From January 23 next year, enterprises and cooperatives implementing investment projects on environmental protection as specified in Section II, Part A and Section II, Part B of the List attached to Decree No. 04/2009/ND-CP, that meet criteria for socialized environmental protection activities will enjoy enterprise income tax rate of 10% (against the current common tax rate of 25%) for their incomes earned from these projects for their whole life span.
Under Finance Ministry Circular No. 230/2009/TT-BTC of December 8, enterprises which are newly founded under these projects in difficult or exceptionally difficult localities specified in Decree No. 124/2008/ND-CP will also be entitled to enterprise income tax exemption for four years after they start earning incomes from these projects and 50% reduction for nine subsequent years. Other environmental protection project-implementing enterprises will enjoy the same tax exemption and tax reduction for five subsequent years.
Dometically unavailable machinery, equipment and supplies imported by environmental protection entities for direct use in their scientific research and technological development will be exempt from value-added tax.
Enterprises that are conducting other production or business activities are required to account incomes from environmental protection projects separately from those from production or business activities.-