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THE OFFICE OF
THE NATIONAL ASSEMBLY OF VIETNAM
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THE SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No.: 22/VBHN-VPQH
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Hanoi, December
29, 2022
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LAW
ON CORPORATE INCOME
TAX
The Law on Corporate Income Tax No. 14/2008/QH12
dated June 03, 2008 of the National Assembly, which comes into force from
January 01, 2009, is amended by:
1. The Law No. 32/2013/QH13 dated June 19, 2013 of
the National Assembly providing amendments to the Law on Corporate Income Tax,
which comes into force from January 01, 2014;
2. The Law No. 71/2014/QH13 dated November 26, 2014
of the National Assembly providing amendments to the tax laws, which comes into
force from January 01, 2015;
3. The Law on Investment No. 61/2020/QH14 dated
June 17, 2020 of the National Assembly, which comes into force from January 01,
2021;
4. The Law on Petroleum No. 12/2022/QH15 dated
November 14, 2022 of the National Assembly, which comes into force from July
01, 2023.
Pursuant to the 1992 Constitution of the
Socialist Republic of Vietnam, as amended in the Resolution No. 51/2001/QH10;
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Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Law deals with taxpayers, taxable income,
tax-free income, basis and method of tax calculation, and corporate income tax
incentives.
Article 2. Taxpayers
1. Payers of corporate income tax (CIT) are
organizations that earn taxable income from manufacture and/or trade of goods
and/or service provision (hereinafter referred to as “enterprises”), including:
a) Enterprises that are duly established and
operating under the law of Vietnam;
b) Any enterprise established under a foreign law
(hereinafter referred to as “foreign enterprise"), whether it has a
permanent establishment in Vietnam or not;
c) Organizations established under the Law on
co-operatives;
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dd) Other organizations earning income from
production/business operations.
2. Enterprises that have taxable income prescribed
in Article 3 of this Law will pay CIT as follows:
a) Enterprises that are duly established under the
law of Vietnam will pay CIT on taxable income earned within and outside of
Vietnam;
b) A foreign enterprise that has a permanent
establishment in Vietnam will pay CIT on taxable income earned within and
outside of Vietnam in connection with operations of that permanent
establishment;
c) A foreign enterprise that has a permanent
establishment in Vietnam will pay CIT on taxable income which are earned within
Vietnam and are not related to operations of that permanent establishment;
d) A foreign enterprise that has no permanent
establishment in Vietnam will pay CIT on taxable income earned in Vietnam.
3.[2] 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:
a) Branches, offices, factories, plants, means of
transport, mines, oil fields, or other natural resource extraction sites in
Vietnam;
b) Construction sites;
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d) Agents of foreign enterprises;
dd) Representatives in Vietnam, including
representatives that are authorized to sign contracts undersigned by foreign
enterprises or representatives that are not authorized to sign such contracts
but regularly deliver goods or provide services in Vietnam.
Article 3. Taxable income
1. Taxable income includes income earned from
manufacture and/or trade of goods and/or service provision and other income
prescribed in Clause 2 of this Article.
2. 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, the difference in CIT shall be
collected in accordance with the Law on Corporate Income Tax of Vietnam.
Article 4. Tax-free incomes
1.[4] 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.
2. Incomes from provision of technical services
directly serving agriculture.
3. Incomes from the execution of scientific
research and technological development contracts, experimental products during
the experimental production period, and products that are results of new
technologies applied in Vietnam for the first time.
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5. Incomes from provision of vocational training
for ethnics, disabled people, disadvantaged children and
ex-offenders.
6. Incomes from contribution of capital or domestic
business cooperation distributed after CIT is paid in accordance with
regulations of this Law.
7. Sponsorships for education, scientific research,
culture, art, charity and other social activities in Vietnam.
8.[6] Incomes from transfer of Certified
Emissions Reductions (CERs).
9.[7] Incomes of Vietnam Development Bank
from credit extension serving development investment, credit extension serving
export assigned by the State; incomes of Bank for Social Policies derived from
credit extension to the poor and other beneficiaries of incentive policies;
incomes of state financial funds and other non-profit state funds; incomes of
wholly state-owned organizations established by the Government to deal with bad
debts of credit institutions of Vietnam.
10.[8] Undistributed incomes of establishments
making investment in education – training, healthcare and other fields in which
private sector investment is encouraged, which are retained for investment in
their development on accordance with specialized regulations of laws on education
– training, healthcare and other fields in which private sector investment is
encouraged; undistributed incomes of cooperatives, that are duly established
and operating in accordance with the Law on cooperatives, retained for
acquisition of their assets.
11.[9] Incomes from technology transfer in the
favored fields to entities in extremely disadvantaged areas.
Article 5. Tax period
1. The tax period is the calendar year or fiscal
year, except the case prescribed in Clause 2 of this Article.
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Chapter II
BASIS AND METHODS OF TAX CALCULATION
Article 6. Basis for tax calculation
The basis for tax calculation is the assessable
income and CIT rate.
Article 7. Determination of assessable income
1. Assessable income incurred in a tax period
equals (=) taxable income minus (-) tax-free income and losses carried forward
from previous years.
