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THE MINISTRY OF
FINANCE OF VIETNAM
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THE SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 66/VBHN-BTC
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Hanoi, December
19, 2019
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CIRCULAR 1
GUIDELINES FOR
IMPLEMENTATION OF GOVERNMENT'S DECREE NO. 218/2013/ND-CP DATED DECEMBER 26,
2013 PROVIDING GUIDELINES FOR IMPLEMENTATION OF LAW ON CORPORATE INCOME TAX
The Circular No. 78/2014/TT-BTC dated June 18, 2014
providing guidelines for implementation of the Government's Decree No.
218/2013/ND-CP dated December 26, 2013 providing guidelines for implementation
of the Law on Corporate Income Tax, which comes into force from August 02,
2014, is amended by:
1. The Circular No. 119/2014/TT-BTC dated August
25, 2014 of the Ministry of Finance on amendments to the Circular No.
156/2013/TT-BTC dated November 06, 2013, the Circular No. 111/2013/TT-BTC dated
August 15, 2013, the Circular No. 219/2013/TT-BTC dated December 31, 2013, the
Circular No. 08/2013/TT-BTC dated January 10, 2013, the Circular No.
85/2011/TT-BTC dated June 17, 2011, the Circular No. 39/2014/TT-BTC dated March
31, 2014 and the Circular No. 78/2014/TT-BTC dated June 18, 2014 of the
Ministry of Finance to simplify tax formalities, which comes into force from
September 01, 2014;
2. The Circular No. 151/2014/TT-BTC dated October
10, 2014 of the Ministry of Finance providing guidelines for implementation of
the Government's Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments
to tax decrees, which comes into force from November 15, 2014;
3. The Circular No. 96/2015/TT-BTC dated June 22,
2015 of the Ministry of Finance providing guidelines for corporate income tax
in the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 providing
guidelines for the Law on amendments to Laws on taxation and amendments to tax
degrees, and amendments to some Articles of Circular No. 78/2014/TT-BTC
dated June 18, 2014, Circular No. 119/2014/TT-BTC dated August 25,
2014, and Circular No. 151/2014/TT-BTC dated October 10, 2014 of the
Ministry of Finance, which comes into force from August 06, 2015.
4. The Joint Circular No. 12/2016/TTLT-BKHCN-BTC
dated June 28, 2016 of the Ministry of Science and Technology of Vietnam and
the Ministry of Finance of Vietnam providing guidelines for spending contents
and management of enterprises’ science and technology development funds, which
comes into force from September 01, 2016.
5. The Circular No. 130/2016/TT-BTC dated August
12, 2016 of the Ministry of Finance of Vietnam providing guidelines for the
Government’s Decree No. 100/2016/ND-CP dated July 01, 2016 elaborating and
providing guidelines for some Articles of the Law on amendments to the Law on
Value-added tax, the Law on excise tax and the Law on Tax administration, and
amendments to Circulars on taxation, which comes into force from July 01, 2016.
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Pursuant to the Law on Corporate Income Tax No.
14/2008/QH12 dated June 03, 2008; the Law on Amendments to the Law on Corporate
Income Tax No. 32/2013/QH13 dated June 19, 2013;
Pursuant to the Government's Decree No.
218/2013/ND-CP dated December 26, 2013 on guidelines for the Law on Corporate
Income Tax and the Law on amendments to the Law on Corporate Income Tax;
Pursuant to the Government's Decree No.
118/2008/ND-CP dated November 27, 2008, defining the functions, tasks, powers
and organizational structure of the Ministry of Finance of Vietnam;
At the request of the Director General of the
General Department of Taxation of Vietnam, the Minister of Finance hereby
provides guidance on corporate income tax as follows: 2
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Circular provides guidance on implementation
of the Government's Decree No. 218/2013/ND-CP dated December 26, 2013 on
guidelines for the Law on Corporate Income Tax and the Law on amendments to the
Law on Corporate Income Tax (hereinafter referred to as “Decree No.
218/2013/ND-CP”).
Article 2. Taxpayers
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a) Enterprises that are established and operated
under the Law on Enterprises, the Law on Investment, the Law on Credit
Institutions, the Law on Insurance Business, the Law on Securities, the Law on
Petroleum, the Law on Commerce, and other legislative documents in the form of:
joint-stock companies, limited liability companies, partnerships, private
enterprises, law firms, private notary offices, partners to business contracts;
partners to petroleum product contracts, petroleum joint venture enterprises,
and joint operating companies.
b) Public service units and non-public service
units that earn taxable income from manufacture and/or trade of goods and/or
service provision, regardless of fields.
c) Any organization established and operating under
the Law on Cooperatives.
d) Any enterprise established under foreign law
(hereinafter referred to as “foreign enterprise") that has a permanent
establishment in Vietnam.
A permanent establishment of a foreign enterprise
is a business establishment through which the foreign enterprise conducts part
or all of its business operations in Vietnam, including:
- Branches, offices, factories, means of transport,
mines, oil fields, or other natural resource extraction sites in Vietnam;
- Construction sites;
- Establishments where services are provided,
including consulting services via employees or other entities;
- Agents of foreign companies;
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In the cases where a double taxation agreement to
which Vietnam is a signatory defines permanent establishments otherwise, such
agreement shall apply.
a) Any organization other than those mentioned in
Points a, b, c, and d Clause 1 of this Article that earn taxable income from
manufacture and/or trade of goods and/or service provision.
2. Any foreign organization doing business in
Vietnam without following the Law on Investment, the Law on Enterprises, or
earns taxable income in Vietnam shall pay CIT in accordance with separate
instructions of the Ministry of Finance. In the cases where such an
organization transfers its stakes, CIT shall be paid in accordance with
instructions in Article 14 of Chapter IV of this Circular.
Chapter II
METHODS AND BASIS OF TAX CALCULATION
Article 3. Tax calculation method
1. 3
CIT payable in the period equals (=) assessable income minus (-) the amount
transferred to science and technology fund (if any) and multiplied by (x) CIT
rate.
CIT payable is calculated adopting the following
formula:
CIT payable
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Assessable
income
-
Contributions
to science and technology fund (if any)
) x
CIT rate
- In case where a Vietnamese enterprise makes
investment in a foreign country that has signed a Double Taxation Agreement and
transfers its income to Vietnam after paying CIT overseas, regulations of such
Agreement shall apply. If the foreign country has not signed a Double Taxation
Agreement with Vietnam and the rate of CIT incurred in the foreign country is
lower that applied in Vietnam, the difference in CIT shall be collected in
accordance with the Law on Corporate Income Tax of Vietnam.
- Every Vietnamese enterprise that makes outward
direct investment (hereinafter referred to as “Vietnamese ODI enterprise”) and
earns incomes from overseas business shall declare and pay CIT in accordance
with CIT Law of Vietnam, including those given exemption or reduction of CIT
under the Law of the host country. The rate of CIT for calculating and
declaring tax on incomes earned overseas is 22% (20% from January 01, 2016).
Preferential rates for which Vietnamese enterprises making outward investments
are eligible under current CIT Law shall not apply.
- In the cases where an income earned from an
overseas project has incurred CIT (or a similar tax) overseas, the Vietnamese
ODI enterprise may deduct the tax paid by the enterprise overseas or by the
foreign partner on its behalf (including tax on dividends) from the amount of
CIT payable in Vietnam. Nevertheless, the deduction must not exceed the amount
of CIT calculated under CIT Law of Vietnam. Reduction or exemption of CIT on
profit from an overseas project under the host country’s law may also be
deducted from the amount of CIT payable in Vietnam.
- In cases where a Vietnamese ODI enterprise
transfers its income to Vietnam without declaring and paying tax thereon, the
tax authority shall impose tax on income from overseas business under the Law
on Tax administration.
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+ A photocopy of the declaration of overseas
income tax certified by the taxpayer;
+ A photocopy of the receipt for overseas tax
payment certified by the taxpayer, or the original copy of the foreign tax
authority of tax payment, or a photocopy of an equivalent document certified by
the taxpayer.
- Income from the overseas project shall be
included in the annual CIT declaration of the year in which income in
transferred to Vietnam as prescribed by regulations of law on ODI. Income
(profit) from or loss on the overseas project must not be deducted from the
loss incurred or income (profit) earned in Vietnam by the enterprise when
calculating corporate income tax.
2. The tax year is the calendar year. If the tax
year of an enterprise is different from the calendar year, its tax year shall
apply. The first tax period of a new enterprise and the last tax period of an
enterprise that is converted, acquired, divided or dissolved must match the
accounting period pursuant to accounting law.
3. If the tax period of the first year in which the
company is established from the issuance of the Certificate of Business
Registration or certificate of investment, or the tax period of the last year
when the company is converted, acquired, divided or dissolved is shorter than 03
months, this period shall be merged with the tax period of the next year or
previous year respectively. The tax period of the first year or last year must
not exceed 15 months.
4. In the cases where an enterprise converts its
tax period (including conversion from calendar year to fiscal year and vice
versa), the converted tax period must not exceed 12 months. Where an enterprise
eligible for CIT incentives converts it tax period, it may choose between
applying CIT incentives in the year in which tax period is converted and paying
tax at the normal rate and applying CIT incentives in the next year.
Example 1: The tax period 2013 of Enterprise A is
the same as the calendar year. At the beginning of 2014, it is converted into
fiscal year which begins on April 01 of the year to March 31 of the next year.
In this case, the converted tax period (converted year 2014) begins on January
01, 2014 and ends on March 31, 2014, the tax period of the next year (fiscal
year 2014) begins on April 01, 2014 and ends on March 31, 2015.
Example 2: In the same case, but Enterprise A is
eligible for CIT incentives (tax exemption for 02 years, 50% reduction for the
next 04 years), which begin in 2012, Enterprise A will start applying CIT
incentives tax as follows: tax exemption in 2012 and 2013; 50% reduction in
2014, 2015, 2016, and 2017.
If Enterprise A chooses 50% tax reduction in the
converted year 2014, it shall keep applying 50% tax reduction for the next 03
tax years from the fiscal year 2014 (the fiscal year 2014 begins on April 01,
2014 and ends on March 31, 2015) until the end of the fiscal year 2016.
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5. In case public service providers, other
organizations that are not enterprises established and operating under the Law
of Vietnam, and enterprises paying VAT using direct method earn incomes from
goods and services subject to CIT and can determine their revenues but cannot
determine costs and incomes from business activities, they shall declare and
pay CIT at the following percentage of revenues from the sale of goods and
supply of services. To be specific:
+ For services (including interests on deposits and
loans): 5%.
Regarding education, healthcare, art performance:
2%.
+ For goods trading: 1 %.
+ For other business activities: 2%.
Example 3: Public service agency A leases out a
house. The annual house rent is VND 100 million. The leasing cost cannot be
separated from its revenue. Thus, agency A shall pay CIT as follows:
CIT payable = VND 100,000,000 x 5% = VND 5,000,000.
6. Any enterprise that has revenue, cost, and other
incomes in foreign currencies must convert them into VND at the average
exchange rate on inter-bank foreign exchange market announced by the State bank
of Vietnam at that time, unless otherwise prescribed by law. If the exchange
rate between a foreign currency and VND is not available, it shall be exchanged
with another currency that has an exchange rate with VND.
Article 4. Determination of assessable income
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Assessable income is calculated adopting the
following formula:
Assessable income
=
Taxable income
-
Tax-free income
+
Carriedforward
loss
2. 4
Taxable income
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Taxable income in a tax period is calculated as
follows:
Taxable income
=
Revenue
-
Deductible
expenses
+
Other incomes
Income from business operation equals (=)
revenue from business operation minus (-) deductible expenses incurred by such
business operation In the cases where an enterprise has multiple business
activities to which various tax rates are applied, revenue from each of them
must be calculated separately, which is multiplied by the corresponding tax
rate.
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In a tax period, if an enterprise makes a
transfer of real estate, project of investment or right to participate in an
investment project (except for mineral exploration and extraction) and suffers
from a loss, such loss shall be offset against the profit from business
operation (including other incomes prescribed in Article 7 of Circular No.
78/2014/TT-BTC). The remaining loss after offsetting shall be carriedforward to
the next years within the carryforward time limit.
The loss on a transfer of real estate, project
of investment, right to participate in a project of investment (except for
mineral exploration and extraction) in 2013 and earlier, which may still be
carriedforward, must be deducted from the income from transfer of real estate,
project of investment, right to participate in a project of investment. The
remaining loss shall be deducted from income from the business operation
(including other incomes) from 2014 onwards.
When an enterprise initiates the procedures for
dissolution after a decision on dissolution is made, if real estate which is
fixed assets of the company is transferred, the income (profit) from such
transfer (if any) shall be offset against the loss on business operation,
(including loss carriedforward from the previous years) in the tax period
during which real estate is transferred.
Article 5. Revenues
1. Revenue as the basis for calculating taxable
income (hereinafter referred to as “taxable revenue") is calculated as
follows:
The taxable revenue is the whole revenue from goods
sale, processing, service provision, including subsidies and surcharges to
which the company is entitled, whether the money has been collected or not.
a) With regard to enterprises paying tax using
credit-invoice method, the revenue is not inclusive of VAT.
Example 4: Enterprise A pays VAT using
credit-invoice method. The VAT invoice contains:
Selling price:
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Amount payable:
VND 100,000.
VND 10,000.
VND 110,000.
The taxable revenue is VND 100,000.
b) With regard to companies paying VAT directly,
the revenue is inclusive of VAT.
Example 5: Enterprise B pays VAT directly. The sale
invoice only contains the selling price of VND 110,000 (inclusive of VAT).
The taxable revenue is VND 110,000.
c) Where an enterprise provides services and
receives a lump sum payment for multiple years, the taxable revenue shall be
divided by (:) the number of years or the lump sum payment. If the enterprise’s
tax incentive period has not expired, tax equals (=) tax on total income of the
years divided by (:) the number of years.
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a) For goods sale: the time when the right to
ownership and/or right to enjoyment of goods is transferred to the buyer.
b) For service provision: the time when the
service provision is completed or part of service provision is completed,
except for the cases specified in Clause 3 Article 5 of the Circular No.
78/2014/TT-BTC, and Clause 1 Article 6 of the Circular No. 119/2014/TT-BTC.
c) For air transport: the time when the
provision of transport services is completed.
d) Other cases as regulated by law.
3. Determination of taxable revenue in some cases:
a) Revenue from selling goods/services that are
paid by installment or under a deferred payment plan is the lump sum payment,
not inclusive of any installment interest or deferral interest.
b) 6
For goods and services used for exchange (excluding the goods and services used
for sustaining production and business operation), it shall be determined
according to the selling prices of products, goods or services of the same or
similar categories on the market at the time of exchange.
Example: Enterprise A produces automotive parts
and assembles automobiles. If Enterprise A uses the tires it produces for
display, product introduction or assembling automobiles, the value of such
tires shall not be included in the assessable income.
Example: Enterprise B produces computers. The
value of computers that Enterprise B produces and provides for its employees to
work at the workplace shall not be included in assessable income.
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d) Regarding goods sold at fixed prices for
commissions under agent contracts:
- For enterprises that deliver/deposit goods to
agents (including multi-level marketing agents): total revenue from goods sale.
- For enterprises acting as agents that sell goods
at fixed prices to earn commissions: commission received under the agent
contract.
e) Revenue from asset lease is the periodic rent
under the lease contract. Where the tenant pays a lump sum for multiple years,
the taxable revenue shall be divided by (:) the number of years or equal the
lump sum payment.
Depending on the bookkeeping mode and determination
of expenses, the taxable revenue may be:
- The annual rent, which equals (=) the advanced
payment divided by (:) the number of years for which the rent is paid.
- The lump sum rent paid in advanced for multiple
years.
In the cases where an enterprise eligible for CIT
incentives determines that the taxable revenue is the lump sum rent paid in
advance for multiple years, the preferential CIT shall be based upon the CIT on
the lump sum rent divided (:) by the number of years for which the rent is paid
in advance.
g) For golf course business, revenue is the
proceeds from selling memberships, tickets and other receipts during the tax
period, which are calculated as follows:
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- For sale of prepaid tickets and memberships (for
multiple years), the revenue is the proceeds from such sale divided by (:) the
number of years, or the lump sum payment.
h) Revenue from credit extension by branches of
foreign banks and credit institutions is proceeds from deposit interest, loan
interest, finance lease during the tax period and classified as revenue in
accordance with financial regulations of such credit institutions and branches of
foreign banks.
i) Revenue from transport is the whole revenue from
transport of passenger, goods, and/or luggage earned during the tax period.
k) Revenue from supply of electricity and clean
water is the total amounts written on VAT invoices. The time for determining
taxable revenue is the day on which the electricity meter is recorded, which is
also written on the receipt.
Example 6: The receipt reflects the electricity
consumption from December 05 to January 05. Revenue on this receipt shall be
accounted for in January.
l) Taxable revenue from insurance business is the
total amount collected from provision of insurance and other services,
including surcharge and extra fees to which the insurer is entitled, exclusive
of VAT, including:
- Revenue from insurance business::
Revenue from insurance and reinsurance is the
revenue from insurance premium, reinsurance premium, ceding commission, fees
for policy management, fees for agent services including assessment of damage,
consideration of indemnity, claiming indemnity from third parties, proceeds
from liquidation of indemnified property (excluding assessment on behalf of
member enterprises that belong to the same independent insurer) minus (-)
expenses such as refunds and reductions of insurance premium, refunds and
reductions of reinsurance premium, refunds and reductions of ceding commission.
In case of joint insurance offered multiple
insurers, taxable revenue of each insurer is the insurance premium divided
according to the joint insurance ratio, exclusive of VAT.
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In case of collection services among affiliates or
between an affiliate and the headquarters of an insurer, the taxable revenue
does not include the payments collected on their behalf.
- Revenue from insurance brokerage: collected
insurance commissions minus (-) paid commissions, refunds and reductions of
insurance commissions.
m) Revenue from construction/installation is the
value of the works, work items or value of the works accepted.
- If the construction/installation contract is
inclusive of building materials, machinery and equipment, the revenue is
inclusive of the value of building materials, machinery and equipment.
- If the construction/installation contract is
exclusive of building materials, machinery and equipment, the revenue is
exclusive of the value of building materials, machinery and equipment.
n) Revenue from business cooperation:
- If the parties to a business cooperation contract
divide the revenue according to the sale of goods/services, the revenue as the
basis for calculating tax is the revenue received by each party under the
contract.
- If the parties to the business cooperation
contract divide the revenue according to products, the revenue as the basis for
calculating tax is the revenue received by each party under the contract.
- If the parties to the business cooperation
contract divide the profit before CIT is paid, the pretax revenue is the
revenue from sale of goods/services under the contract. Each of the parties to
the business cooperation contract shall appoint a representative who is
responsible for issuing invoices, recording revenues and expenses, calculating
pre-tax profit of the enterprise, which is divided among the parties to the
business cooperation contract. Each of the parties to the partnership contract
must pay their own CIT according to applicable regulations.
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o) Revenue as the basis for calculating tax from
gambling business (casino, electronic casino games, betting) is the revenue
from such business inclusive of special excise tax and exclusive of the value
of prizes awarded to winners.
p) Revenue as the basis for calculating tax from
securities business is the proceeds from brokerage services, proprietary
securities trading, underwriting, portfolio management, financial and
securities investment counseling, investment fund management, issuance of fund
certificates, market organization services, and other securities services
prescribed by law.
q) Revenue as the basis for calculating tax from
derivative financial services is the revenue from provision of derivative
financial services during the tax period.
Article 6. Deductible and non-deductible
expenses 7
1. Except the non-deductible expenses prescribed
in Clause 2 of this Article, every expense is deductible if all of these
following conditions are satisfied:
a) The actual expense incurred is related to the
enterprise’s business operation.
b) There are sufficient and valid invoices and
proof for the expense under the regulations of the law.
c) There is proof of non-cash payment for each
invoice for purchase of goods/services of VND 20 million or over (including
VAT).
The proof of non-cash payment must comply with
regulations of the Law on VAT.
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The invoices for purchases paid in cash before
the effective date of the Circular No. 78/2014/TT-BTC shall not be adjusted
under the regulations of this Point.
Example 7: In August 2014, Enterprise A bought
goods for VND 30 million according to the invoice but has not paid for them. In
the tax period in 2014, Enterprise A has included the value of such purchase in
deductible expense. In 2015, Enterprise A pays for such purchase in cash. Thus,
it must remove the value of such purchase from expense incurred in the tax
period during which cash payment is made (the tax period of 2015).
In the cases where an enterprise makes a purchase
related to its business operation that is worth at least VND 20 million and the
invoice is printed by the cash register under the regulations of the law on
invoicing, such purchase may be included in deductible expense according to the
invoice and documentary evidence of non-cash payment.
In cases where an enterprise makes a purchase
related to its business operation that is worth under VND 20 million, pays for
it by cash and the invoice is printed by the cash register under the
regulations of the law on invoicing, such purchase may be included in
deductible expenses according to the invoice and documentary evidence of cash
payment.
2. The expenses below are non-deductible expenses:
2.1. Expenses that do not meet all of the
requirements specified in Clause 1 of this Article.
If the enterprise incurs expenses related to
damage caused by a natural disaster, epidemic, blaze or another force majeure
event (hereinafter referred to as “calamity”) without compensation, such
expenses will be deductible. To be specific:
The enterprise must determine the damage caused
by the calamity in accordance with law.
