According to the Decree, cooperatives and companies must separate the incomes from farming, breeding, and fishery from the incomes from other stages of processing or manufacture to determined the amount of tax exempted.
If such incomes cannot be separated, tax-free income depends on the ratio of the cost of the operations exempt from tax to the total operating cost in the tax period.
The calculation of other tax-free incomes are also specified in this Decree such as incomes from performance of scientific research contracts, incomes of the companies where at least 30% of workers are the disabled and rehabilitated drug addicts, etc.
This Decree takes effect on February 15, 2014 and is applicable to the tax period from 2014. Decrees No.
124/2008/NĐ-CP and
122/2011/NĐ-CP are abrogated.
4.296