Circular 78/2014 / TT-BTC
Circular 78/2014 / TT-BTC guiding the implementation of Decree No. 218/2013 / ND-CP dated December 26, 2013 of the Government detailing a number of articles of the Law on Corporate Income Tax and the Law on Amending and Supplementing a number of articles of the Law on corporate income tax.
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THE FINANCIAL |
SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness |
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No. 78/2014 / TT-BTC |
Hanoi, June 18, 2014 |
CIRCULARS
GUIDANCE ON IMPLEMENTATION OF THE GOVERNMENT'S DECREE NO.218 / 2013 / ND-CP DATED December 26, 2013, REGULATIONS AND GUIDING THE IMPLEMENTATION OF THE LAW ON CORPORATE INCOME TAX
Pursuant to the Law on Enterprise Income Tax No. 14/2008 / QH12 dated June 3, 2008; Law amending and supplementing a number of articles of the Law on Corporate Income Tax No. 32/2013 / QH13 dated June 19, 2013;
Pursuant to Decree No. 218/2013 / ND-CP dated December 26, 2013 of the Government detailing a number of articles of the Law on Corporate Income Tax and the Law amending and supplementing a number of articles of the Law on Income Tax enterprise;
Pursuant to the Government's Decree No. 118/2008 / ND-CP dated November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
At the proposal of the Director of the General Department of Taxation, the Minister of Finance guides the implementation of corporate income tax as follows:
Chapter I
GENERAL RULES
Article 1. Scope
This Circular guides the implementation of the Government's Decree No. 218/2013 / ND-CP dated December 26, 2013, detailing a number of articles of the Law on Corporate Income Tax and the Law amending and supplementing a number of articles. of the Law on Corporate Income Tax.
Article 2. Taxpayers
1. Enterprise income tax payers are organizations engaged in production and trading of goods and services with taxable income (hereinafter referred to as enterprises), comprising:
a) Enterprises established and operating under the provisions of the Enterprise Law, the Investment Law, the Law on Credit Institutions, the Law on Insurance Business, the Securities Law, the Petroleum Law, the Commercial Law and other documents. Other legal regulations in the forms: Joint Stock Company; Limited liability company; Partnerships; Private enterprise; Law Offices, Private Notary Offices; Parties to the business cooperation contract; The parties to the petroleum product distribution contract, the petroleum joint venture enterprise, the joint operating company.
b) Public and non-public non-business units producing and trading goods and services with taxable income in all fields.
c) Organizations established and operating under the Cooperative Law.
d) Enterprises established under the provisions of foreign laws (hereinafter referred to as foreign enterprises) with permanent establishments in Vietnam.
Permanent establishment of a foreign enterprise is a production or business establishment through which a foreign enterprise carries out part or all of the production and business activities in Vietnam, including:
- Branches, operating offices, factories, workshops, means of transport, mines, oil and gas fields or other natural resource exploitation sites in Vietnam;
- Construction sites, construction works, installation and assembly works;
- Service providers, including consulting services through employees or other organizations or individuals;
- Agent for foreign businesses;
- Representative in Vietnam in the case of the representative authorized to sign the contract in the name of the foreign enterprise or the representative is not authorized to sign the contract in the name of the foreign enterprise but regularly delivers the goods. goods or provide services in Vietnam.
In case an Agreement on double taxation avoidance which the Socialist Republic of Vietnam has signed contains different provisions on permanent establishments, the provisions of such Agreement shall prevail.
e) Other organizations other than the organizations specified at Points a, b, c and d, Clause 1 of this Article having activities of production and trading of goods or services, and earning taxable income.
2. Foreign organizations that do business in Vietnam not under the Investment Law or the Enterprise Law or have income arising in Vietnam shall pay enterprise income tax under the Finance Ministry's separate guidance. These organizations, if having capital transfer activities, shall pay enterprise income tax under the guidance in Article 14, Chapter IV of this Circular.
chapter II
TAX CALCULATION METHOD AND BASIS
Article 3. Tax calculation method
The payable enterprise income tax amount in a tax period is taxed income multiplied by the tax rate.
The payable corporate income tax is determined by the following formula:
|
Corporate income tax payable |
= |
(Taxable income |
- |
Appropriation to science and technology fund (if any)) |
x |
Appropriation to science and technology fund (if any)) |
In case an enterprise has paid corporate income tax or a tax similar to corporate income tax outside of Vietnam, the enterprise may deduct the paid corporate income tax amount but must not exceed the payable corporate income tax amount. paid in the period in accordance with the Law on Corporate Income Tax.
2. The tax period is determined according to the calendar year. Where enterprises apply a fiscal year different from the calendar year, the tax period shall be determined according to the applicable fiscal year. The first tax period for newly established enterprises and the last tax period for enterprises transforming the form of enterprise, form of ownership, merger, division, separation, dissolution or bankruptcy are determined. and in accordance with the accounting period as prescribed by law on accounting.
3. In the case of the tax period of the first year of a newly established enterprise from the date of being granted an enterprise registration certificate or an investment certificate and the last year of tax calculation for a transformed enterprise. Enterprise, ownership transformation, consolidation, merger, division, separation, dissolution or bankruptcy for a period of less than 03 months, it shall be added to the tax period of the following year (for newly established enterprises). or the tax period of the previous year (for enterprises converting the form of enterprise, form of ownership, consolidation, merger, division, separation, dissolution, bankruptcy) to form a tax period. enter a business. The corporate income tax period of the first year or the CIT period of the last year must not exceed 15 months.
