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THE MINISTRY OF
FINANCE OF VIETNAM
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THE SOCIALIST
REPUBLIC OF VIET NAM
Independence-Freedom-Happiness
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No. 10/VBHN-BTC
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Hanoi, March 11,
2024
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DECREE [1]
ELABORATING AND
PROVIDING GUIDELINES FOR LAW ON CORPORATE INCOME TAX
The Government’s Decree No. 218/2013/ND-CP dated December
26, 2013 elaborating and providing guidelines for some Articles of the Law on
Corporate Income Tax, coming into force from February 15, 2014 and applying to
the tax period of 2014 onwards, is amended by:
1. The Government's Decree No. 91/2014/ND-CP dated
October 01, 2014 providing amendments to Decrees on taxations which comes into
force from November 15, 2014 but of which the provisions of Article 1 apply to
the tax period of 2014 onwards.
2. 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, which comes into force from January 01,
2015.
3. The Government’s Decree No. 118/2015/ND-CP dated
November 12, 2015 elaborating and providing guidelines for implementation of
the Law on Investment, which comes into force from December 27, 2015.
4. 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, which comes into force from February 01,
2018.
5. The Government’s Decree No. 57/2021/ND-CP dated
June 04, 2021 amending Point g Clause 2 Article 20 of Decree No. 218/2013/ND-CP
(as amended in Decree No. 12/2015/ND-CP) on corporate income tax (CIT)
incentives for supporting product production projects, which comes into force
from June 04, 2021.
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Pursuant to the Law on Corporate Income Tax
dated June 03, 2008, and the Law on Amendments to the Law on Corporate Income
Tax dated June 19, 2013;
At the request of the Minister of Finance of
Vietnam;
The Government promulgates a Decree elaborating
and providing guidelines for Law on corporate income tax.[2]
Chapter 1
GENERAL PROVISIONS
Article 1. Scope
This Decree elaborates and provides guidelines for
some Articles of the Law on corporate income tax (CIT) and the Law on amendments
to the Law on CIT in respect of: taxpayers; taxable income, tax-free income;
determination of assessable income, determination of losses and loss
carryforward; revenues; deductible and non-deductible expenses; tax rates; tax
calculation method; tax incentives and conditions for applying tax incentives.
Article 2. Taxpayers
Taxpayers are those defined in Article 2 of the Law
on corporate income tax and clause 1 Article 1 of the Law on amendments to the
Law on corporate income tax.
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a) Enterprises that are established and operating
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, partners to business contracts; partners to petroleum product
contracts, petroleum joint venture enterprises, and joint operating companies;
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) Public service units and non-public service
units that earn taxable income from manufacture and/or trade of goods and/or
service provision as prescribed in Article 3 of this Decree;
d) Any organization established and operating under
the Law on Cooperatives;
dd) Any organization other than those mentioned in
Points a, b, c, and d of this Clause that earn taxable income from manufacture
and/or trade of goods and/or service provision as prescribed in Article 3 of
this Decree.
2. Organizations that are established and operating
(or carrying out registration of operation) under the law of Vietnam, and
individual businesses are treated as taxpayers whose tax is deducted at source
when they buy services (including purchase of services associated with goods or
purchase of goods supplied or distributed in the form of in-country export or
under international trade terms) on the basis of contracts signed with the
foreign enterprises defined in Points c, d Clause 2 Article 2 of the Law
corporate income tax.
The Ministry of Finance of Vietnam shall provide
specific guidelines for tax deduction prescribed in this Clause.
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. Income earned by the enterprises that
have followed business registration procedures as prescribed in Clause 2 of
this Article shall be considered as their income from manufacture and/or trade
of goods and/or service provision.
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a) Incomes from capital transfer, including partial
or entire transfer of invested capital, including the cases of business
acquisition, securities transfer, transfer of the rights to contribute capital,
and other forms of capital transfer as prescribed by law;
b) Incomes from transfer of investment projects,
transfer of right to participate in an investment project, transfer of right to
mineral exploration and/or mineral extraction and/or mineral processing as
prescribed by law; transfer of real estate as prescribed in Articles 13 and 14
of this Decree;
c) Incomes from the right to ownership, right to
enjoyment of property, including incomes from intellectual property rights and
incomes from technology transfer as prescribed by law;
d) Incomes from transfer, lease or liquidation of
assets (except real estate), including other financial instruments;
dd) Incomes from deposit interest, loan interest
and sale of foreign currencies, including: interests on deposits at credit
institutions, interests from loans given in any form as prescribed by law,
including late payment interest, installment interest, credit guarantee fee and
other fees specified in the loan contract; incomes from selling foreign
currencies; exchange differences because of reassessment of foreign currency
debts payable at the end of the fiscal year; exchange differences that occur in
the period (exchange differences that occur during the fundamental construction
to create a new enterprise’s fixed assets which are not used in this enterprise’s
business shall be recorded according to specific guidelines given by the
Ministry of Finance of Vietnam). With regard to foreign currency receivables
and foreign currency loans that occur in the period, 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;
e) 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;
g) Collected bad debts;
h) Debts payable without identified creditors;
i) Omitted incomes from previous years’ business
operation that are discovered afterwards;
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l) Received monetary aid or in-kind aid;
m) [3] Differences from the
revaluation of assets as prescribed to contribute capital or transfer assets
upon full division, partial division, amalgamation, merger or conversion,
except for equitization or rearrangement of wholly state-owned enterprises.
Transferees of assets may record these assets
according to their reassessed values upon determination of deductible expenses
as prescribed in Article 9 of this Decree.
n) [4] (abrogated)
o) Other incomes, including tax-free incomes
prescribed in Clauses 6 and 7 Article 4 of this Decree.
3.[5] Taxable income earned within
Vietnam by the foreign enterprises prescribed in points c, d clause 2
Article 2 of the Law on corporate income tax are incomes derived in Vietnam
from provision of services, provision and distribution of goods, grant of
loans, payment for copyrights for Vietnamese entities or foreign entities doing
business in Vietnam, or from transfer of capital, investment projects, right to
contribute capital, right to participate in projects of investment, right to
mineral exploration, extraction, and refinement of minerals, regardless of the
location of business premises.
Taxable incomes mentioned in
this Clause do not include incomes from services provided outside Vietnam’s
territory such as: overseas repair of vehicles, machinery, equipment; overseas
advertising, marketing, investment promotion, and trade promotion; overseas
brokerage of goods sale, brokerage of service provision; overseas training;
division of charges for international telecommunications and postal services
for foreign parties.
The Ministry of Finance of
Vietnam shall provide specific guidelines for taxable incomes prescribed in
this Clause.
Article 4. Tax-free incomes
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1.[6] 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.
Cooperatives engaged in
agriculture, forestry, aquaculture, salt production prescribed in this Clause
and Clause 2 Article 15 of this Decree are those that achieve the required
ratio of product and service provision for members being individuals,
households, and legal entities engaged in agriculture, forestry, aquaculture,
salt production as prescribed by the Law on Cooperatives and its guiding documents.
Income from agro-processing,
fish processing eligible for tax incentives prescribed in this Decree must
satisfy all of the conditions below:
- The proportion of value of
raw materials (farm produce, aquaculture products) 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 of Vietnam.
2. Incomes from provision of technical services directly
serving agriculture which are not subject to tax include: Incomes from
irrigation, land ploughing and harrowing, dredging, pest control, harvesting
services.
3.[7] The income derived from the
execution of the contract for scientific research and technological
development, as prescribed in the law on science and technology, shall be
eligible for tax exemption until expiration of that contract but not more
than 03 years from the day on which the revenue is earned from the execution of
that contract; the income derived from the sale of products that are results of
new technologies applied in Vietnam for the first time, as prescribed in
regulations of law and guidelines given by the Ministry of Science and
Technology of Vietnam, shall be eligible for tax exemption provided that it
does not exceed 05 years from the day on which the revenue derived from sale of
such products; the income derived from the sale of experimental products during
the experimental production period as prescribed in relevant laws.
4. Incomes from manufacture and/or trade of goods
and/or service provision of an enterprise of which at least 30% of annual
average number of employees are disabled people, rehabilitated drug abusers
and/or HIV/AIDS patients.
An enterprise eligible for tax exemption specified
in this Clause means an enterprise whose average number of employees in the
year is at least 20, excluding finance and real estate enterprises.
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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/AIDS patients to the total number of learners.
6. Distributed incomes from capital contribution,
share purchase, domestic business cooperation after the recipient of capital
contribution, share issuer or business partner has paid CIT in accordance with
the Law on Corporate income tax, even if they are eligible for CIT incentives
as prescribed in Chapter IV of this Decree.
