CIT incentives guide the development of supporting industries

The Ministry of Finance has issued Circular 21/2016 / TT-BTC guiding the value added tax and income tax incentives for enterprise production project support industrial products on the list of products Industry support development priorities promulgated Decree so111 / 2015 / ND-CP of the Government on the development of supporting industries.

Regulations on Value Added Tax (VAT), the circular stated for the taxpayer is held: Taxpayers perform quarterly VAT declaration to Revenue of industrial support products on the list industrial products support development priorities (irrespective of sales above or below 50 billion / year).

Where a taxpayer has a turnover of industrial products supported on the list of products supporting industry development priorities and revenue from production and business activities, taxpayers others also carry out quarterly VAT. Where the declaration is not done on a quarterly basis, the taxpayer can choose monthly VAT returns and notify the tax authorities under the provisions of the law on tax administration.

For individual taxpayers with income generated by industrial support products on the list of products supporting industry development priorities are implemented by year tax returns and pay VAT quarterly. Where taxpayers arising on each occasion arises revenue support industrial products on the list of products supporting industry development priorities, the implementation of tax returns and pay VAT on each occasion arises or can choose to return and pay VAT on a monthly basis.

Preferential corporate income tax

Preferential corporate income tax is applied to income from the implementation of business projects industrial production support from 01.01.2015 meets the conditions stipulated in the Law so71 / 2014 / QH13 and guiding documents, the competent authority is granted preferential certified manufacturer of industrial products support (called certificates of preference).

The order and procedures for certification and post-inspection preferential incentives for production projects supporting industrial products on the list of products supporting industry development priorities comply with the provisions of Circular so55 / 2015 / TT-BCT of the Ministry of Industry and Trade.

Preferential Certificate of industrial production support development priorities as the basis for the application of preferential corporate income tax. In terms of incentives, the start of applying preferential treatment, preferential forwarding comply with the law on corporate income tax.

In the time being entitled to preferential enterprise income tax if the business performance of many manufacturing operations, business, private business income determined projects industrial production to support development priorities to preferential enterprise income tax as prescribed.

Circular takes effect from the date of 01/4/2016. Preferential enterprise income tax provisions in this Circular applies to income tax period from 2015 now.