4. In case an enterprise converts the corporate income tax period (including the change of a tax period from calendar year to fiscal year or vice versa), the CIT period of the year of conversion must not exceed 12 months. If the enterprise is in the period of enjoying CIT incentives but converts the tax period, the enterprise can choose: Incentive in the year of changing tax period or paying tax at the ineligible tax rate. incentive of the year to change the tax period and enjoy the tax incentives to the following year.
Example 1: Enterprise A (DN A) in the 2013 EIT period applies according to the calendar year, at the beginning of 2014 it chooses to convert to the fiscal year from April 1 of this year to March 31. the following year, the CIT period of the year of conversion (the year of conversion 2014) is counted from January 1, 2014 to the end of March 31, 2014 (3 months), and the CIT period of the year. The next (fiscal year 2014) is counted from April 1, 2014 to the end of March 31, 2015.
Example 2: In the same case above, but enterprise A is entitled to CIT incentives (2 years tax exemption, 50% CIT reduction for the next 4 years). Tax incentives are as follows (tax exemption for 2012, 2013; 50% tax reduction for 2014, 2015, 2016, 2017).
In case the enterprise chooses to reduce 50% of tax according to the tax period of the year of conversion 2014, it will continue to reduce 50% of corporate income tax for the next 3 tax years, starting from fiscal 2014 (fiscal year 2014 from 1 / 4/2014 to 31/3/2015) to the end of fiscal year 2016.
In case the enterprise chooses not to enjoy 50% reduction of CIT incentives for the CIT period of the year of conversion 2014 (the tax period of the year of conversion 2014 declares and pays tax at the tax rate not eligible for incentives) enjoy a 50% reduction in corporate income tax from fiscal year 2014 (from April 1, 2014 to March 31, 2015) until the end of fiscal year 2017.
5. Non-business units and other organizations that are not enterprises established and operating under the provisions of Vietnamese law, and enterprises that pay value-added tax according to the direct method of goods trading. services with taxable income of corporate income tax for which these units can determine turnover but cannot determine costs or income of business activities shall declare and pay enterprise income tax at the rate% on sales of goods or services, specifically as follows:
+ For services (including deposit interest, loan interest): 5%.
Particularly for educational, medical and art performance activities: 2%.
+ For goods trading: 1%.
+ For other activities: 2%.
Example 3: Non-business unit A has the activity of renting a house, the revenue from renting a house for one (01) year is 100 million VND, the cost and income cannot be determined by the unit. Therefore, the unit chooses to declare and pay corporate income tax as a percentage of the sale of goods and services as follows:
CIT payable = 100,000,000 VND x 5% = 5,000,000 VND.
6. Enterprises having foreign currency turnover, expenses and other incomes must convert the foreign currency into Vietnam dong at the average exchange rate on the inter-bank foreign currency market by the State Bank of Vietnam. announced at the time the revenue, expenses or other income is generated in foreign currency, unless otherwise provided by law. For a foreign currency without the exchange rate with Vietnam dong, it must be converted via a foreign currency with an exchange rate with Vietnam dong.
Article 4. Determination of taxable income
1. Taxed income in a tax period is determined by taxable income minus tax-exempt income and losses carried forward from previous years according to regulations.
Taxed income is determined by the following formula:
|
Taxable income |
= |
Income taxes |
- |
Tax-free income |
+ |
Losses are carried forward according to regulations |
2. Income taxes
Taxable income in a tax period includes income from production and trading of goods and services and other income.
Taxable income in a tax period is determined as follow:
|
Income taxes |
= |
Revenue |
- |
The cost is deducted |
+ |
Other income |
Income from goods and service production and business activities is equal to the revenue from the goods or service production and business activities minus deductible costs of such goods or service production and business activities. If an enterprise has many production and business activities applying different tax rates, the enterprise must separately calculate the income of each activity multiplied by the corresponding tax rate.
Incomes from the transfer of real estate, the transfer of investment projects, the right to participate in investment projects, the transfer of the right to explore, exploit and process minerals in accordance with the law must be accounted for. Particularly to declare and pay corporate income tax at the rate of 22% (from January 1, 2016, the tax rate of 20%), not entitled to corporate income tax incentives (except for the income of the business Enterprises implementing projects of investment and trading in social houses for sale, lease, or lease purchase are subject to the CIT rate of 10% as prescribed at Point d, Clause 2, Article 20 of this Circular).
In the tax period, if the enterprise has activities of real estate transfer, transfer of investment projects, or right to participate in the implementation of investment projects (except for mineral exploration and exploitation projects), if it suffers a loss. these losses are offset against profits from production and business activities (including other income specified in Article 7 of this Circular).
Losses incurred from real estate transfer, transfer of investment projects, or right to participate in the implementation of investment projects (except for mineral exploration and extraction projects) of 2013 or earlier while during the loss transfer period, the enterprise must transfer the income from the real estate transfer, the transfer of investment projects, or the right to participate in the implementation of investment projects. income from production and business activities (including other income) from 2014 onwards.
In case an enterprise performs dissolution procedures, after the decision on dissolution is issued, if there is a transfer of real estate that is fixed assets of the enterprise, income (interest) from real estate transfer (if any) be offset against losses from production and business activities (including losses carried forward in previous years according to regulations) in the tax period in which real estate transfer occurs.
Article 5. Turnover
1. Turnover for calculating taxable income is determined as follows:
The turnover for calculating taxable income is the total proceeds from the sale of goods, processing fees or service charges, including price subsidies, surcharges and surcharges that the enterprise is entitled to, regardless of whether the money has been collected. No money is collected yet.
a) For enterprises paying value-added tax by the tax credit method, it is the revenue excluding value added tax.