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 prescribed
in this Clause 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.
9. [8] Incomes from performance of
tasks given by the State of the Vietnam Development Bank with regard to
development investment credit, export credit; incomes from extension of credit
to the poor and other beneficiaries of incentive policies defined by Vietnam
Bank for Social Policies; incomes of VAMC; incomes from profitable activities
during performance of tasks given by the State of state funds: Vietnam Social
Insurance Fund, Deposit Insurance of Vietnam, Health Insurance Fund, Vocational
Training Support Fund, Overseas Employment Support Fund affiliated to the
Ministry of Labor, War Invalids and Social Affairs, Farmer Support Fund,
Vietnam Legal Assistance Fund, Public Telecommunications Fund, local
Development Investment Funds, Vietnam Environmental Protection Fund, Credit
Guarantee Fund for Medium and Small Enterprises, Cooperatives Development Fund,
Poor Woman Support Fund, Fund for Protection of Overseas Vietnamese Citizens
and Legal Entities, Housing Development Fund, Fund for Development of Medium
and Small Enterprises, National Science and Technology Development Fund,
National Technological Innovation Fund, Science and Technology Development
Funds of Ministries, regulatory bodies, and local governments established under
the Law on Science and technology, Fund for Self-employment of the poor,
incomes from performance of tasks given by the State of Land Development Fund
and other non-profit state funds prescribed or established by the Government or
the Prime Minister and operated in accordance with law.
10. Undistributed
incomes of establishments making investment in education – training, healthcare
and other fields (including establishment of judicial expertise offices) in
which private sector investment is encouraged, which are retained for
investment in their development in 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. Income from technology transfers in the favored
fields to an organization or individual in an extremely disadvantaged area.
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Chapter 2
BASIS AND METHODS OF TAX CALCULATION
Article 5. Basis for tax calculation
The basis for tax calculation is the assessable
income earned during the period and CIT rate.
Tax period is determined in accordance with
provisions of Article 5 of the Law on corporate income tax and the Law on tax
administration.
An enterprise’s tax period may be either the
calendar year or fiscal year depending on its decision, provided that a notice
of its tax period must be given to tax authorities before it is applied.
Article 6. Determination of assessable income
1. Assessable income incurred in a tax period is
calculated as follows:
Assessable income
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Taxable
income
-
Tax-free income
+
Carried-forward
losses
2. Taxable income is calculated as follows:
Taxable income
=
Revenue
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Deductible
expenses
+
Other incomes
If an enterprise engages in various business lines,
the taxable income from manufacture and/or trade of goods and/or service
provision shall be total incomes earned in all business lines. If the
enterprise incurs loss in a business line, the loss shall be offset against the
taxable income from one of its other business lines. The remaining income shall
be subject to the CIT rate applied to that business line.
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
transfer of the right to participate in an investment project, or transfer of
investment project (except for mineral exploration and extraction projects), or
transfer of real estate, such loss shall be offset against the profit from its
business operation in the tax period. If an enterprise that is following
dissolution procedures sells real estate which is its fixed assets, the income
from transfer of real estate (if any) shall be offset against the income from
its business operation.
3. Determination of taxable income on some business
operations:
a) Income from the transfer of stake (except income
from transfer of securities as prescribed in Point b of this Clause) equals (=)
total proceed earned under the transfer contract minus (-) the purchase price
of the transferred stake minus (-) costs of the stake transfer.
In case an enterprise transfers its stake in
exchange for assets or other material benefits (such shares, fund certificates,
etc.) and generates income, it shall pay CIT;
b) Income from securities transfer equals (=) the
selling price minus (-) the purchase price of the transferred securities minus
(-) costs of the transfer.
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In the cases where an enterprise undergoes full
division, partial division, amalgamation or merger and carries out swap of
shares at the time of full division, partial division, amalgamation or merger,
income earned therefrom (if any) is subject to CIT.
In case an enterprise transfers its securities in exchange
for assets or other material benefits (such shares, fund certificates, etc.)
and generates income, it shall pay CIT;
c) Income from intellectual property right or
technology transfer 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;
d) Income from lease of an asset equals (=) the proceeds
from the lease minus (-) basic depreciation, maintenance and repair costs, rent
in case of sublet and other deductible expenses related to the lease;
dd) Income from transfer or liquidation of an asset
(except real estate) equals (=) the proceeds from the transfer or liquidation
minus (-) remaining value recorded on the accounting book of the transferred or
liquidated asset at the time of transfer or liquidation and other deductible
expenses related to the transfer or liquidation;
e) Income from selling foreign currencies equals
(=) the proceeds from selling foreign currencies minus (-) buying prices for
the foreign currencies;
g) Difference from revaluation of an asset which is
transferred upon full division, partial division, amalgamation, merger, dissolution,
conversion of business type, change of ownership or capital contribution is the
difference between the asset’s value determined in the revaluation and the
remaining value of that asset recorded in the accounting book before the
revaluation is carried out.
Increase or decrease resulting from the revaluation
of a fixed asset upon capital contribution or an asset transferred upon full
division, partial division, amalgamation, merger, conversion of business type,
or asset which is the land-use rights (LURs) contributed for implementing
projects on construction of housing or infrastructure facilities for sale shall
be aggregated with other incomes or deducted from other incomes in the tax
period; particularly, the difference resulting from revaluation of LURs upon
capital contribution which cannot be depreciated by the receiving enterprise
shall be gradually aggregated with other incomes for up to 10 years from the
year in which the LURs are contributed as capital;
h) Regarding business cooperation contracts (BCCs)
allowing sharing of profit after tax, income equals (=) total proceeds earned
under the BCC minus (-) total costs incurred during generation of proceeds
under the BCC.
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i) Income from overseas business operations of an
enterprise is total incomes it receives before tax.
4. Income from petroleum exploration and extraction
shall be determined under each petroleum contract.
Article 7. Loss determination and loss
carryforward
1. Loss incurred in a tax period means a negative
difference in assessable income, excluding loss carried forward from previous
years, which is calculated adopting the formula in Clause 1 Article 6 of this
Decree.
2. An enterprise may carry forward any loss it
incurs to the next years. Such loss is deducted from taxable income. The
carryforward period shall not exceed 5 years from the year in which the loss is
incurred.
3. Losses incurred by an enterprise from transfer
of real estate, investment project or right to participate in an investment
project (except mineral exploration and extraction projects), that remain after
being offset against taxable income or losses as prescribed in Clause 2 Article
6 of this Decree, and losses incurred by an enterprise from transfer of the
right to mineral exploration and extraction shall be continuously carried
forward to the next years (up to 5 years from the year in which the loss is incurred)
and deducted from assessable income from such operation.
Article 8. Revenues
Revenue as the basis for calculating taxable income
(hereinafter referred to as “taxable revenue”) shall be determined according to
provisions of Article 8 of the Law on corporate income tax.
1. The taxable revenue is the whole revenue from
goods sale, processing, service provision, including subsidies and surcharges
to which an enterprise is entitled, whether the money has been collected or
not.
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2. Time for determining taxable revenue from sale of
goods is the time when the right to ownership or right to enjoyment of goods is
transferred to the buyer.
Time for determining taxable revenue from service
provision is the time when the service provision is completed or the service
invoice is issued.
3. Determination of taxable revenue in some cases:
a) Taxable revenue from the sale of goods that are
paid by installment is the lump sum payment, not inclusive of any installment
interest or deferral interest;
b) For goods and services used for exchange or internal
consumption (excluding the goods and services used for sustaining production
and business operation), taxable revenue 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 or internal consumption;
c) Taxable revenue from processing of goods is the
proceeds from the processing, including remuneration, cost of fuel, machinery,
ancillary materials, and other costs of the processing;
d) Taxable revenue from asset lease, golf course
business or provision of other services for which a lump sum payment is made in
advance for multiple years is the periodic rent or payment under the contract.
In the cases where the tenant or service user pays a lump sum rent or payment
in advance for multiple years, the taxable revenue shall be divided by (:) the
number of years or equal the lump sum payment. If the enterprise’s tax
incentive period has not expired, the preferential CIT amount equals (=) total
CIT amount payable of the years for which a lump sum payment has been made in
advance divided by (:) the number of years;
dd) Taxable revenue from credit extension or
finance lease is the loan interests or the proceeds earned from the finance
lease during the tax period;
e) Taxable revenue from transport is the whole
revenue from transport of passengers, goods, and luggage earned during the tax
period;
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h) Taxable revenue from insurance or reinsurance is
the total revenue from insurance premiums, fees for agent services (including
assessment of damage, consideration of claims, claiming indemnities from third
parties, total proceeds from liquidation of indemnified property), reinsurance
premiums, ceding commissions, and other proceeds from insurance business minus
(-) refunds or reductions of insurance premiums, reinsurance premiums, refunds
or reductions of ceding commissions.
