Official Letter No. 171/CCTKV17-QLDN1 dated March 31, 2025, issued by the Regional Tax Department XVII regarding Corporate Income Tax (CIT) incentives is as follows

In the case where a company invests in the Hải Sơn Đức Hòa Đông Industrial Cluster and implements a new investment project in accordance with regulations, and is not among the cases ineligible for incentives under a new investment project as stipulated in Clause 3, Article 10 of Circular No. 96/2015/TT-BTC, the income generated from the new investment project located in Đức Hòa District- an area with difficult socio-economic conditions (excluding the types of income specified at Points a, b, and c, Clause 1, Article 10 of Circular No. 96/2015/TT-BTC) - is eligible for CIT incentives as follows:

• The applicable CIT rate is 17% for a period of 10 years. The preferential tax rate period is counted consecutively from the first year the company generates revenue from the new investment project entitled to tax incentives as prescribed in Clauses 4 and 6, Article 19 of Circular No. 78/2014/TT-BTC issued by the Ministry of Finance.
• The company is exempt from CIT for 2 years and is entitled to a 50% reduction of the payable tax amount for the subsequent 4 years, as provided in Article 6 of Circular No. 151/2014/TT-BTC issued by the Ministry of Finance. The tax exemption and reduction period is counted consecutively from the first year the company earns taxable income from the new investment project entitled to tax incentives. In case the company does not have taxable income during the first three years from the year it begins generating revenue from the new investment project, the tax exemption and reduction period will commence from the fourth year in which the project generates revenue, in accordance with Clause 2, Article 12 of Circular No. 96/2015/TT-BTC.

If the company generates income from a new investment project in the field of commercial and service business, it shall comply with the provisions of Clause 17, Article 1 of Decree No. 12/2015/NĐ-CP and Clause 2, Article 10 of Circular No. 96/2015/TT-BTC.

Corporate income tax incentives are only applicable to enterprises that comply with accounting, invoicing, and documentation regulations, and declare CIT on a declaration basis. The enterprise is responsible for self-determining the eligibility and level of CIT incentives, self-declaring, and finalizing taxes with the tax authority in accordance with Articles 18 and 22 of Circular No. 78/2014/TT-BTC dated June 18, 2014, issued by the Ministry of Finance.

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