2. Taxable income equals (=) revenue minus (-)
deductible expenses incurred during performance of business operation plus (+)
other incomes, including incomes received outside of Vietnam.
3.[10] Incomes from transfer of real estate,
investment project, right to participate in an investment project, right to
mineral exploration and/or mineral extraction and/or mineral processing must be
determined separately. If an enterprise suffers from a loss when making a
transfer of investment project (except for mineral exploration and extraction
projects), transfer of the right to participate in an investment project
(except for the right to participate in mineral exploration and extraction
projects) or transfer of real estate, such loss shall be offset against the
profit from business operation in the tax period.
The Government shall elaborate and provide
guidelines for this Article.
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Revenue is the whole revenue from the sale of
goods, processing, service provision, subsidies and surcharges to which an
enterprise is entitled. The revenue is determined in VND. If an enterprise
earns revenue in foreign currencies, such foreign currencies must be converted
into VND at the average exchange rate on inter-bank foreign exchange market
announced by the State Bank of Vietnam at the time such revenue is earned.
The Government shall elaborate and provide
guidelines for this Article.
Article 9. Deductible and non-deductible
expenses [12]
1. Except for the expenses mentioned in Clause 2 of
this Article, every expense will be deductible if all of the following
requirements are met:
a) [13]
The actual expense incurred is related to the enterprise’s business operation;
expenses on provision of vocational education; expenses on performance of
national defense and security tasks as prescribed by law;
b) There are adequate invoices and evidencing documents
of the expense in accordance with regulations of law. A purchase of goods or
provision of services worth VND 20 million or more must be proved by evidencing
documents of non-cash payment, except cases where evidencing documents of
non-cash payment are not required as prescribed by law.
2. The expenses below are non-deductible expenses:
a) Expenses that do not meet all of the
requirements specified in Clause 1 of this Article, except expenses related to
damage caused by a natural disaster, epidemic or another force majeure event
without compensation;
b) Payment of fines for administrative violations;
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d) Amounts provided by a foreign enterprise to
cover administrative expenses of its permanent establishment in Vietnam beyond
the limit calculated by adopting distribution methods prescribed by the law of
Vietnam;
dd) Provisions in excess of the limits prescribed
by law;
e) Payment of interests on loans serving business
operation taken from entities other than credit institutions or business
entities which exceeds 150% of the basic interest rate announced by the State
Bank of Vietnam at the time of lending;
g) Depreciation of fixed assets against regulations
of law;
h) Accrued expenses determined against regulations
of law;
i) Salaries and remunerations of a sole proprietor;
remunerations of founders who do not directly participate in business
administration; salaries, remunerations and other payables to employees that
have been recorded as expenses but are not actually paid or do not have
invoices/evidencing documents as prescribed by law;
k) Payment of interest on loan equivalent to the
charter capital deficit;
l) Input VAT that has been deducted, VAT paid using
credit-invoice method and CIT;
m) [14]
(abrogated)
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o) Contributions to voluntary pension fund or
social security funds or purchase of voluntary pension insurance for employees
in excess of the limits prescribed by law;
p) Expenses incurred in the fields of banking,
insurance business, lottery business, securities trading, and some other
special business activities which shall comply with regulations adopted by the
Minister of Finance of Vietnam.
3.[15] When determining taxable income,
expenses incurred in foreign currencies must be converted into VND at the
average exchange rate on inter-bank foreign exchange market announced by the
State Bank of Vietnam at the time such expenses are incurred.
The Government shall elaborate and provide
guidelines for this Article.
Article 10. Tax rate [16]
1. The CIT rate is 22%, except for the cases
specified in Clause 2 and Clause 3 of this Article and entities given
preferential CIT rates as prescribed in Article 13 of this Law.
From January 01, 2016, the CIT rate of 20% shall
apply to enterprises that are applying the CIT rate of 22% prescribed in this
Clause.
2. An enterprise whose total revenue earned during
a year does not exceed VND 20 billion shall apply the CIT rate of 20%.
The revenue as the basis for determination of
eligibility for 20% CIT rate specified in this Clause is the revenue earned in
the previous year.
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The Government shall elaborate and provide
guidelines for this Article.
Article 11. Tax calculation method
1. CIT payable in the period equals (=) assessable
income multiplied by (x) CIT rate. The CIT paid overseas may be deducted but
must not be greater than the CIT payable in accordance with regulations of this
Law.
2. Enterprises prescribed in Point c and Point d
Clause 2 Article 2 of this Law shall follow the tax calculation method
prescribed by the Government.
Article 12. Tax-collecting authorities
An enterprise shall pay tax at the tax authority in
the same province as its headquarters. In case where an enterprise has a
financially dependent factory located in a province other than that where its
headquarters is located, tax shall be paid in both provinces according to the
ratio of expenses incurred by that factory to those incurred by its
headquarters. Collected tax amounts shall be managed and used in accordance
with regulations of the Law on State Budget.
The Government shall elaborate and provide
guidelines for this Article.