The damage equals (=) total damage minus (-)
damage covered by insurance or compensated by other entities as prescribed by
law.
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- A statement of value of damaged assets/goods
made by the enterprise.
The statement of value of damaged assets/goods
must specify the value of damaged assets/goods, causes; entities responsible
for such damage; categories, quantity, value of recoverable assets/goods (if
any); statement of inventory of damaged goods certified by the enterprise's
legal representative, who signs it and takes legal responsibility for its
contents.
- An indemnity claim upheld by the insurer (if
any).
- Documents about responsibility for provision
of compensation (if any).
b) Expired goods and goods damaged because of
natural deterioration that are not compensated will be deductible expenses when
calculating taxable income.
Documents about expired goods and goods damaged
because of natural deterioration and that are included in deductible expenses
include:
- A statement of value of damaged goods prepared
by the enterprise.
The statement of value of damaged goods must
specify the value of damaged goods, causes; categories, quantity, and values of
recoverable goods (if any) enclosed with a statement of inventory of damaged
goods certified by the enterprise’s legal representative, who signs it and
takes legal responsibility for its contents.
- An indemnity claim upheld by the insurer (if
any).
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c) The aforementioned documents shall be
retained at the enterprise and presented to the tax authority on request.
2.2. Depreciation of fixed assets in any of the
following cases:
a) Depreciation of fixed assets that are not
used for business operation.
Fixed assets serving employees at the enterprise
such as recreation room, canteen, locker room, bathroom, clinic, vocational
training facility, library, kindergarten, sports facilities, furniture, and
equipment therein that are classified as fixed assets; clean water reservoir,
parking lot, employee shuttle, employees’ housing; expenditures on development
of infrastructure, purchase of machinery and equipment that are fixed assets
serving vocational education may be depreciated and included in deductible
expense.
b) Depreciation of fixed assets without
documentary evidence of ownership of the enterprise (except for fixed assets
under a lease purchase contract).
c) Depreciation of fixed assets that is not
accounted for under applicable accounting regulations.
d) Depreciation beyond the limit imposed by the
Ministry of Finance of Vietnam.
The enterprise shall submit a notification of
applied depreciation method to its supervisory tax authority before
depreciation (e.g. linear depreciation, etc.). Every year, the enterprise shall
depreciate its fixed assets according to applicable regulations of the Ministry
of Finance on management, use and depreciation of fixed assets, including quick
depreciation (if qualified).
Any enterprise who has a lucrative business may
implement quick depreciation, provided it is not greater than 2 times the
linear depreciation, in order to apply new technologies to certain fixed assets
in accordance with applicable regulations of the Ministry of Finance on
management, use and depreciation of fixed assets. When implementing quick
depreciation, profitability must be ensured.
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Deductible cost of fixed assets produced by the
enterprise itself is the total cost of manufacture such assets.
Cost of purchase of assets that are instruments,
tools, circulated packages, etc. that are not classified as fixed assets shall
be gradually included in operating cost for up to 3 years.
dd) Depreciation of fixed assets that have been
fully depreciated.
e) Other non-deductible depreciations:
- The following amounts are not deductible:
Depreciation of the portion of cost in excess of VND 1.6 billion per car for
cars for the transport of 9 persons or fewer (except for cars used for
passenger transport services, tourism, or hotel operations; cars used for
display and test drive by car dealers); depreciation of fixed assets being
civil aircraft and yachts.
An automobile for the transport of up to 9
persons used for passenger transport services, tourism, or hotel operations
means an automobile registered under the name of an enterprise which has
registered any of the following business lines according to its business
registration certificate: passenger transport services, tourism, hotel
business, and has been licensed in accordance with legislative documents on
transport, tourism or hotel business.
Civil aircraft and yachts used for other
purposes than freight transport, passenger transport, tourist transport
services are those of an enterprise whose certificate of business registration
or certificate of enterprise registration does not license provision of freight
transport, passenger transport or tourist transport services.
In the cases where an enterprise transfers or
liquidates an automobile for the transport of up to 9 persons, the remaining
value of such automobile equals (=) its cost minus (-) its accrued depreciation
according to regulations on management, use, and depreciation of fixed assets
by the time the automobile is transferred or liquidated.
Example 8: Enterprise A buys an automobile for
the transport of up to 9 persons for VND 6 billion. It liquidates the
automobile after 1 year of depreciation. The depreciation amount is VND 1
billion according to regulations on management, use, and depreciation of fixed
assets (the depreciation period is 6 years according to regulations on fixed
asset depreciation). The deductible depreciation amount according to tax
policies is VND 1.6 billion/6 years = VND 267 million. Enterprise A liquidates
the automobile for VND 5 billion.
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- In case of depreciation of constructions on
land used for both business operation and other purposes, depreciation of
constructions on the area of land not used for business operation is not
deductible.
Depreciation of constructions such as offices,
factories, and stores serving the enterprise’s business operation is deductible
according to applicable regulations of the Ministry of Finance if such
constructions satisfy the conditions below:
+ The enterprise has a land use right
certificate bearing its name (if the piece of land is owned by the enterprise)
or a contract for lease/borrowing of land with another land owner. The
representative of the enterprise is legally responsible for the accuracy of
such contract (in case of leased or borrowed land).
+ There are invoices for payment for the
constructions bearing the enterprise's name, address, and TIN enclosed with the
construction contract, note of contract finalization and construction value
statement.
+ The constructions are managed and accounted
for in accordance with applicable regulations on management of fixed assets.
- In the cases where the use of fixed assets
owned by an enterprise for its business operation is suspended for less than 09
months because of seasonal manufacture, or for less than 12 months because of
repairs, relocation, periodic maintenance, then the use of such fixed assets
for business is resumed, the enterprise may depreciate the fixed assets and
their depreciation will be deductible.
The enterprise must retain and present adequate
documents and provide explanation for suspending the use of fixed assets at the
request of tax authorities.
- Long-term land use right (LUR) shall not be
depreciated or included in deductible expenses when calculating taxable income;
limited-term LUR may be gradually included in deductible expenses if invoices
are sufficient, procedures are followed, and such piece of land is used for
business operation over the period written on the land use right certificate
(including the period over which business operation is suspended for repair or
building new constructions).
In the cases where an enterprise buys a tangible
fixed asset that is a building or architectural object associated with the
long-term LUR, the value of LUR must be calculated separately and recorded as
an intangible fixed asset; the cost of the tangible fixed asset that is the
building or architectural object equals (=) the buying price plus (+) every
expenditure on putting such tangible fixed assets into use. The value of LUR is
determined according to the price written on the real estate purchase contract,
which must accord with the market price and not be lower than the price on the
price list compiled by the People’s Committee of the province at the time of
purchase. In the cases where an enterprise buys a tangible fixed asset that is
a building associated with long-term LUR without being able to separate the
value of LUR, it shall be determined according to the prices imposed by the
People’s Committee of the province at the time of purchase.
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2.3. Expenditure beyond limits on reasonable
consumption of raw materials, fuel, energy, and goods imposed by the State.
2.4. Expenditures on purchases of goods/services
(without invoices, listed on statement of purchases No. 01/TNDN enclosed with
Circular No. 78/2014/TT-BTC) without statements enclosed with receipts for
payments to sellers/service providers in the cases below:
- Purchase of agricultural products, forestry
products, aquaculture products directly sold by growers or catchers;
- Purchase of handicraft products made of dried
jute, sedge, leaves, rattan, bamboo, straw, coconut shell, or aquaculture
by-products directly sold by craftsmen;
- Purchase of earth, stones, sand, gravel
directly sold by the excavating people;
- Purchase of scrap from collectors;
- Purchase of items, property, services sold by
non-business households and non-business individuals;
- Purchase of goods/services from business
households and business individuals (except for the cases mentioned above)
whose revenue is below the level subject to VAT (VND 100 million per year).
The statement of purchases shall be signed by
the enterprises’ legal or authorized representative, who is legally responsible
for its accuracy. The enterprise that buys goods/services may make a statement
and include them in deductible expense; Documentary evidence of non-cash
payment is not required for such expenses. If the buying prices for
goods/services on the statement are higher than market prices at the time of
purchase, the tax authority shall recalculate the deductible expenses according
to the market prices for similar goods/services.
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- In the cases where an enterprise leases an
asset from an individual, documents for determining deductible expense is the
lease contract and documentary evidence of rent payment.
- In cases where an enterprise leases an asset
from an individual and the lease contract allows the enterprise to pay tax on
such individual’s behalf, documents for determining deductible expenses include
the lease contract, documentary evidence of rent payment and documentary evidence
of tax payment on the individual’s behalf.
- In the cases where an enterprise leases an
asset from an individual and the lease contract states that the rent is
exclusive of tax (VAT, personal income tax) and allows the enterprise to pay
tax on such individual’s behalf, the enterprise may include the total amount of
rent in deductible expense, including the tax paid on such individual’s behalf.
2.6. Salaries, remunerations and bonus for
employees in one of the following cases:
a) Salaries, remunerations and other payables to
employees that have been included in operating cost in the period but are not
actually paid or do not have documentary evidence as prescribed by law.
b) Salaries and bonuses for employees that are
not specified in one of the following documents: employment contract,
collective bargaining agreement, financial regulation, reward scheme issued by
the President of the Board of Directors, General Director, or Director in
accordance with the financial regulation of the company or general company. 9
- In the cases where the employment contract
between an enterprise and a foreign employee has education expense of his/her
children in Vietnam from preschool to high school which is covered by the
enterprise as part of the salary and has satisfactory documentary evidence,
such education expense will be deductible.
- In the cases where the employment contract
between an enterprise and an employee has a payment for such employee’s housing
which is part of the salary and has sufficient documentary evidence, such
payment will be deductible.
- In case a Vietnamese enterprise signs a
contract with a foreign enterprise which states that the Vietnamese enterprise
must incur the cost of accommodation of foreign experts during their working
period in Vietnam, the house rent paid for foreign experts working in Vietnam
by the Vietnamese enterprise will be deductible.
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Released salary fund is the total salary paid in
the year until the deadline for submitting the annual tax declaration (not
including the previous year’s provision for salary fund).
The enterprise must ensure that it does not
suffer from a loss after making the provision. Otherwise, the provision must be
smaller than 17%.
If the enterprise did not use up the previous
year’s salary fund provision within 06 months from the end of the fiscal year,
it must be recorded as a decrease in the succeeding year’s expense.
Example 9: When submitting the annual tax
declaration of 2014, Enterprise A makes a provision for salary fund of VND 10
billion. On June 30, 2015, (tax period of Enterprise A is the same as calendar
year), Enterprise A has used only VND 7 billion from the salary fund. In this
case, VND 3 billion (VND 10 billion – VND 7 billion) must be deducted from the
succeeding year’s expenditure on salary payment (2015). While preparing the
annual tax declaration of 2015, Enterprise A may keep making provision for
salary fund if it wishes to do so.
d) Salaries and remunerations of the owner of a
private company, single-member limited liability company (owned by an
individual); remunerations of founders, members of the Board of members or the
Executive Board who do not directly participate in business administration.
2.7. In-kind expenditure on employees’ clothing
without invoices and documentary evidence. Monetary expenditure on employees’
clothing that exceeds VND 05 million per person per year.
In the cases where the enterprise has both monetary
and in-kind expenditures on employees’ clothing, the monetary expenditure must
not exceed VND 05 million per person per year and the in-kind expenditure must
have invoices and documentary evidence in order to be deductible.
With regard to special lines of business, such
expenditures shall comply with separate regulations of the Ministry of Finance.
2.8. Rewards for ideas and innovations without
specific regulations or without assessment by a council.
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Allowance for employees on business trips,
allowance for travelling and accommodation of employees on business trips will
be deductible if they have adequate invoices and documentary evidence. In the
cases where an enterprise pays fixed amounts for the traveling, accommodation,
and allowance of employees on business trips in accordance with its financial
regulations, such amounts will be deductible.
In the cases where an enterprise sends an
employee on a business trip (whether at home or overseas), every expense that
reaches VND 20 million or above and payment for air tickets that are made with
such employee’s banking card will be considered non-cash payments and will be
deductible if all of the requirements below are satisfied:
- There are valid invoices and documentary
evidence issued by the goods or service provider.
- The enterprise has a written business trip
order.
- The enterprise’s financial regulations allow
its employees to pay the trip expenses, air tickets with their personal banking
cards and get reimbursed by the enterprise.
In the cases where an enterprise buys an air
ticket on a website for an employee to go on a business trip serving its
business operation, the documentary evidence of deductible expense shall be the
electronic ticket, the boarding pass, and documentary evidence of non-cash
payment bearing the name of the traveling employee. If the enterprise fails to
collect the boarding pass, the documentary evidence of deductible expense shall
be the electronic ticket, the business trip order, and the documentary evidence
of non-cash payment.
2.10. The following deductible amounts that are
not spent properly or beyond the limits:
a) Additional payments for female employees that
are deductible, including:
- Expenditure on vocational training for female
employees when their current jobs are no longer suitable.
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- Expenditure on salaries and allowances (if
any) for teachers at the kindergarten managed and operated by the enterprise.
- Expenditure on provision additional health
check-ups in the year such as occupational disease, chronic disease or
gynecological examination for female employees.
- Extra allowance for female employees after
giving birth for the first or second time.
- Overtime pays for any female employee who does
not take maternity leave after giving birth because of objective reasons,
including the case of performance-based pay where the female employee earns
during the paid maternity leave to which she is entitled.
b) Extra payment for employees being ethnics,
which is deductible: tuition fee (if any) + difference in salary scale (ensure
payment of 100% of salaries of learners); allowance for housing, social
insurance, health insurance if such amounts are not covered by the State.
2.11. 10 Payment in
excess of VND 03 million per person per month for: contribution to a voluntary
pension fund, purchase of voluntary pension insurance, or purchase of life
insurance for employees; amounts in excess of the limits prescribed by
regulations of law on social insurance and health insurance used for
contributions to social security funds (social insurance, additional pension
insurance), health insurance fund, and unemployment insurance fund for
employees.
Contributions to voluntary
pension fund, social security funds, purchase of voluntary pension insurance
and purchase of life insurance for employees that are deductible must not
exceed the limits mentioned in this Point. Apart from that, their requirements
and levels must be specified in the employment contract, collective bargaining
agreement, the financial regulation of the company/general company/corporation,
or the reward scheme issued by the Chairperson of the Executive Board or the
Director.
The aforesaid voluntary payments must not be
included in expense if the enterprise fails to fulfill its obligation to buy
compulsory insurance for its employees (including outstanding compulsory
insurance premiums).
2.12. Redundancy pays for employees against
applicable regulations.
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2.14. Contributions to funds of Associations (established
within the law) beyond the limits imposed by such Associations.
2.15. Payments for electricity and water supply
under contracts between households or individuals who lease out the business
premises and the electricity and water suppliers without documentary evidence
of payment in any of the following cases:
a) The enterprise leases the business premises
and directly pays for electricity and water supply to the suppliers without
payment receipts and the lease contract.
b) The company leases the business premises and
directly pays for electricity and water supply to the landlord without a lease
contract and receipts of payment to the landlord that match the electricity and
water consumption.
2.16. Expenditure on lease of fixed assets
beyond the annual budget for prepaid rent.
Example 10: Enterprise A pays a lump sum of VND
400 million to lease fixed assets for 4 years. The rent of VND 100 million for
fixed assets shall be included in annual expense. If the annual rent exceeds
VND 100 million, the amount in excess of VND 100 million must not be included
in reasonable expense when calculating taxable income.
If the lease contract states that the tenant is
responsible for repairing the assets over the lease period, the repair cost may
be gradually included in expense over a period of up to 03 years.
Expenditures on assets other than fixed assets
(purchase of technical documents, patents, technology transfer licenses,
trademarks, business advantages, right to use trademarks, etc.) may be
gradually included in business expense over a period of up to 03 years.
In the cases where an enterprise contributes
capital in the form of business advantage or right to use trademarks, the value
of which shall not be deductible.
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2.18. Payment of interest on loan equivalent to
charter capital deficit (or invested capital in case of private companies)
according to the capital contribution schedule, even if the enterprise is
already in operation. Payment of loan interest during the investment stage
which has been included in value of assets or value of constructions invested.
If the enterprise has contributed sufficient
charter capital and, during its business operation, pays interest on a loan
taken to make investment in another enterprise, such payment will be
deductible.
Non-deductible payment of interest on loan
equivalent to charter capital deficit according to the capital contribution
schedule is determined as follows:
- If the loan is smaller or equal to the charter
capital deficit, the whole loan interest is not deductible.
- If the loan is higher than the charter capital
deficit according to capital contribution schedule:
+ If the enterprise has multiple loans,
non-deductible payment of loan interest equals (=) the ratio of charter capital
deficit to total loan (%) multiplied by (x) total interest.
+ If the enterprise has only one loan,
non-deductible payment of loan interest equals (=) charter capital deficit
multiplied by (x) loan interest rate multiplied by (x) time for eliminating
charter capital deficit.
(Loan interest must comply with regulations
in Point 2.17 of this Article)
2.19. Provisions made and used against
instructions of the Ministry of Finance on making provisions: provision for
devaluation of unsold goods, provision for loss on financial investments,
provision for bad debts, provision for warranty, and provision for vocational
risks of companies that provide valuation services or independent audit
services.
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Accrued expenses include: expenditures on
periodic major repairs of fixed assets, expenditures on fulfillment of
contractual obligations to the services for which revenue has been collected
(including payments for lease of assets and provision of services that have
been collected in advance for multiple years and included in revenue of the
year in which they are collected), and other accrued expenses.
In the cases where an enterprise has recorded
revenue as the basis for calculation of CIT without incurring all of expenses,
accrued expenses may be included in deductible expense in proportion to the
revenue recorded when calculating taxable income. When the contract is
finalized, the enterprise must calculate the exact expense according to
legitimate invoices and documentary evidence in order to increase the expense
(in case the actual expense is higher than the accrued expense) or decrease the
expense (in case the actual expense is lower than the accrued expense) in the
tax period during which the contract is finalized.
Accrued expense on periodic repairs of fixed
assets shall be included in annual expense. If actual expense is higher than
accrued expense, the difference will be deductible.
2.21. Loss on exchange difference due to
reassessment of foreign currency items at the end of the tax period, including
exchange difference due to reassessment of closing balance, including: cash,
deposits, money in transit, foreign currency receivables (except for loss on
exchange difference due to reassessment of foreign currency debts payable at
the end of the tax period).
During the investment stage of a new enterprise
which is not inaugurated when fixed assets is acquired, exchange differences
that occur when making payment for foreign currency items serving investment and
exchange differences that occur when reassessing foreign currency debts payable
at the end of the fiscal year must be separately recorded. When a fixed asset
that is a construction is put into operation, the exchange differences that
occur during the investment stage (after offsetting the increase against the
decrease) may be gradually included in financial income or financial expense
for up to 05 years from the day on which the construction is put into
operation.
During the business operation stage, including
investment in acquisition of fixed assets of an enterprise in operation,
exchange differences derived from transactions in foreign currencies of foreign
currency items shall be recorded as revenue from financial activities or
financial expense in the fiscal year.
With regard to foreign currency receivables and
foreign currency loans that occur in the period, deductible exchange difference
is the difference between exchange rate at the time of debt or loan repayment
and exchange rate at the time the debt or loan is initially recorded.
2.22. Provision of sponsorship for education
(including sponsorship for vocational education) for illegitimate recipients
according to Point (a) or without documentary evidence specified in Point (b)
below:
a) Sponsorship for education include:
sponsorship for public and private schools of national education system as
prescribed by regulations of law on education, provided such sponsorship is not
meant to contribute capital or buy shares of schools; sponsorship for infrastructure
and equipment serving teaching and learning in schools; sponsorship for regular
operations of schools; sponsorships for students of compulsory education
institutions, vocational education institutions, and higher education
institutions prescribed in the Law on Education (direct sponsorship for
students, sponsorship provided via educational institutions, organizations
permitted to raise sponsorships as prescribed by law); sponsorship for
competitions in the schools subjects participated by learners; sponsorship for
establishment of scholarship funds as prescribed by regulations of law on
education.
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2.23. Provision of sponsorship for healthcare
for illegitimate subjects according to Point (a) or without documentary
evidence specified in Point (b) below:
a) Sponsorship for healthcare include:
Sponsorship for medical facilities established under regulations of law on
healthcare, provided the sponsorship is not meant to contribute capital or buy
shares of such medical facilities; Sponsorship for medical equipment,
medicines; Sponsorships for regular operation of hospitals, medical centers;
Monetary sponsorships for patients via an organization permitted to raise
sponsorship as prescribed by law.
b) Documentary evidence of sponsorship for
healthcare includes: Certification of sponsorship bearing the signature of the
representative of the sponsoring enterprise, representative of the unit that
receives the sponsorship (or an organization permitted to raise sponsorship)
(form 04/TNDN enclosed with Circular No. 78/2014/TT-BTC); invoices/receipts for
purchase of goods (in case of in-kind sponsorship) or proof of payment (in case
of monetary sponsorship).
2.24. Provision of disaster recovery aid for
illegitimate subjects according to Point (a) or without documentary evidence
specified in Point (b) below:
a) Disaster recovery aid includes: direct
provision of monetary aid or in-kind aid serving disaster recovery for an
organization established and operating under the law, for individuals suffering
from the disaster via an organization permitted to call for aid as prescribed
by law.
b) Documentary evidence of disaster recovery aid
includes: Certification of aid bearing the signature of the representative of
the contributing enterprise, representative of the unit that suffers from the
disaster (or an organization permitted to call for aid) (form 05/TNDN enclosed
with Circular No. 78/2014/TT-BTC); invoices/receipts for purchase of goods (in
case of in-kind aid) or proof of payment (in case of monetary aid).