In case of coinsurance, the taxable revenue is the
insurance premium divided according to the coinsurance ratio, exclusive of VAT.
Taxable revenue from an insurance contract paid by
installments is each installment;
i) Taxable revenue from construction/installation
is the value of the works/work items or value of the works accepted.
If the construction/installation contract is
exclusive of building materials, machinery and equipment, the taxable revenue
is exclusive of the value of building materials, machinery and equipment;
k) Taxable revenue from business cooperation
without establishing juridical person:
- If the parties to a business cooperation contract
divide the revenue according to the sale of goods/services, the taxable revenue
is the revenue received by each party under the contract;
- In case the parties to a business cooperation
contract divides the profit after tax, the taxable revenue is the proceeds from
sale of goods/services under the contract;
l) Taxable revenue from casino business,
prize-winning electronic games or betting services is the excise tax-inclusive
earnings from these services minus (-) excluding prizes or payouts already paid
to customers;
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n) Taxable revenue from petroleum searching,
exploration and extraction is the total sale of petroleum products earned under
arm’s length contracts/transactions during the tax period;
o) Taxable revenue from derivative financial
services is the proceeds earned from provision of derivative financial services
during the tax period;
The Ministry of Finance of Vietnam shall provide
specific guidelines for this Article and some other specific cases.
Article 9. Deductible and non-deductible
expenses
1. Except the expenses specified in Clause 2 of
this Article, every expense is deductible if all of the following conditions
are satisfied:
a) [10] Actual expenses incurred
are related to the enterprise’s business operation, including the following:
- Expenses on performance of
duties pertaining to security and defense education, training, activities of
militia forces, and other defense and security duties as prescribed by laws;
expenses on support for operation of Communist Party organizations and
intramural socio-political organizations of enterprises;
- Expenses on provision of
vocational education and training for employees as prescribed by laws;
- Actual expenses on HIV/AIDS
prevention at the workplace, including expenses on provision of training in
HIV/AIDS prevention for employees, expenses on raising employees’ awareness of
HIV/AIDS prevention, fees for HIV consultation, examination and testing, and
expenses on supporting employees who are HIV sufferers.
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Regarding 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 households and individuals; purchase of services
from non-business households and non-business individuals, documentary evidence
of payment made to sellers and the statement of purchases of goods/services
which must be signed by the enterprise’s legal or authorized representative who
is legally responsible for this statement shall be required.
c) If a purchase of goods/services is worth VND 20
million or more, the documentary evidence of non-cash payment shall be
required, except expenses on performance of national defense and security
duties, HIV/AIDS prevention at the workplace, support for operation of
Communist Party organizations and intramural socio-political organizations of
an enterprise as prescribed in Point a Clause 1 of this Article; expenses on
purchase of goods/services requiring preparation of statements as prescribed in
Point b Clause 1 of this Article.
The Ministry of Finance of Vietnam shall provide
specific guidelines on cases of payment under contract where the payment time
is different from the time of recording expenses as prescribed and such
expenses are not supported by any proof of non-cash payment.
2. Non-deductible expenses are those defined in
Clause 2 Article 9 of the Law on corporate income tax and Clause 5 Article 1 of
the Law on amendments to the Law on corporate income tax. Such non-deductible
expenses include:
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, conflagration or another force
majeure event without compensation.
The damage equals (=) total damage minus (-) damage
covered by insurer or compensated by other entities as prescribed by law;
b) Amount provided by a foreign enterprise to cover
administrative expenses of its permanent establishment in Vietnam beyond the
limit calculated using the formula below:
Amount provided by
foreign enterprise 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 expenses incurred by the foreign enterprise in the tax period.
Total revenue
earned by the foreign enterprise in the tax period, including revenues earned
by its permanent establishments in other countries in the tax period
c) Provisions in excess of the limits prescribed by
law;
d)[11] Depreciation of fixed
assets against regulations of the Ministry of Finance of Vietnam, including:
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 which are not used for transport of goods or
passengers, tourism or hotel operations;
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Accrued expenses which are included in deductible
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 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 defined according
to regulations of the Ministry of Finance of Vietnam;
e)[12] Expenses on loan interest
in proportion to the deficit of charter capital according to the capital
contribution schedule in the enterprise’s charter; loan interest during the
investment process that has been included in investment value; interest on
loans serving execution of contracts for petroleum exploration and extraction.
If the enterprise has fully
contributed charter capital and, during its business operation, pays interest
on loans taken to make investment in other enterprises, such interest shall be
included in deductible expenses upon determination of taxable income.
g) [13] (abrogated)
h) Portion of recovered expenses in excess of the
cost recovery rate specified in the approved petroleum contract; if the cost
recovery rate is not available in the petroleum contract, the portion of
recovered expenses in excess of 35% shall not be aggregated with deductible
expenses; recovered expenses exclude:
- Expenses defined in Clause 2 Article 9 of the Law
on corporate income tax and Point 2 Clause 5 Article 1 of the Law on amendments
to the Law on corporate income tax;
- Expenses incurred before the petroleum contract
takes effect, unless otherwise agreed upon in the petroleum contract or decided
by the Prime Minister;
- Petroleum commission and other expenses which are
not aggregated with recovered expenses under the contract;
- Interests on loans obtained for making investment
in searching, exploration and development of ores, and petroleum extraction;
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i) Input VAT that has been deducted, input VAT on
cars used for transport of 9 persons or fewer that exceeds VND 1.6 billion and
is not deductible, CIT and other taxes, fees, charges and other receipts which
are not aggregated with expenses as prescribed by the Ministry of Finance of
Vietnam;
k) Expenses that do not match the assessable
revenue, except certain cases as prescribed by the Ministry of Finance of
Vietnam;
l) Exchange difference resulted from reassessment
of foreign currency items at the end of the tax period, except exchange
difference resulted from reassessment of foreign currency debts payable at the
end of the tax period, and exchange difference that occurs during the
fundamental investment of a new enterprise to acquire fixed assets which are
not yet used for serving its business operation which shall be recorded
according to specific guidelines of the Ministry of Finance of Vietnam.
With regard to foreign currency receivables and
foreign currency loans that occur in the period, the exchange difference
included in deductible expenses is the difference between the exchange rate at
the time of debt or loan repayment and the exchange rate at the time the debt
or loan is initially recorded;
m) Salaries and remunerations of the sole
proprietor; owner of a single-member limited liability company (that is owned
by an individual), remunerations of founders who do not directly participate in
business administration; salaries, remunerations and other amounts which are
recorded as payables to employees but are not actually paid or are not
supported by any documentary evidence as prescribed by laws; bonuses and
expenses on purchase of life insurance for employees for which requirements and
levels of benefits are not specified in one of the following documents:
employment contract; collective bargaining agreement; financial regulations of
the company/general company/corporation; reward scheme issued by the
Chairperson of the Board of Directors/General Director/Director on the basis of
financial regulations of the company/general company. Salaries, remunerations
and allowances of employees that have not been paid after the annual tax
declaration is submitted, unless the enterprise has made a provision for
inclusion in the succeeding year’s salary fund which is used for ensuring
uninterrupted payment of salaries and is not used for any other purposes. The
annual provision is decided by the enterprise and must not exceed 17% of the
realized salary fund (which is the total salary actually paid in the year until
the deadline for submitting the annual tax declaration, excluding the previous
year’s provision for salary fund). 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
expenses;
n) Sponsorships, except sponsorships for education,
healthcare, scientific research, disaster recovery, construction of houses for
the poor or policy beneficiaries as prescribed by law, sponsorships for
extremely disadvantaged areas under State programs.
Organizations that receive sponsorships for
scientific research as prescribed in this Point are science and technology
organizations that are established and operating under the Law on science and
technology, and performing science and technology tasks as prescribed in this
Law.
o) [14] 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 laws on
social insurance and health insurance used for contribution to social security
funds (including social insurance, additional pension insurance funds), 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 aggregated with
deductible expenses must not exceed the limits mentioned in this Clause. Apart
from that, their requirements and levels must be specified in one of the
following documents: employment contract; collective bargaining agreement;
financial regulations of the company/general company/corporation; reward scheme
issued by the Chairperson of the Board of Directors/General Director/Director
on the basis of financial regulations of the company/general company;
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q) Tax late payment interests as prescribed in the
Law on tax administration;
r) 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 in the owner's equity of
an enterprise.