Chapter III
CORPORATE INCOME TAX INCENTIVES
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1. 10% CIT rate for 15 years shall be applied to:
a) Incomes of an enterprise from execution of new
investment projects in extremely disadvantaged areas, economic zones or hi-tech
zones;
b) Incomes of an enterprise from execution of new
investment projects in the following areas: 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 according to the
Law on High Technology; investment in construction, operation of facilities for
cultivation of high technologies, cultivation of high-tech enterprises;
investment in development of particularly important infrastructural works of
the State as prescribed by law; 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; investment in environmental protection;
c) Incomes of high-tech enterprises and agriculture
enterprises applying high technologies as prescribed by the Law on High
Technologies;
d) Incomes of an enterprise from execution of new
manufacturing projects (except for manufacturing of products subject to 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 certificate, and
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 project’s capital is at least VND 6,000
billion disbursed within 03 years from the date of investment certificate, and
it uses over 3,000 employees.
dd) [19]
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;
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The list of ancillary products given priority
specified in this Point shall be announced by the Government;
e) [20]
Incomes of an enterprise from execution of manufacturing projects, except for
manufacturing of products subject to excise tax and mineral extraction
projects, in which investment is at least VND 12,000 billion, using 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 as prescribed in the Law on investment.
2. 10% CIT rate shall be applied to:
a) Incomes of an enterprise's investment in the
public sector fields such as education – training, vocational training,
healthcare, culture, sports and environment;
b) Incomes of an enterprise from execution of an
investment project on construction of social housing for sale, lease or lease
purchase to the entities specified in Article 53 of the Law on Housing;
c) Incomes of a press agency from newspapers,
including advertisements on newspapers, as prescribed in the Press Law; incomes
of a publisher from publishing defined in the Law on Publishing;
d) [21]
Incomes of an enterprise from planting, caring and protection of 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 this Law; investment in
post-harvest preservation of agriculture products; preservation of agricultural
products, aquatic products, and foods;
dd) Incomes of a cooperative from agriculture,
forestry, aquaculture or salt production in areas other than disadvantaged
areas or extremely disadvantaged areas, except incomes of cooperatives in
Clause 1 Article 4 of this Law.
3. 20% CIT rate for 10 years shall be applied to:
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b) Incomes of an enterprise from execution of new
investment projects in the following areas: production of high-class
steel; production of energy-saving products; production of machinery and
equipment serving agriculture, forestry, aquaculture or salt production;
production of irrigation equipment; production of feeds for livestock and
poultry; development of traditional trades.
Such an enterprise specified in this Clause may
apply 17% CIT rate from January 01, 2016.
3a. [22]
15% CIT rate shall be applied to incomes of enterprises from farming,
husbandry, processing of agricultural and aquatic products in areas other than
disadvantaged areas and extremely disadvantaged areas.
4. 20% CIT rate shall be applied to incomes earned
by people's credit funds and microfinance institutions.
People's credit funds and microfinance institutions
may apply 17% CIT rate from January 01, 2016.
5.[23] The period of preferential tax rates
may be extended as follows:
a) With regard to investment projects with large
scale and high technologies that need investment, the application of
preferential tax rates may be extended but for a maximum period of 15 years;
b) The projects that are specified in Point e
Clause 1 of this Article and satisfy any of the following criteria:
- 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;
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- 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.
The Prime Minister of Vietnam shall decide
extension of period for application of preferential tax rates prescribed in
this Point provided that the extension shall not exceed 15 years.
5a.[24]
With respect to the investment projects specified in Clause 2 Article 20 of the
Law on Investment, the Prime Minister shall decide to apply a preferential tax
rate reducing by no more than 50% the preferential tax rate specified in Clause
1 of this Article. The duration of application of the preferential tax rate
shall not exceed 1.5 times the duration of application of the preferential tax
rate specified in Clause 1 and may be extended for no more than 15 years and
must not exceed the duration of the investment project.
6. The preferential tax rates specified in this
Article shall apply from first year in which the enterprise earns revenue from
its new investment project. Regarding high-tech enterprises and agriculture
enterprises applying high technologies, preferential tax rates shall be applied
from the date of the certificate of high-tech enterprise or certificate of
agriculture enterprise applying high technologies. Preferential tax rates shall
apply to projects applying high technologies from the date of certificate of
project applying high technologies.
The Government shall elaborate and provide
guidelines for this Article.
Article 14. Duration of tax exemption and
reduction [25]
1. Incomes of enterprises from execution of the new
investment projects specified in Clause 1, Point a Clause 2 Article 13 of this
Law, and high-tech enterprises and agriculture enterprises applying high
technologies shall be eligible for CIT exemption for no more than 4 years and
50% reduction of CIT payable for no more than 9 subsequent years.
1a.[26]
With respect to the investment projects specified in Clause 2 Article 20 of the
Law on Investment, the Prime Minister shall decide to apply tax exemption for
no more than 06 years and reduce 50% of total CIT payable for no more than 13
subsequent years.
2. Incomes of an enterprise from execution of new
investment projects specified in Clause 3 Article 13 of this Law and incomes of
an enterprise from execution of new investment projects in industrial parks
(except those located in advantaged areas as prescribed by law) shall be
eligible for CIT exemption for no more than 2 years and 50% reduction of CIT
payable for no more than 4 subsequent years.