2.25. Provision of sponsorship for building
houses for the poor for illegitimate recipients according to Point (a) or
without documentary evidence specified in Point (b) below:
a) Legitimate recipients of sponsorships for
building houses for the poor are poor households as prescribed by the Prime
Minister. Sponsorship method: Monetary or in-kind sponsorships provided
directly or via an organization permitted to raise sponsorship as prescribed by
law.
b) Documentary evidence of such sponsorship
includes: Certification of sponsorship bearing the signature of the
representative of the sponsoring enterprise, representative of sponsorship
recipient (form 06/TNDN enclosed with Circular No. 78/2014/TT-BTC);
certification of poor household issued by the local authority (in case of
building housing for poor people); invoices/receipts for purchase of goods (in
case of in-kind sponsorship) or proof of payment (in case of monetary
sponsorship).
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2.26. Provision of sponsorship for scientific
research against the law; provision of sponsorship for beneficiaries of
incentive policies against the law; provision of sponsorship for extremely disadvantaged
areas against State programs.
Sponsorship under a State Program means a
program run by the Government in an extremely disadvantaged area (including
sponsorship for building new bridges in extremely disadvantaged residential
areas) under a project approved by a competent authority.
Provision of sponsorship shall comply with
corresponding regulations of law.
Documentary evidence of sponsorship for
extremely disadvantaged areas under State program, sponsorship for new bridges
in extremely disadvantaged residential areas under a project approved by a
competent authority, sponsorship for beneficiaries of incentive policies
includes: Certification of sponsorship bearing the signature of the
representative of the sponsoring enterprise, the sponsorship recipient (or an
organization permitted to raise sponsorship) (form no. 07/TNDN enclosed with
Circular No. 78/2014/TT-BTC); invoices/receipts for purchase of goods (in case
of in-kind sponsorship) or proof of payment (in case of monetary sponsorship).
Regulations on scientific research, procedures
and documents about sponsorship for scientific research shall comply with
regulations of the Law on Science and Technology and relevant guiding
documents.
2.27. Amount provided by an overseas company to
cover administrative expenses of its permanent establishment in Vietnam beyond
the limit calculated using the formula below:
Amount provided
by overseas company to cover administrative expenses of its permanent
establishment in Vietnam in the tax period
=
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Assessable
revenue earned by the permanent establishment in Vietnam in the tax period
x
Total
administrative expense incurred by the overseas company in the tax period
Total revenue
earned by the overseas company in the tax period, including revenues earned
by its permanent establishments in other countries
Amounts provided by the overseas company to
cover administrative expenses of its permanent establishment in Vietnam shall
be accounted for from the day on which the permanent establishment in Vietnam
is established.
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The permanent establishment in Vietnam of the
overseas company must not include administrative expenses covered by the
overseas company in its reasonable expenses if it has not followed accounting
and invoicing regulations; not paid tax according to declaration.
2.28. Expenses covered with other sources;
expenses covered by the enterprise’s science and technology fund; Purchase of
golf membership; golfing expenses.
2.29. Expenses related to hire of managers of
prize-winning electronic games, casino business in excess to 4% of the revenue
from electronic casino games/prize-winning electronic games or casino business.
2.30. Expenses that do not match the assessable
revenue, except for:
- The actual expenditures on HIV/AIDS prevention
at the workplace, including expenditure on provision of training in HIV/AIDS
prevention for employees, expenditure on raising employees’ awareness of
HIV/AIDS prevention, fees for HIV consultation, examination and testing, and
expenditure on supporting employees who are HIV sufferers.
- Expenditures on performance of duties
pertaining to security and defense education, training, activities of militia
forces, and other defense and security duties as prescribed.
- The actual expenditures on operations of the
enterprise’s internal Communist Party organizations and social-political
organizations.
- Expenditures on provision of vocational
education and training for employees, including:
+ Payments for teachers, learning materials,
equipment serving vocational education, materials for practicing, and other aid
for learners.
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- Direct expenditures on employees’ welfare:
expenditures on employees’ family occasions; expenditures on holiday allowance
or treatment support; expenditures on professional training; expenditures on
supporting employees’ families affected by natural disasters, hostilities,
accidents, illness; expenditures on rewarding employees’ children for their
educational achievements; expenditures on allowances for traveling during
holidays of the employees; payment for unemployment insurance, health
insurance, and other voluntary insurance for employees (except for life
insurance for employees and voluntary pension insurance mentioned in Point 2.11
of this Article), and other welfare expenditures. The total expenditures on
employees’ welfare incurred in the tax year must not exceed the practical
average 1 month’s salary in the tax year. 11
The practical average 1 month’s salary equals
(=) salary fund released within a year divided (:) by 12 months. In case the
enterprise has not operated for 12 months, the practical average 1 month’s
salary equals (=) salary fund released within the year divided (:) by the
number of operating months.
Released salary fund is the total salary paid in
the year until the deadline for submitting the annual tax declaration (not
including the previous year’s provision for salary fund).
- Other special expenditures of each field shall
follow instructions provided by the Ministry of Finance.
2.31. Expenditure on capital construction during
the investment stage to acquire fixed assets.
At the beginning of business operation, if the
enterprise has not earned revenue but has incurred overheads expenses to
maintain its business operation (other than expenditure on acquisition of fixed
assets), such expenses will be deductible if they satisfy all conditions.
If the enterprise repays a loan during the
investment stage, such repayment shall be included in investment value. During
the infrastructural development phase, if the enterprise both pays loan
interest and collects deposit interest, they may be offset against each
another. The value that remains will be deducted from the investment value.
2.32. Provision of sponsorship for local
governments; sponsorships for associations, social organizations; charitable
expenses (except for sponsorships for education, healthcare, disaster recovery,
construction of houses for poor people, scientific research, beneficiaries of
incentive policies, extremely disadvantaged areas under state programs
mentioned in Points 2.22, 2.23, 2.24, 2.25, 2.26 in Clause 2 of this
Article).
2.33. Expenses directly related to issuance of
shares (except for shares classified as liabilities) and dividends (except for
dividends of shares classified as liabilities), trading in treasury shares, and
other expenses directly related to increase/decrease of the enterprise’s
charter capital.
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If a lump sum is paid, the practical amount
payable in the year is based on the total amount of payment for the right to
mineral extraction distributed over the remaining years. If the amount is paid
annually, the practical payment is the payment for the right to mineral
extraction of the year paid by the enterprise to state budget.
2.35. Expenditures on insurance business,
lottery business, securities trading, and some special business activities
shall comply with corresponding documents issued by the Ministry of Finance.
2.36. Payment of fines for administrative
violations, including: traffic offenses, violations against regulations on
business registration, violations against regulations statistical accounting;
violations against regulations of law on taxation, including late payment
interest prescribed by the Law on Tax administration, and fines for other
administrative violations prescribed by law.
2.37. Input VAT that has been deducted or
refunded; input VAT on fixed assets being automobiles cars for the transport of
up to 9 persons that exceeds the deductible limit prescribed in legislative
documents on VAT; CIT other than CIT paid by the enterprise on behalf of the
foreign contractor under the main contract which stipulates that the revenue
earned by the foreign contractor and sub-contractors is exclusive of CIT;
personal income tax unless the employment contract states that the employee’s
salary is exclusive of personal income tax.
Article 7. Other incomes
Other incomes include: 12
1. Incomes from transfer of stakes or securities
specified in Chapter IV of this Circular.
2. Incomes from transfer of real estate specified
in Chapter V of this Circular.
3. Income from transfer of investment projects;
transfer of right to participate in an investment project, right to mineral
exploration and/or mineral extraction and/or mineral processing.
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The income from intellectual property right or
technology transfers equals (=) the proceeds minus (-) cost price or cost of
creation of intellectual property right or technology transferred minus (-)
cost of maintenance, upgrade and development of the intellectual property right
or technology transferred and other deductible expenses.
5. Incomes from lease of assets in any shape or
form.
The income from lease of an asset equals (=) the
proceeds from the lease minus (-) depreciation, maintenance costs, rent in case
of sublet and other deductible expenses related to the lease.
6. Income from transfer or liquidation of assets
(except real estate) and other financial instruments.
This income equals (=) the proceeds from the
transfer or liquidation minus (-) remaining value of the transferred or
liquidated asset at the time of transfer or liquidation and other deductible
expenses related to the transfer or liquidation.
7. Incomes from deposit interest or loan interest,
including late payment interest, installment interest, credit guarantee fee and
other fees specified in the loan contract.
- If the income from deposit interest or loan
interest is higher than the loan interest payable, the amount that remains
after offsetting shall be considered other incomes when calculating taxable
income.
- If the income from deposit interest or loan
interest is lower than the loan interest payable, the amount that remains after
offsetting shall be deducted from the income from primary business operation
when calculating taxable income.
8. Income from selling foreign currencies, which
equals (=) the proceeds from selling foreign currencies minus (-) buying prices
for the foreign currencies.
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In the tax year, the enterprise has exchange
differences that occur in the period and exchange differences because of
reassessment of foreign currency debts payable at the end of the fiscal year:
- The exchange differences that occur in the
period and are related to revenues and expenses of the enterprise’s main
business operation shall be included in expenses or revenues of the
enterprise’s main business operation. Regarding the exchange differences that
occur in the period and are not related to revenues and expenses of the
enterprise’s main business operation, the loss on exchange difference shall be
aggregated with financial expense, the profit from exchange difference shall be
aggregated with other incomes when calculating taxable income.
- Profit from exchange difference because of
reassessment of debts paid in foreign currencies at the end of the fiscal year
may be offset against the loss on exchange difference because of reassessment
of debts paid in foreign currencies at the end of the fiscal year. After
offsetting, profit or loss derived from exchange difference related to revenues
and expenses of the enterprise’s main business operation shall be respectively
aggregated with the revenue or expense from the enterprise’s main business
operation. The profit or loss derived from exchange difference that is not
related to revenues and expenses from the enterprise’s main business operation
shall be respectively aggregated with other incomes or financial expense when
calculating taxable income.
With regard to foreign currency receivables and
foreign currency loans that occur in the period, exchange difference included
in deductible expenses or incomes is the difference between exchange rate at
the time of debt or loan repayment and exchange rate at the time the debt or
loan is initially recorded.
The aforesaid exchange differences do not
include exchange differences because of reassessment of closing balance,
including: cash, deposit, money in transit and foreign currency receivables.
10. Collected bad debts.
11. Debts payable without identified creditors.
12. Omitted incomes from previous years’ business
operation that are discovered afterwards.
13. In the cases where an enterprise collects fines
or compensation for breach of contract or rewards for fulfillment of the
contractual commitment, if the collected amount is higher than the fines or
compensation for breach of contract which are not fines for administrative
violations defined by laws on administrative violations, the difference that
shall be aggregated with other incomes.
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Collected fines and compensation mentioned above do
not include the fines and compensation deducted from the construction value in
the investment stage.
a) Increase or decrease resulting from the
reassessment of assets is the difference between the reassessed value and the
residual book value of assets and shall be aggregated once in other incomes
(for increase) or deducted from other incomes (for decrease) in a tax period
for determining taxable incomes of the enterprise whose assets are reassessed.
b) Increase or decrease resulting from the
reassessment of LUR for: capital contribution (where the LUR transferee may
gradually aggregate this value with deductible expense), transfer upon full
division, partial division, amalgamation, merger or conversion of the
enterprise; or for capital contribution to investment projects to build houses
and infrastructure facilities for sale shall be aggregated once with other
incomes (for increase) or deducted from other incomes (for decrease) in a tax
period for determining taxable incomes of the LUR transferor.
Particularly, the increase resulting from
assessment of LUR for acquisition of fixed assets serving the enterprise’s
business operation which must not be depreciated or gradually aggregated with
deductible expense by the transferee may be gradually aggregated with other
incomes of the LUR transferor for up to 10 years from the year in which LUR is
contributed as capital. The LUR transferor shall notify the number of years
they will aggregate the increase with other incomes when making the annual CIT
declaration of the first year in which such income is declared (the year in
which the LUR to be contributed as capital are reassessed).
In the cases where after capital contribution,
the enterprise keeps transferring stakes in the form of LUR (including the case
where capital is contributed before expiration of the 10-year period), the
income from the transfer of stakes in the form of LUR shall be accounted for
and declared as income from real estate transfer, which is taxable.
The difference resulting from the reassessment
of LUR includes: the difference between the reassessed value and book value of
long-term LUR, or the difference between the reassessed value and remaining
value of limited-term LUR after aggregation with income.
c) The enterprise that receives assets
contributed as capital or assets transferred upon full division, partial
division, amalgamation, merger or conversion of an enterprise may depreciate
such assets or gradually aggregate them with expense at the reassessed price
(unless the value of limited-term LUR is ineligible for depreciation or
aggregation with expense under regulations).
15. Monetary and in-kind gifts; monetary and
in-kind incomes from sources of sponsorships; incomes from marketing aid,
subsidies, discounts, sales promotion and other aid. The value of in-kind
income is determined according to the value of a similar goods/services at the
time of receipt.
16. Amounts of money, property and other material
benefits an enterprise receives from other organizations and individuals under
agreements or contracts conformable with civil laws when the enterprise is
relocated and transfers its land area after deduction of costs such as
relocation cost (transportation and installation), remaining value of fixed
assets and other costs (if any).
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17. Accrued expense that is not paid for or not completely
paid for by the end of the period but is not recorded as a decrease in expense
by the enterprise; reversed provision for construction warranty.
18. Incomes related to the sale of goods or
provision of services that are not included in revenue such as: reward for
early launch, bonuses in the restaurant and hotel industry after deduction of
relevant costs.
19. Income from selling scrap after deduction of
collection and sales expenses, which are determined as follows:
- In the cases where an enterprise earns income
from selling scrap in the process of manufacture of the products eligible for
CIT incentives, such income is also eligible for CIT incomes.
- In the cases where an enterprise earns income
from selling scrap in the process of manufacture of the products that are not
eligible for CIT incentives, such income shall be aggregated with other
incomes.
20. Refunds of export or import duties on goods
that have been exported or imported in reality in the current year shall be
recorded as decrease in expense of the year. Refunds of export or import duties
on goods that have been exported or imported in reality in the previous year
shall be aggregated with other income of the year in which such income is
earned.. If the income is directly related to a business line eligible for CIT
incentives, it is also eligible for CIT incentives. If the income is not
directly related to a business line eligible for CIT incentives, it shall be
aggregated with other incomes.
21. Incomes from contribution of share capital,
domestic business cooperation distributed before CIT is paid.
22. 15
In the cases where an enterprise admits a new capital contributor whose
contributed capital is higher than the value of capital he/she is obliged to
contribute:
If such positive difference is owned by the
enterprise and used to supplement the enterprise’s capital, it will not be
deductible.
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23. Other incomes defined by law.
Article 8. Tax-free incomes
1. 16
Incomes from farming, husbandry, aquaculture and salt production of
cooperatives; incomes of cooperatives engaged in agriculture, forestry,
fisheries and salt production in disadvantaged areas or extremely disadvantaged
areas; incomes of enterprises from farming, husbandry and aquaculture in
extremely disadvantaged areas; incomes from fishing activities.
a) Incomes from farming (including also products
from planted forests), husbandry, aquaculture, processing of agriculture and
aquaculture products of cooperatives and enterprises that are given tax
incentives (including preferential tax rates, tax exemption and reduction)
prescribed in this Circular are incomes from products that are result of their
farming, husbandry, aquaculture, and processing of agriculture and aquaculture
products (including those purchased for further processing).
Incomes from processed products derived from
agriculture and aquaculture products must satisfy all of the following
conditions in order to be given tax incentives (including preferential tax
rates, tax exemption and reduction):
- The ratio of value of raw materials to
production cost is at least 30%.
- Processed products are not subject to special
excise tax, except for the cases decided by the Prime Minister at the request
of the Ministry of Finance.
The enterprise must separate incomes from
processed agriculture and aquaculture products in order to be eligible for CIT
incentives.
Tax-free incomes mentioned in this Clause
include incomes from liquidation of farming, husbandry, aquaculture products
(except for liquidation of rubber plantations), incomes from sale of refuses
related to the agriculture, aquaculture products and processed products
thereof.
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2. Incomes from provision of technical services
directly serving agriculture, including: irrigation, land ploughing and
harrowing, dredging, pest control, harvesting services.
3. 17
Incomes from the execution of a scientific research and technological
development contract are eligible for tax exemption until expiration of such
contract but not more than 3 years from the day on which the revenue is earned
from execution of such contract;
Incomes from the sale of products that are
results of new technologies applied in Vietnam for the first time are eligible
for tax exemption for up to 05 years from the day on which the revenue from
sale of products is earned;
Incomes from the sale of experimental products
during the experimental production period apply relevant laws.
a) Incomes from execution of a scientific
research and technological development contract must satisfy the following
requirements to be eligible for tax exemption:
- A certificate of scientific research activity
is obtained;
- Such scientific research and technological
development contract is certified by competent science authority.
b) Incomes from the sale of products that are
results of new technologies applied in Vietnam for the first time are eligible
for tax exemption if the application of such new technologies is certified by a
competent science authority.
4. Incomes from manufacture and/or trade of goods
and/or service provision of an enterprise whose employees that are disabled
people, rehabilitated drug abusers, HIV patients make up at least 30% of its
annual average number of employees.
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An enterprise eligible for tax exemption specified
in this Clause means a enterprise whose average number of employees in the year
is at least 20, excluding finance and real estate enterprises.
An enterprise earning tax-free incomes specified in
this Clause must satisfy all of the following requirements:
a) If the enterprise employs disabled people, it
must obtain a certification of number of disabled employees by a competent
health authority.
b) If the enterprise employs rehabilitated drug
abusers, it must obtain certificates of completion of rehabilitation issued by
rehabilitation centers or relevant competent authorities.
c) If the enterprise employs HIV patients, it must
obtain a certification of number of HIV-positive employees by a competent
health authority.
5. Incomes from provision of vocational training
for ethnics, disabled people, disadvantaged children, ex-offenders,
rehabilitated drug abusers or HIV patients. If the vocational
training institution also accepts other types of learners, the tax-free income
shall be determined according to the ratio of the number of learners that are
ethnics, disabled people, disadvantaged children, ex-offenders, rehabilitated
drug abusers or HIV patients to the total number of learners.
Tax-free income from vocational training must
satisfy all of the following requirements:
- The vocational training institution is
established and operating under regulations of law on vocational training.
- There is a list of learners that are ethnics,
disabled people, disadvantaged children, ex-offenders, rehabilitated drug
abusers or HIV patients.
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Example 11: Enterprise B receives capital
contribution from Enterprise A. Pretax income of Enterprise A from capital
contribution to Enterprise B is VND 100 million.
- If Enterprise B is not eligible for CIT
incentives and has fully paid CIT, including that on the income receivable by
Enterprise A, the income received by Enterprise A from capital contribution is
VND 78 million [(100 million – (100 million x 22%)] and Enterprise A is
eligible for exemption of CIT on such income of VND 78 million.
- If Enterprise B is eligible for 50% reduction of
CIT payable and has fully paid CIT, including that on the income receivable by
Enterprise A, the income received by Enterprise A from capital contribution is
VND 89 million [(100 million – (100 million x 22% x 50%)] and Enterprise A is
eligible for exemption of CIT on such income of VND 89 million.
- If Enterprise B is eligible for CIT exemption,
the income received by Enterprise A from capital contribution is VND 100
million and Enterprise A is eligible for exemption of CIT on such income of VND
100 million.
7. Sponsorships for education, scientific research,
culture, art, charity and other social activities in Vietnam.
If the organization receiving the sponsorship uses
it improperly, it shall pay CIT on the amount used improperly in the tax period
in which the sponsorship is used improperly.
The organization receiving sponsorship must be
established and operating under the law and comply with regulations of law on
statistical accounting.
8. Income from first–time transfer of Certified
Emissions Reductions (CERs); CIT shall be levied upon subsequent transfers of
CERs.
To be eligible for tax exemption, the sale or
transfer of CERs must be certified by a competent environment authority.
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Taxes on incomes other than those from
performance of tasks assigned by the State must be declared and paid as
prescribed.
10. Undistributed income:
a) Undistributed income of private establishments
investing in education, healthcare and other fields in which private sector
investment is encouraged (including judicial expertise offices) retained for
investment in their development prescribed by regulations of law on education,
healthcare and other fields in which private sector involvement is encouraged (hereinafter
referred to as “public sector”). Tax-free undistributed income of the
establishments mentioned in this Clause (hereinafter referred to as “private
investors”) does not include that retained for investment in other fields or
business lines other than public sector.
Private investors include:
- Non-public establishments whose investment in the
public sector is legitimate as prescribed by competent authorities.
- Enterprises established to invest in the public
sector and whose operation is legitimate as prescribed by competent
authorities.
- Public service agencies contributing capital,
raising capital or engaging in business cooperation in establishing independent
units or enterprises operating in the public sector under decisions of
competent authorities.
Private investors must satisfy the criteria and
standards established by the Prime Minister.
b) Undistributed income of a cooperative for
acquisition of its assets.
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11. Income from technology transfers in the favored
fields to an organization or individual in an extremely disadvantaged area.
