THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 152/2004/ND-CP
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Hanoi,
August 6, 2004
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DECREE
AMENDING AND SUPPLEMENTING A NUMBER OF
ARTICLES OF THE GOVERNMENT’S DECREE NO. 164/2003/ND-CP OF DECEMBER 22, 2003
DETAILING THE IMPLEMENTATION OF THE LAW ON ENTERPRISE INCOME TAX
THE GOVERNMENT
Pursuant to the December 25,
2001 Law on Organization of the Government;
Pursuant to June 17, 2003 Enterprise Income Tax Law No. 09/2003/QH11;
At the proposal of the Finance Minister,
DECREES:
Article 1.- To amend and
supplement a number of articles of the Government's Decree No. 164/2003/ND-CP
of December 22, 2003 detailing the implementation of the Law on Enterprise
Income Tax as follows:
1. Article 12 is amended and
supplemented as follows:
"Article 12.- Payers
of tax on incomes from land use right or land-renting right transfers are
organizations producing and/or trading in goods or services and earning incomes
from such transfers.
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2. Point a, Clause 2, Article 33
is amended as follows:
"a/ In special-grade and
grade-1 urban areas: 100 laborers;"
3. The following Point e is
added to Clause 1 of Article 35:
"e/ The tax rate of 20%
shall be applicable to service establishments newly set up under investment
projects executed in industrial parks;
The tax rate of 15% shall be
applicable to service establishments newly set up under investment projects
executed in export processing zones; production establishments newly set up
under investment projects executed in industrial parks;
The tax rate of 10% shall be
applicable to establishments dealing in infrastructure development, which are
newly set up under investment projects for development of infrastructures of
industrial parks and export processing zones; export processing enterprises
newly established in production fields regardless of whether they are located
inside or outside export processing zones."
4. The following Clause 13 is
added to Article 36:
"13. Business
establishments newly set up under investment projects executed in industrial
parks or export processing zones shall:
a/ Enjoy tax exemption for 2
years as from the date their taxable incomes are generated and the 50%
reduction of payable tax amounts for 6 subsequent years for service
establishments newly set up under investment projects executed in industrial
parks;
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c/ Enjoy tax exemption for 4
years as from the date their taxable incomes are generated and the 50%
reduction of payable tax amounts for 7 subsequent years for establishments
dealing in infrastructure development, which are newly set up under investment
projects for development of infrastructures of industrial parks and export
processing zones; export processing enterprises in production fields regardless
of whether they are located inside or outside export processing zones."
5. Article 37 is amended and
supplemented as follows:
"Article 37.-
Enterprise income tax preferences for economic zones and projects in which
investment is particularly encouraged shall be as follows:
1. For business establishments
operating in economic zones, the preferential tax rates as well as tax
exemption or reduction durations shall be decided by the Prime Minister, but
the tax exemption duration shall not exceed 4 years as from the date their
taxable incomes are generated and the 50% tax reduction duration shall not
exceed 9 subsequent years.
2. Business establishments newly
set up under projects in which investment is particularly encouraged; newly set
up foreign-invested establishments for medical examination and treatment,
education and training or scientific research shall enjoy the preferential tax
rate of 10% for 15 years as from the date they commence their business
operations, the tax exemption for 4 years as from the date their taxable
incomes are generated and the 50% reduction of payable tax amounts for 9
subsequent years. For special cases where greater particular encouragement is
needed, the Finance Ministry shall propose to the Prime Minister for decision
the preferential tax rate of 10% throughout the period of project execution.
The list of projects in which
investment is particularly encouraged shall be prescribed by the Prime Minister
for each period."
6. Point 12, Section VI of List
A is amended as follows:
"12. Investing in
production, processing, provision of hi-tech services in small- and
medium-sized industrial parks, industrial clusters."
Article 2.- This Decree takes
effect 15 days after its publication in the Official Gazette and applies to the
tax calculation period from 2004 on.
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In cases where enterprise income
tax preference levels stated in investment licenses or investment preference
certificates are lower than those provided for in this Decree, business
establishments shall enjoy the preferences provided for in this Decree for the
remaining preferential duration. For investment projects with the setting up of
new business establishments during the period from January 1, 2004 to the
effective date of this Decree, if the preferences applicable under the
Government's Decree No. 164/2003/ND-CP of December 22, 2003 are higher than
those provided for in this Decree, such business establishments shall enjoy the
preferences under the Government's Decree No. 164/2003/ND-CP of December 22,
2003 for the remaining preferential duration.
All previous stipulations on
enterprise income tax, which are contrary to this Decree, shall be hereby
annulled.
Article 3.- The Finance Ministry
guides the implementation of this Decree.
Article 4.- The ministers, the
heads of the ministerial-level agencies, the heads of the Government-attached
agencies and the presidents of the People's Committees of the provinces and
centrally-run cities shall have to implement this Decree.
ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Phan Van Khai