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4. If one of the three conditions prescribed at
this Clause 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 a field or area eligible for CIT incentives may decide whether
to apply CIT incentives to its operating project for the remaining period (if
any) or apply tax exemption or reduction to the increase in incomes from
expansion. The duration of tax exemption or reduction to the increase in
incomes from expansion prescribed in this Clause equals the tax exemption or
reduction period applied to a new investment project in the same field or area
eligible for CIT incentives.
The expansion eligible for CIT incentives specified
in this Clause must satisfy one of the following criteria:
a) 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 takes place in a field eligible for CIT incentives as prescribed in
this Law, or VND 10 billion, if the expansion takes place in a disadvantaged or
extremely disadvantaged area as prescribed by law;
b) The ratio of increase in cost of fixed assets to
total cost of fixed assets before investment is at least 20%;
c) Design capacity after expansion increases by at
least 20% compared to the design capacity before investment.
In case where an operating enterprise makes an
expansion in a field or area eligible for tax incentives as prescribed in this
Law but fails to satisfy any of the criteria mentioned in this Clause, tax
incentives shall apply to the project for the remaining period (if any).
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 and put into operation.
Tax incentives mentioned in this Clause do not
apply in the cases of expansion due to merger or acquisition of operating
projects or enterprises.
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Article 15. Other cases of CIT reduction
1. A manufacturing, construction or transport
enterprise that employs a large amount of female employees shall be eligible
for CIT reduction which is proportional to the expenditure on female workers.
2. An enterprise that employs a large amount of
ethnic workers is eligible for CIT reduction which is proportional to the
expenditure on the ethnic workers.
3.[27] Income of an enterprise from transfer
of technology, in a field in which the technology transfer is given priority,
to an organization or individual located in a disadvantaged area shall be
eligible for 50% reduction of CIT thereon.
The Government shall elaborate and provide
guidelines for this Article.
Article 16. Loss carryforward [28]
1. An enterprise may carry forward any loss it
incurs to the next years. Such loss is deducted from assessable income. The
maximum loss carryforward period is 5 years from the year in which loss is
incurred.
2. Losses incurred by an enterprise from transfer
of real estate, investment project or right to participate in an investment
project, that remain after offsetting according to Clause 3 Article 7 of this
Law and losses incurred by an enterprise from transfer of the right to mineral
exploration and extraction shall be carried forward to the next year and
deducted from assessable income from such operation. The loss carryforward
period complies with the provisions in Clause 1 of this Article.
Article 17. Contribution to science and
technology development fund
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2. Within 5 years from the contribution date, if at
least 70% of its science and technology development fund is not used up or not
used properly, the enterprise shall pay CIT on the income that was contributed
to its science and technology development fund but was not used or not used
properly and interest thereon.
CIT rate shall be paid at the rate applied to the
enterprise during the contribution period.
Interests shall be charged on the tax arrears at
the interest rate of 1-year treasury bonds applied at the time of arrears
collection for a 2-year period.
Interest charged on the improperly used amount is
the late payment interest as prescribed in the Law on Tax Administration and
shall be charged for a period from the contribution date to collection date.
3. An enterprise must not aggregate expenses from
its science and technology development fund with its deductible expenses when
calculating taxable income in a tax period.
4. An enterprise’s science and technology
development fund shall be used for making investment in science and technology
in Vietnam.
Article 18. Conditions for applying CIT
incentives [30]
1. CIT incentives prescribed in Articles 13, 14,
15, 16 and 17 shall apply to enterprises following accounting and invoicing
regulations and paying CIT by declaration.
CIT incentives for new investment projects
prescribed in Article 13 and Article 14 of this Law shall not apply in cases of
full or partial division, merger, consolidation, change of owners, conversation
of enterprises and other cases prescribed by law.
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3. 20% CIT rate prescribed in Clause 2 Article 10
and regulations on CIT incentives prescribed in Clause 1 and Clause 4 Article
4, Article 13 and Article 14 of this Law shall not apply to:
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 Article 13 of this Law; 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 precious resources, and income from mineral
extraction;
c) Incomes from provision of services subject to
excise tax prescribed by the Law on Excise Tax;
d) Other cases prescribed by the Government.
4. Within the same tax period, if an enterprise is
eligible for various CIT incentives on the same income, it shall be entitled to
choose the most favorable one.
Chapter IV
IMPLEMENTATION [31]
Article 19. Effect
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2. This Law supersedes the Law on Corporate Income
Tax No. 09/2003/QH11.
3. An enterprise that is applying CIT incentives in
accordance with regulations of the Law on Corporate Income Tax No. 09/2003/QH11
shall be eligible for such CIT incentives for the remaining period specified in
such Law. In case such CIT incentives, including preferential tax rates, tax
exemption and reduction period, are less favorable than those prescribed in
this Law, it is entitled to apply CIT incentives prescribed in this Law for the
remaining period.
4. If an enterprise is eligible for tax exemption
or reduction as prescribed in the Law on Corporate Income Tax No. 09/2003/QH11
but earns no taxable income, the duration of tax exemption or reduction shall
be determined in accordance with regulations of this Law and begin from the
effective date of this Law.
Article 20. Guidelines for implementation
The Government shall elaborate and provide
guidelines for Articles 4, 7, 8, 9, 10, 11, 12, 13, 14, 15, 18 and other
contents of this Law deemed necessary for management tasks./.
