Official letter No. 17836/CTHN-TTHT dated April 4th, 2023 of the Department of Taxation of Ha Noi city regarding enterprise income tax (EIT) incentives for projects of expansion investment

According to opinions of the Department of Taxation of Ha Noi city, in case a company increases capital to make investment in development, expansion of production scale of a project operating an industrial park (the industrial park is not located in urban districts of special-grade cities), if this project meets one of three criteria on project of expansion investment as regulated at Clause 4 Article 10 of Circular No. 96/2015/TT-BTC , the company may choose to enjoy EIT incentives (preferential tax rate, tax exemption, tax reduction) according to the operating project for the remaining duration or apply tax exemption or tax reduction duration for additional incomes brought about by the expansion investment equaling to the tax exemption or tax reduction duration applicable to projects of new investment in the same geographical area or field eligible for incentives.

In case the company chooses to apply incentives equaling to the tax exemption or tax reduction duration applicable to projects of new investment in the same geographical area eligible for tax incentives, the additional incomes brought about by the expansion investment shall be eligible to apply the tax exemption, tax reduction incentives according to the regulations at clause 4 Article 10 of Circular No. 96/2015/TT- BTC and Article 6 of Circular No. 151/2014/TT BTC.