Example 4: Enterprise A pays value-added tax according to the tax credit method. The value-added invoice includes the following items:
Price: 100,000 VND.
VAT (10%): 10,000 VND.
Payment price: 110,000 VND.
The turnover for calculating taxable income is 100,000 VND.
b) For enterprises that pay value added tax by the direct method on value added, it is the turnover including value added tax.
Example 5: Enterprise B pays value-added tax by the direct method on added value. The sale invoice only states the selling price of VND 110,000 (the price including VAT).
The turnover for calculating taxable income is VND 110,000.
c) In case the enterprise provides services for which the customer pays for many years in advance, the revenue for calculating taxable income shall be distributed over the number of years of prepayment or determined according to the revenue from the first payment. times. In case an enterprise is enjoying tax incentives, the determination of the incentive tax amount must be based on the total payable corporate income tax of the number of years of collection before divided (:) by the number of years of pre-collection.
Time of turnover determination to calculate taxable income is determined as follows:
a) For the sale of goods, it is the time when the right to own or use goods is transferred to the buyer.
b) For service provision, it is the time when the provision of services is completed or the time the service invoice is issued.
In case the time of making service invoices is before the time the services are completed, the time of determining taxable revenue is calculated according to the time of making the invoice for service provision.
c) For air transport, it is the time when the delivery of the transport service is completed for the buyer.
d) Other cases as prescribed by law.
3. Turnover for calculating taxable income in some cases is determined as follows:
a) For goods and services sold by installment or deferred payment, it is the sale of goods or services paid in lump sum, excluding interest on installment or deferred payment.
b) For goods or services used for exchange; internal consumption (excluding goods or services used to continue the production and business process of an enterprise) is determined by the selling price of a product, goods or service of the same or equivalent type above the market at the time of exchange; internal consumption.
c) For goods processing is the proceeds from the processing activities including wages, costs of fuel, power, auxiliary materials and other costs in service of the processing of goods.
d) For goods of the units delivering, consigning and receiving agents, consigned under the agency contract, consigned for sale at the right price for the commission is determined as follows:
- The enterprise delivers the goods to agents (including multi-level sales agents), and consignment is the total amount of goods sold.
- The enterprise acts as an agent, consigns goods for sale at the prescribed price of the enterprise delivering the agent or consignment is the commission enjoyed under the agency contract, consignment of goods.
e) For property lease, it is the amount the lessee pays each period under the lease contract. Where the lessee pays many years in advance, the revenue for calculating taxable income shall be distributed over the number of years of prepayment or determined according to the lump-sum turnover.
Enterprises, based on the conditions for implementing the accounting regimes, actual invoices and documents and the determination of expenses, can choose one of two methods of determining turnover to calculate taxable income as follows:
- Is the asset lease amount for each year determined by (=) the prepaid amount divided (:) by the number of years paid in advance.
- Is the full rental of the property of the prepaid number of years.
In case the enterprise in the period of enjoying enterprise income tax incentives chooses the method of revenue determination to calculate taxable income which is the entire rent prepaid by the lessee for many years, the determination of the tax amount The corporate income tax for each tax incentive is based on the total corporate income tax of the number of years of prepayment divided (:) the number of years the lessee pays in advance.
g) For golf course business, the proceeds from the sale of membership cards, golf tickets and other revenues in the tax period is determined as follows:
- For the form of selling tickets, selling golf cards on a daily basis, the turnover of golf course business as a basis for determining the assessable income of corporate income tax is the proceeds from ticket sales, card sales and other revenues. incurred in the tax period.
- For the form of ticket sales and membership card sales of prepaid cards for many years, the revenue as a basis for determining the corporate income taxable income of each year is the amount of the card sale and other revenues actually collected. divided by number of years of using the card or determined by one-time payment turnover.
h) For credit activities of a credit institution or foreign bank branch is the deposit interest, loan interest, or finance lease receivable arising in the taxable period. record the revenue according to the current regulations on the financial mechanism of the credit institutions, foreign bank branches.
i) For transportation activities, it is the total revenue from transporting passengers, goods and luggage generated in the tax period.
k) For electricity supply, clean water is the amount of electricity and clean water supply indicated on the added-value invoice. The time of determination of revenue to calculate taxable income is the date of confirmation of the electric meter readings and recorded on the electricity bill and clean water bill.
Example 6: On an electricity bill, the meter readings are recorded from December 5 to January 5. The revenue of this invoice is calculated for January.
l) For the business of insurance, the revenue for calculating taxable income is the total proceeds from the provision of insurance services and other goods and services, including surcharges and extra charges. Insurance enterprises are entitled to have no value added tax, including:
Revenue from insurance business:
For insurance and reinsurance business is the amount receivable from the collection of original insurance premium; reinsurance fees; collecting reinsurance transfer commissions; collection of insurance policy management fees; Collecting agency service fees including loss assessment, consideration and settlement of compensation, requesting a third party to reimburse, handling 100% compensation goods (excluding assessment on behalf of member enterprises of internal accounting ministries in the same independent-accounting insurance enterprise) after deducting accounts payable to reduce revenues such as: refund of insurance premium; insurance premium reduction; reinsurance fee refund; reduce reinsurance fees; reimbursement of reinsurance ceding commissions; Reduced reinsurance ceding commissions.
Where insurance enterprises participate in co-insurance, the revenue for calculating taxable income of each party is the original insurance premium distributed according to the proportion of coinsurance for each party, excluding value-added tax. increase.
For insurance contracts with agreement to pay each period, the turnover for calculating taxable income is the receivable amount arising in each period.