CERTIFIED BY
CHAIRMAN OF THE
OFFICE OF THE NATIONAL ASSEMBLY
Bui Van Cuong
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[1] The Law No. 32/2013/QH13 providing amendments
to the Law on Corporate Income Tax is promulgated pursuant to:
“The 1992 Constitution of the Socialist Republic
of Vietnam, as amended in the Resolution No. 51/2001/QH10;”
The Law No. 71/2014/QH13 providing amendments to
the tax laws is promulgated pursuant to:
“The Constitution of the Socialist Republic of
Vietnam;”
The Law on Investment No.
61/2020/QH14 is promulgated pursuant to:
“The Constitution of the Socialist Republic of
Vietnam;”
The Law on Petroleum No. 12/2022/QH15 is promulgated
pursuant to:
“The Constitution of the Socialist Republic of
Vietnam;”
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[3] This Clause is amended for the first
time according to Clause 2 Article 1 of the Law No. 32/2013/QH13 providing amendments
to the Law on Corporate Income Tax, which comes into force from January 01,
2014, as follows:
“2. Other incomes include incomes from transfer
of stakes or right to contribute capital; incomes from transfer of real estate,
investment projects, right to participate in investment projects, right to
mineral exploration, extraction and processing; incomes from the right to use
and ownership of property, including incomes from intellectual property rights
as prescribed by law; incomes from transfer, lease or liquidation of assets,
including financial instruments; incomes from deposit interests, loan interests
and sale of foreign currencies; incomes from collected bad debts; incomes from
debts payable without identified creditors; omitted incomes from previous
years’ business operation and other incomes, including incomes from overseas
business operation.”.
This Clause is amended for the second time
according to Clause 1 Article 1 of the Law No. 71/2014/QH13 providing
amendments to the tax laws, which comes into force from January 01, 2015.
[4] This Clause is amended for the first
time according to Clause 3 Article 1 of the Law No. 32/2013/QH13 providing
amendments to the Law on Corporate Income Tax, which comes into force from
January 01, 2014, as follows:
“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.”.
This Clause is amended for the second time
according to Clause 2 Article 1 of the Law No. 71/2014/QH13 providing amendments
to the tax laws, which comes into force from January 01, 2015.
[5] This Clause is amended according to
Clause 3 Article 1 of the Law No. 32/2013/QH13 providing amendments to the Law
on Corporate Income Tax, which comes into force from January 01, 2014.
[6] This Clause is amended according to
Clause 3 Article 1 of the Law No. 32/2013/QH13 providing amendments to the Law
on Corporate Income Tax, which comes into force from January 01, 2014.
[7] This Clause is amended according to
Clause 3 Article 1 of the Law No. 32/2013/QH13 providing amendments to the Law
on Corporate Income Tax, which comes into force from January 01, 2014.
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[9] This Clause is amended according to Clause
3 Article 1 of the Law No. 32/2013/QH13 providing amendments to the Law on
Corporate Income Tax, which comes into force from January 01, 2014.
[10] This Clause is amended according to
Clause 4 Article 1 of the Law No. 32/2013/QH13 providing amendments to the Law
on Corporate Income Tax, which comes into force from January 01, 2014.
[11] Regulations on exchange rates used for
determination of revenues, costs, prices for tax calculation, assessable
income, taxable income and tax payable to state budget prescribed in this
Article are abrogated according to Point a Clause 2 Article 6 of the Law No.
71/2014/QH13 providing amendments to the tax laws, which comes into force from
January 01, 2015.
[12] This Clause is amended according to
Clause 5 Article 1 of the Law No. 32/2013/QH13 providing amendments to the Law
on Corporate Income Tax, which comes into force from January 01, 2014.
[13] This Point is amended for the first
time according to Clause 5 Article 1 of the Law No. 32/2013/QH13 providing
amendments to the Law on Corporate Income Tax, which comes into force from
January 01, 2014, as follows:
“a) The actual expense incurred is related to
the enterprise’s business operation; expenses on performance of national
defense and security tasks as prescribed by law;”
This Point is amended for the second time according
to Clause 3 Article 1 of the Law No. 71/2014/QH13 providing amendments to the
tax laws, which comes into force from January 01, 2015.
[14] This Point is amended for the first
time according to Clause 5 Article 1 of the Law No. 32/2013/QH13 providing
amendments to the Law on Corporate Income Tax, which comes into force from
January 01, 2014, as follows:
“m) Expenses of advertising, marketing, sales
promotion, brokerage commissions, reception, meetings, marketing aid, and
allowances directly related to business operation in excess of 15% of total
deductible expenses. Total deductible expenses shall not include the
expenses specified in this Point. With regard to commercial activities, total
deductible expenses shall not include the costs of purchase of goods to be
resold;”
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[15] Regulations on exchange rates used for
determination of revenues, costs, prices for tax calculation, assessable
income, taxable income and tax payable to state budget prescribed in this
Article are abrogated according to Point a Clause 2 Article 6 of the Law No.
71/2014/QH13 providing amendments to the tax laws, which comes into force from
January 01, 2015.
[16] This Clause is amended according to
Clause 6 Article 1 of the Law No. 32/2013/QH13 providing amendments to the Law
on Corporate Income Tax, which comes into force from January 01, 2014.
