Corporate income tax incentives when investing in building fishing and shipbuilding facilities in Cam Ranh

1. What are the principles for applying investment incentives?

Pursuant to Clause 2, Article 16 of Decree 118/2015/ND-CP stipulating the principles for applying investment incentives as follows:

– Investment projects specified in Point c, Clause 1 of this Article are entitled to investment incentives as prescribed for investment projects in areas with particularly difficult socio-economic conditions;

– Investment projects specified in Point d, Clause 1 of this Article are entitled to investment incentives as prescribed for investment projects in areas with difficult socio-economic conditions;

– Investment projects in sectors and occupations eligible for investment incentives implemented in areas with difficult socio-economic conditions are entitled to investment incentives as prescribed for investment projects in areas with extremely difficult socio-economic conditions;

– Investment projects that meet the conditions for different levels of investment incentives will have the highest incentive level applied;

– Corporate income tax incentives for investment projects in industrial parks and export processing zones specified in Section 55, Appendix II of this Decree comply with the provisions of law on corporate income tax;

– Land rental incentives according to the area of ​​industrial parks and export processing zones specified in Section 55, Appendix II of this Decree do not apply to investment projects in industrial parks and export processing zones in inner-city districts of special-class urban areas, class I urban areas directly under the central government and class I urban areas directly under the province.

2. Do investment incentives apply to fishing and shipbuilding establishments?

According to Clause 1, Article 16 of Decree 118/2015/ND-CP stipulating the subjects and principles for applying investment incentives as follows:

“Article 16. Subjects and principles of investment incentives

1. Subjects eligible for investment incentives as prescribed in Clause 2, Article 15 and Article 16 of the Investment Law include:

a) Investment projects in industries and occupations eligible for investment incentives or industries and occupations with special investment incentives as prescribed in Appendix I of this Decree.”

Based on the list of industries with special investment incentives in Appendix I issued with Decree 118/2015/ND-CP, the industry of building fishing shipbuilding facilities and building fishing boats is in the list of industries with special investment incentives.

Thus, investment incentives are applied to fishing shipbuilding facilities and building fishing boats. ship.

3. Investing in the construction of fishing and shipbuilding facilities in Cam Ranh, how do you enjoy investment incentives in terms of corporate income tax?

According to the list of investment incentive areas in Appendix II issued with Decree 118/2015/ND-CP, Cam Ranh, Khanh Hoa is in an area with difficult socio-economic conditions. difficult.

Accordingly, based on the provisions of Clause 7, Article 1 of the 2013 Amended Corporate Income Tax Law (supplemented by Clause 7, Article 1 of the Law amending Tax Laws 2014) stipulates: Applying a tax rate of 10% for a period of fifteen years to enterprise income from implementing new investment projects in areas with exceptionally difficult socio-economic conditions. difficulties, economic zones, high-tech zones.

And according to the preferential regulations on tax exemption and tax reduction periods in Clause 8, Article 1 of the 2013 Law on Corporate Income Tax, as amended:

– Enterprise income from implementing new investment projects specified in Clause 1, Point a, Clause 2, Article 13 of this Law and high-tech enterprises, enterprises High-tech agriculture is exempt from tax for a maximum of no more than four years and a 50% reduction in tax payable for a maximum of no more than the next nine years.

– Tax exemption and reduction period for enterprise income from implementing new investment projects specified in Clauses 1 and 2 of this Article is calculated from the first year of taxable income from the investment project, in case there is no taxable income in the first three years, from the first year of having taxable income from the investment project. For revenue from the project, the tax exemption and tax reduction period is calculated from the fourth year.

Thus, with the investment in building fishing and fishing boat building facilities in Cam Ranh, Khanh Hoa, you will enjoy investment incentives as for investment projects in areas with particularly difficult socio-economic conditions. Specifically, a corporate income tax rate of 10% will be applied for a period of 15 years, of which: tax exemption for a maximum of no more than four years and a 50% reduction of tax payable for a maximum of no more than the next nine years.