Procedures for technology transfers are specified
in the Law on Technology Transfer and the Government's Decree No.
133/2008/ND-CP dated December 31, 2008, and legislative documents providing
guidelines for implementation of the Law on Technology Transfer.
Favored fields are those on the list promulgated
together with Decree No. 133/2008/ND-CP and its amendments (if any).
12. 19
Incomes of bailiff offices (except for incomes from activities other than
bailiff’s activities) during the experimental period shall comply with
regulations of law on enforcement of civil judgments.
Bailiff offices and bailiff activities are
specified in relevant legislative documents.
Article 9. Loss determination and loss
carryforward
1. Loss incurred in a tax period means a negative difference
in assessable income, excluding loss carriedforward from previous years.
2. When an enterprise makes a loss according to the
annual tax declaration, the loss shall be fully and continuously offset against
the succeeding years' income. The carryforward period shall not exceed 5 years.
The enterprise shall temporary offset the loss
against quarterly incomes after the quarterly statement is prepared and
officially offset the loss against income when the annual tax declaration is
prepared.
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Example 13: In 2013, Enterprise B made a loss of
VND 20 billion. In 2014, Enterprise B earned an income of VND 15 billion:
+ Enterprise B must offset the loss of VND 15
billion against the income earned in 2014;
+ The remaining loss of VND 5 billion shall be
continuously offset against incomes earned in the subsequent years for up to 5
years.
- The loss made by an enterprise in one quarter may
be offset against income earned in the next quarter of the same fiscal year.
When preparing the annual CIT declaration, the enterprise shall determine the
loss made in the year and fully and continuously offset it against taxable
income earned in the subsequent years.
- Enterprises shall determine the amount of loss
offset against income themselves. If a new loss is made before the old loss is
completely carriedforward, the new loss shall be fully continuously
carriedforward for up to 5 years from the year succeeding the year in which the
new loss is made.
If the loss determined by an inspecting authority
does not match that determined by the enterprise, the loss determined by the
inspecting authority shall be applied and shall be fully and continuously
carriedforward for up to 5 subsequent years.
The loss that remains after expiration of the
5-year period must not be offset against incomes earned in the subsequent
years.
3. 20
Any enterprise that undergoes conversion, merger, amalgamation, partial
division, full division, dissolution, or bankruptcy must submit a terminal tax
declaration to the tax authority up to the date of issuance of the decision on
conversion, merger, amalgamation, partial division, full division, dissolution,
or bankruptcy by a competent authority (except for the cases in which terminal
tax declaration is not required). The loss made by the old enterprise before
conversion, merger, amalgamation, partial division, full division, dissolution,
or bankruptcy must be sorted by year and offset against income earned in the
same year by the enterprise after conversion, merger, amalgamation, partial
division, full division, dissolution, or bankruptcy, or be offset against
incomes in the next years of the enterprise after conversion, merger,
amalgamation, partial division, full division, dissolution, or bankruptcy,
provided loss is not carried forward for more than 05 consecutive years from
the year succeeding the year in which loss is made.
The loss that is made by the enterprise before
partial division or full division and can be carried forward shall be divided
among the enterprises after the division process is complete according to the
distribution ratio of charter capital.
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Article 11. CIT rates
1. From January 01, 2014, CIT rate is 22%, except
for the cases specified in Clause 2 and Clause 3 of this Article and the cases
in which preferential rates are applied.
Example: The fiscal year of an enterprise begins on
April 14, 2013 and ends on March 31, 2014. The enterprise is applying ordinary
CIT rates and is not eligible for preferential rates. When preparing the annual
CIT declaration, the amount of CIT payable by the enterprise shall be
calculated as follows:
CIT payable
=
Taxable income
earned in the tax period
x 9 months x 25% +
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x 3 months x 22% +
12 months
12 months
From January 01, 2016, the CIT rate of 20% shall
apply to enterprises that are applying the CIT rate of 22%.
2. An enterprise that is established within
Vietnam’s law (including cooperatives and public service agencies) whose
revenue from manufacture and/or trade of goods and/or service provision does
not exceed VND 20 billion shall apply the CIT rate of 20%.
The total revenue as the basis for determination of
eligibility for 20% CIT rate specified in this Clause is the total revenue from
selling goods/services of the preceding year according to [01] and [08] on
Appendix 03-1A/TNDN enclosed with Form No. 03/TNDN promulgated together with
Circular No. 156/2013/TT-BTC dated November 06, 2013 of the Ministry of
Finance.
Example 14: Company A’s fiscal year begins on April
01 of a year and ends on March 31 of the next year. If its revenue from selling
goods/services [01] and financial income [08] on Appendix 03-1A/TNDN enclosed
with Form 03/TNDN of the fiscal year 2013 (from April 01, 2013 to March 31,
2014 inclusive) does not exceed VND 20 billion, it is eligible for 20% CIT in
the fiscal year 2014 (from April 01, 2014 to March 31, 2015 inclusive). If the
total revenue earned in 2014 exceeds VND 20 billion, it shall apply 22% CIT in
the fiscal year 2015 (from April 01, 2015 to March 31, 2016 inclusive).
If the preceding year is shorter than 12 months,
the total revenue as the basis for determination of eligibility for 20% CIT is
the total revenue from selling goods/services of the preceding year according
to [01] and [08] on Appendix 03-1A/TNDN divided by (:) the number of months in
the year. If the average monthly revenue does not exceed VND 1.67 billion, the
enterprise will be eligible for 20% CIT in the succeeding year.
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Regarding a new enterprise that has been operating
for a period of less than 12 months, it shall provisionally declare CIT at the
rate of 22% (except for those eligible for tax incentives). At the end of the
fiscal year, if its average monthly revenue does not exceed VND 1.67 billion.
It shall apply 20% CIT (except for the incomes specified in Clause 3 Article 18
of this Circular). The total revenue is determined according to [01] and [08]
on Appendix 03-1A/TNDN enclosed with Form 03/TNDN promulgated together with
Circular No. 156/2013/TT-BTC dated November 06, 2013 of the Ministry of
Finance. If the average monthly revenue in the first year does not exceed VND
1.67 billion, the enterprise may apply 20% CIT in the succeeding year.
3. The rate of CIT on petroleum exploration and
extraction in Vietnam is from 32% to 50%. The enterprise having a project for
petroleum exploration and extraction shall submit the project dossier to the
Ministry of Finance for submission to the Prime Minister. The Prime Minister
shall decide the CIT rate on a case-by-case basis.
The rate of CIT on exploration and extraction of
valuable resources (platinum, gold, silver, tin, tungsten, gemstones, and rare
earth other than petroleum) is 50%. 40% CIT shall apply to valuable resources
mines whose area in an extremely disadvantaged area which is eligible for CIT
incentives according to Decree No. 218/2013/ND-CP.
Chapter III
TAX-COLLECTING AUTHORITIES
Article 12. Principles for determination of
tax-collecting authorities
An enterprise shall pay tax at the tax authority in
the same province as its headquarters. In the cases where an enterprise has a
factory in a province other than that where its headquarters is located, tax
shall be paid in both provinces..
The distribution of tax specified in this Clause
does not apply to enterprises having works, work items or construction
establishments that do not keep independent accounting records.
Article 13. Determination of CIT payable
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Ratio of expense
of the factory to the total expense of the enterprise
=
Total expense of
the factory
Total expense of
the enterprise
The preceding year’s annual CIT declaration of the
enterprise shall be the basis for calculation of this ratio.
In the cases where an enterprise has factories in
various provinces, the annual CIT declaration of 2008 shall be the basis for
calculation of the ratio of expense of the headquarters to expense of the
factories. This ratio shall remain unchanged from 2009 onwards.
Regarding a new enterprise, an operating enterprise
that establishes new or shuts down its factories in various provinces, it shall
determine the expense ratio of the first tax period in which such change is
made. From the succeeding tax period, the expense ratio shall remain unchanged.
Financially dependent units of enterprises earning
incomes from activities other than their primary business lines shall pay tax
in the provinces where such activities are done.
Chapter IV
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Article 14. Incomes from stake transfer
1. Scope:
Income from stake transfer of an enterprise means
income from full or partial transfer of the enterprise’s investment in one or
more than one entities (including selling of enterprises). Time for
determination of income from take transfer is the time for transfer of the
stake ownership.
In cases where an enterprise sells an entire
single-member limited liability company under the ownership of an organization
by transferring stakes and real estate, it shall declare and pay CIT on real
estate transfer and complete the CIT declaration form (Form 08) enclosed
herewith.
In the cases where an enterprise transfers its
stakes in exchange for assets or other material benefits (shares, fund
certificates, etc.) and generates income, it shall pay CIT. The values of
assets, shares, fund certificates, etc. shall be determined according to their
market prices at the time of transfer.
2. Basis for tax calculation:
a) Assessable income from stake transfer is
calculated as follows:
Assessable income
=
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-
Buying price for
the stake transferred
-
Transfer cost
Where:
- The transfer price is the total value earned by
the transferor under the transfer contract.
If the transfer contract permits payment by
installments or deferred payment, the revenue from the transfer contract does
not include interest.
If the transfer contract does not specify the
transfer price or the tax authority finds that the transfer price is not
reasonable, the tax authority is entitled to carry out an inspection and impose
the transfer price. If the price for transfer of an enterprise’s stake is not
reasonable, the tax authority is entitled to reassess the value of the entire
enterprise at the time of transfer to determine the transfer price for the
stake transferred.
The transfer price shall imposed on the basis of
investigation documents of the tax authority, other transfer prices at that
same time, in the same business organization or under similar transfer contract
at the time of transfer. If the transfer price imposed by the tax authority is
not appropriate, the price determined by a professional valuation organization
shall apply.
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The purchasing price of the stake shall be determined on a case-by-case basis
as follows:
+ In case of transfer of a stake in
establishment of an enterprise, it is the accumulated value of the stake up to
the date of stake transfer according to accounting records and is certified by
investors or participants in the business cooperation contract, or according to
audit results provided by an independent audit company if the enterprise is a
wholly foreign-owned enterprise.
+ In case of stake redemption, it is the value
of the stake at the time of redemption. The purchasing price is based on the
stake redemption contract and payment receipts.
If the enterprise is able to do accounting in
foreign currencies and complies with regulations of law on accounting of stake
transfer in foreign currencies, the transfer price and purchasing price of the
stake shall be expressed in a foreign currency. In the cases where an
enterprise that does accounting in VND transfers a stake in a foreign currency,
the transfer price must be converted into VND according to the buying rate
announced by the commercial bank where the enterprise’s account it opened at
the time of transfer.
- Transfer cost means expenses directly related to
the transfer and supported by legitimate invoices and documentary evidence. If
the transfer cost is incurred overseas, original documents must be certified by
a notary’s office or independent audit organization of the countries where the
cost is incurred and be translated into Vietnamese (the translation must be
certified by an authorized representative).
Transfer cost consists of: cost of necessary legal
procedures for the transfer; fees and charges payable while following transfer
procedures; expenditures on transaction, negotiation, contract conclusion and
other expenditures supported by documentary evidence.
Example 16: Enterprise A contributes VND 400
billion, which consists of VND 320 billion in factory value and VND 80 billion
in cash, to establish a partnership that produces toilet paper. Then enterprise
A transfers the stake to Enterprise B for VND 550 billion. Enterprise A’s stake
according to accounting records at the time of transfer is VND 400 billion and
the transfer cost is VND 70 billion. Assessable income from the stake transfer
is VND 80 billion (550 - 400 - 70).
b) An enterprise’s income from stake transfer shall
be classified as other incomes and aggregated with taxable income.
c) In the cases where a foreign organization doing
business in Vietnam or earning income in Vietnam without following the Law on
Investment and the Law on Enterprises (hereinafter referred to as “foreign
contractors") transfers a stake:
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Tax shall be declared and paid in accordance with
legislative documents on tax administration.
Article 15. Incomes from securities transfer
1. Scope:
An enterprise’s income from securities transfer
means income from transfer of shares, bonds, fund certificates and other
securities.
In the cases where an enterprise issues additional
shares to raise capital, the difference between the issuance price and face
value shall not be aggregated with taxable income.
In the cases where an enterprise undergoes full
division, partial division, amalgamation or merger and swap shares at the time
of full division, partial division, amalgamation or merger, income earned
therefrom (if any) is subject to CIT.
In the cases where an enterprise transfers
securities in exchange for assets or other material benefits (shares, fund
certificates, etc.) and generates income, it shall pay CIT. The values of
assets, shares, fund certificates, etc. shall be determined according to their
selling prices at the time of transfer.
2. Basis for tax calculation:
Assessable income from securities transfer in the
period equals (=) the selling price for securities minus (-) buying price for
securities minus (-) transfer cost.
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+ For listed securities and securities of unlisted
public companies registered at securities trading centers, the selling price is
the selling price in reality (matched price or agreed price) announced by the
Stock Exchange and the securities trading center.
+ For securities of companies other than those
mentioned above, the selling price is the transfer price written on the
transfer contract.
- The buying price for securities is determined as
follows:
+ For listed securities and securities of unlisted
public companies registered at securities trading centers, the buying price is
the buying price in reality (matched or agreed price) announced by the Stock
Exchange and the securities trading center.
+ For securities purchased at auction, the buying
price is the succeeding bid written on the announcement of successful bidder
issued by the auctioneering organization and the payment order.
+ For securities other than those mentioned above,
the buying price is the transfer price written on the transfer contract.
- Transfer cost means expenses directly related to
the transfer and supported by legitimate invoices and documentary evidence.
Transfer cost consists of: cost of necessary legal
procedures for the transfer; fees and charges payable while following transfer
procedures; securities depository fee imposed by the State Securities
Commission and receipt vouchers of the securities company; authorization fee
according to receipt vouchers of the authorized unit; expenditures on
transaction, negotiation, contract conclusion and other expenditures supported
by documentary evidence.
An enterprise’s income from securities transfer
shall be classified as other incomes and aggregated with taxable income.
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INCOMES FROM REAL ESTATE TRANSFER
Article 16. Taxpayers
1. Enterprises in any economic sectors and fields
that earn incomes from real estate transfer, real estate enterprises earning
incomes from sublease of land shall pay tax on such incomes.
2. Incomes from real estate transfer include:
incomes from transfer of LUR, land leasehold (including transfer of project in
association with transfer of LUR or land leasehold defined by law); Incomes
form sublease of land by real estate enterprises defined by land laws,
regardless of availability of infrastructure and construction works on land;
incomes from transfer of houses and construction works on land, including
property connected thereto if the property value is separated in transfer,
regardless of transfer of LUR or land leasehold; incomes from transfer of
property on land; incomes from transfer of the right to ownership or enjoyment
of houses.
Incomes from sublease of land by real estate
enterprises do not include incomes of enterprises that only lease out houses,
infrastructure or construction works on land.
Article 17. Basis for tax calculation
The basis for calculating CIT on income from real
estate transfer is the assessable income and CIT rate.
Assessable income equals (=) taxable income minus
(-) previous years’ loss on real estate transfer (if any).
1. Taxable income.
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a) Revenue from real estate transfer.
a.1) Revenue from real estate transfer is
determined according to the transfer price in reality under the real estate
transfer contract, including surcharges and extra fees (if any).
In the cases where the price for transfer of LUR
under the real estate transfer contract is lower than that imposed by the
People’s Committee of the province at the time of contract conclusion, the
latter shall apply.
- The revenue as the basis for calculating CIT
shall be determined when the real estate is delivered by the seller to the
buyer, whether or not the buyer has registered the ownership of such real
estate with a competent authority.
- In the cases where an enterprise executes a
construction project for sale or for lease and collect advances from customers
in any shape or form, the revenue as the basis for calculating CIT shall be
determined when such advances are collected from customers. To be specific:
+ If the enterprise collects money from its
customers and is able to determine the expense and revenue (including accrued
expense of unfinished items), CIT shall be declared and paid according to the
difference between revenue and expense.
+ If the enterprise collects money from its
customers but is not able to determine the expense, it shall pay provisional
CIT at 1% on the revenue and such revenue is yet to be aggregated with taxable
revenue in the year.
Upon delivery of real estate, the enterprise shall
prepare a CIT declaration which specifies the amount of CIT payable. If the
paid CIT is lower than the CIT payable, the enterprise shall fully pay the
arrears. If the paid CIT is higher the CIT payable, the enterprise may deduct
the overpaid tax from the CIT payable in the next period or claim a refund.
Regarding a real estate enterprise that advances
from its customers and declare CIT on the revenue which is yet to be aggregated
with taxable revenue in the year and incur expenses of advertising, marketing,
sales promotion, brokerage commissions when making offers in the year in which
revenue is earned, such expenses are yet to be aggregated with expense of that
year. The expenses of advertising, marketing, sales promotion, brokerage
commissions shall be aggregated with deductible expense within the prescribed
limit in the first year in which real estate is delivered and taxable revenue
is earned.
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- Taxable revenue from sublease of land is the rent
paid by the tenant under the lease contract. In the cases where the tenant pays
a lump sum rent paid in advance for multiple years, the taxable revenue shall
be divided by (:) the number of years or equal the lump sum payment. This
method may only be applied if the enterprise has fulfilled its liabilities to
the State and obligations to the tenant until the expiration of the lease term.
In the cases where an enterprise eligible for CIT
incentives determines that the taxable revenue is the lump sum rent paid in
advance for multiple years, the preferential CIT shall be based upon the CIT on
the lump sum rent divided (:) by the number of years for which the rent is paid
in advance.
- In the cases where a credit institution receives
the LUR as collateral for a loan and such LUR is transferred, the taxable
revenue is the transfer price agreed by the parties.
- In the cases where the LUR transferred is a
distressed property, the taxable revenue is the transfer price agreed by the
parties or imposed by the valuation council.
The determination of revenue in the cases specified
in a.2 must comply with the rules specified in a.1.
b) Real estate transfer expenses:
b.1) Rules for expense determination:
- Deductible expenses of real estate transfer must
correspond to the taxable revenue, satisfy the conditions for deductibility and
are not non-deductible expenses specified in Article 6 of this Circular.
- In the cases where part of a project is
transferred, general expenses of the project and expense of the completed part
of the project shall be determined according to the area (m2)
transferred to determine taxable income from the land area transferred,
including: expense of internal roads and parks; investment in construction of
water supply and drainage system; substations; compensation for property on
land; expenditures on compensation for land clearance and relocation and
funding for provision of compensation for land clearance approved by a
competent authority which has not been deducted from land levies or land rents
that are payable to the State, other investments in the land area related to
the transfer or LUR or land leasehold.
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Expense of land
area transferred
=
Total investment
in infrastructure
x
Land area
transferred
Total land area of
the project (except land area used for public purposes under land laws)
In the cases where part of the project area which
is not transferred is used for other business purposes, the common expenses
shall also be distributed to such area and accounted for when declaring CIT on
other business activities.
In the cases where an enterprise invests in
infrastructure construction for multiple years and only record the
infrastructure value after the all the works are complete, the enterprise may
calculate the provisional expense of infrastructure on the land area
transferred using the formula above and estimate accrued expense of infrastructure
corresponding to the revenue recorded when calculating taxable income. After
the construction is complete, the enterprise shall adjust the provisional cost
of infrastructure and accrued expense according to the total value of
infrastructure. If CIT is overpaid, the enterprise may deducted in CIT payable
in the next period or claim a refund; If CIT is underpaid, the enterprise shall
fully pay the arrears.
b.2) Deductible expenses of real estate transfer:
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+ the land levy or land rent payable to state
budget if the State allocates land and collects land levy or land rent;
+ the price written on the contract and documentary
evidence of payment when the LUR or land leasehold is transferred in case of
LUR transferred by another organization or individual; the price imposed by the
People’s Committee of the province at the time of transfer if the contract and
documentary evidence of payment is not available.
+ the value of LUR or land leasehold according to
the valuation record if land is contributed as capital;
+ the price for the construction work exchanged by
an enterprise for land form the State, except for the cases specified by
competent authorities.
+ the successful bid in case of auction of LUR or
land leasehold;
+ the price imposed by the People’s Committee of
the province according to the land price list compiled by the Government at the
time of inheritance or donation if the enterprise’s land is inherited or
donated.
If the enterprise’s land is inherited or donated
before 1994, the cost price shall be imposed by the People’s Committee of the
province in 1994 based on the land price list specified in the Government's
Decree No. 87/CP dated August 17, 1994.
+ regarding land that is collateral or distressed
property, the cost price shall be determined on a case-by-case basis.
- Cost of land compensation.
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- Cost of compensation for land clearance and
relocation and organization thereof as prescribed by law.
If documentary evidence for the cost of
compensation for land clearance and relocation and organization thereof is not
available, a statement may be prepared which specifies: names and addresses of
recipients, compensation and aid amounts; signatures of recipients and
certification of local governments in accordance with regulations of law on
compensation for land clearance and relocation upon land withdrawal by the
State.
- Fees and charges related to grant of LUR.
- Cost of soil improvement and leveling.
- Investment in construction of infrastructure such
as roads, electricity supply, water supply and drainage, post and
telecommunications, etc.
- Value of infrastructure and construction works on
land.
- Other expenses related to the real estate
transferred.
In the cases where an enterprise engages in more
than one business lines, the expenses shall be separately accounted for.
Otherwise, the common expense shall be distributed according to the ratio of
revenue from real estate transfer to the enterprise’s total revenue.
