New proposal on CIT incentives for supporting industrial products production


The draft proposal for supplementation of Point g Clause 2, Article 20 of Decree No. 218/2013 / ND-CP (amended and supplemented in Decree No. 12/2015 / ND-CP) is as follows:

Enterprises having new investment projects or investment projects to expand the production of supporting industrial products implemented before January 1, 2015, meeting the conditions of supporting industrial product manufacturing projects according to as defined in Law No. 71/2014 / QH13 (collectively referred to as project) and supported by a competent agency in favor of production of industrial products, they are entitled to CIT incentives for the remaining period. From the tax period this Decree takes effect (tax period 2020), specifically:

For projects that have been granted certificates of incentives to manufacture supporting industrial products by competent agencies before the effective date of this Decree but the projects have not yet enjoyed CIT incentives, the incentive period remains. It is again determined by the period of CIT incentives under the conditions of the project to manufacture supporting industrial products minus the number of years from the year of being granted the Certificate of incentives to manufacture supporting industrial products to before the year of the Decree. This decision is in effect.

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For projects that have been granted certificates of incentives for manufacturing supporting industrial products by competent agencies from the effective date of this Decree but the projects have not yet enjoyed CIT incentives, the incentive period remains. It is determined by the period of CIT incentives under the conditions of the project to manufacture supporting industrial products minus the number of years from the year this Decree takes effect to before the year the certificate of production incentives is issued. manufacturing supporting industry products.

For projects that are granted certificates of preferences for manufacturing supporting industrial products by competent agencies before the effective date of this Decree, having been or are enjoying CIT incentives under other preferential conditions. (In addition to the preferential conditions for projects to manufacture supporting industrial products), they may be selected to enjoy CIT incentives according to the conditions of projects producing supporting industrial products for the remaining period from the period. Tax This Decree takes effect.

The remaining incentive period is determined by the CIT incentive period under the terms of the supporting industrial product manufacturing project minus the CIT incentive period of this project already enjoyed under other conditions (including tax rate and time of exemption or reduction if any).

It is expected that this Decree will apply from the CIT period of 2020.

Bao Linh

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