News and Events

OFFICIAL LETTER NO. 634/CT-CS FROM THE TAX DEPARTMENT ON INVESTMENT INCENTIVES

On April 16, 2025, the Tax Department issued Official Letter No. 634/CT-CS regarding investment incentives. Based on Clause 3, Article 15 and Clause 3, Article 16 of Decree No. 218/2013/NĐ-CP, dated December 26, 2013, issued by the Government, which provides detailed regulations and guidance for the implementation of the Corporate Income Tax Law, and Article 4 of Circular No. 96/2015/TT-BTC, dated June 22, 2015, issued by the Ministry of Finance (which amends and supplements Article 6 of Circular No. 78/2014/TT-BTC) regarding deductible and non-deductible expenses for determining taxable income.

  1. If a company has an investment project that meets the criteria for preferential corporate income tax areas as stipulated in Decree No. 218/2013/NĐ-CP, the company is entitled to corporate income tax incentives based on the actual conditions it satisfies
  2. In cases where a company rents a factory for production and business activities, but the lessor has not met the conditions required for factory leasing, according to Article 4 of Circular No. 96/2015/TT-BTC, dated June 22, 2015, issued by the Ministry of Finance (which amends and supplements Article 6 of Circular No. 78/2014/TT-BTC), the factory rental costs or depreciation expenses of fixed assets related to the factory (if depreciation applies to the asset) do not have sufficient basis to be considered deductible expenses when determining the company’s taxable corporate income.