The Ministry of Finance of Vietnam shall provide
specific guidelines for deductible and non-deductible expenses in this Article.
Article 10. Tax rates
CIT rates shall comply with Clause 6 Article 1 of
the Law on amendments to the Law on corporate income tax. To be specific:
1. The CIT rate is 22%, except enterprises eligible
for the CIT rate of 20% and those subject to the CIT rate of 32% - 50% as
prescribed in Clause 2 and Clause 3 of this Article and entities given
preferential CIT rates as prescribed in Article 15 and Article 16 of this
Decree.
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 that is established and operating
under the law of Vietnam, including cooperatives and public service agencies
whose total 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%.
Total annual revenue as the basis for determination
of eligibility for 20% CIT rate specified in this Clause is the total revenue
earned from manufacture and/or trade of goods and/or service provision in the
previous year.
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Article 11. Tax calculation method
1.[15] CIT payable in a tax period
equals (=) assessable income multiplied (x) by the CIT rate.
Where a Vietnamese enterprise
makes investment in a foreign country that has signed a Double Taxation
Agreement with Vietnam and transfers its income to Vietnam after paying CIT
overseas, regulations of such Agreement shall apply. If investment is made in
the foreign country that has not signed a Double Taxation Agreement with
Vietnam and the rate of CIT incurred in that foreign country is lower that
applied in Vietnam, the difference between CIT incurred in that foreign country
and CIT incurred in Vietnam shall be collected.
2. CIT payable on real estate transfer equals (=)
income earned from real estate transfer multiplied (x) by the CIT rate of 22%.
From January 01, 2016, the CIT rate of 20% shall apply.
3. Regarding the enterprises prescribed in Points
c, d Clause 2 Article 2 of the Law on corporate income tax, CIT payable is a
percentage of its revenue from the sales of goods and service provision in
Vietnam. To be specific:
a) For services: 5%; particularly, restaurant/hotel
management and casino services: 10%; services which are associated with goods:
1%; if the value of service cannot be determined separately from the value of
goods, the CIT rate of 2% shall apply;
b) For supply and distribution of goods in Vietnam
in the form of in-country export or under Incoterms: 1%;
c) For royalties: 10%;
d) For lease of aircrafts (including aircraft
engines and parts), vessels: 2%;
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e) For loan interests: 5%;
g) For outward reinsurance or securities transfer: 0,1%;
h) For derivative financial services: 2%;
i) For construction, transport and other
activities: 2%.
4. Regarding petroleum extraction from which
revenues and expenses are recorded in a foreign currency under the signed
contract, the assessable income and CIT payable shall be expressed in that
foreign currency.
5. In case public service providers or other
organizations that are not enterprises established and operating under the law
of Vietnam earn incomes from the sale of goods and service provision subject to
CIT and can determine their revenues but cannot determine costs and incomes
from business activities, they shall declare and pay CIT at a percentage of
revenues from the sale of goods and service provision. To be specific:
a) For services (including interests on deposits
and loans): 5%. Particularly, the CIT rate prescribed in Point c of this Clause
shall apply to education, healthcare and arts performance.
b) For goods trading: 1%;
c) For other activities: 2%.
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1. An enterprise shall pay tax at the tax authority
in the same province as its headquarters. Where an enterprise has a financially
dependent factory in a province other than that where it is headquartered, tax
shall be paid in both provinces.
The amount of CIT payable in the province where the
enterprise’s financially dependent factory is located equals (=) the
enterprise’s CIT payable in the period multiplied by (x) the ratio of expenses
incurred by the factory to the total expenses incurred by the enterprise.
The payment of tax specified in this Clause does
not apply to works, work items or construction establishments that are
financially dependent to the enterprise.
Collected CIT amounts shall be managed and used in
accordance with regulations of the Law on State Budget.
2. 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.
3. The Ministry of Finance of Vietnam shall provide
specific guidelines for tax-collecting authorities prescribed in this Article.
Chapter 3
INCOMES FROM REAL ESTATE TRANSFER
Article 13. Incomes from real estate
transfer include incomes from transfer of LURs, land leasehold; incomes from
sublease of land by real estate enterprises as prescribed 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, regardless of whether transfer of LURs or land
leasehold is made or not; incomes from transfer of other property on land.
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1. Revenue as the basis for calculating the taxable
income is the actual transfer price of the real estate specified in the real
estate sale and purchase contract which is made in accordance with regulations
of law.
Where the transfer price of LURs specified in the
real estate sale and purchase contract is lower than the land price imposed by
the relevant provincial People’s Committee at the time of contract conclusion,
the latter shall apply.
2. The revenue as the basis for calculating taxable
income is determined when the real estate is delivered.
Where an enterprise collects advances from
customers under a schedule, the revenue as the basis for calculating CIT to be
temporarily paid shall be determined when such an advance is collected. The
Ministry of Finance of Vietnam shall provide specific guidelines for temporary
payment of CIT prescribed in this Clause.
3. Deductible expenses of real estate transfer:
a) Cost price of the land area transferred is
determined in conformity with the origin of LURs, and shall be:
- 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 LURs or land leasehold is transferred in case of
receipt of LURs transferred by another organization or individual; the price
imposed by the provincial People’s Committee at the time of transfer if the
contract and documentary evidence of payment are not available;
- the price agreed upon capital contribution if the
land is contributed as capital;
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If the land is inherited or donated before 1994,
the cost price shall be imposed by the relevant provincial People’s Committee
in 1994 according to the land price list specified in the Government's Decree
No. 87/CP dated August 17, 1994;
b) Costs of compensation and support upon the land
expropriation by the State;
c) Fees and charges related to grant of LURs;
d) Cost of soil improvement and leveling;
dd) Value of infrastructure and construction works
on land;
e) Other expenses related to the real estate
transferred.
Chapter 4
CORPORATE INCOME TAX INCENTIVES
Article 15. Preferential CIT rates
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a) Incomes of an enterprise from execution of new
investment projects in extremely disadvantaged areas according to the Appendix
enclosed herewith, economic zones, hi-tech zones, including concentrated IT
zones established under the Prime Minister’s Decisions;
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; 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.
Software production projects prescribed in this
Point are those projects that produce software programs included in the list of
software products and meet software production processes laid down in laws;
c) Incomes of an enterprise 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.
Where an enterprise that is enjoying CIT incentives
or is no longer eligible for CIT incentives is granted a 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 this
Decree minus (-) the period over which CIT incentives (including preferential
CIT rates and duration of tax exemption or reduction, if any) were granted to
the enterprise;
dd) [16] 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 issue date of
initial investment license according to regulations of law on investment, and
the total revenue earned is at least VND 10,000 billion per year after not more
than 03 years from the first year in which revenues are generated.
- The project’s capital is at
least VND 6,000 billion disbursed within 03 years from the issue date of
initial investment license according to regulations of law on investment, and
the project regularly has over 3,000 employees within 03 years from the first
year in which revenues are generated.
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e) [17] Incomes of an enterprise
from execution of a manufacturing project, except for manufacturing of products
subject to excise tax and mineral extraction projects, in which investment is
at least VND 12,000 billion, the used technologies must be appraised in
accordance with the Law on High Technologies, the Law on Science and
Technology, and total investment capital is disbursed within 05 years from the
issue date of investment license.
g) [18] 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 as prescribed in this Clause is promulgated
according to the Government's regulations.
2. 10% CIT rate shall be applied to:
a) [19] Incomes of an enterprise
from 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, and standards of enterprises making investment in the public sector as
prescribed in this Clause is compiled by the Prime Minister;
b) Incomes of publishers from publishing defined by
the Law on Publishing;
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d) Incomes of an enterprise 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 housing prescribed in this Clause 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 incomes
eligible for 10% CIT specified in this Clause does not depend on the time of
sale/lease/lease purchase contract conclusion;
e)[20] 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 this Decree; investment in post-harvest preservation of
agricultural products; preservation of agriculture products, aquaculture
products, and foods, including direct investment in preservation and lease of
preservation equipment;
e) 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 Decree.
3. 20% CIT rate for 10 years shall be applied to:
a) Incomes of an enterprise from execution of a new
investment project in a disadvantaged area specified in the Appendix enclosed
herewith;
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 Points a, b of this
Clause may apply 17% CIT rate from January 01, 2016.
3a.[21] 15% CIT rate 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.
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People’s credit funds and microfinance institutions
shall apply 20% CIT rate after the period over which 10% CIT rate is applied
expires as prescribed in Clause 1 of this Article, and apply 17% CIT rate from
January 01, 2016. Microfinance institutions defined in this Clause must be
established and operate in accordance with the Law on credit institutions.
