proposing some very favorable measures to deal with various financial
difficulties facing enterprises. We summarise below key changes that may
affect your business.As you will see, some are already approved, while some await consideration by the National Assembly.
A. Changes already approved by the Government
Corporate Income Tax (“CIT”) incentives
- For enterprise entitled to tax incentives during the period 2009-2013,
additional projects relate to regular increases in machinery and
equipment (i.e. business expansion) that will be entitled to CIT
incentives. It is still unclear how this would apply to expansion
projects which have already
- For investment projects where it was stated in the application for the initial investment certificate that the investment comprises multiple stages, profits derived from the subsequent investment stages are entitled to the same CIT incentives as the first stage. It remains unclear if the CIT incentives applied to the subsequent investment stages are new CIT incentive packages or the remaining CIT incentives period applicable to the first stage.
- The range of industrial zones qualifying for CIT incentives is further expanded compared with Circular 78.