Further tax relief measures have been proposed by the MOF for the National Assembly’s approval. A noteworthy point compared with those proposed in Resolution 63/NQ-CP is that for the Advertising & Promotion (“A&P”) expenses, the MOF proposes another Option of removing the regulatory cap, besides the previous Option to only apply the cap to Advertising expenses. These proposed Options have been agreed by the Government and now awaiting for the final approval of the National Assembly this October.
2.Corporate Income Tax (“CIT”)
(I).Official Letter 14041/BTC-TCT dated 3 October 2014 on CIT incentives to listed companies
Enterprises who registered for tax incentives based on condition of initial public offerings from 2004 to 2006 but had not declared tax incentives, tax incentives would be forfeited from fiscal year of 2009.
From 2009, if enterprises still declared the above tax incentives, they would be required to revise CIT returns and pay the under-declared tax amount. No penalty and interest payment would be imposed.
From 2014, if enterprises still declared the above tax incentives, they would be subject to penalty and interest payment.
(II).Official Letter 12404/BTC-TCT dated 5 September 2014 on CIT incentives to a branch newly established in an industrial zone
From 2014, in case a company having no incentive establishes a branch in the incentive industrial park or a business expansion project in the incentive business location (based on Decree 218), the branch or the business expansion project will enjoy tax incentives applicable to a new investment project or business expansion, respectively.
(III).Official Letter 12024/BTC-TCT dated 27 August 2014 on CIT incentives based on condition of locations
For enterprises which were entitled to tax incentives on a “location” basis, taxable income from non-incentive locations shall not be subject to tax incentives.
Enterprises are required to revise CIT returns for 2009- 2013 tax years, if applicable, and pay the under-declared tax amount. No penalty and interest payment would be imposed in this case.