i. Preferential corporate income tax rates
– The tax rate of 10% is applied for 15 years in the following cases:
+ Enterprises implementing new investment projects in geographical areas with extremely difficult socio-economic conditions, economic zones or high-tech zones;
+ Enterprises implementing new investment projects include: scientific research and technology development; applying high technologies on the list of high technologies given priority for investment and development under the provisions of the Law on High Technologies; High-tech incubation, high-tech business incubation; venture investment in hi-tech development is on the list of high technologies prioritized for investment and development under the provisions of the Law on High Technologies; investment in construction – business of high-tech incubators and hi-tech business incubators; investment in the development of infrastructure of special importance by the State according to the provisions of law; manufacturing software products; production of composite materials, light construction materials, and rare and precious materials; producing renewable energy, clean energy, energy from waste destruction; biotechnology development; environmental Protection;
+ High-tech enterprises, agricultural enterprises applying high technology;
+ An enterprise implementing a new project of investment in the manufacturing sector (except for production of goods subject to special consumption tax, and projects on stock exploitation) meets one of the following two criteria:
* Minimum investment capital scale of six trillion dong, disbursement not exceeding three years from the date of being issued investment certificate and having minimum total revenue of ten trillion dong / year, no later than three years. since the year of revenue;
* Quy mô vốn đầu tư tối thiểu sáu nghìn tỷ đồng, thực hiện giải ngân không quá ba năm kể từ ngày được cấp Giấy chứng nhận đầu tư và sử dụng trên ba nghìn lao động.
+ Enterprises implementing new investment projects to manufacture products on the list of supporting industry products prioritized for development;
+ Enterprises implementing investment projects in the manufacturing sector, except for projects on production of goods subject to special consumption tax and mineral exploitation projects, with a minimum investment capital of twelve trillion VND. Technologies must be appraised in accordance with the Law on High Technologies and Law on Science and Technology, disbursing the total registered investment capital not exceeding 5 years from the date of being permitted to invest in accordance with the law on invest.
– The tax rate of 10% is applied in the following cases:
+ Enterprises implementing socialization activities in the fields of education – training, vocational training, health, culture, sports and the environment;
+ Enterprises implementing investment projects – social housing business for sale, for lease, or for lease purchase to the subjects specified in Article 53 of the Law on Housing;
+ Press agencies operating in printing press, publishing agency;
+ Enterprises planting, tending and protecting forests; the cultivation and processing of agricultural and aquatic products and forest products in localities with difficult socio-economic conditions, the production, multiplication and crossbreeding of plants and animals; salt production, exploitation and refinement, post-harvest preservation of agricultural products, preservation of agricultural, aquatic and food products;
+ Cooperatives operating in the fields of agriculture, forestry, fisheries and salt production are not in areas with difficult socio-economic conditions or areas with extremely difficult socio-economic conditions.
– The tax rate of 17% (from January 1, 2016) is applied for 10 years in the following cases:
+ Enterprises implementing new investment projects in areas with difficult socio-economic conditions;
+ Enterprises implementing new investment projects, including: high-grade steel production; manufacturing energy-saving products; manufacture of machinery and equipment for agricultural, forestry, fishery and salt production; manufacture of irrigation equipment; production and refining of feed for cattle, poultry and aquatic animals; develop traditional professions.
– The tax rate of 17% (from January 1, 2016) is applied to people’s credit funds and microfinance institutions.
ii. Conditions for application of corporate income tax (CIT) incentives
– Enterprises comply with the regime of accounting, invoices and vouchers and pay tax according to declaration;
– Enterprises must separately account incomes from production and business activities entitled to tax incentives from those not eligible for tax incentives. In case of failure to make separate accounting, the income from preferential production and business activities is determined according to the ratio of the revenue from the eligible production and business activities to the total revenue of the enterprise;
– The tax incentive of 17% will not apply to:
+ Incomes from capital transfer or transfer of the right to contribute capital; income from real estate transfer, except social housing; income from the transfer of an investment project, the right to participate in an investment project, or the right to explore or exploit minerals; income from production and business activities outside of Vietnam;
+ Incomes from prospecting, exploration and extraction of oil, gas and other rare and precious resources, and income from mineral extraction;
+ Income from service business is subject to special consumption tax in accordance with the Law on Special Consumption Tax.
Note: At the same time, if an enterprise is entitled to many different tax incentives for the same income, it may choose to apply the most favorable tax incentives.