The Ministry of Finance on 7 April 2016, published Official Letter No. 4769/BTC-TCT which providing criteria on tax incentives for regular investment activities. As per this guidance, “regular investment activities” is defined as regular additions to machinery and equipment of the original project enjoying CIT incentives, funded by one of the following independent sources:
– Basic depreciation fund for fixed assets;
– Profit after tax for re-investment; or
– Investment capital per the registration with the authorities.
Regular addition of machinery and equipment from the above sources should not increase the business capacity in accordance with the registered or approved business plan of the project currently enjoying CIT incentives.
Therefore, if a company had regular investment activities during the period from 2009 to 2013 and qualifies for CIT incentives in accordance with the guidance presented in this official letter, such a company is allowed to amend its CIT declaration in accordance with the Law on Tax Administration.
