Hanoi Tax Department issued the Official Letter No. 12659/CTHN-TTHT stipulating the CIT policy when relocating the business head office with the following contents:
- Applying the tax rate of 10% for a period of 15 years to the income of an enterprise from the execution of new investment projects in the extremely disadvantaged socio-economic areas, economic zones, or hi-tech zones.
- In accordance with the law, if an enterprise fails to satisfy any of the conditions for enjoying tax incentives, it is not entitled to tax incentives in that tax year and shall pay CIT at the common rate and that year shall be counted in its incentive enjoyment period.
- Therefore, in case an enterprise is entitled to CIT incentives under the conditions of a new investment project in the extremely difficult disadvantaged socio-economic areas. In the tax year, if the enterprise moves the location of its head office to carry out the project to a place that is not located in an area with extremely difficult socio-economic conditions, that year the enterprise is not entitled to these CIT incentives.
For further information, please contact:
Minh Ngo Nhat, Managing Partner, BLawyers