On 26 November 2014, the National Assembly has passed two important laws on taxation including:
• Law amending and supplementing a number of articles in current tax laws, which shall take effect from 01 January 2015; and
• Law amending and supplementing a number of articles of the law on special consumption tax, which shall take effect from 01 January 2016.
Below are important changes under the above two laws:
1. Corporate Income Tax (“CIT”)
• Remove entirely the provision of 15% cap over the total deductible expenses for advertisement and promotion items.
• Income derived from the following new investment projects shall apply 10% tax rate for 15 years, tax exemption for 4 years and 50% tax reduction for 9 subsequent years:
* Investment projects in manufacturing products on the list of supporting industry roducts encouraged for development of hi-tech area or production of textile, garments, footwear, electronic – informatics, automotive assembly, mechanical engineering products which cannot be domestically manufactured up to 01 January 2015.