This is the content prescribed at the Circular No. 212/2015/TT-BTC issued the Ministry of Finance on December 31, 2015 guiding the corporate income tax policies
for environmental protection activities regulated at the Decree No. 19/2015/ND-CP dated February, 2015 of the Government detailing a number of articles of the Law on Environmental Protection.
In particular, this Circular prescribes some corporate income tax incentives applied to the enterprise’s income from execution of new investment projects such as centralized treatment of domestic wastewater with design capacity from 2,500 m3 of wastewater/day for urban areas of grade IV or more; collection, transport and centralized treatment of common solid wastes; treatment and renovation of polluted environment in public areas; response to oil spill, chemical incidents and other environmental incidents; development of technical infrastructure for environmental protection in industrial parks and clusters of handicraft villages; cremation and electric cremation; assessment of damage to environment; assessment of environmental health and environmental assessment for the goods, machines, equipments and technologies; production and application of invention to protect the environment under the state protection in the form of Patent or Patent of useful solutions or production of gasoline, diesel and biological energy having certificates of conformity; biochar, energy from the use of wind power, sunlight, tide, geothermal energy and other forms of renewable energy…
The enterprise having income from the execution of new investment projects shall be eligible for the tax rate of 10% for 15 years. In case the investment project has large scale and high or especially new technology for attracting investment, the period for applying the concessional tax rate of 10% may be extended but total period for applying the tax rate of 10% shall not exceed 30 years as decided by the Prime Ministry at the request of the Minister of Finance. In case the enterprise meets criteria for private sector involvement in the environment field under the Decision of the Prime Minister, the concessional tax rate of 10% may be applied to its income from environmental activities throughout its operation. Concessional tax rate shall be continuously applied from the first year in which the enterprise has revenue from new investment projects. The enterprise’s income from the execution of new investment projects stipulated at Clause 1 of this Article shall be exempted from tax for 04 years and given 50% tax reduction for the next 09 years.
This Circular takes effect on February 14, 2016.