Chapter IV
ENTERPRISE INCOME TAX INCENTIVES
Article 15.- Tax rate incentives
1. The incentive tax rate of 10% for 15 years is applicable to:
a/ New enterprises established under investment projects in geographical areas with extreme socio-economic difficulties specified in the Appendix to this Decree, economic zones or hi-tech parks established under the Prime Ministers decisions;
b/ New enterprises established under investment projects in the domains of:
- High technology as prescribed by law; scientific research and technological development;
- Development of water plants, power plants, water supply and drainage systems; bridges, roads, railways; airports, seaports, river ports; airfields, stations and other infrastructure works of special importance as decided by the Prime Minister;
- Manufacture of software products.
2. For new large and hi- or new-tech enterprises established under investment projects in the domains specified at Point b, Clause 1 of this Article in which investment should be specially attracted, the duration for application of the incentive tax rate may be extended but must not exceed 30 years. The Prime Minister shall, at the proposal of the Minister of Finance, decide on the extension mentioned in this Clause.
3. The tax rate of 10% is applicable to incomes of enterprises operating in education-training, vocational training, healthcare, cultural, sports and environmental domains (below collectively referred to as socialized domains) throughout their operation duration.
The Prime Minister shall promulgate a list of socialized domains mentioned in this Clause.
4. The incentive tax rate of 20% for 10 years is applicable to new enterprises established under investment projects in geographical areas with socio-economic difficulties specified in the Appendix to this Decree.
5. The incentive tax rate of 20% is applicable to agricultural service cooperatives and peoples credit funds throughout their operation duration.
After the expiration of the duration for application of the tax rate of 10% specified at Point a, Clause 1 of this Article, agricultural service cooperatives and peoples credit funds shall switch to enjoy the tax rate of 20%.
6. The duration for application of incentive tax rates specified in this Article is counted consecutively from the first year an enterprise has turnover from activities eligible for tax incentives.
Article 16.- Tax exemption and reduction
1. Tax exemption for 4 years and 50% reduction of payable tax amounts for 9 subsequent years are applicable to:
a/ New enterprises established under investment projects specified in Clause 1, Article 15 of this Decree;
b/ New enterprises operating in socialized domains in geographical areas with socio-economic difficulties or extreme socio-economic difficulties specified in the Appendix to this Decree.
2. Tax exemption for 4 years and 50% reduction of payable tax amounts for 5 subsequent years are applicable to new enterprises operating in socialized domains in geographical areas outside the list of those with socio-economic difficulties or extreme socio-economic difficulties specified in the Appendix to this Decree.
3. Tax exemption for 2 years and 50% reduction of payable tax amounts for 4 subsequent years are applicable to new enterprises established under investment projects in geographical areas with socio-economic difficulties specified in the Appendix to this Decree.
4. The tax exemption or reduction duration specified in this Article is counted consecutively from the first year an enterprise has taxable income from an investment project; in case an enterprise has no taxable income during the first three years, counting from the first year it has turnover from an investment project, the tax exemption or reduction duration is counted from the fourth year.
In the first tax year, if an enterprises production and business duration eligible for tax exemption or reduction is less than 12 (twelve) months, the enterprise is entitled to tax exemption or reduction right in that year or may register with the tax agency for enjoyment of tax exemption or reduction from the subsequent tax year.
Article 17.- Tax reduction in other cases
1. Production, construction or transport enterprises which employ many female laborers are entitled to reduction of enterprise income tax amounts equal to additional expenses paid for female laborers, including:
a/ Expense for job re-training;
b/ Salaries and allowances (if any) for teachers in crches or kindergartens organized and managed by the enterprises;
c/ Expense for additional medical check-ups in a year;
d/ Post-natal allowances for female laborers. The Ministry of Finance shall, pursuant to the labor law, coordinate with the Ministry of Labor, War Invalids and Social Affairs in specifying allowance levels mentioned in this Clause;
dd/ Salaries and allowances for female laborers who return to work during their prescribed maternity leave.
2. Enterprises which employ ethnic minority laborers are entitled to reduction of enterprise income tax amounts equal to additional expenses for job training, housing subsidies, social insurance premiums and health insurance premiums for these laborers, if they have not yet received the States supports under regulations.
Article 18.- Deduction for setting up of enterprises scientific and technological development funds
The deduction for setting up of enterprises scientific and technological development funds is specified in Article 17 of the Law on Enterprise Income Tax.
1. Enterprises established and operating under Vietnamese law may deduct up to 10% of annual taxed income for setting up their scientific and technological development funds.
Annually, enterprises may decide by themselves on the level of deduction for setting up their scientific and technological development funds under the above provision and make reports on the setting up and use of these funds, enclosed with enterprise income tax finalization declarations.
The Ministry of Finance shall set the form of report on the setting up and use of enterprises scientific and technological development funds.
2. For operating enterprises which undergo ownership transformation, are consolidated or merged, the new enterprises set up as a result of such ownership transformation, consolidation or merger may take over the former enterprises scientific and technological development funds and shall take responsibility for the management and use of these funds.
If the scientific and technological development fund of an enterprise is not used up upon its separation or split, the new enterprise set up as a result of such separation or split may take over the former enterprises scientific and technological development fund and shall take responsibility for the management and use of this fund. Enterprises shall decide on and register with tax agencies the division of their scientific and technological development funds.
Article 19.- Conditions for application of enterprise income tax incentives
Conditions for application of enterprise income tax incentives are specified in Article 18 of the Law on Enterprise Income Tax.
1. Enterprises shall separately account income from production and business activities eligible for enterprise income tax incentives (including incentive tax rates or tax exemption or reduction); any turnover or deductible expenses which cannot be separately accounted shall be determined based on the ratio between the deductible expenses or turnover from production and business activities eligible for tax incentives and the total deductible expenses or turnover of enterprises.
2. Incomes ineligible for enterprise income tax incentives include incomes specified at Points a, b and c, Clause 3, Article 18 of the Law on Enterprise Income Tax, and incomes from mining activities.
3. In the same duration, an enterprise which is entitled to different tax incentives for the same income may choose to apply the most beneficial incentive.
4. In a tax year within the duration eligible for enterprise income tax incentives, if an enterprise fails to satisfy one of the conditions for enjoyment of tax incentives specified in Article 18 of the Law on Enterprise Income Tax and this Article, it is not entitled to tax incentives in such tax year and shall pay tax at the rate of 25%.
5. New enterprises established under investment projects eligible for tax incentives specified in Articles 15 and 16 of this Decree are enterprises making business registration for the first time, excluding:
a/ Enterprises established as a result of separation, split, merger or consolidation under law;
b/ Enterprises established as a result of form conversion or ownership transformation, except the case of assignment, contracting or lease of state enterprises;
c/ Newly established private enterprises and one-member limited liability companies whose owners are heads of individual business households and which see no changes in business lines;
d/ Newly established private enterprises, partnerships, limited liability companies or cooperatives with their at-law representatives (unless at-law representatives are other than capital contributors), partners or contributors of largest capital amounts having participated in business activities in the capacity as at-law representatives, partners or contributors of largest capital amounts in operating enterprises or enterprises dissolved within less than 12 months counting from the time of dissolution of old enterprises to the time of establishment of new enterprises.
Tìm kiếm
Nghị định 124/2008/NĐ-CP (Bản Word)
Nghị định 124/2008/NĐ-CP (Bản Pdf)