The expenses paid by the State or other sources
must not be aggregated with real estate transfer expense.
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3. 23
Determination of CIT payable:
CIT on real estate transfer in the period equals
(=) assessable income from real estate transfer multiplied by (x) 22%.
Income from real estate transfer must be
declared separately and is not eligible for CIT incentives.
The CIT declaration and documentary evidence of
payment of CIT from real estate transfer in the administrative division where
the transferred real estate is located are the basis for preparing the annual
CIT declaration at the enterprise’s headquarters.
4. In the cases where a credit institution receives
a piece of real property as collateral instead of loan repayment, it shall
declare and pay CIT on real estate transfer if permitted to transfer such real
estate. In the cases where real the estate put up for auction is collateral,
the proceeds shall be used as repayment in accordance with the Government’s
regulations on loan security applied to credit institutions and tax shall be
paid as prescribed. The remaining amount after the repayment is made shall be
returned to the organization that put up its real estate as collateral.
In the cases where a credit institution is
permitted to transferred a piece of mortgaged real property to recover capital
and the cost price of such real property is unknown, the cost price shall equal
(=) the loan payable under the mortgage contract plus (+) loan interest accrued
by the date of foreclosure of the real property under the credit contract plus
(+) costs of real estate transfer supported by legitimate invoices and
documentary evidence.
5. In the cases where the collateral is sold at
auction by a judgment enforcement authority, the proceeds shall be dealt with
in accordance with the Government’s Decree on foreclosure of LUR. The
organization authorized to sell the real estate at auction shall declare and
transfer the withheld CIT on real estate transfer to state budget. The
documents must specify that CIT is paid on behalf of the taxpayer.
In the cases where the collateral transferred by a
judgment enforcement authority and its cost price is unknown, the cost price
shall equal (=) the debt payable under the court’s decision plus (+) costs of
real estate transfer supported by legitimate documentary evidence.
Chapter VI
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Article 18. Conditions for applying CIT
incentives
1. CIT incentives only apply to enterprises
following accounting and invoicing regulations and pay CIT by declaration.
2. During the period of CIT incentives, an
enterprise that engages in multiple business lines must separate incomes from
the business lines eligible for CIT incentives (including preferential rates,
tax exemption and reduction) and incomes from those that are not.
If such an enterprise fails to separate incomes
from business lines eligible for CIT incentives and incomes from those that are
not, the income from business lines eligible for CIT incentives equals (=)
total taxable income multiplied by (x) the ratio (%) of revenue or deductible
expense of the eligible business lines to total revenue or total deductible
expense of the enterprise in the tax period.
In the cases where the deductible expense or
revenue cannot be separated, it shall be determined according to the ratio of
revenue or deductible expense of the eligible business lines to the total
revenue or deductible expense of the enterprise.
3. 24
CIT incentives and 20% CIT do not apply to the following incomes (including
those of enterprises eligible for 20% CIT prescribed in Clause 2 Article 11 of
Circular No. 78/2014/TT-BTC):
a) Incomes from transfer of stakes or right to
contribute capital; incomes from real estate transfer (except for incomes from
investment in social housing prescribed in Point d Clause 3 Article 19 of
Circular No. 78/2014/TT-BTC); Incomes from transfer of investment project or
the right to participate in investment project, transfer of the right to
mineral exploration and extraction; incomes from overseas business operation.
b) Incomes from exploration and extraction of
petroleum, other rare and valuable resources, and income from mineral extraction.
c) Incomes from provision of services subject to
special excise tax prescribed by the Law on Special excise tax.
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a) In case of an enterprise whose investment
project is eligible for CIT incentives because its field is eligible, the
incomes from such field, incomes from liquidation of refuses and scrap of
products in such field, exchange differences directly related revenues and
expenses of such field, demand deposit interest, and other directly related
incomes are also eligible for CIT incentives.
b) In case of an enterprise whose investment
project is eligible for CIT incentives because it is located in an eligible
area (including industrial parks, economic zones, hi-tech zones), incomes
eligible for CIT incentives are those derived from business activities within
such area, except for the incomes mentioned in Points a, b, c Clause 1 of this
Article.
- In the cases where an enterprise whose
transport project is eligible for CIT incentives because it is located in an
eligible area (including industrial parks, economic zones, hi-tech zones), its
incomes from transport services based in the eligible area will be eligible for
CIT incentives, whether the departure or destination is located in the same
area as the project.
Example 15a: In 2015, a new enterprise is
established in Son La province, which is an extremely disadvantaged province,
to provide transport services. Thus, the enterprise is eligible for CIT
incentives applied to extremely disadvantaged areas.
In 2015, it has several fixed routes (from Son
La to Hanoi and vice versa; from Son La to Ha Long city and vice versa) and
contractual routes (from Son La to Da Nang city and vice versa; from Hanoi to
Da Nang city and vice versa; from Bac Ninh city to Son La).
CIT incentives for incomes from transport
services are determined according to the area in which the project is
established (Son La province), whether the departure or destination is located
in such area. To be specific:
+ Incomes from the following routes are eligible
for CIT incentives: fixed routes from Son La to Hanoi and vice versa, from Son
La to Ha Long city and vice versa; contractual routes from Son La to Da Nang
city and vice versa, from Bac Ninh city to Son La.
+ Income from the route from Hanoi to Da Nang
city is not eligible for CIT incentives because both the departure place and
destination are not located in Son La province.
- If an enterprise whose investment project is
eligible for CIT incentives because it is located in an eligible area earns
incomes outside the area in which the project is located:
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(ii) If the area in which the income is
earned is an eligible area, it will be eligible for CIT incentives. CIT
incentives for such income shall be determined according to the time and level
of incentives in the area.
* Example 15b: CIT incentives in eligible areas
(applied to manufacturing):
In 2015, an enterprise has a new manufacturing
project in Ha Giang province, which is an extremely disadvantaged area. Thus,
the enterprise is eligible for CIT incentives applied to extremely
disadvantaged areas.
In 2015, the enterprise starts manufacturing
products in Ha Giang province and sells them in Ha Giang province and adjacent
provinces such as Cao Bang province (an extremely disadvantaged area), Lao Cai
city (a disadvantaged area) and Hanoi (not eligible for incentives). Because
all products are manufactured in Ha Giang province, the incomes from sale of
products in Ha Giang province and other provinces are eligible for CIT
incentives.
* Example 15c: CIT incentives in eligible areas
(applied to construction):
In 2015, a new construction enterprise is
established in Ha Giang province, which is an extremely disadvantaged area.
Thus, the enterprise is eligible for CIT incentives applied to extremely
disadvantaged areas.
In 2015, the enterprise engages in some construction
activities in Ha Giang province and adjacent provinces including Cao Bang (an
extremely disadvantaged area), Lao Cai city (a disadvantaged area) and Hanoi
(not eligible for incentives). The incomes from construction activities in Ha
Giang province are eligible for CIT incentives. CIT incentives for incomes from
construction activities in adjacent areas are determined as follows:
+ Incomes earned in Cao Bang province are
eligible for CIT incentives for the remaining incentive period of the enterprise.
+ Incomes earned in Lao Cai city are eligible
CIT incentives applied to disadvantaged areas for the remaining incentive
period of the enterprise.
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* Example 15d: CIT incentives in eligible provinces
(applied to service provision):
In 2015, a new enterprise is established in Ha
Giang province, which is an extremely disadvantaged area, to provide services.
Thus, the enterprise is eligible for CIT incentives applied to extremely
disadvantaged areas.
In 2015, the enterprise provides services in Ha
Giang province and adjacent provinces including Cao Bang (an extremely
disadvantaged area), Lao Cai city (a disadvantaged area), and Hanoi (not given
incentives). The incomes from services provided in Ha Giang province are given
CIT incentives. CIT incentives for incomes from services provided in adjacent
areas are determined as follows:
+ Incomes earned in Cao Bang province are
eligible for CIT incentives for the remaining incentive period of the enterprise.
+ Incomes earned in Lao Cai city are eligible
CIT incentives applied to disadvantaged areas for the remaining incentive
period of the enterprise.
+ Incomes earned in Hanoi are not eligible for
CIT incentives.
c) Enterprises eligible for 20% CIT may apply
the CIT rate of 20% to their incomes except for those mentioned in Points a, b,
c Clause 1 of this Article.
5. 26
With regard to new project of investments:
a) New investment projects that are eligible for
CIT incentives prescribed in Article 15 and Article 16 of Decree No.
218/2013/ND-CP include:
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- Any domestic project of investment that is
associated with establishment of a new enterprise whose capital is below VND 15
billion, not on the list of conditional investment fields and granted the
Certificate of Enterprise registration from January 01, 2014.
- Any project of investment that is independent
from the project of an operating enterprise (including those whose capital is
below VND 15 billion and not on the list of conditional investment fields) and
granted the Certificate of Enterprise registration from January 01, 2014 to
execute such independent project.
- Private notary offices established in
disadvantaged areas and extremely disadvantaged areas.
New investment projects must be granted
investment licenses or certificates of investment as prescribed by regulations
of law on investment in order to be eligible for CIT incentives.
b) New investment projects eligible for CIT
incentives applied to new investments do not include:
- Investment projects derived from division,
acquisition, amalgamation, conversion of enterprises as prescribed by law;
- Investment projects derived from change of
owners (including new investment projects that inherit assets, business
premises, or business lines of the old enterprises to continue business
operation; acquisition of an operating project).
Enterprises that establish or have investment
projects derived from enterprise conversion, change of owner, division,
acquisition, consolidation may inherit CIT incentives of the enterprises or
projects of investment before the conversion, division, acquisition,
consolidation for the remaining incentive period if all conditions for CIT
incentives are satisfied.
c) CIT incentives given to new enterprises
derived from investment projects only apply to incomes from business operations
that satisfy incentive conditions written on the enterprise’s Certificate of
Enterprise registration or First Investment Certificate. If the Certificate of
Enterprise Registration or Certificate of Investment of an operating enterprise
is changed, the enterprise will be eligible tax incentives for the remaining
period or incentives for investment in expansion if all conditions for
incentives are still fulfilled.
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Regarding an investment project licensed before
January 01, 2014 that is divided into multiple investment phases as stated
above, its sub-projects are eligible for tax incentives applied to first
investment projects for the remaining incentive period from January 01, 2014.
Regarding incomes earned by sub-projects of a
first investment project before January 01, 2014 and have been given CIT
incentives according to legislative documents before January 01, 2014, the tax
incentives before January 01, 2014 shall not be adjusted.
While executing sub-projects, if the investor is
permitted by an investment authority (according to the Law on Investment No.
59/2005/QH11 dated November 29, 2015 and its guiding documents) to extend the
time limit for project execution and the enterprise complies with the extended
time limit, such enterprise is also given tax incentives as prescribed above.
dd) Regarding a private enterprises derived from
enterprise conversion that invests in the public sector and satisfies
conditions for private sector involvement according to the Prime Minister’s
Decisions, if the enterprise was not eligible for CIT incentives applied to
eligible fields, it will be eligible for CIT incentives from the conversion
date as if it was a new investment project.
If an enterprise satisfies criteria for private
sector involvement according to the Prime Minister’s Decisions after its
conversion and is applying 10% CIT to incomes from investment in the public
sector, it may keep applying this preferential rate.
6. Incentives for investment in expansion
a) 27
If one of the three conditions prescribed at this Point is satisfied, the enterprise
having a project of investment in another operating project such as expansion
of production scale, increase of capacity and innovation of production
technology (hereinafter referred to as “expansion”) in an eligible field or
eligible area according to Decree No. 218/2013/ND-CP (including economic zones,
hi-tech zones, industrial parks other than those located in urban districts of
special-grade cities, centrally run grade-I cities and grade-I provincial
cities) may decide whether to apply CIT incentives to its operating project for
the remaining period (including preferential rates, exemption, and reduction,
if any) or apply tax exemption or reduction to the increase in incomes from
expansion (no preferential tax rates) for a period of time equal to the tax
exemption or reduction period applied to new investment projects in the same
eligible area or eligible field. If the enterprise chooses to apply CIT
incentives to its operating project for the remaining period, the expansion
must be in the field or area eligible for CIT incentives under Decree No.
218/2013/ND-CP and in the same field or area as the operating project.
The expansion specified in this Point must
satisfy one of the following criteria:
- The increase in cost of fixed assets when the
project is finished and put into operation is at least VND 20 billion (if the
expansion is of an eligible field according to Decree No. 218/2013/ND-CP) or
VND 10 billion (if the expansion is located in a disadvantaged area or
extremely disadvantaged area according to Decree No. 218/2013/ND-CP).
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- Designed capacity after expansion increases by
at least 20% compared to the designed capacity mentioned in the technical and
economic feasibility study done before initial investment.
If the enterprise chooses incentives applied to
expansion, the increase in income from expansion must be accounted for
separately. If the enterprise is not able to separate the increase in income
from expansion, it shall be determined according to the ratio of cost of new
fixed assets to total cost of fixed assets of the enterprise.
The duration of tax exemption or reduction
mentioned in this Clause begins from the year in which the expansion project is
finished, put into operation and generates incomes. If taxable income is not
earned within the first 03 years from the first year in which the expansion
project generates revenues, the duration of tax exemption or reduction will
begin from the fourth year in which revenue is generated by the project of
investment.
In the cases where an operating enterprise
invests in upgrade, replacement, innovation of technology of an operating
project in a field or area eligible for tax incentives according to Decree No.
218/2013/ND-CP without satisfying any of the criteria mentioned in this Point,
tax incentives shall apply to the project for the remaining period (if any).
If the enterprise has an investment project
eligible for tax incentives and during the period 2009 – 2013 regularly makes
investment in additional machinery and equipment that is not part of the
aforesaid expansion project, the increase in income from investment in
additional machinery and equipment is also eligible for tax incentives at the
level applied to the project for the remaining period from the tax year 2014.
Tax incentives mentioned in this Clause do not
apply in the cases of expansion due to division, merger, change of owners
(including the cases in which assets, business premises, business lines of the
old enterprise are inherited to continue the business operation), acquisition
of operating projects or enterprises.
The enterprise having an investment project
derived from change of owners, division, acquisition, or consolidation of
enterprises may inherit CIT incentives given to the old enterprise or project
before such event for the remaining period if conditions for CIT incentives are
still fulfilled.
a1) 28
Expansion investment is not mandatory for the enterprises that, during their
business activities, invested finances from their fixed asset depreciation
fund, net profit for reinvestment or investment capital registered with
competent state management authorities into additional machines and equipment
on regular basis, from 2009 to 2013, but did not increased the capacity of
production and business according to the registered or approved business plan.
b) When an operating enterprise eligible for tax incentives
invests in expansion that is not in a field or area eligible for tax incentives
specified in Decree No. 218/2013/ND-CP, it will not be eligible for CIT
incentives for the additional income from the expansion.
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Option 1:
Additional income
from expansion
=
Total assessable
income in the year, exclusive of other incomes ineligible for incentives
x
Value of new fixed
assets purchased for expansion
Total costs of
fixed assets used for business operation in reality
The total cost of fixed assets used for business
operation in reality consists of: value of new fixed assets purchased for
expansion that have been put into operation and costs of existing fixed assets
according to the annual balance sheet.
Option 2:
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=
Total assessable
income in the year, exclusive of other incomes ineligible for incentives
x
Investment in
expansion
Total investment
in business operation
The total investment in business operation means
the total of the owner’s capital and loan capital according to the annual
balance sheet.
The enterprise may apply one of the two methods
above to calculate additional income from an expansion activity.
Example 16: Company A is a plastic producer
in an industrial park in Ho Chi Minh City, which is not eligible for
incentives, and is eligible for the following CIT incentives: 15% CIT for 12
years from the year in which revenue is earned, 3-year exemption from CIT from
the year in which taxable income is earned, 50% CIT reduction for the next 7
years. In 2014, Company A invests VND 5 billion in purchasing new machinery and
equipment. Company A's total value of fixed assets in 2014 is VND 20 billion,
total assessable income in 2014 is VND 1.2 billion, including VND 200 million
ineligible for incentives.
Additional income from expansion that is ineligible
for incentive is calculated as follows:
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=
VND 1.2 billion – VND 0.2 billion
x
VND 5 billion
VND 20 billion
=
VND 250 million
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The assessable income ineligible for CIT incentives
in 2014: VND 200 million + VND 250 million = VND 450 million
The assessable income eligible for CIT incentives
in 2014:
VND 1,200 million – VND 450 million = VND 750
million
7. In a tax period, if an income is eligible for
various preferential CIT rates and periods of CIT exemption or reduction, the
enterprise may choose the most favorable one.
8. In the cases where an enterprise fails to
satisfy any of the conditions for CIT incentives specified in Clause 7, 8 and
12 Article 1 of the Law on amendments to The Law on Corporate income tax and
Article 19 of Decree No. 218/2013/ND-CP during the CIT incentive period, it
will not be eligible for incentives in the year and has to pay CIT at the
common rate and that year will be deducted from the CIT incentive duration.
8a. 29
In the first tax period, if the enterprise’s investment project (including new
projects, expansion projects, high-tech enterprises, agriculture enterprises
applying high technologies) is given a tax incentive period shorter than 12
months, the enterprise may choose to apply tax incentives to its projects from
that first tax period or register the beginning date of tax incentive period to
the tax authority from the next tax period. If the enterprise registers to
apply tax incentives from the next tax period, tax payable in the first tax
period must be paid as prescribed.
9. In a tax period, if an enterprise makes a loss
on the activities eligible for CIT incentives and earn incomes from activities
ineligible for CIT incentives (excluding incomes from real estate transfer,
project transfer; incomes from transfer of the right to participate in project,
transfer of the right to exploration and extraction of minerals) or vice versa,
the enterprise may offset the loss against taxable income from any activity.
The remaining income after offsetting shall apply the CIT rate applied to the
income-generating activity.
If the enterprise made a loss in previous tax
periods, the loss must be carriedforward. If the enterprise fails to separate
loss on each activity, it shall offset the loss against incomes from the
activities eligible for CIT incentives. The remaining loss (if any) shall be
offset against incomes from the activities ineligible for CIT incentives
(excluding incomes from real estate transfer, project transfer; incomes from
transfer of the right to participate in project, transfer of the right to
exploration and extraction of minerals).
Example 17: In the tax period of 2014, Enterprise
A:
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- makes a profit of VND 1 billion from computer
trading, which is ineligible for CIT incentives.
- makes a profit of VND 2 billion from securities
transfer (other incomes).
In this case, Enterprise A may offset the loss on
software production and profit from computer trading or profit from securities
transfer and CIT shall be paid on the remaining income at CIT rate applied to
the income-generating activity.
To be specific: The loss of VND 1 billion on
software production will be offset against the profit of VND 1 billion from
computer trading or profit from securities transfer.
The remaining income of VND 2 billion will apply
22% CIT.
Example 18: In the tax period of 2014, Enterprise
B:
- makes a profit of VND 2 billion from software
production, which is eligible for 10% CIT.
- makes a profit of VND 2 billion from computer
trading, which is ineligible for CIT incentives.
- makes a loss of VND 1 billion on securities
trading (other incomes).
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- Offsetting loss and profit in 2014: The loss on
securities trading will be offset against income from computer trading. The
remaining profit from computer trading: VND 2 billion – VND 1 billion = VND 1
billion.
- The loss on computer trading in 2013 will be
carriedforward and offset against profit from computer trading in 2014: VND 1
billion – VND 1 billion = 0.
CIT payable:
VND 2 billion x 10% = VND 0.2 billion
=> CIT payable: VND 0.2 billion
Example 19: In the tax period of 2014, Enterprise
C:
- makes a profit of VND 2 billion from software
production, which is eligible for 10% CIT.
- makes a profit of VND 2 billion from computer
trading, which is ineligible for CIT incentives.
- makes a loss of VND 1 billion on securities
trading (other incomes).
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To be specific: - Offsetting loss and profit in
2014: The loss on securities trading will be offset against the profit from
computer trading. The remaining profit from computer trading: VND 2 billion –
VND 1 billion = VND 1 billion.
- The loss made in 2013 will be carriedforward and
offset against the profit from software production in 2014: VND 2 billion – VND
2 billion = 0 billion.
22% CIT will be applied to profit from the activity
ineligible for CIT incentives: VND 1 billion x 22% = VND 0.22 billion.
10. In the cases where during the CIT incentive
period, an inspecting authority finds that:
- The amount of CIT eligible for incentives is
higher than the amount declared by the enterprise (even if the enterprise has
not applied for incentives), CIT incentives will be applied to the amount
determined by the inspecting authority.
- The amount of CIT eligible for incentives is
smaller than the amount declared by the enterprise, CIT incentives will be
applied to the amount determined by the inspecting authority.
- Penalties shall be
applied by the inspecting authority depending on the seriousness of the
enterprise’s offence.
Article 19. Preferential CIT rates
1. 30
10% CIT for 15 years shall be applied to:
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b) Incomes of the enterprise from execution of
new investment projects in: scientific research and technology
development; application of high technologies given priority according to the
Law on High Technology; cultivation of high technology, cultivation of
high-tech enterprises; venture capital investment in development of high
technologies on the list of high technologies given priority; investment in
construction, operation of facilities for cultivation of high technologies, cultivation
of high-tech enterprises; investment in development of water plants, power
plants, water supply and drainage system; bridges, roads, railroads, airports,
seaports, air terminals, train stations, and other particularly important
infrastructural works decided by the Prime Minister; software production;
manufacture of composite materials, light building materials, rare and valuable
materials; production of renewable energy, clean energy, waste-to-energy
process, development of biotechnology.
