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).