decree increases the number of industrial zones qualifying for corporate income tax incentives. It also introduces alternative corporate income tax incentives for enterprises whose original incentives based on export criteria were terminated as a result of changes made through Vietnam’s commitments to the World Trade Organization (WTO). Enterprises that were entitled to corporate income tax incentives between 2009 and 2013 will be entitled to the same incentives in respect of any additional profits resulting from regular increases in machinery and equipment during this period.
For projects where the initial investment certificate provided for multiple stages of the project the profits arising in the subsequent stages of the project are entitled to the same investment incentives as the first stage of the project, provided that the project adheres to the original timeline.
