Corporate income tax incentives for special investment projects 2024
In 2024, what incentives are there in terms of corporate income tax rates? Can the time to enjoy preferential corporate income tax rates be extended? In 2024, the provisions of the 2008 Corporate Income Tax Law, amended and supplemented in 2013, 2014, 2020, 2022 and 2023, will continue to apply (hereinafter referred to as the Corporate Income Tax Law).
Accordingly, the incentives for corporate income tax rates in 2024 are specified in Article 13 of the Law on Corporate Income Tax as follows:
1. 10% tax incentive for the entire operating period
The tax rate of 10% for the entire operating period applies to:
- Enterprise income from carrying out socialization activities in the fields of education – training, vocational training, health, culture, sports and environment;
- Enterprise income from implementing investment projects – social housing business for sale, lease, lease purchase for subjects specified in Article 53 of the 2014 Housing Law (amended by point 1). b Clause 6, Article 99 of the Law on Investment according to the public-private partnership method 2020).
- Income of press agencies from print media activities, including advertising on print newspapers according to the provisions of the Press Law; income of the publishing agency from publishing activities according to the provisions of the Publishing Law.
- Income of cooperatives operating in the fields of agriculture, forestry, fishery, and salt production that are not located in areas with difficult socio-economic conditions or areas with special socio-economic conditions difficult, except for the income of cooperatives specified in Clause 1, Article 4 of the Law on Corporate Income Tax.
Corporate income tax incentives for the latest special investment projects
>>>Read more: Empower Your Workforce for Efficient Management with ESS
2. Incentive tax rate of 17% for 10 years
Apply tax rate of 17% for 10 years for:
- Enterprise income from implementing new investment projects in areas with difficult socio-economic conditions.
- Enterprise income from implementing new investment projects, including: high-grade steel production; production of energy saving products; manufacturing machinery and equipment for agricultural, forestry, fishery and salt production; production of irrigation equipment; producing and refining animal, poultry and aquatic feed; develop traditional industries.
3. Incentive tax rate of 17% for the entire operating period
Apply a tax rate of 17% throughout the entire operating period for income of People’s Credit Funds and microfinance institutions.
4. Incentive tax rate of 15%
Apply a tax rate of 15% to: income of farming, livestock, and processing enterprises in the agricultural and fishery sectors not located in areas with difficult socio-economic conditions or areas with favorable conditions in extremely difficult socio-economic situations.
5. Extend the period of preferential tax rates
– For projects that need to especially attract large-scale investment and high technology, the preferential tax rate application period may be extended but the extension period shall not exceed fifteen years;
– For project (vi) mentioned in Section 1, it meets one of the following criteria:
+ Produce products with global competitiveness, with revenue reaching over 20,000 billion VND/year no later than five years after having revenue from the investment project.
+ Regularly employs over 6,000 workers.
+ Investment projects in the field of economic and technical infrastructure, including: investment in development of water plants, power plants, water supply and drainage systems, bridges, roads, railways, airports and seaports, river ports, airports, railway stations, new energy, clean energy, energy saving industry, petrochemical refinery projects.
The Prime Minister decides to extend the period of application of preferential tax rates specified at this point, but the extension period shall not exceed 15 years.
Incentives on tax exemption and tax reduction periods
>>>Tax inspection services provide comprehensive assistance to your business in Vietnam
6. Preferential tax rates for projects receiving special investment support
For investment projects specified in Clause 2, Article 20 of the Investment Law 2020, the Prime Minister decides to apply preferential tax rates reduced by no more than 50% compared to the preferential tax rates specified in Clause 1 of this Article; The preferential tax rate application period must not exceed 1.5 times the preferential tax rate application period specified in Clause 1 of this Article and may be extended for no more than 15 years and must not exceed the term of the investment project. private.
Note: The time to apply the preferential tax rates mentioned in the article is calculated from the first year the enterprise’s new investment project has revenue;
- For high-tech enterprises and agricultural enterprises applying high technology, it is counted from the date of certification as a high-tech enterprise or agricultural enterprise applying high technology;
- For high-tech application projects, it is calculated from the date of issuance of the high-tech application project certificate.
At S4B, we understand the complexities of corporate income tax and are here to offer our professional support and expertise. Our dedicated team is well-versed in the latest tax laws and regulations, ensuring that your business receives the best possible advice and assistance in managing its tax obligations. Trust S4B to provide comprehensive corporate income tax services tailored to your specific needs, so you can focus on growing your business with confidence.
Smart Solutions For Business Company Limited (S4B Vietnam)
- Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh
District, Hanoi - Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
——————————————–
We Will Show You The Way To Success!