On June 4, 2021, the Government issued Decree No. 57/2021/ND-CP (“Decree 57”) amending and supplementing Decree No. 218/2013/ND-CP on Corporate Income Tax (“CIT”) for projects producing supporting industry products (“supporting industry”) implemented before January 1, 2015, and has been granted Certificate of Incentives for production of supporting industry products.
This newsletter reviews the following main points: (1) The previous regulations on CIT incentives for supporting industry; (2) Main contents of Decree No. 57; (3) Instructions for adjusting the tax payment amount. Here are the details:
1. The previous regulations on CIT incentives for supporting industry
– Law No. 71/2014/QH13 takes effect from January 1, 2015;
– Decree No. 111/2015/ND-CP on supporting industry development;
– Circular 55/2015/TT-BCT stipulating the order and procedures for the confirmation of incentives and post-audit of incentives for supporting industry projects on the list of supporting industry products prioritized for development issued by the Minister of Industry and Trade.
2. Main contents of Decree No. 57
– Determining the subjects of enterprises eligible for CIT incentives for supporting industry;
– Principles of determining CIT incentives for supporting industries in some specific cases;
– Specific examples for enterprises to refer and apply;
3. Instructions for adjusting the tax payment amount.
– Cases of adjustment: Enterprises are entitled to a reduction in the amount of CIT and late payment interest (if any);
– Method: The enterprise sends a written request to the tax authority directly managing the reduction of the payable CIT amount declared or inspected by the competent authority and the corresponding late payment interest (if any);
– After adjusting, if there is an overpaid tax or late payment interest, it will comply with the provisions of Article 60 of the Law on Tax Administration dated June 13, 2019, and guiding documents.
Decree 57 takes effect from the date of signing (June 4, 2021).
Hope the above information is helpful to The Esteemed Readers.
Bizlawyer is pleased to accompany The Esteemed Readers!