In case of performing collection operations between affiliated enterprises or between a dependent accounting enterprise and the head office of the insurance enterprise, the revenue for calculating taxable income does not include the turnover of revenue on behalf of the insurance enterprise. .
- Revenue from insurance brokerage activities: Insurance brokerage commissions after deducting insurance brokerage commissions, reduction and refund of insurance brokerage commissions.
m) For construction and installation activities, it is the value of the work, the value of the work item or the value of the pre-acceptance test and construction work volume.
- In case of construction and installation involving raw materials, machinery and equipment, it is the money amount from construction and installation activities, including the value of raw materials, machinery and equipment.
- In case of construction and installation exclusive of raw materials, machinery and equipment, it is the sum of money from construction and installation activities excluding the value of raw materials, machinery and equipment.
n) For business activities in the form of business cooperation contract:
- If the parties to a business cooperation contract divide the business result by the sale of goods or services, the taxable revenue is the revenue of each party divided under the contract.
- Where the parties to a business cooperation contract divide the business result by products, the taxable revenue is the revenue of the product divided to each party under the contract.
- In case the parties to a business cooperation contract divide the business result by the pre-enterprise income tax profit, the revenue for determining the pre-tax income is the proceeds from the sale of goods or services under the contract. . The parties to a business cooperation contract must appoint a representative to issue invoices, record revenue, expenses, determine pre-enterprise income tax profit divided to each party to the contract. business cooperation contract. Each party to a business cooperation contract shall fulfill its own corporate income tax obligations according to current regulations.
- In case the parties to a business cooperation contract divide the business result by the profit after enterprise income tax, the revenue to determine the taxable income is the proceeds from the sale of goods or services under the contract. . The parties to a business cooperation contract must appoint a representative to be responsible for issuing invoices, recording revenue, expenses and declaring and paying corporate income tax on behalf of the other parties to the contract. business cooperation contract.
o) For the business of prize-winning games (casino, electronic games with prizes, business with betting) is the proceeds from this activity including excise tax minus the amount paid for guests.
p) For securities trading activities are revenues from services of brokerage, securities dealing, securities underwriting, portfolio management, securities investment and financial advisory, and fund management, issue of fund certificates, market organization services and other securities services in accordance with the law.
q) For derivative financial services is the proceeds from the provision of derivative financial services performed in the tax period.
Article 6. Deductible and non-deductible expenses when determining taxable income
1. Except for the non-deductible expenses specified in Clause 2 of this Article, all expenses may be deducted if the following conditions are satisfied:
a) Actual expenses incurred are related to the enterprise's production and business activities;
b) The expenditure has sufficient legal invoices and documents as prescribed by law.
c) If there is an invoice for each purchase of goods or services valued at VND 20 million or more (the price includes VAT), the non-cash payment voucher must be included.
Vouchers of non-cash payments comply with legal documents on value added tax.
In case of purchasing goods or services each time with a value of twenty million dong or more indicated on the invoice but by the time the expense is recorded, the enterprise has not paid and no non-cash payment vouchers are available. Enterprises are included in deductible expenses when determining taxable income. If the enterprise does not have non-cash payment documents when making payment, the enterprise must declare and reduce costs for the value of goods and services without non-cash payment vouchers. In the tax period, the payment is made in cash (even in cases where the tax authority and the authorities have issued a decision on periodical inspection and examination in which this expense is incurred).
For goods and service purchase invoices for which cash payments are made before the effective date of this Circular, no adjustment is required under this Point.
Example 7: In August 2014, enterprise A purchases goods with invoices and the value on the invoice is VND 30 million but has not yet paid. In the tax period of 2014, enterprise A has included deductible expenses when determining taxable income on the purchase value of these goods. In 2015, enterprise A pays for the purchase of these goods in cash, so enterprise A must declare and reduce the cost of the value of the goods or services in the tax period. paying in cash (tax year 2015).
2. Non-deductible expenses when determining taxable income include:
2.1. Expenses that do not fully meet the conditions specified in Clause 1 of this Article.
In case the enterprise has expenses related to the value of losses caused by natural disasters, epidemics, fires and other force majeure cases and is not compensated, such expenses shall be included in deductible expenses when determining revenues. Taxable import, specifically as follows:
Enterprises must determine by themselves the total value of losses caused by natural disasters, epidemics, fires and other force majeure events according to the provisions of law.
The uncompensated part of the value of losses caused by natural disasters, epidemics, fires and other force majeure events is determined by the total value of losses minus the value of the insurance enterprise or other organizations or individuals. compensation in accordance with the law.
a) Dossier for property, goods lost due to natural disaster, epidemic or fire is included in deductible expenses as follows:
- Document of the enterprise sent to the tax agency directly managing the explanation of assets and goods lost due to natural disaster, epidemic, or fire.
- An inventory record of the value of assets and goods lost, made by the enterprise.
An inventory record of the value of assets and goods lost must clearly identify the value of the property and goods that have been lost, the cause of the loss, and the liability of the organization or individual for the loss; categories, quantity, value of recoverable assets and goods (if any); a list of import and export inventories of lost goods, certified by the legal representative of the enterprise and responsible before the law.
- Written certification of the People's Committee of the commune, ward or town, the Management Board of the Industrial Park, Export Processing Zone, or Economic Zone where the natural disaster, epidemic or fire happened during that time. natural disasters, epidemics and fires have occurred.
- A claim for damages accepted by the insurer (if any).