5. Regarding projects eligible for CIT incentives
as prescribed in Points b, c Clause 1 of this Article that have large scale and
apply high/new technologies and need investment, the period of application of
preferential tax rate may be extended provided that 10% CIT rate shall be
applied for a period not exceeding 30 years. The Prime Minister shall decide
extension of the period over which 10% CIT rate shall be applied at request of
the Minister of Finance of Vietnam.
5a.[22] The period of application
of preferential tax rate to the projects mentioned in Point e Clause 1 of this
Article may be extended up to 15 years if one of the following criteria is met:
- The products manufactured are
capable of global competition; the revenue earned exceeds VND 20,000 billion
per year within 05 years from the first year in which revenue is generated by
the project;
- More than 6,000 employees are
regularly employed as prescribed by regulations of law on labour;
- 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 shall decide
extension of the period of application of preferential tax rates as prescribed
in this Point at request of the Minister of Finance of Vietnam.
6. The preferential tax rates specified in this
Article shall continuously 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 issue 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 issue date of certificate of project applying high technologies.
Article 16. Tax exemption and reduction
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a) [23] Incomes of enterprises
specified in Clause 1 Article 15 of this Decree.
b) Incomes of enterprises from execution of new
investment projects in the public sector in disadvantaged areas or extremely
disadvantaged areas as prescribed in the Appendix enclosed with this Decree.
2. Tax exemption for 4 years and 50% tax reduction for
the next 5 years are applied to incomes of enterprises from execution of new
investment projects in the public sector in areas other than disadvantaged
areas and extremely disadvantaged areas as prescribed in the Appendix enclosed
with this Decree.
3.[24] 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 3 Article 15 of
this Decree and incomes of enterprises 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, excluding urban districts of the aforesaid cities converted from
districts from January 01, 2009; where an industrial park is located in both
advantaged and disadvantaged areas, the determination of tax incentives 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 shall comply with the Government’s regulations on classification of
cities.
4. The duration of tax exemption/reduction
prescribed in this Article continuously begins from the first year in which the
enterprise earns taxable income from its new project which is eligible for CIT
incentives. In case where the enterprise earns no taxable income in the first
03 years from the first year in which it earns revenue from its new project,
the tax exemption/reduction duration will begin in the 4th year. The
duration of tax exemption/reduction applied to high-tech enterprises,
agriculture enterprises applying high technologies prescribed in Clause 1 of
this Article begins from the date on which they are granted the certificate of
high-tech enterprise or certificate of agriculture enterprise applying high
technologies.
In the first tax period, if an enterprise’s
operating period over which it is eligible for tax exemption/reduction is
shorter than 12 (twelve) months, the enterprise may decide whether it will
apply tax exemption/reduction in the first year or register with the tax
authority to apply tax exemption/reduction in the subsequent year.
5. If one of the three conditions prescribed at
this Clause is satisfied, an enterprise that has 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 as prescribed in
this Decree may decide whether to apply CIT incentives to its operating project
for the remaining period (if any) or apply tax exemption/reduction to the
increase in incomes from expansion. The duration of tax exemption/reduction to
the increase in incomes from expansion prescribed in this Clause equals the tax
exemption/reduction period applied to a new investment project in the same
field or area eligible for CIT incentives.
The expansion specified in this Clause must satisfy
one of the following criteria:
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- The ratio of increase in cost of fixed assets to
total cost of fixed assets before investment is at least 20%;
- Design capacity after expansion increases by at
least 20% compared to the design capacity before 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 as prescribed in this Decree but
fails to satisfy any of the criteria mentioned in this Point, tax incentives
shall apply to the operating project for the remaining period (if any).
If the enterprise chooses to apply tax incentives
to the expansion, the increase in incomes from expansion must be accounted for
separately. If the increase in incomes from expansion cannot be determined separately,
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/reduction mentioned
in this Clause begins from the year in which the expansion project is finished,
put into operation and generates incomes. If no taxable income is earned within
the first 03 years from the first year in which the expansion project generates
revenues, the duration of tax exemption/reduction will begin from the fourth
year.
Tax incentives mentioned in this Clause do not
apply in the cases of expansion due to merger or acquisition of operating
projects or enterprises.
Article 17. Other CIT reduction cases
1. Where a manufacturing, construction or transport
enterprise employs 10 – 100 female workers that make up more than 50% of its
total regular workers or employs more than 100 regular female workers that make
up more than 30% of its total regular workers, it shall be eligible for CIT
reduction which is equal to its expenditures on the female workers, including:
a) Expenditure on vocational training;
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c) Expenditure on provision of health check-ups in
the year;
d) Extra-allowance for female workers after giving
birth. Pursuant to provisions of the Labour Code, the Ministry of Finance
of Vietnam shall cooperate with the Ministry of Labour, War Invalids and Social
Affairs of Vietnam in setting up specific levels of extra-allowance specified
in this Clause;
dd) Salaries and allowances paid to female workers
who do not take maternity leave after giving birth.
2. An enterprise that employs ethnic workers is
eligible for CIT reduction which is equal to its expenditures on the ethnic
workers, including expenditure on vocational training, allowance for housing,
social insurance and health insurance contributions, if such amounts are not
covered by the State.
3. Income from transfer of technology in a field in
which technology transfer is prioritized to an organization or individual
located in a disadvantaged area is eligible for 50% reduction in CIT thereon.
Article 18. Contribution to science and
technology development fund
An enterprise’s contribution to the science and technology
development fund shall comply with provisions of Article 17 of the Law on
corporate income tax and Clause 11 Article 1 of the Law on amendments to the
Law on corporate income tax.
1. An enterprise that is established and operating
under the law of Vietnam may contribute up to 10% of its annual assessable
income to its science and technology development fund. Apart from contribution
to their own science and technology development funds as prescribed in this
Law, enterprises over 50% of charter capital of which is held by the State must
maintain the minimum contributions prescribed in the Law on Science and
Technology.
The enterprise shall annually decide the specific
contribution to its science and technology development fund as prescribed
above, and make a report on contribution to and use of its science and
technology development fund at the same time when preparing the annual CIT
declaration.
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2. The enterprise established after conversion of
business type, merger or amalgamation of an operating enterprise shall inherit
and assume responsibility for management and use of the science and technology
development fund established before the conversion, merger or amalgamation.
New enterprises established after partial or full
division of an enterprise shall inherit and assume responsibility for
management and use of the science and technology development fund of the former
enterprise which is not used up by the time of partial or full division.
Division of the science and technology development fund shall be subject to
decision of relevant enterprises and must be registered with tax authorities.
Article 19. Conditions for applying CIT
incentives
Conditions for applying CIT incentives shall comply
with Clause 12 Article 1 of the Law on amendments to the Law on corporate
income tax.
1. Incomes from business operation eligible for CIT
incentives (including preferential CIT rates and CIT exemption/reduction) must
be separately accounted for. If an enterprise cannot separate its revenue or
deductible expense earned or incurred in a business line eligible for tax
incentives, such revenue or deductible expense shall be determined according to
its ratio to the enterprise’s total revenue or deductible expenses.
2. CIT incentives prescribed in Clauses 1, 4
Article 4 and Articles 15, 16 of this Decree, and 20% CIT rate prescribed in
clause 2 Article 10 of this Decree 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 Point d Clause 2 Article 15 of this
Decree); 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;
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dd) [25] Incomes of an enterprise from projects of
investment in trading and/or services outside economic zones, hi-tech zones,
industrial parks and areas eligible for tax incentives which are not eligible
for CIT incentives as prescribed in Clauses 1, 4 Article 4 and Articles 15, 16
of this Decree.
3. 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.
4. In the cases where an enterprise fails to
satisfy any of the conditions for CIT incentives specified in Clauses 7, 8 and
12 Article 1 of the Law on amendments to the Law on corporate income tax and in
this Article in any tax year during the CIT incentive period, it will not be
eligible for incentives in that tax year and has to pay CIT at 22% rate or 20%
rate (if its total revenue earned in the year does not exceed VND 20 billion as
prescribed in Clause 2 Article 10 of this Decree). From January 01, 2016, it
shall apply the common CIT rate of 20%.
If an enterprise’s investment project prescribed in
Point dd Clause 1 Article 15 of this Decree fails to satisfy any of the
conditions set out in Point dd Clause 1 Article 15 of this Decree within 03
years from the issue date of investment license (unless it is fallen behind
schedule because of objective difficulties which arise during land clearance,
administrative procedures, or natural disaster, hostilities, or conflagration
and such failure to meet the required schedule is accepted by the licensing
authority and approved by the Prime Minister), or within 04 years from the year
in which it generates revenue, 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). Nevertheless, the enterprise will
not incur any penalties for incorrect declaration as prescribed by regulations
of law on tax administration. Where an enterprise fails to satisfy any of the
conditions for applying CIT incentives set out in Point dd Clause 1 Article 15
of this Decree in any tax year during the CIT incentive period, it will not be
eligible for CIT incentives in that tax year.
