Official Letter No. 306/CCTKV.XVI-QLDN4-TNI, dated 04/21/2025, issued by the Regional Tax Department XVI regarding VAT refund for investment projects and CIT incentives

• In the case where the Company has a new investment project that is still in the investment phase and has not yet commenced operations, and the input VAT on goods and services incurred during the investment phase accumulates to VND 300 million or more and has not yet been fully credited, then, based on the provisions of the laws on investment, construction, VAT, and actual conditions, the applicable regulations shall be applied accordingly.
• If the Company applies the accounting regime, invoices, vouchers, and declares and pays corporate income tax (CIT) on a declaration basis, and at the same time meets the conditions for a new investment project as prescribed, the Company is entitled to CIT incentives based on the actual conditions it satisfies.
• In the event that, during the same period, an enterprise is eligible for multiple tax incentives for the same income, the enterprise may choose the most favorable incentive. During the period of enjoying CIT incentives, if the enterprise conducts multiple business and production activities, it must separately calculate the income from activities entitled to CIT incentives (including preferential tax rates, tax exemptions, and reductions) and the income from non-incentivized business activities in order to declare and pay tax separately.

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