- Document specifying the responsibilities of the organization or individual that must compensate (if any).
b) Uncompensated goods damaged due to their expiry date or damaged due to changes in natural biochemical process are included in deductible expenses when determining taxable income.
Dossier for goods damaged due to expiry date, damaged due to changes in natural biochemical process shall be included in deductible expenses as follows:
- Document of the enterprise sent to the tax agency directly managing the explanation about the goods damaged by the expiration date, damaged due to changes in natural biochemical process.
- An inventory record of damaged goods, made by the enterprise.
The record of inventory of damaged goods must clearly identify the value of the damaged goods and the cause of damage; type, quantity and value of recoverable goods (if any) together with a list of import and export of damaged goods, certified by the legal representative of the enterprise and take legal responsibility. .
- A claim for damages accepted by the insurer (if any).
- Document specifying the responsibilities of the organization or individual that must compensate (if any).
c) The enterprise shall send the tax agency directly managing a document explaining the loss of property and goods due to a natural disaster, epidemic or fire; Damaged goods due to expiry date, damaged due to changes in natural biochemical process are not compensated at the latest when filing corporate income tax finalization declaration according to the regulations of the fiscal year. products and goods that are lost or damaged. Other documents (including Inventory record of lost or damaged goods and assets; Written certification of People's Committees of communes, wards, Management Board of industrial parks, export processing zones , Economic zone; claim for damages accepted by the insurance agency (if any); Dossier specifying the liability of organizations and individuals to compensate (if any) and other documents) be kept at the enterprise and presented to the tax office when requested by the tax office.
2.2. Depreciation expense for fixed assets in one of the following cases:
a) Depreciation expense for fixed assets not used for the production or trading of goods and services.
Particularly for fixed assets serving workers at enterprises such as: motels, mid-shift cafeterias, changing houses, toilets, medical rooms or stations for medical examination and treatment, digging facilities creating, vocational training and equipment and furniture that are eligible as fixed assets to be installed in mid-shift motels, mid-shift canteen, dressing house, toilets, rooms or medical stations for medical examination and treatment , training and vocational training institutions; Clean water tanks, garages, workers shuttle, direct housing for employees are depreciated and included in deductible expenses when determining taxable income.
b) Depreciation expenses for undocumented fixed assets to be owned by the enterprise (except for financial lease-purchase fixed assets).
c) Depreciation expenses for fixed assets that are not managed, monitored and recorded in the enterprise's accounting books according to the current regulations on fixed asset management and accounting.
d) Depreciation in excess of the level currently prescribed by the Ministry of Finance on the regime of management, use and depreciation of fixed assets.
The enterprise must notify the tax authority directly in charge of the method of depreciation of fixed assets that it chooses to apply to the tax authority before making depreciation (for example, announcing the option to apply the depreciation method. straight line ...). Annually, the enterprise shall make depreciation of fixed assets according to current regulations of the Ministry of Finance on the regime of management, use and depreciation of fixed assets, including rapid depreciation (if conditions are met). .
Enterprises operating with high economic efficiency are allowed to quickly depreciate but not more than 2 times the rate of depreciation determined by the straight-line method to rapidly innovate technology for some fixed assets as prescribed. the Ministry of Finance's current regime of management, use and depreciation of fixed assets. When implementing fast depreciation, enterprises must ensure profitable business.
Fixed assets contributed as capital, fixed assets transferred when divided, split, amalgamated, merged or converted to type with reevaluation in accordance with regulations, the enterprise receiving these fixed assets shall be depreciated into expenditure. Fee is deducted at the cost of revaluation. For other types of assets that do not qualify as fixed assets contributed as capital, transferred upon division, split, consolidation, merger or type conversion, and these assets are reassessed according to regulations. Receipt of these assets will be charged to expenses or amortized to deductible expenses at revaluation price.
For fixed assets made by themselves, the historical cost of fixed assets depreciated and included in deductible costs is the total production costs to form that asset.
For assets being tools, tools, circulating packaging, ... that do not meet the conditions for determining as fixed assets as prescribed, the cost of purchasing the above asset shall be gradually amortized into expenses. production and business activities in the period but not exceeding 3 years.
e) Depreciation corresponding to the cost in excess of VND 1.6 billion / vehicle for passenger cars with 9 seats or less (except for cars specialized in passenger transportation, tourism and hotels. ); depreciation for fixed assets being civil aircraft and yachts not used for the business of transporting goods, passengers and tourists.
Passenger cars of 9 seats or less specialized in passenger transportation, tourism and hotel business are the vehicles whose business name is registered in the Enterprise Registration Certificate or the Certificate of Registration. Business registration with registration of one of the following industries: passenger transportation, tourism, hotel business and licensed to do business in the legal documents on transport, passenger, tourism, hotel.
Civil aircraft and yachts not used for the business of transporting goods, passengers, tourists being civil aircraft, yachts of registered enterprises and amortization of fixed assets but in the business registration certificate or the enterprise registration certificate of the enterprise does not register the cargo transportation, passenger transportation or tourism.
In case an enterprise transfers or liquidates passenger cars with 9 seats or less, the residual value of the vehicle is determined to be equal to the historical cost of the fixed asset minus (-) accumulated depreciation Fixed assets have been included in reasonable expenses according to accounting standards, accounting regime up to the time of vehicle transfer and liquidation.
Example 8: Enterprise A buys a car with less than 9 seats with the original cost of VND 6 billion. The company depreciates it for 1 year and then liquidates it. The amount of depreciation according to accounting standards and regimes is 1 billion VND (the depreciation period is 6 years according to documents on depreciation of fixed assets). The amount of depreciation under the tax policy included in deductible expenses is 1.6 billion VND / 6 years = 267 million VND. Enterprise A liquidates the car for 5 billion dong.