5.[26] New investment projects
(including private notary offices established in disadvantaged areas or
extremely disadvantaged areas) shall be eligible for tax incentives prescribed
in Clause 1, Clause 3 Article 15, Clause 1, Clause 2, Clause 3 Article 16 of
this Decree if they are first or independent from any in-progress project, except
for:
a) Investment projects
established from full or partial division, acquisition, amalgamation,
conversion of business type of enterprises, except the cases prescribed in
Clause 6 Article 19 of this Decree.
b) Investment projects
established from change of owners (including new investment projects that
inherit assets, business premises, or business lines of the old enterprises to
continue business operation).
New investment projects must be
granted investment licenses or certificates of investment or permission for
investment by competent authorities as prescribed by regulations of law on
investment in order to be eligible for tax incentives prescribed in Articles
15, 16 of this Decree.
5a.[27] With regard to an investment project
granted the investment license, if the investment capital, investment phasing
and schedule have been specified in the application for investment license
submitted to the licensing authority, and the next phases of the project are
actually executed on schedule (except they fall behind the schedule because of
objective difficulties or force majeure events), and thus considered as
sub-projects of the licensed project, these sub-projects will be eligible for
the same tax incentives as those provided for the licensed project. If the
investment license is granted before January 01, 2014, tax incentives will be
granted for the remaining tax incentive period from January 01, 2014.
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5b.[28] If an enterprise’s period of
application of tax incentives which is granted due to its satisfaction of
export ratio requirement is still unexpired 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 separately apply preferential tax rates and tax
exemption/reduction period for the remaining tax incentive period to textile
and garment products from 2007 or to other products from 2012 depending on its
actual fulfillment of requirements (apart from the requirements regarding
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 enterprise is issued with the establishment license to the
effective date of the Government’s Decree No. 24/2007/ND-CP dated February 14,
2007, or in accordance with other legislative documents on corporate income tax
in force at the time when tax incentives are adjusted due to the commitments to
WTO.
6.[29] Regarding a private enterprise
that is established from an enterprise’s conversion of its business type,
invests in the public sector and satisfies conditions for private sector
involvement according to the Prime Minister’s Decisions, if, before the
conversion, the enterprise was not eligible for CIT incentives applied to
eligible fields, it will be eligible for the same CIT incentives as a new
investment project from the conversion date.
Chapter 5
IMPLEMENTATION [30]
Article 20. Effect
1. This Decree comes into force from February 15,
2014 and applies to the tax period of 2014 onwards.
The Government's Decree No. 124/2008/ND-CP dated
December 11, 2008, the Government’s Decree No. 122/2011/ND-CP dated December
27, 2011, and Articles 2, 3 of the Government’s Decree No. 92/2013/ND-CP dated
August 13, 2013 are abrogated.
2.[31] An enterprise’s 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 investment 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.
a) Any enterprise whose
investment project is still eligible for CIT incentives at the end of the tax
year 2013, even if such investment project has been issued with an investment
license, certificate of investment, or Certificate of business registration (in
case the domestic project is associated with establishment of a new enterprise
whose capital is below VND 15 billion without conditional business lines) but
does not enjoy such incentives as prescribed by legislative documents on
corporate income tax before this Decree takes effect, such enterprise shall
enjoy incentives for the remaining period in accordance with such legislative
documents. The enterprise shall keep having incentives for expansion investment
or new investment, whichever is in effect; in case the incentives in this Decree
are more favorable than the current incentives (even if the enterprise eligible
for such incentives but is not provided with them), the enterprise may switch
over to receive the incentives in this Decree for the remaining period.
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c) Any enterprise executing
projects of investment in industrial parks during the 2009 - 2013 period shall
be eligible for tax incentives in accordance with the Law No. 32/2013/QH13 for
the remaining period starting from the tax year 2015.
d) Any enterprise having
projects of investment in an administrative division that was not eligible for
tax incentives before January 01, 2015 (industrial parks, economic zone,
hi-tech zones, and other areas) but is now eligible for tax incentives as
prescribed in this Decree shall be eligible for tax incentives for the
remaining period starting from the tax year 2015.
dd) Any enterprise having
projects of investment in an administrative division that is eligible for tax
incentives after January 01, 2015 shall be eligible for tax incentives for the
remaining period starting from the conversion date.
e) At the end of the tax period
of 2015, an enterprise’s investment project that is eligible for 20% CIT rate
prescribed in Clause 3 Article 15 of this Decree, shall apply 17% CIT rate from
January 01, 2016 for the remaining period.
The Ministry of Finance of
Vietnam shall provide guidance on determination of remaining period of tax
incentives starting from effective dates of legislative documents on foreign
investment in Vietnam, promotion of domestic investment, and corporate income
tax that are promulgated before this Decree comes into force.
g) [32] An enterprise that has a (new or
expanded) investment project for manufacturing of products on the list of
supporting products prioritized for development, implemented before January 01,
2015, and meeting all of the conditions for supporting product manufacturing
projects laid down in the Law No. 71/2014/QH13, and has been issued with a
certificate of fulfillment of conditions for supporting product manufacturing
incentives shall be entitled to the following CIT incentives:
g1) In case the enterprise has
a supporting product manufacturing project but incomes from this project are
not yet given CIT incentives, CIT incentives shall be given to that project
from the tax period in which the certificate of fulfillment of conditions for
supporting product manufacturing incentives is issued by a competent authority.
g2) In case the enterprise has
a supporting product manufacturing project but incomes from this project have
been fully given CIT incentives under other conditions (other than incentives
for a supporting product manufacturing project), it shall be eligible for CIT
incentives for a supporting product manufacturing project for the remaining
period from the tax period in which the certificate of fulfillment of conditions
for supporting product manufacturing incentives is issued by a competent
authority.
g3) In case the enterprise has
a supporting product manufacturing project and is enjoying CIT incentives for
incomes from this project under other conditions (other than incentives for a
supporting product manufacturing project), it shall be eligible for CIT
incentives for a supporting product manufacturing project for the remaining
period from the tax period in which the certificate of fulfillment of
conditions for supporting product manufacturing incentives is issued by a
competent authority.
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The remaining incentive period
is equal to the period over which the enterprise is eligible for CIT incentives
for its supporting product manufacturing project minus the number of years in
which it has CIT payable exempted or reduced or it has received CIT incentives
under other conditions. To be specific:
- The remaining tax exemption
period is equal to the tax exemption period for a supporting product
manufacturing project minus the period over which CIT is exempted under other
conditions;
- The remaining tax reduction
period is equal to the tax reduction period for a supporting product
manufacturing project minus the period over which CIT is reduced under other
conditions;
- The remaining preferential
tax rate period is equal to the preferential tax rate period for a supporting
product manufacturing project minus the period over which the preferential tax
rate has been given under other conditions.
g5) Examples:
Example 1: In 2010, an
enterprise has implemented an expansion project in an area which is not
included in the list of areas eligible for tax incentives. In the tax
period 2011, the project generates revenues and taxable incomes. By the end of
the tax period 2016, incomes from the project are not yet given CIT incentives.
In the tax period 2017, the enterprise has obtained the certificate of
fulfillment of conditions for supporting product manufacturing incentives for
the project. In this case, the project is eligible for CIT incentives for
expansion of supporting product manufacturing as prescribed in the Law No.
71/2014/QH13 and its guiding documents from the tax period 2017. The incentive
period shall be determined as follows: CIT payable shall be exempted in 04
years from the tax period 2017 to the tax period 2020, and reduced by 50% in
the subsequent 09 years from the tax period 2021.
Example 2: In 2010, an
enterprise has implemented a new investment project in an industrial zone
(which is not located in urban districts of special-class cities,
centrally-affiliated class-I cities and class-I provincial cities, not
including aforesaid districts/cities converted from rural districts from
January 01, 2009). The project generates revenues in the tax period 2011. In
the tax period 2012, the project generates taxable incomes. In the tax period
2015, the project is given tax incentives for a project located in an
industrial zone as prescribed in the Law No. 71/2014/QH13 and its guiding
documents for the remaining period from 2015 (CIT payable is exempted in 02
years and reduced by 50% in the subsequent 04 years for the remaining period
from the tax period 2015). Thus, this enterprise shall have CIT payment reduced
by 50% in 3 years (from 2015 to 2017). By the end of the tax period 2017, the
project will no longer eligible for tax incentives for a project located in an
industrial zone.
