Corporate income tax (CIT)

The normal CIT is 20%. CIT incentives shall be applied to areas and sectors where the investment is encouraged. 

Investment projects in geographical areas with extremely difficult socio-economic conditions, economic zones, hi-tech parks, in sectors with special investment encouragement such as high-tech application, infrastructure development, environment, software production, renewable energy and biotechnology development, etc. shall be entitled to the CIT rate of 10% for 15 years (During this period, the CIT shall also be exempted for up to 4 years and reduced by 50% for up to 9 subsequent years).

Investment projects in the fields of agricultural and aquacultural product processing in areas with difficult socio-economic conditions, preservation of agricultural and aquacultural products and foods, etc. shall be entitled the CIT rate of 10% for the entire project term.

In addition, the preferential CIT rates of 15% and 17% shall be applicable to projects of investment encouragement and projects in areas with difficult socio-economic conditions. They shall also be entitled to the CIT exemption for 2 to 4 years and 50% reduction in 4 subsequent years.

Carrying losses forward: Loss-suffering enterprises may carry forward their losses to the subsequent year; those losses may be included in taxed income. The time limit for carrying forward losses is five years, counting from the year following the year the losses arise.