[17] The phrase “Thuế suất thuế thu nhập doanh
nghiệp đối với hoạt động tìm kiếm, thăm dò, khai thác dầu, khí và tài nguyên
quý hiếm khác tại Việt Nam từ 32% đến 50% phù hợp với từng dự án, từng cơ sở
kinh doanh.” (“The rate of CIT on exploration and extraction of oil, gas and
other rare and precious resources in Vietnam is from 32% to 50% depending on
each project or business entity.”) is replaced with the phrase “Thuế suất thuế
thu nhập doanh nghiệp đối với hoạt động dầu khí từ 25% đến 50% phù hợp với từng
hợp đồng dầu khí; thuế suất thuế thu nhập doanh nghiệp đối với hoạt động tìm kiếm,
thăm dò, khai thác tài nguyên quý hiếm khác tại Việt Nam từ 32% đến 50% phù hợp
với từng dự án, từng cơ sở kinh doanh.” (“The rate of CIT on petroleum
operations is from 25% to 50% depending on each petroleum contract; the rate of
CIT on exploration and extraction of other rare and precious resources in
Vietnam is from 32% to 50% depending on each project or business entity.”)
according to Clause 1 Article 67 of the Law on Petroleum No. 12/2022/QH15,
which comes into force from July 01, 2023.
[18] This Article is amended according to
Clause 7 Article 1 of the Law No. 32/2013/QH13 providing amendments to the Law
on Corporate Income Tax, which comes into force from January 01, 2014.
[19] This Point is added according to
Clause 5 Article 1 of the Law No. 71/2014/QH13 providing amendments to the tax
laws, which comes into force from January 01, 2015.
[20] This Point is added according to
Clause 5 Article 1 of the Law No. 71/2014/QH13 providing amendments to the tax
laws, which comes into force from January 01, 2015.
[21] This Point is amended for the first
time according to Clause 5 Article 1 of the Law No. 32/2013/QH13 providing
amendments to the Law on Corporate Income Tax, which comes into force from
January 01, 2014, as follows:
“d) Incomes of an enterprise from
planting, caring and protection of 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 this Law; investment in post-harvest preservation of agriculture products;
preservation of agricultural products, aquatic products, and foods;”.
This Point is amended for the second time according
to Clause 6 Article 1 of the Law No. 71/2014/QH13 providing amendments to the
tax laws, which comes into force from January 01, 2015.
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[23] This Clause is amended for the first
time according to Clause 7 Article 1 of the Law No. 32/2013/QH13 providing
amendments to the Law on Corporate Income Tax, which comes into force from
January 01, 2014, as follows:
“5. With regard to investment projects with
large scale and high technologies that need investment, the application of
preferential tax rates may be extended but for a maximum period of 15 years.”.
This Clause is amended for the second time
according to Clause 8 Article 1 of the Law No. 71/2014/QH13 providing
amendments to the tax laws, which comes into force from January 01, 2015.
[24] This Clause is added according to
Point a Clause 4 Article 75 of the Law on Investment No. 61/2020/QH14, coming
into force from January 01, 2021.
[25] This Article is amended according to
Clause 8 Article 1 of the Law No. 32/2013/QH13 providing amendments to the Law
on Corporate Income Tax, which comes into force from January 01, 2014.
[26] This Clause is added according to
Point b Clause 4 Article 75 of the Law on Investment No. 61/2020/QH14, coming
into force from January 01, 2021.
[27] This Clause is added according to
Clause 9 Article 1 of the Law No. 32/2013/QH13 providing amendments to the Law
on Corporate Income Tax, which comes into force from January 01, 2014.
[28] This Article is amended according to
Clause 10 Article 1 of the Law No. 32/2013/QH13 providing amendments to the Law
on Corporate Income Tax, which comes into force from January 01, 2014.
[29] This Clause is amended according to
Clause 11 Article 1 of the Law No. 32/2013/QH13 providing amendments to the Law
on Corporate Income Tax, which comes into force from January 01, 2014.
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[31] Article 2 of the Law No. 32/2013/QH13
providing amendments to the Law on Corporate Income Tax, which comes into force
from January 01, 2014, stipulates as follows:
“Article 2
1. This Law comes into force from January 01,
2014, except the regulations in Clause 2 of this Article.
2. Regulations on application of 20% CIT rate to
enterprises whose total revenue earned during a year does not exceed VND 20
billion in Clause 6 Article 1 and application of 10% CIT rate to incomes of
enterprises from execution of investment projects on construction of social
housing in Clause 7 Article 1 of this Law come into force from July 01, 2013.
3. An enterprise whose investment project is
eligible for CIT incentives (including preferential tax rates, tax exemption or
reduction) by the end of the tax period of 2013 according to legislative
documents on CIT in force before the effective date of this Law shall continue
enjoying CIT incentives for the remaining period specified in such documents.
In case where the enterprise meets the eligibility conditions for CIT
incentives laid down in this Law, it may choose between keeping on applying the
current CIT incentives or applying those specified in this Law for the
remaining period if it is eligible for CIT incentives applied to enterprises
established from new investment projects or expansion projects.