Projects of investment in development of water
plants, power plants, water supply and drainage system; bridges, roads,
railroads, airports, seaports, air terminals, train stations must generate
revenues or incomes from their operation in order to be eligible for tax
incentives. Income from construction of such works of the construction
enterprise is not eligible for the aforesaid tax incentives.
c) Incomes of enterprises from execution of new
projects of investment in environmental protection, including: manufacture of
environmental pollution reduction devices, environment monitoring and analysis
devices; pollution reduction and environmental protection; collection,
treatment of wastewater, exhaust, solid wastes; recycling or wastes.
d) High-tech enterprises, agriculture
enterprises applying high technologies as prescribed by the Law on High
Technologies.
High-tech enterprises, agriculture enterprises
applying high technologies as prescribed by the Law on High Technologies are
given preferential tax rates from the year in which they are granted the
Certificates of High-tech Enterprise or Certificate of Agriculture Enterprise
Applying High Technologies.
Incomes from high-tech activities, application
of high technologies, and incomes directly related to high-tech activities,
application of high technologies of high-tech enterprises, agriculture
enterprises applying high technologies are eligible for CIT incentives applied
to eligible fields prescribed in Clause 4 Article 18 of Circular No.
78/2014/TT-BTC (amended in Point a Clause 2 Article 10 of this Circular).
In the cases where an enterprise that is
eligible for CIT incentives or no longer eligible for CIT incentives is granted
the Certificate of High-tech Enterprise or Certificate of Agriculture
Enterprise applying High Technologies, the incentives to which the enterprise
is entitled are equal to that applied to high-tech enterprises and agriculture
enterprises applying high technologies prescribed in Clause 1 Article 15 and
Clause 1 Article 16 of Decree No. 218/2013/ND-CP minus (-) the period over
which the enterprise was eligible for CIT incentives (including preferential
tax rates and duration of tax exemption or reduction, if any).
dd) 31
Incomes of an enterprise from execution of new manufacturing projects (except
for manufacturing of products subject to special excise tax and mineral
extraction projects) that satisfy any of the following criteria:
- The project’s capital is at least VND 6,000
billion disbursed within 03 years from the date of investment license according
to regulations of law on investment, and the total revenue is at least VND
10,000 billion per year after not more than 3 years from the first year in
which revenues are generated by the project (the enterprise must have a total
revenue of at least VND 10,000 billion per year by the 4th year from
the first year in which revenue is generated).
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The average number of regular employees shall be
determined according to the instructions in the Circular No. 40/2009/TT-BLDTBXH
of the Ministry of Labor, War Invalids and Social Affairs dated December 03,
2009.
If the investment project fails to satisfy any
of the criteria mentioned above (unless it is fallen behind schedule because of
objective difficulties during land clearance, administrative procedures, because
of natural disaster, hostilities, conflagration and is accepted by the
licensing authority and approved by the Prime Minister), the enterprise will
not be eligible for CIT incentives and have to declare and pay CIT that was
declared eligible for incentives in the previous years (if any), pay late
payment interest. Nevertheless, the enterprise will not incur any penalties for
incorrect declaration as prescribed by regulations of law on tax
administration.
e) Incomes of an enterprise from execution of a
manufacturing project (except for manufacturing of products subject to special
excise tax and mineral extraction projects) in which investment is at least VND
12,000 billion, using high technologies that must be appraised in accordance
with the Law on High Technologies, the Law on Science and Technology, and
capital is disbursed within 05 years from the date of investment licensing.
g) Incomes of an enterprise for execution of a
new investment project for manufacture of products on the list of ancillary
products given priority that satisfy any of the following criteria:
- Ancillary products are meant to support high
technologies according to regulations of the Law on High Technologies;
- Ancillary products are meant to support
manufacturing of: textile and garment; leather and footwear; electronics and IT
products; manufacturing of cars; fabricating mechanics that, by January 01,
2015, they cannot be manufactured in Vietnam or can be manufactured in Vietnam
and satisfy technical standards of EU or equivalent standards.
The list of ancillary products given priority
and CIT incentives is promulgated together with the Prime Minister’s Decision
No. 1483/QD-TTg dated August 26, 2011. In case legislative documents related to
the list of ancillary products given priority are amended, the new documents
shall apply.
2. 32
Cases in which period of preferential tax rates may be extended:
a) The investment projects specified in Point b
and Point c Clause 1 of this Article with large scale and high/new technologies
that need investment.
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- The products manufactured are capable of
global competition; the revenue exceeds VND 20,000 billion per year after not
more than 05 years from the first year in which revenue is generated by the
project;
- Over 6,000 employees are hired;
- The project involves economic-technical
infrastructure, including: investment in development of water plants, power
plants, water supply and drainage system, bridges, roads, railroads, airports,
seaports, air terminals, train stations, new energy, clean energy,
energy-saving industry or oil refinery.
c) At the request of the Minister of Finance, the
Prime Minister shall decide extension of preferential tax rate duration
prescribed in this Clause. Nevertheless, the extension shall not exceed 15
years.
3. 10% CIT over the entire operating period is
applied to:
a) 33
Incomes of enterprises making investment in the public sector fields such as
education – training, vocational training, healthcare, culture, sports,
environment, and judicial expertise.
The list of types, criteria for scale, standards
of enterprises making investment in the public sector is compiled by the Prime
Minister.
b) Incomes of publishers from publishing defined by
the Law on Publishing.
Publishing activities include publishing, printing
and releasing publications as defined in the Law on Publishing.
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c) Incomes from newspapers (including
advertisements on newspapers) from press agencies defined by the Law on
Journalism.
d) An enterprise’s income from execution of a
social housing project for sale, lease or lease purchase to the entities
specified in Article 53 of the Law on Housing.
Social house means houses invested in by the State
or other entities in various economic sectors that satisfy criterion on
housing, pricing, eligible buyers, tenants and buyers/tenants prescribed by
housing laws. The determination of income eligible for 10% CIT specified in
this Point does not depend on the time of sale/lease/lease purchase contract
conclusion.
In the cases where an enterprise making investment
in social house signs a sale contract and collects advance payment from the
buyer before January 01, 2014 and collects the remaining amount afterwards (CIT
has been paid) and the house is delivered not earlier than January 01, 2014,
the income from such sale will be eligible for 10% CIT.
The income from social house eligible for 10% CIT
specified in this Clause is the income from sale, lease or lease purchase that
occurs not earlier than January 01, 2014. In the cases where an enterprise
fails to determine such income, 10% CIT shall be applied according to the ratio
of revenue from sale, lease or lease purchase of social house to the total
revenue of the enterprise over the same period of time.
e) 34
Incomes of an enterprise from planting, cultivating, protecting forests;
farming, husbandry, aquaculture in disadvantaged areas; forestry in
disadvantaged areas; production, propagation and cross-breeding of plant
varieties, animal breeds; production, extraction, and refining of salt except for
salt production prescribed in Clause 1 Article 4 of Decree 218/2013/ND-CP;
investment in post-harvest preservation of agriculture products; preservation
of agriculture products, aquaculture products, and foods, including direct
investment in preservation and lease of preservation equipment.
f) Incomes of a cooperative from agriculture,
forestry, aquaculture or salt production in an area that is not a disadvantaged
area or extremely disadvantaged area.
3a. 35
15% CIT shall be applied to incomes of enterprises from farming, husbandry,
processing of agriculture and aquaculture products in areas other than
disadvantaged areas and extremely disadvantaged areas.
4. 20% CIT for 10 years shall be applied to:
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b) Incomes of an enterprise from execution of a new
project for production of: high-class steel, energy-saving products, machinery
and equipment serving agriculture, forestry, aquaculture or salt production;
irrigation equipment; feeds for livestock and poultry; development of
traditional trades (including handicrafts, farm produce processing and art
products).
Such an enterprise specified in this Clause may
apply 17% CIT from January 01, 2016.
5. 20% CIT over the entire operating period (17%
from January 01, 2016) shall be applied to people's credit funds, cooperative
banks and microfinance institutions.
A people's credit fund, cooperative bank or
microfinance institution in a disadvantaged area specified in the Appendix of
Decree No. 218/2013/ND-CP shall apply 20% CIT after the 10% CIT period expires
as prescribed in Point a Clause 1 of this Article and apply 17% CIT from
January 01, 2016.
Microfinance institutions defined in this clause
must be established and operate in accordance with the Law on credit
institutions.
6. The preferential tax rates specified in this
Article shall apply from first year in which the enterprise earns revenue from
the new investment project eligible for CIT incentives. Regarding high-tech
enterprises and agriculture enterprises applying high technologies, it shall be
applied from the year in which they are granted the Certificate of High-tech
Enterprise or Certificate of Agriculture Enterprise Applying High Technologies.
Article 20. Duration of tax exemption and
reduction
1. Tax exemption for 4 years and 50% tax reduction
for the next 9 years shall be applied to:
a) 36
Incomes of enterprises from execution of the investment projects specified in
Clause 1 Article 19 of Circular No. 78/2014/TT-BTC (amended in Clause 1 Article
11 of this Circular).
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2. Tax exemption for 4 years and 50% tax reduction
for the next 5 years shall be applied to incomes of enterprises from execution
of new public sector-related projects in areas other than disadvantaged areas
and extremely disadvantaged areas specified in the Appendix of Decree No.
218/2013/ND-CP.
3. 37
Tax exemption for 2 years and 50% tax reduction for the next 4 years shall be
applied to incomes from execution of new investment projects specified in
Clause 4 Article 19 of Decree No. 78/2014/TT-BTC dated June 18, 2014 of the
Ministry of Finance and income of the business from execution of new investment
projects in industrial parks (except for those located in advantaged areas).
The advantaged areas mentioned in this Clause
are urban districts of special class cities or the class I cities affiliated to
the central and the class I cities affiliated to provinces, not including urban
districts of the aforesaid cities converted from districts from January 1,
2009; where an industrial park is located in both advantaged and disadvantaged
areas, the determination of tax incentive for such industrial park depends on
the actual location of the investment project.
The determination of special class cities and or
class I cities prescribed in this Clause is specified in the Government’s
Decree No. 42/2009/ND-CP dated May 7, 2009 on classification of cities and its
amendments (if any).
4. 38
The tax exemption/reduction period mentioned in this Article begins from the
first year in which the enterprise earns taxable income from the new investment
project which is eligible for CIT incentives. In the cases where the enterprise
does not earn taxable income in the first 03 years, the tax exemption/reduction
period will begin in the 4th year from the first year in which
revenue is generated by the new project.
Example 20: In 2014, Enterprise A has a new
software production project. If Enterprise A earns taxable income from the
project in 2014, the continuous period of tax exemption/reduction will begin in
2014. If the project generates revenue from 2014 but still does not generate
taxable income in 2016, the continuous period of tax exemption/reduction will
begin in 2017.
The period of tax exemption/reduction applied to
high-tech enterprises, agriculture enterprises applying high technologies
begins from the year in which they are granted the Certificate of High-tech
Enterprise or Certificate of Agriculture Enterprise Applying High Technologies.
5. 39
(abrogated)
Article 21. Other cases of CIT reduction
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Public service agencies, offices of general
companies that do not directly do business are not eligible for CIT reduction
specified in this Clause.
2. An enterprise that employs ethnic workers is
eligible for CIT reduction which is proportional to the expenditure on the
ethnic workers according to instructions in Point 2.9.b Clause 2 Article 6 of
this Circular if such expenditure can be separately accounted for.
3. Income from transfer of technology in an
eligible field to an organization or individual located in a disadvantaged area
is eligible for 50% reduction in CIT thereon.
Article 22. Procedures for applying CIT
incentives
Each enterprise shall determine its eligibility for
CIT incentives and declare the preferential tax rate, the tax exemption or
reduction duration and the amount of loss deductible from assessable income
itself.
In an inspection, the tax authority shall verify
the enterprise’s eligibility for CIT incentives, the amount of CIT eligible for
exemption or reduction and the amount of loss deductible from taxable income.
If the enterprise is not eligible for preferential tax rates or tax
exemption/reduction, it shall pay tax arrears and face penalties for tax
offences.
Chapter VII
IMPLEMENTATION40
Article 23. Effect
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2. An enterprise whose investment project is
eligible for CIT incentives (whether applied or not) by the end of the tax
period 2013 according to legislative documents on CIT shall be eligible for the
remaining period specified in such documents; In the cases where the conditions
specified in Decree No. 218/2013/ND-CP are satisfied, the enterprise may choose
between keeping on applying the old incentives or applying those specified in
Decree No. 218/2013/ND-CP (including preferential tax rates, tax exemption or
reduction) for the remaining period if it is eligible for CIT incentives
applied to enterprises derived from new investment projects or expansion
projects. The expansion projects that may choose between the incentives
specified in this Clause are those executed by December 31, 2008 and was put
into operation in 2009 and earlier.
The remaining incentive period will be a continuous
period which begins from the effective date of the regulations on tax
incentives in the legislative documents on foreign investment in Vietnam,
domestic investment promotions and CIT that were promulgated before the
effective date of this Circular.
The remaining incentive period equals (=) the
number of years over which the enterprise is still eligible for tax incentives
(preferential tax rates, tax exemption or reduction) specified in the Circular
minus (-) the number of years it has been applying tax incentives prescribed in
the previous legislative documents on CITs. Rules for determination of
remaining incentive period:
- At the end of the tax period 2013, if the
preferential tax rate period has expired according to a previous legislative
document on CIT, the enterprise must not apply tax incentives (preferential tax
rates, tax exemption or reduction) for the remaining period specified in this
Circular.
- At the end of the tax period, 2013, if the
enterprise is still eligible for tax incentives (preferential tax rates, tax
exemption or reduction) by according to a previous legislative document on CIT,
the enterprise must not apply tax incentives (preferential tax rates, tax
exemption or reduction) for the remaining period specified in this Circular.
- At the end of the tax period 2013, if the tax
exemption period has expired but the enterprise is still eligible for
preferential tax rates according to a previous legislative document on CIT, tax
exemption will not apply but the enterprise will be eligible for tax reduction
and preferential tax rates specified in this Circular for the remaining
incentive period.
- At the end of the tax period 2013, if the
enterprise is still eligible for preferential tax rates and the tax reduction
period has not expired according to a previous legislative document on CIT, the
remaining tax reduction period will equal (=) the tax reduction period (years)
specified in this Circular minus (-) the period (years) over which the
enterprise applied tax reduction by the end of the tax period 2013 and the
enterprise may preferential tax rates for such remaining period.
- At the end of the tax period 2013, if the
preferential tax exemption or reduction period has expired according to a
previous legislative document on CIT, the enterprise will no longer be given
tax incentives (preferential tax rates, tax exemption or reduction) specified
in this Circular.
2a. 41
Enterprises that have expansion projects licensed by competent authorities,
have made investment during 2009 – 2013 and satisfy conditions for tax
incentives in the tax period 2014 (in eligible fields or eligible areas,
including industrial parks, economic zones, hi-tech zones) according to the Law
No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents shall be
given tax incentives applied to expansion investment according to the Law No.
32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents for the
remaining period from the tax period 2015.
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2b. 42
Enterprises that have projects of investment in industrial parks during 2009 –
2013 and satisfy conditions for tax incentives in the tax period 2014 (in
eligible fields or eligible areas) according to the Law No. 32/2013/QH13, the
Law No. 71/2014/QH13 and their guiding documents shall be given tax incentives
according to the Law No. 32/2013/QH13, the Law No. 71/2014/QH13 and their
guiding documents for the remaining period from the tax period 2015.
2c. 43
Enterprises that have projects of investment in areas that are not eligible for
tax incentives before January 01, 2015 (including industrial parks, economic
zones, hi-tech zones) and made eligible for tax incentives from January 01,
2015 onwards according to the Law No. 32/2013/QH13, the Law No. 71/2014/QH13
and their guiding documents shall be given tax incentives according to the Law
No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents for the
remaining period from the tax period 2015.
In the cases where an enterprise that has a
project of investment in an area given tax incentives but receives lower
incentives, if its satisfies conditions for higher tax incentives according to
the Law No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents,
it will be given tax incentives according to the Law No. 32/2013/QH13, the Law
No. 71/2014/QH13 and their guiding documents for the remaining period from the
tax period 2015.
2d. 44
After January 01, 2015, if the area where an enterprise’s project is located is
made eligible for tax incentives, it will be eligible for tax incentives for
the remaining period which begins from the tax period in which such change is
made.
2d. 45
In the cases mentioned in Clauses 2a, 2b, 2c of this Article, if revenue is yet
to be generated by the project in the tax period 2015, the continuous period of
application of preferential tax rate will begins in the first year in which
revenue is generated by the project given tax incentives. In the cases
mentioned in Clauses 2a, 2b, 2c of this Article, if income is yet to be generated
by the project, the continuous period of tax exemption/reduction will begins in
the first year in which taxable income is generated by the project given tax
incentives (if the enterprise does not have taxable income in the first 03
years, the period of tax exemption/reduction will begin from the 4th
year from the first year in which revenue is generated by the project).
3. 46
With regard to a new enterprise derived from a project of investment that is
granted the investment license or certificate of investment before January 01,
2014 but still incomplete, yet to be put into operation and thus has not
generated revenues, the enterprise will be given CIT incentives applied to new
investment projects according to the Law No. 32/2013/QH13, the Law No.
71/2014/QH13 and their guiding documents.
With regard to an enterprise that executes its
expansion project before January 01, 2014, put it into operation and earn
revenues from January 01, 2014, if the field or area such expansion project is
eligible for CIT incentives according to Decree No. 218/2013/ND-CP (including
economic zones, hi-tech zones, industrial parks other than those located in
urban districts of special-grade cities, centrally run grade-I cities and
grade-I provincial cities), the enterprise will be given CIT incentives for the
increase in income due to expansion as instructed in Circular No.
78/2014/TT-BTC.
4. This Circular supersedes Circular No.
123/2012/TT-BTC dated July 27, 2012 of the Ministry of Finance of Vietnam.
5. Regulations on CIT promulgated by the Ministry
of Finance and other agencies that contravene this Circular are abolished.
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7. In the cases where Socialist Republic of Vietnam
enters into an international treaty or agreement in which CIT provisions
contravene those in this Circular, such international treaty or agreement shall
prevail.
8. 47
If the period of tax incentives is still unexpired due to the export ratio but
the enterprise is no longer eligible for tax incentives for textile and garment
products from January 11, 2007 and other products from January 01, 2012 because
of commitments to WTO, it may decide whether to apply preferential tax rates
and tax exemption period successively or concurrently for the remaining time to
textile and garment products from 2007 and to other products from 2012
depending on the business’ fulfillment of requirements (apart from export ratio
and use of domestic raw materials) in accordance with the legislative documents
on corporate income tax which is effective from the day on which the business
is issued with the establishment license to the effective date of the Decree
No. 24/2007/ND-CP dated February 14, 2007 of the Government providing guidance
on implementation of Law on corporate income tax, or in accordance with
regulations of legislative documents on corporate income tax at the time in
which tax incentives are adjusted due to the commitments to WTO.
If the adjustments specified in this Circular are
more advantageous than the adjustments specified in the previous legislative
documents although the enterprise chose the plan prescribed in the latter
(whether the businesses has undergone inspection or not). The enterprise shall
submit a revised declaration as prescribed in the Law on Tax administration and
guiding documents on implementation of tax administration, and their wrong
declaration due to revisions will not face penalties for violations against the
laws on taxation. In case the CIT paid by the enterprise is greater than the
amount payable according to the revised declaration, the taxpayer may decide
whether to offset it against the CIT payable of next tax period or claim a
refund as prescribed. In the cases where the enterprise has made adjustments in
accordance with WTO commitment for textile or garment products as prescribed in
the previous legislative documents, has incurred penalties for tax offences and
has paid the fines and late payment interest, it is not required to make any
adjustments.
Article 24. Responsibility for implementation
1. Tax authorities are responsible for
disseminating this Circular and instructing enterprises to implement this
Circular.
2. Enterprises regulated by this Circular shall
follow the instructions specified in this Circular.
Difficulties that arise during the implementation
of this Circular should be promptly reported to the Ministry of Finance of
Vietnam for consideration.
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PP. MINISTER
DEPUTY MINISTER
Tran Xuan Ha
LIST OF DOCUMENT
FORMS ENCLOSED WITH CIRCULAR ON CORPORATE INCOME TAX
1. Statement of purchases without invoices (Form
01).
2. Statement of electricity and water supply
payments (Form 02).
3. Confirmation of sponsorship for education (Form
03).
4. Confirmation of sponsorship for healthcare (Form
04).
5. Confirmation of sponsorship for disaster
recovery (Form 05).
6. Confirmation of sponsorship for construction of
housing for the poor (Form 06).
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8. Declaration of corporate income tax on sale of
the entire single-member limited liability company under the ownership of an
organization (Form 08).
Form No. 01/TNDN
(Enclosed with No. 78/2014/TT-BTC of the Ministry of Finance of
Vietnam)
STATEMENT OF
PURCHASES WITHOUT INVOICES
(Date:………………………….)
- Enterprise’s name: ……………………………………………………
…………………………………………………………………………….
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- Address: ..................................................................................................................
- Location of purchase:………………………………………………….
- Purchaser:
.....................................................................................
