(Chinhphu.vn) - Through the receiving and responding system, to recommendations of businesses, the NYK Warehouse (Vietnam) Leasing Co., Ltd. would like to request authorities to guide the determination of corporate income tax incentives for the case of implementing investment projects for leasing warehouses and factories.

The NYK Warehouse (Vietnam) Co., Ltd. has 100% foreign capital, was granted Investment Certificate by the HCMC People's Committee to implement a new investment project at Lot E6b, Road No. 22, Hiep Phuoc Industrial Park (phase 2), Hiep Phuoc Commune, Nha Be District, Ho Chi Minh City.

Scope of activities of the project is to rent warehouses and factories for services related to cars and car transport services (Sector code 6810).

The NYK Warehouse (Vietnam) Co., Ltd. would like to ask, the above mentioned investment project is eligible to enjoy corporate income tax incentives as stipulated in Clause 3, Article 6 of the Circular No. 151 / 2014 / TT-BTC?

Regarding this issue, The General Department of Taxation gives the following opinions:

In Clause 3, Article 6 of the Circular No. 151/2014 / TT-BTC dated October 10, 2014 of the Ministry of Finance stipulates:

"Article 6. Amending and supplementing Clause 3, Article 20 of the  Circular No. 78/2014 / TT-BTC as follows:

“3. The incomes from performing new investment projects prescribed in Clause 4, Article 19 of Decree No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance and income of the business from performing new investment projects in industrial parks (except for industrial parks located in socially and economically advantaged areas).

The socially and economically advantaged areas prescribed in this Clause are urban districts of special class cities or the class I cities affiliated to the central and the class I cities affiliated to provinces, not including urban districts of the aforesaid cities converted from districts from January 1, 2009; where an industrial park is located in both advantaged and disadvantaged areas, the determination of tax incentive for such industrial park depends on the actual location of the investment project.

The determination of special class cities, or class I cities prescribed in this Clause shall comply with regulations of Decree No. 42/2009/ND-CP dated May 7, 2009 of the Government on classification of cities and guiding documents of this Decree (if any)”.

Incomes are entitled and not entitled to tax incentives  

In Clause 1 and Clause 2, Article 10 of the Circular No. 96/2015 / TT-BTC dated June 22, 2015 of the Ministry of Finance (amending and supplementing a number of contents in Article 18 of the Circular No. 78/2014 / TT -BTC) regulations:

"first. Amending and supplementing Clause 3, Article 18 of the Circular No. 78/2014 / TT-BTC as follows:

“3. CIT incentives and 20% tax do not apply to the following incomes (including those of enterprises eligible for 20% tax prescribed in Clause 2 Article 11 of Circular No. 78/2014/TTBTC) as follows:

 a) Incomes from transfer of contributed capital or right to contribute capital; incomes from real estate transfer (except for incomes from investment in operation of social housing prescribed in Point d Clause 3 Article 19 of Circular No. 78/2014/TT-BTC); Incomes from transfer of project of investment or the right to participate in project of investment, transfer of the right to mineral exploration and extraction; incomes from overseas business operation.

 b) Incomes from exploration and extraction of petroleum, other rare and valuable resources, and income from mineral extraction.

c) Income from provision of services subject to special excise tax prescribed by the Law on Special excise tax.”

2. Amending and supplementing Clause 4, Article 18 of the Circular No. 78/2014 / TT-BTC as follows:

“4.  For enterprises having investment projects eligible for CIT incentives for being engaged in the fields eligible for investment incentives, Investment incentive geographical areas for preferences are as follows:

a) Enterprises with investment projects are entitled to enterprise income tax incentives because they meet conditions in the field of investment incentives, incomes from investment incentives and income such as liquidation. discarded materials and faulty products of products in the fields that be eligible for investment preferences, exchange rate differences are directly related to turnover, expenses of the preferential fields, interest rates of demand deposits, and other revenues directly relevant imports also enjoy corporate income tax incentives.

b) Enterprises with investment projects are entitled to corporate income tax incentives because they meet preferential conditions in the area (including industrial parks, economic zones, high-tech zones), so that the income is benefited. Enterprise income tax incentives are all incomes generated from production and business activities in preferential areas, except for incomes stated at Points a, b and c, Clause 1 of this Article. "

Based on the above regulation, in case the NYK Warehouse (Vietnam) Co., Ltd. is granted Investment Certificate by the People's Committee of Ho Chi Minh City on the date of January 11, 2017 to implement the new investment project in Lot E6b, Road. No. 22, Hiep Phuoc Industrial Park (phase 2), Hiep Phuoc Commune, Nha Be District, Ho Chi Minh City is not in the Industrial Park in the favorable and socio-economic areas stipulated in the Decree No. 42/2009 / ND-CP dated May 7, 2009 of the Government is entitled to corporate income tax incentives as stipulated in Item 3, Article 6 of the Circular No. 151/2014 / TT-BTC above (except for income stipulated in Clause 1, Article 10 of the Circular No. 96/2015 / TT-BTC above).

We recommend Mr. Nguyen Quoc Mong Hoang to contact the tax office that directly manages the NYK warehouse leasing Co., Ltd. (Vietnam) to be determined and guided in accordance with the law.