In the tax period 2018, the
enterprise has obtained the certificate of fulfillment of conditions for
supporting product manufacturing incentives for the project. In this
case, the enterprise may choose to apply CIT incentives for a new supporting
product manufacturing project for the remaining period from the tax period
2018. The remaining incentive period shall be determined as follows: the
enterprise will enjoy preferential CIT rate of 10% in 15 years from the tax
period 2018; has CIT payable exempted in 02 years from the tax period 2018, and
reduced by 50% in the subsequent 05 years.
Example 3: In 2014, an
enterprise has implemented a new investment project in a disadvantaged area. In
the tax period 2014, the project generates revenues. In the tax period 2015, the
project generates taxable incomes. The project has been given tax incentives
for a project located in a disadvantaged area. To be specific: the tax rate of
20% is applied in 10 years from the tax period 2014 (the tax rate of 17% will
apply from the tax period 2016); CIT payable is exempted in 02 years from the
tax period 2015 and reduced by 50% in the subsequent 04 years. By the end of
the tax period 2017, the project has been given the preferential tax rate for
04 years, CIT exemption for 02 years and CIT reduction for 01 year.
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3. Enterprises that establish or have investment
projects derived from conversion of business type, change of owner, full or
partial division, merger, or amalgamation shall pay CIT (including fines, if
any) and may inherit CIT incentives (including losses which are not yet carried
forward) of the enterprises or projects of investment before the conversion,
change of owner, full or partial division, merger, or amalgamation if all
conditions for CIT incentives and loss carryforward are satisfied.
4. Issues concerning CIT, annual CIT declarations,
CIT exemption/reduction that arise before this Decree comes into force and
remain unresolved shall be dealt with in accordance with legislative documents
on CIT, foreign investment in Vietnam, and promotion of domestic investment,
and other legislative documents promulgated before the effective date of this
Decree.
Article 21. Responsibility for implementation
1. The Ministry of Finance of Vietnam shall provide
guidance on the implementation of this Decree.
2. Ministers, heads of ministerial agencies, heads
of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated
cities, and relevant organizations and individuals are responsible for the
implementation of this Decree./.
CERTIFIED BY
PP. MINISTER
DEPUTY MINISTER
Cao Anh Tuan
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APPENDIX [33] (abrogated)
LIST OF AREAS
ELIGIBLE FOR CORPORATE INCOME TAX INCENTIVES
(Enclosed with the Government’s Decree No. 218/2013/ND-CP dated December 26,
2013)
[1]
This is consolidated document of the following 06 Decrees:
- The Government’s Decree No. 218/2013/ND-CP dated
December 26, 2013 elaborating and providing guidelines for some Articles of the
Law on Corporate Income Tax, coming into force from February 15, 2014 and
applying to the tax period of 2014 onwards;
- The Government's Decree No. 91/2014/ND-CP dated
October 01, 2014 providing amendments to Decrees on taxation which comes into
force from November 15, 2014 but of which the provisions of Article 1 apply to
the tax period of 2014 onwards;
- 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, which comes into force from January 01,
2015;
- The Government’s Decree No. 118/2015/ND-CP dated
November 12, 2015 elaborating and providing guidelines for implementation of
the Law on Investment, which comes into force from December 27, 2015;
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- The Government’s Decree No. 57/2021/ND-CP dated
June 04, 2021 amending Point g Clause 2 Article 20 of Decree No. 218/2013/ND-CP
(as amended in Decree No. 12/2015/ND-CP) on corporate income tax (CIT)
incentives for supporting product production projects, which comes into force
from June 04, 2021.
[2]
The Government’s Decree No. 91/2014/ND-CP dated October 01, 2014 providing
amendments to Decrees on taxation is promulgated pursuant to:
“The Law on Organization of Government dated
December 25, 2001;
The Law on Tax administration dated November 29,
2006, and the Law on amendments to the Law on Tax administration dated November
20, 2012;
The Law on Personal Income Tax dated November
21, 2007, and the Law on Amendments to the Law on Personal Income Tax dated
November 22, 2012;
The Law on Value-Added Tax dated June 03, 2008
and the Law on Amendments to the Law on Value-Added Tax dated June 19, 2013;
The Law on Corporate Income Tax dated June 03,
2008, and the Law on Amendments to the Law on Corporate Income Tax dated June
19, 2013; and
At the request of the Minister of Finance of
Vietnam,”
- 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 is promulgated pursuant to:
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The Law on Tax Administration dated November 29,
2006, and the Law on amendments to the Law on Tax Administration dated November
20, 2012;
The Law on Personal Income Tax dated November
21, 2007, and the Law on Amendments to the Law on Personal Income Tax dated November
22, 2012;
The Law on Value-Added Tax dated June 03, 2008
and the Law on Amendments to the Law on Value-Added Tax dated June 19, 2013;
The Law on Corporate Income Tax dated June 03,
2008, and the Law on Amendments to the Law on Corporate Income Tax dated June
19, 2013;
The Law on Severance Taxes dated November 25,
2009;
The Law on amendments to the Laws on taxation
dated November 26, 2014; and
At the request of the Minister of Finance of
Vietnam,”
- The Government’s Decree No. 118/2015/ND-CP dated
November 12, 2015 elaborating and providing guidelines for implementation of
the Law on Investment is promulgated pursuant to:
“The Law on Organization of
Government dated December 25, 2001;
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The Law on Enterprises dated
November 26, 2014; and
At the request of the Minister
of Planning and Investment of Vietnam,”
- 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 is promulgated pursuant to:
“The Law on Organization of Government dated
June 19, 2015;
The Law on value-added tax dated June 03, 2008;
the Law on amendments to the Law on value-added tax dated June 19, 2013; the
Law on amendments to the Law on value-added tax, the Law on Excise Tax and the
Law on Tax Administration dated April 06, 2016;
The Law on Corporate Income Tax dated June 03,
2008, and the Law on Amendments to the Law on Corporate Income Tax dated June
19, 2013; and
The Law on amendments to the Laws on taxation
dated November 26, 2014; and
At the request of the Minister of Finance of
Vietnam;”
- The Government’s Decree No. 57/2021/ND-CP dated
June 04, 2021 amending Point g Clause 2 Article 20 of Decree No. 218/2013/ND-CP
(as amended in Decree No. 12/2015/ND-CP) on corporate income tax (CIT)
incentives for supporting product production projects is promulgated pursuant
to:
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The Law on Corporate Income Tax
dated June 03, 2008; the Law on amendments to the Law on Corporate Income Tax
dated June 19, 2013 and the Law on amendments to tax laws dated November 26,
2014;
The Law on Tax Administration
dated June 13, 2019;
The Law on Investment dated
June 17, 2020; and
At the request of the Minister
of Finance of Vietnam;”
[3]
This Point is amended according to Clause 1 Article 1 of the Government's
Decree No. 91/2014/ND-CP dated October 01, 2014 providing amendments to Decrees
on taxation which comes into force from November 15, 2014 but of which the
provisions of Article 1 apply to the tax period of 2014 onwards.
[4]
This Clause is abrogated according to Clause 3 Article 6 of 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, which
comes into force from January 01, 2015.
[5]
This Clause is amended according to Clause 1 Article 1 of 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, which
comes into force from January 01, 2015.
[6]
This Clause is amended according to Clause 2 Article 1 of 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, which
comes into force from January 01, 2015.
[7]
This Clause is amended according to Clause 2 Article 1 of the Government's
Decree No. 91/2014/ND-CP dated October 01, 2014 providing amendments to Decrees
on taxation which comes into force from November 15, 2014 but of which the
provisions of Article 1 apply to the tax period of 2014 onwards.
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This Clause is amended according to Clause 3
Article 1 of the Government's Decree No. 91/2014/ND-CP dated October 01, 2014
providing amendments to Decrees on taxation which comes into force from
November 15, 2014 but of which the provisions of Article 1 apply to the tax
period of 2014 onwards.
[9]
This Clause is added according to Clause 4 Article 1 of 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, which
comes into force from January 01, 2015.
[10]
This Point is added according to Clause 5 Article 1 of 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, which
comes into force from January 01, 2015.
This Point is amended according to Clause 4 Article
1 of the Government's Decree No. 91/2014/ND-CP dated October 01, 2014 providing
amendments to Decrees on taxation which comes into force from November 15, 2014
but of which the provisions of Article 1 apply to the tax period of 2014 onwards.
