On 25 August 2014, the Government issued Resolution No. 63/NQCP providing a number of tax support measures for businesses. Notable points under Resolution 63 are summarised below:


Corporate Income Tax

• For investment projects with already registered investment capital, investment stages, and detail implementation schedule, then each implementing stage shall be deemed an integral part of the whole project and as such entitled to the same tax incentives originally granted for the project. For investment projects licensed before 1 January 2014, tax incentives for the remaining period shall count from 1 January 2014 (no retrospective application for period before 1 January 2014).

• Additional income from further investment in machinery and equipment by companies entitled to tax incentives during the 2009-2013 period, shall also be entitled to tax incentives (no retrospective application).

• Tax incentivized industrial parks now include those located in all central cities, and class 1 townships established from 1 January 2009.

• Staff welfare expenses will be deductible if these do not exceed one month’s average salary and are sufficiently substantiated.

• Where the total tax provisional payment by quarter is short by 20% or above of the total annual tax payable, the shortfall shall be subject to late payment charges, counting from 31 December of the assessment year to the date of actual tax settlement.

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