At the end of the tax period of 2015, an
enterprise that has investment projects eligible for 20% CIT rate prescribed in
Clause 3 Article 13 of the Law on Corporate Income Tax No. 14/2008/QH12, as
amended in Clause 7 Article 1 of this Law, shall apply 17% CIT rate from
January 01, 2016 for the remaining period.
4. The following regulations on corporate income
tax are abrogated:
a) Clause 2 Article 7 of the Law on Deposit
Insurance No. 06/2012/QH13;
b) Clause 2 Article 4 of the Law on Health
Insurance No. 25/2008/QH12;
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d) Clauses 1, 4, 5, 6, 7 and 8 Article 44,
Article 45 of the Law on Technology Transfer No. 80/2006/QH11;
dd) Clause 1 Article 53, Clause 5 Article 55 and
Clause 3 Article 86 of the Law on Vocational Training No. 76/2006/QH11;
e) Clause 1 Article 68 of the Law on Vietnamese
Guest Workers No. 72/2006/QH11;
g) Clause 2 Article 6 of the Law on Social
Insurance No. 71/2006/QH11;
h) Clause 3 Article 8 of the Law on Legal Aid
No. 69/2006/QH11;
i) Clause 3 Article 66 of the Law on Higher
Education No. 08/2012/QH13;
k) Article 34 of the Disabilities Law No.
51/2010/QH12;
l) Clause 4 Article 33 of the Law on Investment
No. 59/2005/QH11;
m) Clause 2 Article 58, Clause 2 Article 73,
Clause 3 Article 117 and Clause 3 Article 125 of the Law on Enterprises No.
60/2005/QH11.
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Clause 3 Article 2 of the Law No. 32/2013/QH13
providing amendments to the Law on Corporate Income Tax, which comes into force
from January 01, 2014, as amended in Clause 9 Article 1 of the Law No.
71/2014/QH13 providing amendments to the tax laws, which comes into force from
January 01, 2015, stipulates as follows:
“3. Any enterprise having an investment project
shall be eligible for CIT incentives in accordance with regulations of the Law
on Corporate Income Tax from the date of issuance of the license or investment
certificate as prescribed by regulations of the Law on investment. Where
amendments to regulations of the Law on Corporate Income Tax are made and an
enterprise meets eligibility conditions for CIT incentives prescribed by new
regulations, such enterprise may decide whether to apply the current or new
regulations on preferential CIT rate, duration of tax exemption/reduction for
the remaining period from the day on which new regulations come into force.
At the end of the tax period of 2015, an
enterprise that has investment projects eligible for 20% CIT rate prescribed in
Clause 3 Article 13 of the Law on Corporate Income Tax No. 14/2008/QH12, as
amended in the Law No. 32/2013/QH13, shall apply 17% CIT rate from January 01,
2016 for the remaining period.”.
Article 6 of the Law No. 71/2014/QH13 providing
amendments to the tax laws, which comes into force from January 01, 2015,
stipulates as follows:
“Article 6
1. This Law comes into force from January 01,
2015.
2. The following regulations on exchange rates
used for determination of revenues, costs, prices for tax calculation,
assessable income, taxable income and tax payable to state budget are
abrogated:
a) Article 8 and Clause 3 Article 9 of the Law
on Corporate Income Tax No. 14/2008/QH12, as amended in the Law No.
32/2013/QH13;
b) Clause 1 Article 6 of the Law on Personal
Income Tax No. 04/2007/QH12, as amended in the Law No. 26/2012/QH13;
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d) Article 6 of the Law on Excise Tax No.
27/2008/QH12;
dd) Clause 3 Article 9 and Article 14 of the Law
on Export and Import Duties No. 45/2005/QH11;
e) Clause 4 Article 86 of the Customs Law No.
54/2014/QH13.
3. Point c Clause 1 Article 49 of the Law on Tax
Administration No. 78/2006/QH11, as amended in the Law No. 21/2012/QH13 is
abrogated.
4. Regulations on determination of taxes
incurred by individual businesses in Clause 1 Article 19, Clause 1 Article 20
and Clause 1 Article 21 of the Law on Personal Income Tax No. 04/2007/QH12, as
amended in the Law No. 26/2012/QH13 are abrogated.
5. The Government and competent agencies shall
elaborate articles and clauses of this Law as assigned.”.
Article 76 and Article 77 of the Law on Investment
No. 61/2020/QH14, which comes into force from January 01, 2021, stipulate as
follows:
“Article 76. Implementation
1. This Law comes into force from January 01,
2021, except the regulations in Clause 2 of this Article.
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3. The Law on Investment No. 67/2014/QH14
amended by the Law No. 90/2015/QH13, the Law No. 03/2016/QH14, the Law No.
04/2017/QH14, the Law No. 28/2018/QH14 and the Law No. 42/2019/QH14 shall cease
to have effect from the effective date of this Law, except for Article 75 of
the Law on Investment No. 67/2014/QH14.
4. Individuals who are Vietnamese citizens may
use their personal identification numbers instead of copies of their identity
cards/citizen identity cards, passports or other personal identification
documents upon following administrative procedures set out in the Law on
Investment and Law on Enterprises if the national population database is
connected to the national investment and enterprise registration database.
