Official letter No. 30027/CTHN-TTHT dated May 4th, 2023 of the Department of Taxation of Ha Noi city regarding enterprise income tax (EIT) incentives

According to opinions of the Department of Taxation of Ha Noi city, in case an enterprise has a project on expansion investment meeting one of the conditions regulated at clause 4 Article 10 of Circular No. 96/2015/TT-BTC , it is optional to enjoy EIT incentives for the operating project for the remaining duration (including tax rate and tax exemption or tax reduction duration (if any)) or apply tax exemption or tax reduction duration for additional incomes brought about by the expansion investment (not eligible for preferential tax rates) equaling to the tax exemption or tax reduction duration applicable to projects on new investment in the same geographical area or field eligible for EIT incentives.

However, in case the enterprise chooses EIT incentives for the operating project for the remaining duration, the project on expansion investment must belong to the fields or geographical areas eligible for EIT incentives under Decree No. 218/2013/ND-CP and must be in the same field or geographical area with the operating project.

In case the enterprise invests in upgrading, replacing, renewing technology of the operating project in a field or locality eligible for tax incentives under Decree No. 218/2013/ND-CP but it fails to satisfy one of the three criteria specified at clause 4 Article 10 of Circular No. 96/2015/TT-BTC the tax incentives shall apply to the remaining period of the operating project (if any).

Regarding EIT incentives for production, construction or transportation enterprises that employ lot of female laborers, it is required to carry out according to the regulations at clause 1, clause 2 Article 21 of Circular No. 78/2014/TT-BTC and point 2.10 clause 2 Article 4 of Circular No. 96/2015/TT-BTC .