MINISTRY OF FINANCE
GENERAL DEPARTMENT OF TAXATION
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 2679/TCT-CS
Re. Value-added tax and corporate income tax policies for microfinance programs and projects

Hanoi, June 24, 2024

 

To: Department of Taxation of Tien Giang Province

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A quotation from clause 1 Article 1 of the National Assembly’s Law No. 31/2013/QH13 dated June 19, 2013 on amendments to some Articles of the Law on Value-added Tax specifying goods and services not subject to tax:

“8. The following finance, banking and securities services:

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A quotation from clause 2 Article 3 of the Decree No. 12/2015/ND-CP dated February 12, 2015 on amendments to point a clause 2 Article 3 of the Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 on value-added tax:

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2. Point a Clause 2 of Article 3 is amended as follows:

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- Loan grant;

- Discounted and rediscounted transfer of negotiable instruments and other valuable papers;

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- Finance lease;

- Credit card issuance;

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A quotation from clause 3 Article 1 of the Decree No. 26/2015/ND-CP dated February 27, 2015 on amendments to point a clause 8 Article 4 of the Government’s Decree No. 219/2013/ND-CP dated December 31, 2013 of the Ministry of Finance providing guidelines on goods and services not subject to VAT:

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3. Point a clause 8 of Article 4 (amended in Article 8 of Circular No. 151/2014/TT-BTC dated October 10, 2014) is amended as follows:

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- Loan grant;

- Discounted and rediscounted transfer of negotiable instruments and other valuable papers;

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- Finance lease;

- Credit card issuance.

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A quotation from Article 9 of the Circular No. 37/2019/TT-BTC dated June 25, 2019 of the Ministry of Finance on guidelines for financial regime for microfinance programs and projects of political organizations, socio-political organizations and non-governmental organizations:

Article 9. Policies on taxes, fees and charges

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A quotation from clause 4 Article 15 of the Government’s Decree No. 218/2013/ND-CP dated December 26, 2013 elaborating and providing guidelines on implementation of the Law on Corporate Income Tax:

“Article 15. Preferential tax rate

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4. 20% tax rate (17% from January 01, 2016) shall be applied to people's credit funds and microfinance institutions.

People’s credit funds and microfinance institutions shall apply 20% CIT rate after the period over which 10% tax rate is applied expires as prescribed in Clause 1 of this Article, and apply 17% tax rate from January 01, 2016.  Microfinance institutions defined in this Clause must be established and operate in accordance with the Law on Credit Institutions.”

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“Article 4. Exempt income

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Pursuant to the aforementioned regulations and contents of the Official Dispatch No. 1426/CTTGI-TTHT dated April 05, 2024 of the Department of Taxation of Tien Giang Province:

- Regarding VAT:

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- Regarding CIT:

In case MOM Fund is a microfinance program/project, conducts production or business activities (financial activities) and annually distributes profits to Tien Giang Lottery One Member Company Limited, it is required to pay CIT as prescribed in clause 4 Article 15 of the Government’s Decree No. 218/2013/ND-CP dated December 26, 2023, except for the case specified in clause 9 Article 4 of the Decree No. 218/2013/ND-CP.

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