Vietnam: Corporate income tax incentives, taxpayers involved in certain activities

Certain enterprises may be entitled to corporate income tax incentives

Certain enterprises may be entitled to corporate income tax incentives

Enterprises with taxable income from certain activities including education, vocational training, healthcare, culture, sports, and environment are eligible for certain corporate income tax incentives such as:

  • A corporate income tax preferential rate of 10%
  • An exemption from tax for four to five years
  • A 50% tax reduction for the next nine years

The Ministry of Finance issued Circular 71/2021/TT-BTC (17 August 2021) regarding the collection of tax when enterprises claiming these tax incentives actually fail to meet the conditions of the identified activities.

Under this guidance, these enterprises may be entitled to the corporate income tax incentives for the remaining period, measured from the time when the prescribed conditions are met.

For the period before the prescribed conditions are met, the enterprise must self-declare, file amended tax returns, and pay the under-declared tax amount (if any). Enterprises do not have to pay late-payment interest and penalties if any additional tax is paid before 2 November 2021.

Read an August 2021 report [PDF 97 KB] prepared by the KPMG member firm in Vietnam

 

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