[11]
This Point is amended according to Clause 5 Article 1 of the Government's
Decree No. 91/2014/ND-CP dated October 01, 2014 providing amendments to Decrees
on taxation which comes into force from November 15, 2014 but of which the
provisions of Article 1 apply to the tax period of 2014 onwards.
[12]
This Point is added according to Clause 6 Article 1 of 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, which comes into
force from January 01, 2015.
[13]
This Point is abrogated according to Clause 3 Article 6 of 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, which
comes into force from January 01, 2015.
[14]
This Point is amended according to Article 2 of 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, which comes into force from February 01,
2018.
This Point is amended according to Clause 7 Article
1 of 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, which comes into force from January 01, 2015.
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[16]
This Point is amended according to Clause 9 Article 1 of 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, which
comes into force from January 01, 2015.
[17]
This Point is added according to Clause 10 Article 1 of 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, which
comes into force from January 01, 2015.
[18]
This Point is added according to Clause 11 Article 1 of 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, which comes
into force from January 01, 2015.
[19]
This Point is amended according to Clause 12 Article 1 of 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, which
comes into force from January 01, 2015.
[20]
This Point is amended according to Clause 13 Article 1 of 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, which
comes into force from January 01, 2015.
[21]
This Clause is added according to Clause 14 Article 1 of 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, which
comes into force from January 01, 2015.
[22]
This Clause is added according to Clause 15 Article 1 of 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, which
comes into force from January 01, 2015.
[23]
This Point is amended according to Clause 16 Article 1 of 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, which
comes into force from January 01, 2015.
[24]
This Clause is amended according to Clause 6 Article 1 of the Government's
Decree No. 91/2014/ND-CP dated October 01, 2014 providing amendments to Decrees
on taxation which comes into force from November 15, 2014 but of which the
provisions of Article 1 apply to the tax period of 2014 onwards.
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[26]
This Clause is amended according to Clause 18 Article 1 of 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, which
comes into force from January 01, 2015.
[27]
This Clause is added according to Clause 7 Article 1 of the Government's Decree
No. 91/2014/ND-CP dated October 01, 2014 providing amendments to Decrees on
taxation which comes into force from November 15, 2014 but of which the
provisions of Article 1 apply to the tax period of 2014 onwards.
[28]
This Clause is added according to Clause 8 Article 1 of the Government's Decree
No. 91/2014/ND-CP dated October 01, 2014 providing amendments to Decrees on
taxation which comes into force from November 15, 2014 but of which the
provisions of Article 1 apply to the tax period of 2014 onwards.
[29]
This Clause is added according to Clause 19 Article 1 of 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, which
comes into force from January 01, 2015.
[30]
Article 5 of the Government's Decree No. 91/2014/ND-CP dated October 01, 2014
providing amendments to Decrees on taxation which comes into force from
November 15, 2014 but of which the provisions of Article 1 apply to the tax
period of 2014 onwards stipulates as follows:
“Article 5. Effect and responsibility for
implementation
1. This Decree comes into force from November
15, 2014. The provisions of Article 1 of this Decree apply from the CIT period
of 2014.
2. The Ministry of Finance of Vietnam shall
provide guidance on the implementation of this Decree.
3. Ministers, heads of ministerial agencies,
heads of Governmental agencies, Chairpersons of provincial People’s Committees
and relevant organizations and individuals shall implement this Decree.”
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“Article 6. Effect and responsibility for
implementation
1. This Decree comes into force from the date of
entry into force of the Law on amendments to tax laws dated November 26, 2014.
2. Regulations on exchange rates when
determining revenues, expenses, taxable prices, assessable incomes, taxable
incomes in Article 7 and Article 8 of the Government's Decree No. 87/2010/ND-CP
dated August 13, 2010, Clause 9 Article 4 of Government's Decree No.
26/2009/ND-CP dated March 16, 2009, and Clause 3 Article 1 of Government's
Decree No. 113/2011/ND-CP dated December 08, 2011 are annulled.
3. Point n Clause 2 Article 3 and Point g Clause
2 Article 9 of the Government's Decree No. 218/2013/ND-CP dated December 26,
2013 are annulled.
4. Articles 7, 8, 9, 10, 19, 20, 21 and
regulations on incomes from business in Articles 12, 13, and 14 of the
Government's Decree No. 65/2013/ND-CP dated June 27, 2013 are annulled.
5. Point c Clause 2 Article 6 of the
Government's Decree No. 209/2013/ND-CP dated December 18, 2013 is annulled.
6. The Ministry of Finance of Vietnam shall
provide guidance on the implementation of this Decree.
7. Ministers, heads of ministerial agencies,
heads of Governmental agencies, Chairpersons of provincial People’s Committees
and relevant organizations and individuals shall implement this Decree.”
- Articles 66 and 67 of the Government’s Decree No.
118/2015/ND-CP dated November 12, 2015 elaborating and providing guidelines for
implementation of the Law on Investment stipulate as follows:
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1. This Decree comes into force
from December 27, 2015 and replaces the Government's Decree No. 108/2006/ND-CP
dated September 22, 2006 elaborating and providing guidelines for
implementation of the Law on Investment.
2. The following documents are
abrogated:
a) List of areas eligible for
corporate income tax incentives enclosed with the Government’s Decree No. 218/2013/ND-CP
dated December 26, 2013 elaborating and providing guidelines for some Articles
of the Law on Corporate Income Tax;
b) List of business lines
eligible for corporate income tax incentives enclosed with the Government’s
Decree No. 87/2010/ND-CP
dated August 13, 2010 elaborating and providing guidelines for some Articles of
the Law on Import and Export Duties;
c) Clause 4 Article 19 and
"List of administrative divisions eligible for land rent incentives” in
Clause 3 Article 19 of the Government's Decree No. 46/2014/ND-CP dated May
15, 2014 prescribing land rents and water surface rents.
3. If the investment
registration certificate is required while following administrative procedures
but the project is not required to have an investment registration certificate
as set out in the Law on Investment, the investor is not required to submit the
investment registration certificate.
Article 67. Responsibility
for implementation
1. The Ministry of Planning and
Investment of Vietnam shall promulgate specific regulations on establishment,
management, and operation of venture capital funds in Vietnam; provide
instructions on transition in the cases not specified in Section 1 Chapter VI
and other regulations of this Decree.
2. Ministers, heads of
ministerial agencies, heads of Governmental agencies, and Chairpersons of
Provincial People’s Committees shall instruct and implement this Decree within
the ambit of their assigned functions and tasks.”
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“Article 3. Effect
This Decree comes into force from February 01,
2018.
Article 4. Responsibility for implementation
1. The Ministry of Finance of Vietnam shall
provide guidance on the implementation of this Decree.
2. Ministers, heads of ministerial agencies,
heads of Governmental agencies, Chairpersons of provincial People’s Committees
and relevant organizations and individuals shall implement this Decree.”
- Article 2 of the Government’s Decree No.
57/2021/ND-CP dated June 04, 2021 amending Point g Clause 2 Article 20 of
Decree No. 218/2013/ND-CP (as amended in Decree No. 12/2015/ND-CP) on corporate
income tax (CIT) incentives for supporting product production projects
stipulates as follows:
“Article 2. Effect and
implementation
1. This Decree comes into force
from the date on which it is signed.
2. In case the application of
regulations herein (including the case where a tax inspection has been conducted
by competent authorities) results in a decrease in CIT payable and late payment
interest (if any), the taxpayer shall request its supervisory tax authority in
writing to make corresponding decrease in CIT payable as declared or inspected
by competent authorities and late payment interest (if any). Any
overpaid tax and/or late payment interest shall be handled in accordance with
Article 60 of the Law on tax administration dated June 13, 2019 and its guiding
documents.
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[31]
This Clause is amended according to Clause 20 Article 1 of 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, which
comes into force from January 01, 2015.
[32]
This Clause is added according to Article 1 of the Government’s Decree No.
57/2021/ND-CP dated June 04, 2021 amending Point g Clause 2 Article 20 of
Decree No. 218/2013/ND-CP (as amended in Decree No. 12/2015/ND-CP) on corporate
income tax (CIT) incentives for supporting product production projects, which
comes into force from June 04, 2021.
[33]
This List is abrogated according to Point a Article 66 of the Government’s
Decree No. 118/2015/ND-CP dated November 12, 2015 elaborating and providing
guidelines for implementation of the Law on Investment.
The Government’s Decree No. 118/2015/ND-CP ceases
to have effect from the effective date of the Law on Investment (January 01,
2021) according to Clause 2 Article 131 of the Government’s Decree No.
31/2021/ND-CP elaborating and providing guidelines for implementation of the
Law on Investment.