On April 15, 2024, the General Department of Taxation issued Official Letter No. 1555/TCT-CS regarding tax policy.
Based on legal regulations, in principle, a new investment project is a project carried out for the first time or an independent project separate from an ongoing investment project; an expansion investment project is an investment project that develops an ongoing investment project by expanding the scale, enhancing capacity, innovating technology, reducing pollution, or improving the environment; new investment projects or expansion investment projects that enjoy corporate income tax (CIT) incentives must meet the CIT incentive conditions as prescribed. Accordingly, in the case that the Company has 04 investment projects, the determination of CIT incentives is as follows:
- If investment projects No. 2, 3, 4 are new, independent from each other and independent from project 1, and meet the conditions of the field and area for CIT incentives, then projects 2, 3, 4 will enjoy CIT incentives for new investment projects.
- If investment projects No. 2, 3, 4 are expansion investment projects in the field and area of CIT incentives, meeting one of the three criteria for expansion investment as prescribed, then projects 2, 3, 4 will enjoy CIT incentives for expansion investment. In the case of investment projects in the field of electricity production from solar energy, electricity production from wind energy, if there are specific regulations of the industry or field, the aforementioned investment projects must comply with the relevant specialized legal regulations.