Date
Vendor
Goods purchased
Notes
Vendor’s name
Address
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Name
Quantity
Unit price
Total amount
1
2
3
4
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6
7
8
9
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- Total value of goods purchased:
……………………………………………………….
MAKER
(signature and full name)
Date:……………………
DIRECTOR
(signature and seal)
Notes:
- Purchases without invoices shall be sorted by
date. All details must be included. Purchases on the statement are based upon
documentary evidence between the buyer and the vendors. The statement must
specify the quantities, values, dates of purchases, addresses and ID numbers of
the vendors, and signatures of the vendors and the buyer.
- Each purchasing station of the enterprise (if
any) shall prepare a separate statement. A consolidated statement shall be
prepared by the enterprise.
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Form No. 02/TNDN
(Enclosed with No. 78/2014/TT-BTC of the Ministry of Finance of
Vietnam)
STATEMENT OF
ELECTRICITY AND WATER SUPPLY PAYMENTS48 (abrogated)
Form No. 03/TNDN
(Enclosed with No. 78/2014/TT-BTC of the Ministry of Finance of
Vietnam)
THE SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
---------------------
CONFIRMATION OF
SPONSORSHIP FOR EDUCATION
We, consisting of:
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Address:
Telephone number:
TIN:
Recipient’s name (educational
institution/student/organization):
Address:
Telephone number:
TIN (if any):
We hereby confirm the sponsorship given by
[sponsor’s name] to [recipient’s name] as:
- Sponsorship for a school □
- Sponsorship for provision of teaching and
learning equipment and school activities □
- Scholarships □
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Total sponsorship value
....................................
In cash:
……………...................................................................................................
In kind: …………… converted to VND:
………………….................................................
Financial instruments: …………… converted to VND:
………………
(enclosed with relevant documents about the
sponsorship).
[Fundraiser’s name] is committed to use the
sponsorship properly. The undersigned will take legal responsibility for
improper use of the sponsorship.
This confirmation is made at … on … into …. copies,
each of which is kept by a party.
RECIPIENT
(Signature, full name)
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Form No. 04/TNDN
(Enclosed with No. 78/2014/TT-BTC of the Ministry of Finance of
Vietnam)
THE SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
---------------------
CONFIRMATION OF
SPONSORSHIP FOR HEALTHCARE
We, consisting of:
Sponsor’s name:
Address:
Telephone number:
TIN:
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Address:
Telephone number:
TIN (if any):
We hereby confirm the sponsorship given by
[sponsor’s name] to [recipient’s name] as:
- Sponsorship for a health facility □
- Sponsorship for medical equipment/medicines □
- Monetary sponsorship □
Total sponsorship value
.......................................
In cash:
…………………............................................................................................
In kind: ……………converted to VND:
……………………....................................
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(enclosed with relevant documents about the
sponsorship).
[Recipient’s name] is committed to use the
sponsorship properly. The undersigned will take legal responsibility for
improper use of the sponsorship.
This confirmation is made at … on … into …. copies,
each of which is kept by a party.
RECIPIENT
DIRECTOR
Form No. 05/TNDN
(Enclosed with No. 78/2014/TT-BTC of the Ministry of Finance of
Vietnam)
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CONFIRMATION OF
SPONSORSHIP FOR DISASTER RECOVERY
We, consisting of:
Sponsor’s name:
Address:
Telephone number:
TIN:
Name of recipient or fundraiser:
Address:
Telephone number:
TIN (if any):
We hereby confirm the sponsorship given by
[sponsor’s name] to [recipient’s name] for disaster recovery: …………….
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In cash:
………………................................................................................................
In kind: …………….……… converted to VND: ………………
Financial instruments: …………… converted to VND:
………………
(enclosed with relevant documents about the
sponsorship).
[Recipient’s name] is committed to use the
sponsorship properly. The undersigned will take legal responsibility for
improper use of the sponsorship.
This confirmation is made at … on … into …. copies,
each of which is kept by a party.
RECIPIENT
(Signature, full name)
DIRECTOR
(signature and seal)
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Form No. 06/TNDN
(Enclosed with No. 78/2014/TT-BTC of the Ministry of Finance of
Vietnam)
THE SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
---------------------
CONFIRMATION OF
SPONSORSHIP FOR CONSTRUCTION OF HOUSING FOR THE POOR
We, consisting of:
Sponsor’s name:
Address:
Telephone number:
TIN:
Name of recipient or fundraiser:
...
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We hereby confirm the sponsorship given by
[sponsor’s name] to [recipient’s name] for construction of housing for the
poor.
Total sponsorship value
.......................................
In cash:
…………………............................................................................................
In kind: …………….……… converted to VND: ………………
Financial instruments: …………… converted to VND:
………………
(enclosed with relevant documents about the
sponsorship).
[Recipient’s or fundraiser’s name] is
committed to use the sponsorship properly. The undersigned will take legal
responsibility for improper use of the sponsorship.
This confirmation is made at … on … into …. copies,
each of which is kept by a party.
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DIRECTOR
(signature and seal)
Form No. 07/TNDN
(Enclosed with No. 78/2014/TT-BTC of the Ministry of Finance of
Vietnam)
THE SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
---------------------
CONFIRMATION OF
SPONSORSHIP FOR EXTREMELY DISADVANTAGED AREAS UNDER STATE PROGRAM
We, consisting of:
Sponsor’s name:
Address:
Telephone number:
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Name of recipient or fundraiser:
Address:
Telephone number:
We hereby confirm the sponsorship given by
[sponsor's name] to [recipient's name] for development of extremely
disadvantaged areas under the State program.
Total sponsorship value .......................................
In cash:
…………………….........................................................................................
In kind: …………….……… converted to VND: ………………
Financial instruments: …………… converted to VND:
………………
(enclosed with relevant documents about the
sponsorship).
[Recipient’s or fundraiser’s name] is
committed to use the sponsorship properly. The undersigned will take legal
responsibility for improper use of the sponsorship.
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RECIPIENT
(Signature, full name)
DIRECTOR
(signature and seal)
Form No. 08/TNDN
(Enclosed with No. 78/2014/TT-BTC of the Ministry of Finance of
Vietnam)
THE SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
---------------------
CORPORATE INCOME
TAX DECLARATION
(For
enterprises declaring corporate income tax on derived from sale of an entire
single-member limited liability company under the ownership of an organization
by transferring stakes and real estate)
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[02] First declaration
□
[03] Addition: □
1. Transferor:
[04] Name of
taxpayer:......................................................................................................
[05] Tax identification number (TIN):
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[06] Address: ...................................................................................................
...
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[09] Telephone: ………………………… [10]
Fax: ……………… [11] Email: ..... ……
2. Transferee:
[12] Transferee’s name:
.....................................................
[13] TIN (of enterprise) or ID number (or
individual):
...
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[15] Transfer contract No. … dated …
notarized or certified by the People’s Committee of the commune on……
[16] Name of tax agent (if any): ……………….....................……………….....................
[17] Tax identification number (TIN):
...
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[18] Address: ...............................................................................................................
[19] Urban/suburban district: ………………………… [20]
Province/city: .................................
...
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[24] Tax agent contract: number:
.....................................dated…………………….
Unit: VND
No.
Items
Code
Amount
(1)
(2)
(3)
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1
Revenue from sale of the entire company in
association with real estate transfer
[25]
2
Costs of the sale
[26]
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2.1
- Cost price of land area transferred
[27]
2.2
- Cost of land compensation
[28]
...
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2.3
- Cost of crop loss compensation
[29]
2.4
- Cost of soil improvement and leveling
[30]
2.5
...
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[31]
2.6
- Other costs (including buying price for the
stake transferred)
[32]
3
Income from sale of the entire company in
association with real estate transfer ([33]=[25]-[26])
[33]
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4
Loss on the real estate transfer carriedforward
in this period
[34]
5
Assessable income from the sale ([35]=[33]-[34])
[35]
6
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[36]
7
CIT payable ([37]=[35] x [36])
[37]
I hereby undertake that the information provided
above is true to the best of my knowledge and I shall assume legal liability
for such information./.
TAX AGENT’S EMPLOYEE
Full name: ………….Practising Certificate No.......
...
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1
This is the consolidated document of the following 07 Circulars:
- The Circular No. 78/2014/TT-BTC dated June 18,
2014 providing guidelines for implementation of the Government's Decree No.
218/2013/ND-CP dated December 26, 2013 providing guidelines for implementation
of the Law on Corporate Income Tax, which comes into force from August 02,
2014;
- The Circular No. 119/2014/TT-BTC dated August 25,
2014 of the Ministry of Finance on amendments to the Circular No.
156/2013/TT-BTC dated November 06, 2013, the Circular No. 111/2013/TT-BTC dated
August 15, 2013, the Circular No. 219/2013/TT-BTC dated December 31, 2013, the
Circular No. 08/2013/TT-BTC dated January 10, 2013, the Circular No.
85/2011/TT-BTC dated June 17, 2011, the Circular No. 39/2014/TT-BTC dated March
31, 2014 and the Circular No. 78/2014/TT-BTC dated June 18, 2014 of the
Ministry of Finance to simplify tax formalities, which comes into force from
September 01, 2014;
- The Circular No. 151/2014/TT-BTC dated October
10, 2014 of the Ministry of Finance providing guidelines for implementation of
the Government's Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments
to tax decrees, which comes into force from November 15, 2014;
- The Circular No. 96/2015/TT-BTC dated June 22,
2015 of the Ministry of Finance providing guidelines for corporate income tax
in the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 providing
guidelines for the Law on amendments to Laws on taxation and amendments to tax
degrees, and amendments to some Articles of Circular No. 78/2014/TT-BTC
dated June 18, 2014, Circular No. 119/2014/TT-BTC dated August 25,
2014, and Circular No. 151/2014/TT-BTC dated October 10, 2014 of the
Ministry of Finance, which comes into force from August 06, 2015.
- The Joint Circular No. 12/2016/TTLT-BKHCN-BTC
dated June 28, 2016 of the Ministry of Science and Technology of Vietnam and
the Ministry of Finance of Vietnam providing guidelines for spending contents
and management of enterprises’ science and technology development funds, which
comes into force from September 01, 2016.
- The Circular No. 130/2016/TT-BTC dated August 12,
2016 of the Ministry of Finance of Vietnam providing guidelines for the
Government’s Decree No. 100/2016/ND-CP dated July 01, 2016 elaborating and
providing guidelines for some Articles of the Law on amendments to the Law on
Value-added tax, the Law on excise tax and the Law on Tax administration, and
amendments to Circulars on taxation, which comes into force from July 01, 2016.
- The Circular No. 25/2018/TT-BTC dated March 16,
2018 of the Ministry of Finance providing guidelines for the Government’s
Decree No. 146/2017/ND-CP dated December 15, 2017 providing amendments to the
Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance, the
Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance,
which comes into force from May 01, 2018.
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2
The Circular No. 119/2014/TT-BTC dated August 25, 2014 of the Ministry of
Finance on amendments to the Circular No. 156/2013/TT-BTC dated November 06,
2013, the Circular No. 111/2013/TT-BTC dated August 15, 2013, the Circular No.
219/2013/TT-BTC dated December 31, 2013, the Circular No. 08/2013/TT-BTC dated
January 10, 2013, the Circular No. 85/2011/TT-BTC dated June 17, 2011, the
Circular No. 39/2014/TT-BTC dated March 31, 2014 and the Circular No.
78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance to simplify tax
formalities, is promulgated pursuant to:
“The Law on Tax Administration No.
78/2006/QH11 dated November 29, 2006 and the Law No. 21/2012/QH13 dated
November 20, 2012 providing amendments to the Law on tax administration;
The Law on value-added tax No. 13/2008/QH12
dated June 03, 2008 and the Law No. 31/2013/QH13 dated June 19, 2013 providing
amendments to the Law on value-added tax;
The Government’s Decree No. 83/2013/ND-CP dated
July 22, 2013 on guidelines for implementation of the Law on Tax Administration
and the Law on Amendments to the Law on Tax Administration;
The Government’s Decree No. 209/2013/ND-CP dated
December 18, 2013 elaborating and providing guidelines for the Law on
Value-added Tax;
The Government’s Decree No. 51/2010/ND-CP dated
May 14, 2010 on invoices for goods sale and service provision and the Decree
No. 04/2014/ND-CP dated January 17, 2014 on amendments to the Decree No.
51/2010/ND-CP dated May 14, 2010;
The Government’s Decree No. 218/2013/ND-CP dated
December 26, 2013 on guidelines for implementation of the Law on Corporate
Income Tax;
The Government’s Decree No. 215/2013/ND-CP dated
December 23, 2013 defining functions, tasks, powers and organizational
structure of Ministry of Finance;
At the request of the Director of the General
Department of Taxation,”
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“The Law on Tax Administration No.
78/2006/QH11 and Law No. 21/2012/QH13 on Amendments to the Law on Tax
Administration;
The Law on Personal Income Tax No. 04/2007/QH12
and Law No. 26/2012/QH13 on Amendments to the Law on Personal Income Tax;
The Law on value-added tax No. 13/2008/QH12 and
the Law No. 31/2013/QH13 providing amendments to the Law on value-added tax;
The Law on Corporate Income Tax No. 14/2008/QH12
and the Law No. 32/2013/QH13 on Amendments to the Law on Corporate Income Tax;
The Government’s Decree No. 83/2013/ND-CP dated
July 22, 2013 on guidelines for implementation of the Law on Tax Administration
and the Law on Amendments to the Law on Tax Administration;
The Government's Decree No. 65/2013/ND-CP dated
June 27, 2013 providing guidance on the Law on personal income tax and the Law
on amendments to the Law on personal income tax;
The Government’s Decree No. 209/2013/ND-CP dated
18 December 2013 providing guidance on the implementation of the Law on Value-added
tax;
The Government's Decree No. 218/2013/ND-CP dated
December 26, 2013 providing guidance on the implementation of the Law on
Corporate income tax;
The Government’s Decree No. 91/2014/ND-CP dated
October 01, 2014 providing amendments to tax decrees;
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At the request of the Director of the General
Department of Taxation,”
- The Circular No. 96/2015/TT-BTC dated June 22,
2015 of the Ministry of Finance providing guidelines for corporate income tax
in the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on
guidelines for the Law on amendments to Laws on taxation and amendments to
Degrees on taxation, and amendments to some Articles of Circular
No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance is
promulgated pursuant to:
“The Law on Corporate Income Tax No.
14/2008/QH12 and the Law No. 32/2013/QH13 on Amendments to the Law on Corporate
Income Tax;
The Law No. 71/2014/QH13 on amendments to some
Articles of Laws on taxation;
The Government’s Decree No. 218/2013/ND-CP dated
December 26, 2013 elaborating and providing guidelines for implementation of
the Law on Corporate Income Tax;
The Government's Decree No. 12/2015/ND-CP dated
February 12, 2015 on guidelines for the Law on amendments to Laws on taxation
and amendments to Degrees on taxation;
The Government’s Decree No. 215/2013/ND-CP dated
December 23, 2013 defining functions, tasks, powers and organizational
structure of Ministry of Finance;
At the request of the Director of the General
Department of Taxation,”
- The Joint Circular No. 12/2016/TTLT-BKHCN-BTC
providing guidelines for spending contents and management of enterprises’
science and technology development funds is promulgated pursuant to:
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The Law on Science and Technology No.
29/2013/QH13 dated June 18, 2013;
The Government's Decree No. 95/2014/ND-CP dated
October 17, 2014 prescribing investment and financial mechanisms for science
and technology activities;
The Government’s Decree No. 218/2013/ND-CP dated
December 26, 2013 elaborating and providing guidelines for implementation of
the Law on Corporate Income Tax;
The Government’s Decree No. 20/2013/ND-CP dated
February 26, 2013 defining functions, tasks, powers and organizational
structure of the Ministry of Science and Technology;
The Government’s Decree No. 215/2013/ND-CP dated
December 23, 2013 defining functions, tasks, powers and organizational
structure of Ministry of Finance;”
- The Circular No. 130/2016/TT-BTC providing
guidelines for the Government’s Decree No. 100/2016/ND-CP dated July 01, 2016
elaborating and providing guidelines for some Articles of the Law on amendments
to the Law on Value-added tax, the Law on excise tax and the Law on Tax
administration, and amendments to Circulars on taxation, is promulgated
pursuant to:
“The Law on Tax Administration No.
78/2006/QH11 and Law No. 21/2012/QH13 on Amendments to the Law on Tax
Administration;
The Law on value-added tax No. 13/2008/QH12 and
the Law No. 31/2013/QH13 providing amendments to the Law on value-added tax;
The Law No. 106/2016/QH13 providing amendments
to the Law on Value-added tax, the Law on special excise duty and the Law on
Tax administration;
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The Government’s Decree No. 83/2013/ND-CP dated
July 22, 2013 on guidelines for implementation of the Law on Tax Administration
and the Law on Amendments to the Law on Tax Administration;
The Government’s Decree No. 218/2013/ND-CP dated
December 26, 2013 elaborating and providing guidelines for implementation of
the Law on Corporate Income Tax;
The Government’s Decree No. 100/2016/ND-CP dated
July 01, 2016 elaborating and providing guidance on the Law on amendments to
certain articles of the Law on value-added tax, the Law on excise tax and the
Law on tax administration;
The Government’s Decree No. 215/2013/ND-CP dated
December 23, 2013 defining functions, tasks, powers and organizational
structure of Ministry of Finance;
At the request of the Director of the General
Department of Taxation,”
- The Circular No. 25/2018/TT-BTC providing
guidelines for the Government’s Decree No. 146/2017/ND-CP dated December 15,
2017 providing amendments to the Circular No. 78/2014/TT-BTC dated June 18,
2014 of the Ministry of Finance, the Circular No. 111/2013/TT-BTC dated August
15, 2013 of the Ministry of Finance, is promulgated pursuant to:
“The Law on securities No. 70/2006/QH11
dated June 29, 2006 and the Law No. 62/2010/QH12 on amendments to the Law on
securities dated November 24, 2010;
The Law on Personal Income Tax No. 04/2007/QH12
dated November 21, 2007, and the Law on Amendments to the Law on Personal
Income Tax No. 26/2012/QH13 dated November 22, 2012;
The Law on Enterprises No. 68/2014/QH13 dated
November 26, 2014;
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The Law No. 106/2016/QH13 dated April 06, 2016
on amendments to the Law on Value-added tax, the Law on special excise duty and
the Law on Tax administration;
The Government's Decree No. 65/2013/ND-CP dated
June 27, 2013 providing guidance on the Law on personal income tax and the Law
on amendments to the Law on personal income tax;
The Government’s Decree No. 12/2015/ND-CP dated
February 12, 2015 elaborating the Law on amendments to tax laws and decrees on
taxation;
The Government’s Decree No. 100/2016/ND-CP dated
July 01, 2016 elaborating and providing guidance on the Law on amendments to
certain articles of the Law on value-added tax, the Law on excise tax and the
Law on tax administration;
The Government’s Decree No. 146/2017/ND-CP dated
December 15, 2017 providing amendments to the Government’s Decree No.
100/2016/ND-CP dated July 01, 2016 and the Government’s Decree No.
12/2015/ND-CP dated February 12, 2015;
The Government’s Decree No. 87/2017/ND-CP dated
July 26, 2017 defining functions, tasks, powers and organizational structure of
the Ministry of Finance of Vietnam;
At the request of the Director of the General
Department of Taxation,”
3
This Clause is amended by Article 1 of the Circular No. 96/2015/TT-BTC dated
June 22, 2015 of the Ministry of Finance providing guidelines for corporate
income tax in the Government's Decree No. 12/2015/ND-CP dated February 12, 2015
providing guidelines for the Law on amendments to Laws on taxation and
amendments to tax degrees, and amendments to some Articles of Circular
No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
4
This Clause is amended by Article 2 of the Circular No. 96/2015/TT-BTC dated
June 22, 2015 of the Ministry of Finance providing guidelines for corporate
income tax in the Government's Decree No. 12/2015/ND-CP dated February 12, 2015
providing guidelines for the Law on amendments to Laws on taxation and
amendments to tax degrees, and amendments to some Articles of Circular
No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
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6
This Point is amended by Clause 1 Article 6 of the Circular No. 119/2014/TT-BTC
dated August 25, 2014 of the Ministry of Finance on amendments to the Circular
No. 156/2013/TT-BTC dated November 06, 2013, the Circular No. 111/2013/TT-BTC
dated August 15, 2013, the Circular No. 219/2013/TT-BTC dated December 31,
2013, the Circular No. 08/2013/TT-BTC dated January 10, 2013, the Circular No.
85/2011/TT-BTC dated June 17, 2011, the Circular No. 39/2014/TT-BTC dated March
31, 2014 and the Circular No. 78/2014/TT-BTC dated June 18, 2014 of the
Ministry of Finance to simplify tax formalities, which comes into force from
September 01, 2014.
7
This Article is amended by Article 4 of the Circular No. 96/2015/TT-BTC dated
June 22, 2015 of the Ministry of Finance providing guidelines for corporate
income tax in the Government's Decree No. 12/2015/ND-CP dated February 12, 2015
providing guidelines for the Law on amendments to Laws on taxation and
amendments to tax degrees, and amendments to some Articles of Circular
No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
Clause 2.21 Article 6 of Circular No.
78/2014/TT-BTC dated June 18, 2014 is abrogated according to Clause 2 Article
14 of the Circular No. 96/2015/TT-BTC, which comes into force from August 06,
2015).
