*Answer by Department of Tax:
Based on the above question, Department of Tax has the following opinions:
- Pursuant to Clause 3, Article 15 of the Government's Decree No. 218/2013/NDCP of December 26th 2013 on the preferential tax rates:
The tax rate of 20% for ten years applies to:
- Income of the enterprise from the implementation of new investment projects in areas with difficult socio-economic conditions specified in the Appendix to this Decree;
Income of the enterprise from the implementation of new investment projects: production of high-grade steel; production of energy-saving products; production of machinery and equipment for agricultural, forestry, fishery and salt; production of irrigation equipment; production and refining of animal feeds, poultry and aquatic products; traditional industry development.
Enterprises implementing new investment projects in the fields and areas entitled to tax incentives specified at Points a and b of this Clause, from January 1st 2016, the tax rate of 17% shall apply.
- Pursuant to Clause 20, Article 1 of the Government's Decree No. 12/2015/ND-CP amending and supplementing Clause 2, Article 20 of Decree No. 218/2013/ND-CP:
To the end of the 2015 tax period, in cases where enterprises with investment projects are enjoying the preferential tax rate of 20% specified in Clause 3, Article 15 of this Decree, the tax rate of 17% shall apply for the remaining period of time from January 1st 2016.
Based on the above provisions, the case that calculated by the end of 2015 tax period, enterprises with investment projects are enjoying a preferential tax rate of 20% specified in Clause 3, Article 15 of Decree No. 218/2013/ND-CP as above, the tax rate of 17% shall apply for the remaining period of time from January 1st 2016.