According to opinions of the General Department of Taxation, the policy on enterprise income tax (EIT) incentives with regard to agricultural processing is regulated from the tax period of 2015 at clause 12 Article 1 of Law No. 32/2013/QH13, clause 2 Article 1 of Decree No. 12/2015/ND-CP and Article 6 of Circular No. 96/2015/TT-BTC .
Accordingly, from the tax period of 2015, incomes of enterprises from agricultural processing in geographical areas with extremely difficult socio-economic conditions shall be exempt from EIT if the condition on ratio of value of agricultural, aquatic materials to expenses for manufacturing goods, products (cost price for manufacturing goods, products) is at least 30% is met and the goods, products from agricultural processing are not liable to excise tax.
If at the same time, an enterprise is eligible for EIT incentives as it meets the conditions on incentives in terms of agricultural and aquatic processing and is eligible for other incentives, it is carried out according to the guidelines at Official letter No. 3091/BTC-TCT dated March 8th, 2017.