(Part of this Article is amended by Clause
2 Article 6 of Circular No. 119/2014/TT-BTC, which comes into force from
September 01, 2014 and by Article 1 of Circular No. 151/2014/TT-BTC, which
comes into force from November 15, 2014).
8
This paragraph is added according to clause 1 Article 3 of the Circular No.
25/2018/TT-BTC providing guidelines for the Government’s Decree No.
146/2017/ND-CP dated December 15, 2017 providing amendments to the Circular No.
78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance, the Circular No.
111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, which comes
into force from May 01, 2018.
9
This Point is amended according to clause 2 Article 3 of the Circular No.
25/2018/TT-BTC providing guidelines for the Government’s Decree No.
146/2017/ND-CP dated December 15, 2017 providing amendments to the Circular No.
78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance, the Circular No.
111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, which comes
into force from May 01, 2018.
10
This Point is amended according to clause 3 Article 3 of the Circular No.
25/2018/TT-BTC providing guidelines for the Government’s Decree No.
146/2017/ND-CP dated December 15, 2017 providing amendments to the Circular No.
78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance, the Circular No.
111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, which comes
into force from May 01, 2018.
11
This paragraph is amended according to clause 4 Article 3 of the Circular No.
25/2018/TT-BTC providing guidelines for the Government’s Decree No.
146/2017/ND-CP dated December 15, 2017 providing amendments to the Circular No.
78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance, the Circular No.
111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, which comes
into force from May 01, 2018.
12
This paragraph is amended by clause 1Article 5 of the Circular No.
96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance providing
guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular No. 151/2014/TT-BTC
dated October 10, 2014 of the Ministry of Finance, which comes into force from
August 06, 2015.
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14
This Clause is amended by Article 2 of Circular No. 151/2014/TT-BTC providing
guidelines for implementation of the Government’s Decree No. 91/2014/ND-CP
dated October 01, 2014 on amendments to tax decrees, which comes into force
from November 15, 2014.
15
This clause is replaced by clause 3 Article 5 of the Circular No.
96/2015/TT-BTC providing guidelines for corporate income tax in the
Government's Decree No. 12/2015/ND-CP dated February 12, 2015 providing
guidelines for the Law on amendments to Laws on taxation and amendments to tax
degrees, and amendments to some Articles of Circular No. 78/2014/TT-BTC
dated June 18, 2014, Circular No. 119/2014/TT-BTC dated August 25,
2014, and Circular No. 151/2014/TT-BTC dated October 10, 2014 of the
Ministry of Finance, which comes into force from August 06, 2015.
16
This clause is amended by clause 1 Article 6 of the Circular No.
96/2015/TT-BTC providing guidelines for corporate income tax in the
Government's Decree No. 12/2015/ND-CP dated February 12, 2015 providing
guidelines for the Law on amendments to Laws on taxation and amendments to tax
degrees, and amendments to some Articles of Circular No. 78/2014/TT-BTC
dated June 18, 2014, Circular No. 119/2014/TT-BTC dated August 25,
2014, and Circular No. 151/2014/TT-BTC dated October 10, 2014 of the
Ministry of Finance, which comes into force from August 06, 2015.
17
This Clause is amended by Article 3 of Circular No. 151/2014/TT-BTC providing
guidelines for implementation of the Government’s Decree No. 91/2014/ND-CP
dated October 01, 2014 on amendments to tax decrees, which comes into force
from November 15, 2014.
18
This clause is amended by clause 2 Article 6 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
(This Clause is amended by Article 4 of
the Circular No. 151/2014/TT-BTC, which has been effective since November 15,
2014).
19
This clause is amended by clause 3 Article 6 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
20
This Clause is amended by Article 7 of the Circular No. 96/2015/TT-BTC dated
June 22, 2015 of the Ministry of Finance providing guidelines for corporate
income tax in the Government's Decree No. 12/2015/ND-CP dated February 12, 2015
providing guidelines for the Law on amendments to Laws on taxation and
amendments to tax degrees, and amendments to some Articles of Circular
No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
21
This Article is abrogated according to point d clause 2 Article 18 of the Joint
Circular No. 12/2016/TTLT-BKHCN-BTC providing guidelines for spending contents
and management of enterprises’ science and technology development funds, which
comes into force from September 01, 2016.
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23
This Clause is amended by Article 9 of the Circular No. 96/2015/TT-BTC dated
June 22, 2015 of the Ministry of Finance providing guidelines for corporate income
tax in the Government's Decree No. 12/2015/ND-CP dated February 12, 2015
providing guidelines for the Law on amendments to Laws on taxation and
amendments to tax degrees, and amendments to some Articles of Circular
No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
24
This clause is amended by clause 1 Article 10 of the Circular No.
96/2015/TT-BTC providing guidelines for corporate income tax in the
Government's Decree No. 12/2015/ND-CP dated February 12, 2015 providing
guidelines for the Law on amendments to Laws on taxation and amendments to tax
degrees, and amendments to some Articles of Circular No. 78/2014/TT-BTC
dated June 18, 2014, Circular No. 119/2014/TT-BTC dated August 25,
2014, and Circular No. 151/2014/TT-BTC dated October 10, 2014 of the
Ministry of Finance, which comes into force from August 06, 2015.
25
This clause is amended by clause 2 Article 10 of the Circular No.
96/2015/TT-BTC providing guidelines for corporate income tax in the
Government's Decree No. 12/2015/ND-CP dated February 12, 2015 providing guidelines
for the Law on amendments to Laws on taxation and amendments to tax degrees,
and amendments to some Articles of Circular No. 78/2014/TT-BTC dated June
18, 2014, Circular No. 119/2014/TT-BTC dated August 25, 2014, and
Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of
Finance, which comes into force from August 06, 2015.
26
This clause is amended by clause 3 Article 10 of the Circular No.
96/2015/TT-BTC providing guidelines for corporate income tax in the
Government's Decree No. 12/2015/ND-CP dated February 12, 2015 providing
guidelines for the Law on amendments to Laws on taxation and amendments to tax
degrees, and amendments to some Articles of Circular No. 78/2014/TT-BTC
dated June 18, 2014, Circular No. 119/2014/TT-BTC dated August 25,
2014, and Circular No. 151/2014/TT-BTC dated October 10, 2014 of the
Ministry of Finance, which comes into force from August 06, 2015.
(This Clause is amended by Article 5 of
the Circular No. 151/2014/TT-BTC, which has been effective since November 15,
2014).
27
This Point is amended by clause 4 Article 10 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
The replacement of the phrase “Khu công nghiệp nằm
trên địa bàn các quận nội thành của đô thị loại đặc biệt, đô thị loại I trực thuộc
trung ương và khu công nghiệp nằm trên địa bàn các đô thị loại I trực thuộc
tỉnh” (“Industrial zones in the administrative divisions of urban districts of
special class cities, class I cities affiliated to the central and industrial
zones in the administrative divisions of class I cities affiliated to
provinces") in Circular No. 78/2014/TT-BTC with the phrase “Khu công
nghiệp nằm trên địa bàn các quận nội thành của đô thị loại đặc biệt, đô thị
loại I trực thuộc trung ương và các đô thị loại I trực thuộc tỉnh, không bao
gồm các quận của đô thị loại đặc biệt, đô thị loại I trực thuộc trung ương và
các đô thị loại I trực thuộc tỉnh mới được thành lập từ huyện kể từ ngày
01/01/2009” (“Industrial zones in the administrative divisions of special class
cities, class I cities affiliated to the central and class I cities affiliated
to provinces, not including aforesaid districts converted from towns from
January 1, 2009" is specified in Clause 1 Article 23 of Circular No.
151/2014/TT-BTC providing guidelines for implementation of the Government’s
Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to tax decrees,
which comes into force from November 15, 2014.
28
This point is added according to Article 5 of the Circular No. 130/2016/TT-BTC
providing guidelines for the Government’s Decree No. 100/2016/ND-CP dated July
01, 2016 elaborating and providing guidelines for some Articles of the Law on
amendments to the Law on Value-added tax, the Law on excise tax and the Law on Tax
administration, and amendments to Circulars on taxation, which comes into force
from July 01, 2016.
29
This clause is added by clause 5 Article 10 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
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Point dd of this Clause is amended according to
Clause 3 Article 6 of the Circular No. 119/2014/TT-BTC, coming into force from
September 01, 2014.
31
This point is amended by Article 1 of the Decision No. 2465/QD-BTC providing
amendments to the Circular No. 96/2015/TT-BTC dated June 22, 2015 of the
Ministry of Finance of Vietnam providing guidelines for corporate income tax in
the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 providing
guidelines for the Law on amendments to Laws on taxation and amendments to tax
degrees, and amendments to some Articles of Circular No. 78/2014/TT-BTC
dated June 18, 2014, Circular No. 119/2014/TT-BTC dated August 25,
2014, and Circular No. 151/2014/TT-BTC dated October 10, 2014 of the
Ministry of Finance, which comes into force from November 23, 2015.
32
This clause is amended by clause 2 Article 11 of the Circular No.
96/2015/TT-BTC providing guidelines for corporate income tax in the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 providing guidelines for the
Law on amendments to Laws on taxation and amendments to tax degrees, and
amendments to some Articles of Circular No. 78/2014/TT-BTC dated June 18,
2014, Circular No. 119/2014/TT-BTC dated August 25, 2014, and
Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of
Finance, which comes into force from August 06, 2015.
33
This Point is amended by clause 3 Article 11 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
34
This Point is amended by clause 4 Article 11 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
35
This clause is added by clause 5 Article 11 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
36
This Point is amended by clause 1 Article 12 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
37
This Clause is amended by Article 6 of Circular No. 151/2014/TT-BTC providing
guidelines for implementation of the Government’s Decree No. 91/2014/ND-CP
dated October 01, 2014 on amendments to tax decrees, which comes into force
from November 15, 2014.
38
This clause is amended by clause 2 Article 12 of the Circular No.
96/2015/TT-BTC providing guidelines for corporate income tax in the
Government's Decree No. 12/2015/ND-CP dated February 12, 2015 providing guidelines
for the Law on amendments to Laws on taxation and amendments to tax degrees,
and amendments to some Articles of Circular No. 78/2014/TT-BTC dated June
18, 2014, Circular No. 119/2014/TT-BTC dated August 25, 2014, and
Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of
Finance, which comes into force from August 06, 2015.
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40
Article 7 of the Circular No. 119/2014/TT-BTC on amendments to the Circular No.
156/2013/TT-BTC dated November 06, 2013, the Circular No. 111/2013/TT-BTC dated
August 15, 2013, the Circular No. 219/2013/TT-BTC dated December 31, 2013, the
Circular No. 08/2013/TT-BTC dated January 10, 2013, the Circular No.
85/2011/TT-BTC dated June 17, 2011, the Circular No. 39/2014/TT-BTC dated March
31, 2014 and the Circular No. 78/2014/TT-BTC dated June 18, 2014 of the
Ministry of Finance to simplify tax formalities, which comes into force from
September 01, 2014, stipulates as follows:
“Article 7. Effect
1. This Circular comes into force from September
01, 2014.
When a company needs time to prepare for
following the procedures and making the forms provided in the Circulars
mentioned in Clause 2 of this Article, it may choose the procedures and forms
according to current regulations and the regulations on amendment by October
31, 2014 without being required to notify and register with the tax authority.
The General Department of Taxation shall provide instructions on the
implementation of this regulation.
2. The instructions and forms provided in the
Circular No. 156/2013/TT-BTC dated November 06, 2013, Circular No.
111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated
December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular
No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March
31, 2014 and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of
Finance that is amended, replaced or annulled by this Circular are invalidated.
3. Other administrative procedures related to
taxation that are not mentioned in this Circular shall be implemented according
to applicable regulations of law.
Difficulties that arise during the
implementation of this Circular should be promptly reported to the Ministry of
Finance for resolution./.”
- Article 22, Article 24 and Article 25 of Circular
No. 151/2014/TT-BTC providing guidelines for implementation of the Government’s
Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to tax decrees,
which comes into force from November 15, 2014, stipulate that:
“Article 22. Effect
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Regulations in Chapter I of this Circular shall
apply to the corporate income tax period from 2014.
Article 24. Temporarily, CIT shall
not been collected (including cases in which a Decision on handling with tax
collection is granted, or businesses are undergone complaints handling) applied
to facilities involved in private sectors such as education, vocational
training, heath, culture, sport, or environment but have not satisfied with the
List of types, scale, or standards applied to facilities involved in private
sectors such as education, vocational training, heath, culture, sport, or
environment prescribed in regulations of the Prime Minister until new guiding
documents of competent agencies are granted.
Article 25. Responsibility for
implementation
1. People’s Committees of provinces and
central-affiliated cities shall direct competent agencies to correctly
implement regulations of the Government and guidance of the Ministry of
Finance.
2. The tax authorities are responsible for
instructing organizations and individuals to implement regulations of this
Circular.
3. Regulated entities of this Circular must
implement the guidelines provided in this Circular.
Difficulties that arise during the
implementation of this Circular should be promptly reported to the Ministry of
Finance of Vietnam for consideration./.”
- Article 14 and Article 15 of Circular No.
96/2015/TT-BTC providing guidelines for corporate income tax in the
Government’s Decree no. 12/2015/ND-CP dated February 12, 2015 elaborating the
Law on amendments to tax laws and tax decrees and amendments to Circular No.
78/2014/TT-BTC dated June 18, 2014, Circular No. 119/2014/TT-BTC dated August
25, 2014, Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry
of Finance, which comes into force from August 06, 2015 stipulate that:
“Article 14. Effect
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- With regard to enterprises whose fiscal years
are different from the solar calendar year:
+ The transfer of CIT incentives (tax
exemption/reduction period, preferential tax rate period) specified in this
Circular will apply to the remaining period from the tax period 2015.
+ Other amendments come into force from January
01, 2015.
- Enterprises shall declare and pay tax on
incomes from overseas investment projects that are set up in the tax period
2014 and earlier in accordance with the Circular on CIT applicable at that
time. From 2015, transfer of such incomes to Vietnam is exempt from CIT. This
Circular applies to incomes from overseas investment projects from the tax
period 2015.
2. Point 2.21 of Clause 2 Article
6, Clause 5 Article 20 of Circular No. 78/2014/TT-BTC and guidance on CIT
promulgated by the Ministry of Finance and other authorities that contravene
this Circular are abolished.
Article 15. Responsibility for implementation
1. People’s Committees of
provinces and central-affiliated cities shall direct competent agencies to
correctly implement regulations of the Government and guidance of the Ministry
of Finance.
2. Tax authorities are responsible
for disseminating this Circular and instructing enterprises to implement this
Circular.
3. Enterprises regulated by this
Circular shall follow the instructions specified in this Circular.
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- Article 18 of the Joint Circular No.
12/2016/TTLT-BKHCN-BTC providing guidelines for spending contents and
management of enterprises’ science and technology development funds, which
comes into force from September 01, 2016 stipulates as follows:
“Article 18. Effect and implementation
organization
1. This Circular comes into force from September
01, 2016 and applies to establishment, management and use of science and technology
funds in enterprises from the tax period 2016 onwards.
2. The following regulations and documents shall
cease to have effect from the effective date of this Circular:
a) Decision No. 36/2007/QD-BTC dated May 16,
2007 of the Ministry of Finance of Vietnam introducing regulations on
organization and operation of funds for science and technology development of
organizations, individuals and enterprises.
b) The Circular No. 15/2011/TT-BTC dated
February 09, 2011 of the Ministry of Finance of Vietnam providing guidelines
for establishment, organization, operation, management and use of funds for
science and technology development of enterprises;
c) The Circular No. 105/2012/TT-BTC dated June
25, 2012 of the Ministry of Finance of Vietnam providing amendments to the
Circular No. 15/2011/TT-BTC dated February 09, 2011 of the Ministry of Finance
of Vietnam providing guidelines for establishment, organization, operation,
management and use of funds for science and technology development of
enterprises;
d) Article 10 of the Circular No. 78/2014/TT-BTC
dated June 18, 2014 of the Ministry of Finance of Vietnam providing guidelines
for implementation of the Government's Decree No. 218/2013/ND-CP dated December
26, 2013 providing guidelines for implementation of the Law on Corporate Income
Tax.
dd) Form 03-6/TNDN enclosed with the Circular
No. 156/2013/TT-BTC dated November 06, 2013 of the Ministry of Finance of
Vietnam providing guidelines for implementation of the Law on tax
administration; the Law on amendments to the Law on tax administration and the
Government’s Decree No. 83/2013/ND-CP dated July 22, 2013.
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4. If any legislative documents referred to in
this Circular are amended or superseded, the new ones shall apply.
5. Difficulties that arise during the
implementation of this Circular should be promptly reported to the Ministry of
Science and Technology of Vietnam or the Ministry of Finance of Vietnam for
consideration./”
- Article 6 and Article 7 of the Circular No.
130/2016/TT-BTC providing guidelines for the Government’s Decree No.
100/2016/ND-CP dated July 01, 2016 elaborating and providing guidelines for
some Articles of the Law on amendments to the Law on Value-added tax, the Law
on excise tax and the Law on Tax administration, and amendments to Circulars on
taxation, which comes into force from July 01, 2016, stipulate that:
“Article 6. Effect
1. This Circular comes into force, except for
Clause 2 of this Article, from the effective date of the Law No. 106/2016/QH13
and the Government’s Decree No. 100/2016/ND-CP.
2. Article 4 of this Circular takes effect from
the tax period of 2016.
Article 7. Implementation
1. People’s Committees of provinces and
central-affiliated cities shall direct competent agencies to correctly
implement regulations of the Government and guidance of the Ministry of Finance
of Vietnam.
2. The tax authorities are responsible for
instructing organizations and individuals to implement regulations of this
Circular.
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Difficulties that arise during the
implementation of this Circular should be promptly reported to the Ministry of
Finance of Vietnam for consideration./.”
- Article 5 of the Circular No. 25/2018/TT-BTC
providing guidelines for the Government’s Decree No. 146/2017/ND-CP dated
December 15, 2017 providing amendments to the Circular No. 78/2014/TT-BTC dated
June 18, 2014 of the Ministry of Finance, the Circular No. 111/2013/TT-BTC
dated August 15, 2013 of the Ministry of Finance, which comes into force from
May 01, 2018, stipulates that:
“Article 5. Effect
1. This Circular comes into force from May 01,
2018.
2. Cases that arise from February 01, 2018 and
are the subject of the Decree No. 146/2017/ND-CP are specified in the Decree
No. 146/2017/ND-CP and Article 1, Article 2, Clauses 2, 3 and 4 Article 3 of
this Circular.
3. Difficulties that arise during the
implementation of this Circular should be promptly reported to the Ministry of
Finance of Vietnam for consideration./.”
41
This clause is added by clause 1 Article 13 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
42
This clause is added by clause 1 Article 13 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
43
This clause is added by clause 1 Article 13 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.
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45
This clause is added by clause 1 Article 13 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular No. 151/2014/TT-BTC
dated October 10, 2014 of the Ministry of Finance, which comes into force from
August 06, 2015.
46
This clause is amended by clause 2 Article 13 of the Circular No.
96/2015/TT-BTC providing guidelines for corporate income tax in the
Government's Decree No. 12/2015/ND-CP dated February 12, 2015 providing
guidelines for the Law on amendments to Laws on taxation and amendments to tax
degrees, and amendments to some Articles of Circular No. 78/2014/TT-BTC dated
June 18, 2014, Circular No. 119/2014/TT-BTC dated August 25, 2014,
and Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of
Finance, which comes into force from August 06, 2015.
The replacement of the phrase “Khu công nghiệp nằm
trên địa bàn các quận nội thành của đô thị loại đặc biệt, đô thị loại I trực
thuộc trung ương và khu công nghiệp nằm trên địa bàn các đô thị loại I trực
thuộc tỉnh” (“Industrial zones in the administrative divisions of urban
districts of special class cities, class I cities affiliated to the central and
industrial zones in the administrative divisions of class I cities affiliated
to provinces") in Circular No. 78/2014/TT-BTC with the phrase “Khu
công nghiệp nằm trên địa bàn các quận nội thành của đô thị loại đặc biệt, đô
thị loại I trực thuộc trung ương và các đô thị loại I trực thuộc tỉnh, không
bao gồm các quận của đô thị loại đặc biệt, đô thị loại I trực thuộc trung ương
và các đô thị loại I trực thuộc tỉnh mới được thành lập từ huyện kể từ ngày
01/01/2009” (“Industrial zones in the administrative divisions of special class
cities, class I cities affiliated to the central and class I cities affiliated
to provinces, not including aforesaid districts converted from towns from
January 1, 2009" is specified in Clause 1 Article 23 of Circular No.
151/2014/TT-BTC providing guidelines for implementation of the Government’s
Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to tax decrees,
which comes into force from November 15, 2014.
47
This Clause is amended by Article 7 of Circular No. 151/2014/TT-BTC providing
guidelines for implementation of the Government’s Decree No. 91/2014/ND-CP
dated October 01, 2014 on amendments to tax decrees, which comes into force
from November 15, 2014.
48
This form is abrogated by Article 4 of the Circular No. 96/2015/TT-BTC
providing guidelines for corporate income tax in the Government's Decree No.
12/2015/ND-CP dated February 12, 2015 providing guidelines for the Law on
amendments to Laws on taxation and amendments to tax degrees, and amendments to
some Articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular
No. 119/2014/TT-BTC dated August 25, 2014, and Circular
No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance,
which comes into force from August 06, 2015.