Decree 57/2021/ND-CP on corporate income tax incentives for projects producing supporting industry products

DECREE

SUPPLEMENTATION POINT G CLAUSE 2 ARTICLE 20 DECREE No. 218/2013/ND-CP (AMENDED AND SUPPLEMENTED IN DECREE NO. 12/2015/ND-CP) ON CORPORATE INCOME TAX INCENTIVES FOR PROJECTS PRODUCTION OF SUPPORT INDUSTRIAL PRODUCTS

Pursuant to the June 19, 6 Law on Government Organization; The Law amending and supplementing a number of articles of the Law on Government Organization and the Law on Organization of Local Government dated November 2015, 22;

Pursuant to the June 03, 6 Law on Corporate Income Tax; The Law amending and supplementing a number of articles of the Law on Corporate Income Tax dated June 2008, 19 and the Law amending and supplementing a number of articles of the Law on Taxation dated November 6, 2013;

Pursuant to the Law on Tax Administration dated June 13, 6;

Pursuant to the November 17, 6 Investment Law;

At the proposal of the Minister of Finance;

The Government promulgates the Decree supplementing Point g, Clause 2, Article 20 of Decree No. 218/2013/ND-CP (amended and supplemented in Decree No. 12/2015/ND-CP) on income tax incentives enterprises for projects to produce supporting industry products.

Article 1. Point g, Clause 2, Article 20 of Decree No. 218/2013/ND-CP (amended and supplemented in Clause 20, Article 1 of Decree No. 12/2015/ND-CP) on income tax incentives is added. Enterprise import for a project to produce supporting industry products is as follows:

“g) Enterprises with investment projects (new investment and expansion investment) manufacturing products on the list of supporting industrial products prioritized for development, implemented before January 01, 01, satisfying the following conditions: If the conditions of a project to produce supporting industrial products are specified in Law No. 2015/71/QH2014 and are granted a certificate of incentives for production of supporting industrial products by a competent authority, they shall be entitled to such incentives. Corporate income tax incentives are as follows:

g1) In case an enterprise has a project to produce supporting industry products but the income from this project is not yet entitled to enterprise income tax incentives, it shall be entitled to enterprise income tax incentives according to the project conditions. manufacture of supporting industry products from the tax period granted by a competent authority a certificate of incentives for production of supporting industry products.

g2) In case an enterprise has a project to produce supporting industry products and the income from this project has already enjoyed all incentives for corporate income tax under other preferential conditions (besides the preferential conditions applicable to such projects). production of supporting industry products) shall be entitled to corporate income tax incentives under the conditions that the project for the production of supporting industry products for the remaining time from the tax period is granted the Certificate of CIT by the competent authority. confirmation of incentives to produce supporting industry products.

g3) In case an enterprise has a project to produce supporting industry products and the income from this project is enjoying corporate income tax incentives under other preferential conditions (besides the preferential conditions applicable to such projects). production of supporting industry products) shall be entitled to corporate income tax incentives under the conditions that the project for the production of supporting industry products for the remaining time from the tax period is granted the Certificate of CIT by the competent authority. confirmation of incentives to produce supporting industry products.

g4) How to determine the remaining preferential period mentioned at points g2 and g3 of this point:

The remaining incentive period is determined by the corporate income tax incentive period according to the condition that the project produces supporting industry products minus the number of years of tax exemption, the number of years of tax reduction, the number of years of enjoying the preferential tax rate. Incentives have been entitled to incentives under other preferential conditions, specifically as follows:

– The remaining tax exemption period is equal to the tax exemption period according to the conditions of the project producing supporting industry products minus the tax exemption period already enjoying incentives under other preferential conditions;

- The remaining tax reduction period is equal to the tax reduction period according to the conditions of the project for the production of supporting industry products, minus the tax reduction period already enjoying incentives under other preferential conditions;

– The remaining time for application of the preferential tax rate is equal to the period of tax incentives according to the conditions of the project producing supporting industry products minus the time of tax incentives already enjoyed under other preferential conditions (if any). ).

g5) Specific examples:

Example 1: In 2010, an enterprise implements an expansion investment project in an area not on the list of areas eligible for tax incentives. In the tax year 2011, the project generated revenue and taxable income. By the end of the 2016 tax period, income from the project has not yet been eligible for corporate income tax incentives. In the tax year 2017, the project was granted a Certificate of Incentives for the production of supporting industry products. Accordingly, the project is entitled to corporate income tax incentives under the conditions that the investment project expands the production of supporting industry products as prescribed in Law No. 71/2014/QH13 and its guiding documents. effective from the 2017 tax period. The incentive period is determined as follows: exemption from corporate income tax for 04 years from the tax period 2017 to 2020, a reduction of 50% of the payable corporate income tax amount. payable in the next 09 years from the tax period of 2021.

Example 2: In 2010, an enterprise implements a new investment project in an industrial park (not in the inner districts of a special-class urban area, a grade-I city directly under the central government, and a first-class urban area). I belong to the province, these districts and urban areas do not include the districts of special-class urban centers, grade-I cities directly under the central government and grade-1 urban centers under the province newly established from the district since January 01. January 01). In the tax period 2009, the project generated revenue. In the tax year 2011, the project generates taxable income. In the 2012 tax period, the project is entitled to incentives according to the conditions of the industrial park area according to the provisions of Law No. 2015/71/QH2014 and guiding documents for the remaining time from 13 (exemption from 2015). corporate income tax for 02 years, 50% reduction of corporate income tax payable for the next 04 years for the remaining time from the 2015 tax period). Thus, enterprises are also entitled to a 50% reduction in corporate income tax payable for 3 years (from 2015 to 2017). By the end of the 2017 tax period, the project has enjoyed all incentives according to the conditions of the industrial zone.

In the 2018 tax period, the project is granted a certificate of incentives for the production of supporting industry products. Accordingly, projects are selected to enjoy corporate income tax incentives under the condition that new investment projects produce supporting industrial products for the remaining time from the 2018 tax period. shall be determined as follows: corporate income tax rate of 10% for a period of 15 years from the 2018 tax period; enterprise income tax exemption for 02 years from the 2018 tax period, a reduction of 50% of the payable enterprise income tax amount for the next 05 years.

Example 3: In 2014, an enterprise implemented a new investment project in an area with difficult socio-economic conditions. In the 2014 tax period, the project generated revenue. In the 2015 tax period, the project generates taxable income. Projects are entitled to incentives according to geographical conditions with difficult socio-economic conditions, specifically: the tax rate of 20% for a period of 10 years from the 2014 tax period (from the 2016 tax period applicable). tax rate 17%); exempt from corporate income tax for 02 years from the 2015 tax period, reduce 50% of payable tax for the next 04 years. By the end of the 2017 tax period, the project has enjoyed the following incentives: 04 years of preferential tax rate, 02 years of corporate income tax exemption, 01 year of corporate income tax reduction.

In the 2018 tax period, the project is granted a certificate of incentives for the production of supporting industry products. Accordingly, the project is entitled to corporate income tax incentives under the condition that the project produces supporting industrial products for the remaining time from the 2018 tax period. The remaining incentive period is determined as follows. the following: corporate income tax rate of 10% for a period of 11 years from the tax year 2018; exemption from corporate income tax for 02 years from the 2018 tax period, 50% reduction of payable corporate income tax for the next 08 years.”

Article 2. Implementation organization and implementation effect

1. This Decree takes effect from the date of signing for promulgation.

2. In case the compliance with the provisions of this Decree (including the case where the competent authority has carried out inspection and examination) leads to a reduction in the amount of corporate income tax and late payment interest (if any), The taxpayer has a written request to send to the tax authority directly managing to reduce the amount of corporate income tax that has been declared or has been inspected and inspected by the competent authority, and the late payment has been made. corresponding payment (if any). After adjusting the reduction, if there is an overpaid tax or late payment interest, the provisions of Article 60 of the Law on Tax Administration dated June 13, 6 and guiding documents shall apply.

3. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People's Committees of the provinces and centrally-run cities and relevant organizations and individuals are responsible for the implementation. this Decree.