Income from car liquidation = 5 billion - (6 billion - 1 billion) = 0
g) Depreciation for fixed assets which have been fully depreciated.
h) Depreciation for works on land used for both production and business and for other purposes shall not be depreciated into deductible expenses for the value of works on land corresponding to the area not used in production and business activities.
In case the enterprise has works on land such as offices, factories, shops serving the business and production activities of the enterprise, the enterprise may deduct depreciation and deductible expenses when determining income. be taxed according to the rate of depreciation and the duration of use of fixed assets currently prescribed by the Ministry of Finance for these works if the following conditions are met:
- There is a certificate of land use right in the name of the enterprise (in case the land is owned by the enterprise) or there is a land lease or loan agreement between the enterprise and the land-holding unit or individual and the representative Enterprises must take responsibility before law for the accuracy of the contract (in the case of land leased or borrowed).
- Invoice of construction volume handed over together with construction contract, contract liquidation, settlement of construction work value bearing the name, address and tax code of the enterprise.
- Works on land are managed, monitored and accounted for according to current regulations on management of fixed assets.
i) If the fixed assets owned by the enterprise are being used for production and business but must be temporarily stopped due to seasonal production for less than 9 months; temporary pause for repair, relocation, for periodic maintenance and maintenance, for a period of less than 12 months, then the fixed assets continue to be put into service for production and business activities. During the period of such suspension, the enterprise is allowed to depreciate and the depreciation expense of fixed assets during the suspension period is included in deductible expenses when determining taxable income.
Enterprises must retain and provide complete records and reasons for the suspension of fixed assets when requested by tax authorities.
k) Long-term land use rights are not amortized and amortized to deductible expenses when determining taxable income; land use rights with definite term if there are sufficient invoices and vouchers and strictly follow the procedures prescribed by law, participate in production and business activities, they shall be gradually amortized into deductible expenses according to the the permitted duration of land use is indicated in the certificate of land use rights (including cases of cessation of operations for repair or investment in new construction).
In case an enterprise purchases tangible fixed assets that are houses, architectural objects associated with long-term land use rights, the value of land use rights must be determined separately and recognized as intangible assets; Tangible fixed assets are buildings or structures, their historical cost is the actual purchase price payable plus (+) expenses directly related to the putting tangible fixed assets into use. The value of land use rights is determined according to the price stated in the real estate (asset) purchase contract in accordance with the market price, but must not be lower than the land price on the land price list issued by the People's Committee of the province or city. centrally regulated at the time of property purchase. In case an enterprise purchases tangible fixed assets that are houses, architectural objects associated with long-term land use rights and cannot separate the value of land use rights, the value of the use right shall be determined according to the price set by the Commissioner. The People's Committees of the provinces and centrally-run cities shall stipulate at the time of property purchase.
2.3. Expenses for raw materials, materials, fuel, energy and goods in excess of the reasonable consumption level.
Enterprises build and manage the consumption norms of raw materials, materials, fuel, energy and goods used by themselves in production and business. This norm is built from the beginning of the year or the beginning of the product manufacturing period and stored at the enterprise.
In cases where some raw materials, materials, fuels and goods have been issued by the State, the consumption norms set by the State shall apply.
2.4. Expenses of the enterprise purchasing goods or services (without invoices, is allowed to prepare a list of purchased goods and services according to form No. 01 / TNDN attached to this Circular) without making a list enclosed. vouchers of payment to sellers or service providers in the following cases:
- Buying goods being agricultural, marine and aquatic products directly sold by the producer or fisherman;
- Purchase of handicraft products made of jute, rush, bamboo, leaves, rattan, straw, coconut shell, coconut skull or raw materials from agricultural products of manual producers who do not directly do business. sold out;
- Buying land, rock, sand and gravel directly from households and individuals that exploit them;
- Purchase of scrap from collectors directly;
- Purchase of goods, assets and services directly sold by households and individuals not doing business;
- Purchase of goods and services from business households and individuals (excluding the above cases) whose turnover is below the value-added taxable turnover threshold (VND 100 million / year).
List of purchases of goods and services signed by the legal representative or authorized person of the enterprise and is responsible before the law for the accuracy and truthfulness. Enterprises purchasing goods and services permitted to make the above-mentioned deductible expenses list are not required to have non-cash payment vouchers. If the purchase price of goods or services on the list is higher than the market price at the time of purchase, the tax authority shall base itself on the market price at the time of purchase or service of the same or similar type on the determined market. re-price for re-calculation of deductible expenses when determining taxable income.
2.5. Payment of salaries, wages and bonuses to employees in one of the following cases:
a) Paying salaries, wages and other payables to enterprise employees that have been accounted into production and business costs in the period but have not actually paid or have no payment documents as prescribed by law. the law.
b) Salaries and bonuses for employees are not specified the conditions to be enjoyed and the rate of entitlement in one of the following documents: Labor contracts; Collective labor agreement; Financial regulations of the Company, Corporation, and Group; Bonus regulations are stipulated by the Chairman of the Board of Directors, General Director, and Director according to the financial regulations of the Company, Corporation.
- In case the labor contract of the enterprise signed with the foreign worker stating the payment of the tuition fee for the foreigner's children studying in Vietnam according to the educational level from preschool to high school, the enterprise shall pay having the nature of salary or wages, this expense is not contrary to the provisions of law on salary and wages and has sufficient invoices and documents as prescribed, it shall be included in deductible expenses when determining income subject to corporate income tax.
