New regulations on enterprise income tax incentives
18:12 | 05/12/2007
VNGOP – The Ministry of Finance (MoF) has just issued Circular 134/2007/TT-BTC instructing some regulations relating to the Law on Enterprise Income Tax (EIT).

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According to the latest instructions from the MoF, all joint-stock companies which were formerly State-run businesses and were granted with the Business Registration Certificate since the date of coming into effect of Decree 24/2007/NĐ-CP (March 21, 2007) will enjoy no EIT incentives like newly-founded enterprises.

All enterprises granted with investment licenses, business registration certificates, or investment certificates before Việt Nam became an official WTO member (January 11, 2007) and enjoying EIT incentives for the revenues from their business activities (except the trade of textile and apparel) because meeting conditions on export rate will continue to be granted with these incentives until 2011.

EIT incentives are no longer applied for textile and apparel enterprises who satisfy conditions on using domestic materials or on export. However, if these entities can meet other criteria for EIT incentives, such as those to boost regional economic development and reduce unemployment, will be granted with the incentives during the remaining preferential period.

The new Circular also permits the application of a preferential tax rate of 10% for investment projects in the industries and fields included in the special investment incentive list and having great socio-economic significance.

By Phương Uyên

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