Enterprise income from implementing new investment projects producing and refining animal, poultry and aquaculture feed is eligible for corporate income tax incentives at what % tax rate?What are the procedures for implementing corporate income tax incentives?

1. Enterprise income from implementing new investment projects producing and refining animal and poultry feed is eligible for corporate income tax incentives at what % tax rate?

Preferential tax rates for enterprise income from implementing new investment projects producing and refining animal and poultry feed are specified in Clause 4, Article 19 of Circular 78/2014/TT-BTC as follows:

Preferential tax rates

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4. Preferential tax rate of 20% for a period of ten years (10 years) applies to:

a) Enterprise income from implementing new investment projects in areas with difficult socio-economic conditions specified in the Appendix issued with Decree No. 218/2013/ND-CP of the Government.

b) Enterprise income from implementing new investment projects: high-grade steel production; production of energy saving products; manufacturing machinery and equipment for agricultural, forestry, fishery and salt production; production of irrigation equipment; producing and refining animal, poultry and aquatic feed; Developing traditional industries (including building and developing traditional industries in producing handicrafts, processing agricultural and food products, and cultural products).

Enterprises implementing new investment projects in the fields and areas with tax incentives specified in this Clause from January 1, 2016 will apply the tax rate of 17%.

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Thus, according to regulations, income of enterprises from implementing new investment projects producing and refining animal, poultry and aquaculture feed is eligible for incentives. corporate income tax at a tax rate of 20% for a period of ten years (10 years).

2. From what date is the preferential tax rate applied to enterprises implementing new investment projects producing and refining animal and poultry feed?

The time to apply preferential tax rates for enterprises implementing new investment projects producing and refining animal and poultry feed is specified in Clause 6, Article 19 of Circular 78/2014/TT-BTC as follows:

Preferential tax rates

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For People’s Credit Funds, Cooperative Banks and Microfinance Institutions newly established in areas with extremely difficult socio-economic conditions specified in the Appendix issued with Decree No. 218/2013/ND-CP of the Government, after the expiration of the 10% tax rate specified in Point a, Clause 1 of this Article, they will switch to applying the 20% tax rate; From January 1, 2016, the tax rate will be applied at 17%.

Microfinance institutions specified in this Clause are organizations established and operating under the provisions of the Law on Credit Institutions.

6. The period of application of preferential tax rates specified in this Article is calculated continuously from the first year the enterprise has revenue from a new investment project that enjoys tax incentives. For high-tech enterprises and agricultural enterprises applying high technology, it is counted from the year they are recognized as high-tech enterprises or agricultural enterprises applying high technology; For high-tech application projects, it is calculated from the year the high-tech application project certificate is granted.

Thus, according to regulations, the duration of preferential tax rates for enterprises implementing new investment projects producing and refining animal and poultry feed is calculated continuously from the first year the enterprise has revenue from the new investment project that enjoys tax incentives.

Note: For high-tech enterprises and agricultural enterprises applying high technology, it is counted from the year they are recognized as high-tech enterprises or agricultural enterprises applying high technology;

For high-tech application projects, it is calculated from the year the high-tech application project certificate is granted.

3. What are the procedures for implementing corporate income tax incentives?

Pursuant to Article 22 of Circular 78/2014/TT-BTC, the procedures for implementing corporate income tax incentives are specified as follows:

– Enterprises themselves determine the conditions for tax incentives, preferential tax rates, tax exemption period, tax reduction, the amount of loss to be deducted (-) from taxable income to self-declare and self-finalize taxes with tax authorities.

– When examining and inspecting enterprises, tax authorities must check the conditions for tax incentives, the amount of corporate income tax exempted, tax reduction, and the amount Losses are deducted from taxable income according to the actual conditions that the enterprise meets.

In case the enterprise does not meet the conditions to apply preferential tax rates and tax exemption or reduction periods, the tax authority will process tax arrears and sanction tax administrative violations according to regulations.