Latest regulations on corporate income tax incentives for special investment projects

On 6th October 2021, the Prime Minister issued the Decision No. 29/2021/QĐ-TTg on regulations on special investment incentives.

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On 6th October 2021, the Prime Minister issued the Decision No. 29/2021/QĐ-TTg on regulations on special investment incentives.

In which, there are regulations on corporate income tax incentives for special investment projects.

For example, the preferential tax rate of 7% for a period of 33 years applies to income from investment projects in one of the following cases:

– New establishment investment projects (including the expansion of such newly established projects) of innovation centers, research and development centers:

Having a total investment capital of 3,000 billion VND or more, disbursing at least 1,000 billion VND within 3 years from the date of issuance of the Investment Registration Certificate or the Decision on approval of investment policies.

– The investment project falls under the subjects specified at Point b, Clause 2, Article 20 of the Law on Investment and meets one of the following four criteria:

+ Being a high-tech project level 1;

+ There are Vietnamese enterprises participating in the chain of level 1;

+ Value added accounts for over 30% to 40% of the total cost of the final output products provided by economic organizations;

+ Satisfy the criteria for technology transfer level 1.

Decision No. 29/2021/QD-TTg takes effect from October 6, 2021.