Corporate Income Tax (CIT)Non-deductible depreciation expenses

The General Tax Department (GDT) in its Official Letter 2894/TCT-CS dated 04 September 2013 provides that if an enterprise had yet to obtain sufficient documents to prove its ownership of fixed assets then related depreciation expense is not deductible for CIT purpose.

Tax incentives

GDT’s Official Letter 2960/TCT-CS (OL 2960) dated 11 September 2013 confirms the following:

  • An enterprise established as a result of division of an enterprise shall inherit CIT incentives from the dividing enterprise provided that it continues to satisfy relevant conditions for incentives.
  • In case of investment activities in multi-locations with different CIT incentives, it must either separately account for each kind of activities or allocate incentive income based on turnover.
  • An enterprise relocating its business activities from especially difficult socio-economic area to difficult socio-economic area shall no longer be entitled to CIT incentive for the remaining project period.

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