- In case the labor contract of the enterprise signed with the employee states that the house rent payment is paid by the enterprise to the employee, this payment is of the nature of salary, wages, not contrary to regulations. of the law on salaries and wages and having all invoices and documents as prescribed, they shall be included in deductible expenses when determining taxable income of corporate income tax.
c) Salaries, wages and allowances payable to employees but the deadline for submitting the actual annual tax finalization dossier has not yet been paid, unless the enterprise has appropriated a reserve fund to supplement the fund. the salary of the following year. The annual rate of provision is decided by the enterprise but not exceeding 17% of the salary fund.
The implemented salary fund is the total actual salary paid of that settlement year up to the deadline for submitting the final settlement dossier as prescribed (excluding the amount of the salary provision fund of the previous year. in the year of tax settlement).
The salary provision must ensure that, after setting up, the enterprise does not suffer losses, if the enterprise suffers a loss, it cannot fully deduct 17%.
In case the enterprise has set up a salary provision fund in the previous year but after 6 months from the end of the fiscal year, the enterprise has not used or used up the salary provision fund, the enterprise must calculate the reduction of expenses. of the following year.
Example 9: When submitting a tax finalization dossier in 2014, enterprise A has deducted a salary reserve fund of 10 billion VND, until June 30, 2015 (for a case that applies the tax period according to a positive year. Enterprise A only spent 7 billion VND from the 2014 salary provision fund, then enterprise A had to reduce the salary cost of the following year (2015) by 3 billion VND (10 billion - 7 billion). When preparing documents for finalization in 2015, if DN A needs to set up, continue to set up the salary reserve fund as prescribed.
d) Salaries and wages of owners of private enterprises, owners of one-member limited liability companies (owned by an individual); Remuneration paid to the founders, members of the Members' Council, the Board of Directors who are not directly involved in operating production and business.
2.6. Expenditures on outfits in kind for employees without invoices and documents; Expenditures on outfits in cash, in kind for employees exceed 05 (year) million / person / year.
In case the enterprise pays outfits both in cash and in kind to the employee, the maximum amount to be included in deductible expenses when determining taxable income does not exceed 05 (five) million VND / person / year. .
For business lines of particular nature, these expenses shall comply with specific regulations of the Ministry of Finance.
2.7. Reward and reward for initiatives and innovations but enterprises do not have specific regulations on rewarding for initiatives and innovations, and there is no council to accept ideas and improvements.
2.8. Payment of allowances for traveling on vacation in contravention of the provisions of the Labor Code; Allowances for employees on domestic and foreign business trips exceed 02 times the level prescribed by the Ministry of Finance's guidance for State officials and employees.
Travel expenses and accommodation rental for business travelers, if they have all legal invoices and documents as prescribed, shall be included in deductible expenses when determining taxable income. In case an enterprise has a package of travel and accommodation expenses for the employee, it shall be included in deductible expenses for travel and accommodation expenses according to regulations of the Ministry of Finance for civil servants and employees of the House. country.
In case the enterprise purchases air tickets via e-commerce website for employees to go on business to serve production and business activities of the enterprise, the documents used as a basis for calculating deductible expenses are machine tickets. electronic flights, boarding passes and non-cash payment vouchers of businesses with individuals participating in the transport itinerary. If the enterprise cannot recover the employee's boarding pass, the documents that serve as a basis for calculating deductible expenses are electronic flight tickets, travel assignment paper and non-cash payment vouchers. side of the business with individuals participating in the transport itinerary.
2.9. The following deductible expenses, but if they are not paid to the right subjects, for the right purposes or the expense levels exceed the regulations.
a) Additional expenses for female employees included in deductible expenses include:
- Expenses for vocational re-training for female workers in case the old job is no longer suitable and must change to another job according to the development plan of the enterprise.
This expense includes: tuition fees (if any) + salary difference of grades (100% guaranteed salary for students).
- Salaries and allowances (if any) for teachers in kindergartens and kindergartens organized and managed by the enterprise.
- Cost of organizing additional health check in the year such as occupational disease examination, chronic or gynecological examination for female employees.
- Allowances for female employees after giving birth for the first time or the second time.
- Overtime allowance for female employees in cases where for objective reasons the female employee does not take leave after giving birth or breastfeeding but stay to work for the enterprise is paid according to the current regime; even in case of product-based wages, female employees are still working during their non-work break according to regimes.
b) Additional expenses for ethnic minorities included in deductible expenses include: school fees (if any) plus salary difference of grades (ensuring 100% salary for students); housing support money, social insurance, health insurance for ethnic minorities in case they have not received support from the State according to the prescribed regime.
2.10. The deduction to pay compulsory insurance funds for employees in excess of the prescribed level; deductions for payment of trade union fees for employees in excess of the prescribed level.
2.11 Spending in excess of VND 01 million / month / person for: Deduction for payment of voluntary pension fund, fund of social security nature, purchase of voluntary pension insurance, life insurance for employees.
Expenses for payment of voluntary retirement funds, social security funds, voluntary retirement insurance and life insurance for employees are included in deductible expenses, apart from not exceeding the prescribed level in This point must also specify the conditions for entitlement and the benefit level in one of the following documents: Labor contract; Collective labor agreement; Financial regulations of the Company, Corporation, and Group; Bonus regulations are stipulated by the Chairman of the Board of Directors, General Director, and Director according to the financial regulations of the Company, Corporation.
Enterprises must fulfill their obligations to the compulsory insurance for employees in accordance with the previous law before being included in deductible expenses for voluntary insurance if they fully meet the conditions as prescribed. An enterprise may not be included in the costs for the above voluntary program expenses if the enterprise fails to fulfill its obligations of compulsory insurance for employees (including the case of debt of compulsory insurance. tie).
