To: General Department of Taxation – The Ministry of Finance

Below are opinions of the Ministry of Planning and Investment in response to General Department of Taxation's Official Dispatch No. 4316/TCT-CS dated October 13^th 2020 on application of corporate income tax incentives to expansion projects of foreign investors and Official Dispatch No. 4215/TCT-PC dated October 6^th 2020 on determination of corporate income tax on income from investment beyond registered capital of the investment project:

1. The Ministry of Planning and Investment already expressed its opinions about application of corporate income tax incentives to expansion projects in Official Dispatch No. 2008/BKHDT-DTNN dated 27/3/2020, which was sent to General Department of Taxation.

2. Regulations of law on investment regarding project adjustments:

Clause 1 Article 51 of the Government’s Decree No. 108/2006/ND-CP dated 22/9/2006 elaborating some Articles of the 2005's Law on Investment: "When adjusting an investment project's objectives, scale, location, form, capital or execution schedule, the investor shall carry out procedures to adjust the investment certificate."

Clause 1 Article 40 of the 2014's Law on Investment: "When the Certificate of investment registration has to be adjusted, the investor shall follow the procedures for adjusting the Certificate of investment registration."

Clause 2 Article 41 of the 2020's Law on Investment: "The investor shall follow procedures for adjusting the investment registration certificate if the adjustment to the investment project changes any content of the investment registration certificate."

Pursuant to the aforementioned regulations, when the investment certificate/investment registration certificate needs to be adjusted, the investor shall follow procedures for adjusting the investment certificate/investment registration certificate. If the investor has not completed the procedures for adjustment of the investment project, there are not ample grounds for application of incentives to the investor.

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4. Administrative penalties for failure to complete procedures for adjustment of the investment project, failure to carry out investment activities in accordance with the investment registration application (if the investment registration certificate is not required) or the investment certificate, investment registration certificate, decision on investment policies are specified in Clause 4 and Clause 5 Article 13 of the Government’s Decree No. 50/2016/ND-CP dated 01/6/2016 on penalties for administrative violations against regulations on planning and investment. Moreover, investment laws do not specify that investors that commit administrative violations against regulations on planning and investment are not eligible for investment incentives.

For your consideration and decision.

ON BEHALF OF MINISTER
CHIEF OF OFFICE




Nguyen Van Doan