1. Corporate income tax (“CIT”)CIT incentives
• For enterprise entitled to tax incentives during the period 2009-2013, any additional profit derived from regular increases in machinery and equipment during this period are entitled to the same CIT incentives as the existing project for the remaining period.
Decree 91 is silent on how to define “regular” increase in machinery and equipment and how the new guidance applies to periods which have been subject to tax audit and assessed additional CIT due to expansion projects.
• For investment projects where the initial investment certificate application outlined multiple stages, profits derived from the subsequent investment stages (if carried out in line with the registered timeline) are entitled to the same CIT incentives as the first stage.
• The industrial zones qualifying for CIT incentives is expanded to include urban districts which have been established from rural districts from 1 January 2009 of Ho Chi Minh, Ha Noi, Hai Phong, Da Nang, Can Tho and provincial cities type 1.
• Alternative CIT incentives for companies whose CIT incentives based on export criteria were terminated as a result of Vietnam’s WTO commitments which were previously guided under Decree 122/2011/NDCP are repeated in Decree 91. However, it is indicated in Decree 91 that alternative preferential CIT rate and exemption/ reduction could be elected separately.