On November 15, 2012, Ministry of Finance issued Circular No. 199/2012/TT-BTC guiding the implementation of the Decree No. 122/2011/NĐ-CP dated 27/12/2011 on amending the company income tax preferences for companies being enjoyed the company income tax incentives by meeting the conditions on the export rate which are terminated by meeting the conditions on the export rate due to the implementation of WTO commitment. The detailed content is:
– Company is entitled to select to continue enjoying company income tax incentives for the remaining duration corresponding to the actual conditions of the companies meeting the investment incentives as stipulated in the legal documents on company income tax which have taken effect in the period of between the date of the companies to be licensed for establishment and before the effective date of the Government’s Decree No.24/2007/ND-CP dated February 14, 2007 detailing the implementation of company income tax law (in according to legal documents on company income tax in time of between the tax calculation period of 2006 and prior-2006 time when companies are licensed for establishment).
– Till 2012, Companies during time being applied the preferential tax rates of company income tax by meeting the conditions for incentives on the export rate which are terminated the company income tax incentives due to the implementation of WTO commitment, are entitled to change incentives on tax rates in accordance with guides in this Circular. If till 2012, Companies have no longer been applied the preferential tax rates of company income tax, they shall be not entitled to change incentives on tax rates.
– In case Companies during time being enjoyed the company income tax incentives by investment expansion but being terminated the company income tax incentives by conditions for incentives on export rate, they are allowed to select to continue being enjoyed the company income tax incentives for the remaining duration corresponding to the actual conditions of the companies meeting the investment incentives by expansion (except conditions for incentives by meeting the conditions on the export rate) at time licensed for investment expansion or at time when expansion investment project being put in business and production operation (in cases not been licensed for expansion investment).
– Companies shall notify for direct management tax agencies on their selection in plan enjoying tax incentives companies have declared to enjoy the company tax income incentives (including notified with tax agencies) but the incentive level selected for change is lower than the incentive level stipulated in this Circular or is not conformable with selections to change incentives as prescribed in this Circular, they are entitled to declare for adjustments and supplementations as prescribed in the Law on Tax administration and documents guiding on implementation of Tax administration, and they must have written notice again to tax agencies on selection of incentive level in conformity with change of incentives as prescribed in this Circular.
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