How is CIT computed?

 

CIT = Taxable Income * Tax rate

Taxable income in a period shall be determined as follows:

TI = TT - DE + OTI

TI - Taxable income

TT - Taxable turnover

DE - Deductible expenses

OTI - Other Taxable income

Tax rate varies, but the common one applicable to FDI Enterprises is 25% [currently].

FDI Enterprises may be entitled to preferential tax rates (i.e. 50%, 20%, or 10% of comment rate) and tax holidays which would be stated in the Investment Licence if certain investment conditions are satisfied (Articles 15, 16 of Decree No. 124/2008).