Which income items are not eligible for corporate income tax incentives? Enterprises are enjoying incentives by field, which income is eligible for corporate income tax incentives? Article This Share details of regulations surrounding corporate income tax incentives according to current law. 

CSPL: Clause 4, Article 18, Circular 78/2014/TT-BTC is amended and supplemented by Clause 2, Article 10, Circular 96/2015/TT-BTC

1. Incomes that do not apply corporate income tax incentives

– According to regulations, corporate income tax incentives and the 20% tax rate are not applied (including enterprises subject to the 20% tax rate) for the following income:

+ Income from capital transfer, transfer of capital contribution rights; income from real estate transfer (except income from investment and business in social housing specified at Point d, Clause 3, Article 19 of Circular No. 78/2014/TT-BTC); income from transfer of investment projects, transfer of rights to participate in investment projects, transfer of rights to explore and exploit minerals; income received from production and business activities outside Vietnam;

+ Income from search, exploration and exploitation of oil, gas and other rare and precious resources and income from mineral exploitation activities;

+ Income from service business is subject to special consumption tax according to the provisions of the Law on Special Consumption Tax.

2. Incomes eligible for corporate income tax incentives of enterprises currently enjoying incentives by sector

– Pursuant to Clause 4, Article 18 of Circular 78/2014/TT-BTC amended and supplemented by Clause 2, Article 10 of Circular 96/2015/TT-BTC, the conditions for applying corporate income tax incentives are specified as follows:

Conditions for applying corporate income tax incentives

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4. Enterprises with investment projects are entitled to corporate income tax incentives because they meet the conditions for investment incentive fields and investment incentive areas, with incentives determined as follows:

a) Enterprises with investment projects that are entitled to corporate income tax incentives because they meet the conditions for investment incentive fields will have income from the investment incentive field and income such as liquidation of scrap and waste products of products in the investment incentive field, exchange rate differences directly related to revenue and costs of the preferential field, interest on demand bank deposits, and directly related income. Others are also entitled to corporate income tax incentives.

– Comparing with the above regulations, incomes eligible for corporate income tax incentives of businesses currently enjoying incentives include:

+ Income from the field of investment incentives;

+ Incomes such as liquidation of scrap and waste products of products in the field of investment incentives; investment;

+ Exchange rate differences directly related to revenue and costs of the preferential field;

+ Interest on demand bank deposits;

+ Other directly related income.