5. Any legislative document that refers to
regulations on project approval decisions or investment guideline decisions in
accordance with the Law on Investment shall be implemented in accordance with
the regulations on investment guideline approval of this Law.
Article 77. Transition
1. Investors that were issued with investment
licenses, investment incentive certificates, investment certificates or
investment registration certificates before the effective date of this Law
shall execute their investment projects in accordance with such investment
licenses, investment incentive certificates, investment certificates or
investment registration certificates.
2. Investors are not required to follow
procedures for approval for investment guidelines in accordance with this Law
with respect to the investment projects in one of the following cases:
a) The investors have obtained investment
guideline decisions, investment guideline approval or investment approval in
accordance with regulations of laws on investment, housing, urban areas and
construction before the effective date of this Law;
b) The investors have started execution of
projects that are not subject to approval for their investment guidelines,
investment guideline decision or investment guideline or issuance of the
investment registration certificate in accordance with regulations of laws on
investment, housing, urban areas and construction before the effective date of
this Law;
c) Investors have won the bidding for contractor
selection or the land use right auction before the effective date of this Law;
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3. If an investment project specified in Clause
2 of this Article is adjusted and the adjustments are subject to approval for
investment guidelines in accordance with this Law, the procedures mentioned in
this Law must be followed to obtain approval for investment guidelines or
adjust investment guidelines.
4. Any investment project executed or approved
or allowed to be executed in accordance with regulations of law before July 01,
2015 and subject to project execution security as prescribed in this Law is not
required to have a deposit or a bank guarantee. If the investor adjusts
the objectives or schedule for execution of the investment project or
repurposes land after the effective date of this Law, the investor must pay a
deposit or obtain a bank guarantee in accordance with this Law.
5. Any debt collection service contract
concluded before the effective date of this Law shall cease to have effect from
the effective date of this Law; and the parties to such contract may carry out
activities to liquidate the contract in accordance with the civil law and other
relevant regulations of law.
6. Foreign-invested business entities to which
market access conditions more favorable than those prescribed in the List
promulgated under Article 9 of this Law are applied may continue to apply the
conditions set out in their issued investment registration certificate.
7. The regulation in Clause 3 Article 44 of this
Law applies to both investment projects to which land was allocated before the
effective date of this Law and projects to which land has not yet been allocated.
8. In the event that the law stipulates that
documentation serving administrative procedures must consist of an investment
registration certificate or written approval for investment guidelines but the
investment project is not subject to issuance of an investment registration
certificate or written approval for investment guidelines as prescribed in this
Law, the investor is not required to submit an investment registration
certificate or written approval for investment guidelines.
9. With respect to areas which have difficulties
in providing land for development of residential housing, service facilities
and public utilities for employees working in industrial parks, the competent
authority may adjust the planning for construction of industrial zones (for
industrial parks established before July 01, 2014) to provide part of the land
area for development of residential housing, service facilities and public
utilities for employees working in the industrial parks.
After adjustment of the planning, the land area
for development of residential housing, service facilities and public utilities
for employees working in an industrial park must be outside the geographical
boundary of the industrial park and must ensure an environmental safety
distance in accordance with the law on construction and other relevant
regulations of law.
10. Transition provisions on outward investment
activities:
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b) Any investor issued with an outward
investment license or certificate or outward investment registration
certificate to make outward investment in a conditional business line subject to
conditional outward investment in accordance with this Law may continue making
investment according to the issued outward investment license or certificate or
outward investment registration certificate.
11. From the effective date of this Law, any
application which has been received but not yet processed although the
application processing deadline has expired as prescribed in the Law on
Investment No. 67/2014/QH13 as amended by the Law No. 90/2015/QH13, the
Law No. 03/2016/QH14, the Law No. 04/2017/QH14, the Law No. 28/2018/QH14 and
the Law 42/2019/QH14 shall continue to be processed in accordance with Law on
Investment No. 67/2014/QH13 as amended by the Law No. 90/2015/QH13, the Law No.
03/2016/QH14, the Law No. 04/2017/QH14, the Law No. 28/2018/QH14 and the Law
No. 42/2019/QH14.
12. The Government shall elaborate this
Article.”.
Article 68 and Article 69 of the Law on Petroleum
No.12/2022/QH15, which comes into force from July 01, 2022, stipulate as
follows:
“Article 68. Effect
1. This Law comes into force from July 01, 2023.
2. The Law on Petroleum dated July 06, 1993 as
amended by the Law No. 19/2000/QH10, the Law No. 10/2008/QH12 and the Law No.
35/2018/QH14 shall cease to have effect from the effective date of this Law.
Article 69. Transition
1. Contractors that have signed
petroleum contracts and have been granted investment registration certificates
before the effective date of this Law shall continue performing petroleum
operations according to the signed petroleum contracts and issued investment
registration certificates.
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3. Petroleum reports, plans,
programs and contracts which have been submitted to competent authorities
before the effective date of this Law must not be re-submitted and shall be
appraised and approved in accordance with relevant regulations of law in force
before the effective date of this Law.
4. Salvage operations performed according to the
operating mechanisms approved before the effective date of this Law shall
continue to be performed according to the issued decisions and relevant
regulations of law in force before the effective date of this Law.”.