2.12. Unemployment payments for employees in contravention of current regulations.
2.13. Contribution costs form a source of management costs for superiors.
2.14. Expenditures contributed to the Association's funds (these Associations are established in accordance with the law) exceeds the limit set by the Association.
2.15. Payment of electricity and water charges for electricity and water contracts signed directly by owners being households or individuals that lease out production and business locations with electricity and water suppliers without sufficient documents fall into one of the following cases:
a) In case the enterprise leasing the production and business location directly pays electricity and water charges to the electricity and water supplier without a list (according to form No. 02 / TNDN issued together with this Circular), enclosed with the electricity and water bills and contracts to lease production and business locations.
b) In case the enterprise leasing the production and business location pays electricity and water charges with the owner leasing the business location without a list (according to form No. 02 / TNDN enclosed herewith) vouchers on payment of electricity and water charges to the lessee of the production and business location in accordance with the actual amount of electricity and water consumed and the lease contract of the production and business location.
2.16. The portion of the rental cost of the fixed asset in excess of the allocation by the number of years that the lessee pays in advance.
Example 10: Enterprise A leases a fixed asset for 4 years with the rental amount: 400 million VND and pays one time. The cost of leasing fixed assets recorded as annual expenses is VND 100 million. If the annual rental costs of fixed assets exceed VND 100 million, the excess of VND 100 million is not included in reasonable expenses when determining taxable income.
With regard to repair costs of the leased fixed asset in which the lease contract requires the lessee to repair the asset during the lease period, the repair cost of the leased fixed asset is allowed to be accounted for. expenses or amortized into expenses, but the maximum time is not more than 03 years.
In case an enterprise pays expenses for non-fixed assets: purchase and use of technical documents, patents, technology transfer permits, trade marks, business advantages, the right to use the brand name ... these expenses will be gradually allocated to business expenses but not exceeding 03 years at most.
In case an enterprise contributes capital equal to the value of goodwill or the right to use the brand, the value of goodwill, the value of the right to use the trademark contributed as capital is not amortized to deductible expenses when determining. income taxes.
2.17. The interest expense for production and business loans of the subjects other than credit institutions or economic organizations exceeds 150% of the basic interest rate announced by the State Bank of Vietnam at the time of borrowing.
2.18. Payment of loan interests in proportion to the insufficiently registered charter capital (for private enterprises being investment capital) according to the capital contribution progress stated in the enterprise's charter, even where the enterprise has gone. into production and business. Interest payments have been recognized to the value of the asset or investment.
2.19. Deduction, setting up and use of provisions against the guidance of the Ministry of Finance on setting up of provisions: provision for devaluation of inventory, provision for loss of financial investments, provision for doubtful debts claims, warranty provisions for products, goods, construction works and occupational risks of the valuation enterprise, independent audit service provider.
2.20. Periodic or cyclic accrued expenses that have not yet been spent or spent at the end of the period.
Accruals include: accruals for cyclic overhaul of fixed assets, accruals for activities for which revenue has been calculated but the continued performance of contractual obligations (including cases The enterprise has been operating in asset leasing, service business for many years but has collected money from customers in advance and has been fully included in the revenue of the collection year) and other accruals.
In case an enterprise has a production and business activity that has recognized taxable revenue but has not fully incurred costs, the prescribed expenses may be deducted in advance from the deductible expenses corresponding to the turnover. income recognized when determining taxable income for corporate income tax. At the end of the contract, the enterprise must calculate and determine the exact amount of the actual expenses, based on the actual legal invoices and documents, to adjust the cost (in case the actual expenses arise. is greater than the accrued amount) or reduce costs (if the actual expenses are smaller than the accrued amount) in the tax period ending the contract.
For fixed assets that are repaired in a cyclical manner, the repair cost may be deducted in advance according to the annual cost estimate. If the actual repair expense is greater than the estimated product, the enterprise may add this difference to deductible expenses.
2.21 Expenses in excess of 15% of total deductible expenses, including: expenses for advertising, marketing, promotion, and brokerage commissions; spending on reception, opening ceremony, conference; expenses for marketing support, expenses for support expenses; expenses for, donation or donation of goods and services to customers.
Total deductible expenses do not include the limited expenses specified at this Point; For commercial activities, total deductible expenses do not include the purchase price of goods sold. For imported goods, the purchase price of the sold goods shall include import tax, excise tax, and environmental protection tax (if any). For specific business activities such as lottery, prize-winning electronic games, betting and casino, the total deductible expenses do not include the cost of prize payment.
The above restricted expenses for advertising, marketing, promotion and brokerage commissions do not include:
- Insurance commissions in accordance with the law on insurance business; commissions paid to agents selling goods and services at the correct prices.
- Commissions paid to distributors of multi-level marketing businesses. For organizations that receive commissions, they must declare them as taxable incomes. For individuals who receive commissions, personal income tax must be withheld before income is paid.
- Expenses incurred domestically or abroad (if any) such as: Expenses for market research: exploration, survey, interview, collection, analysis and evaluation of information; costs of developing and supporting market research; expenses for hiring consultants to research, develop and support market research; Expenses for product display and introduction and organization of trade fairs and exhibitions: expenses for opening product display rooms or stalls; expenses for renting spaces to display and introduce products; expenses for materials and tools to support product display and introduction; shipping costs of products displayed or introduced.
2.22. Loss on exchange rate differences due to reassessment of monetary items denominated in foreign currencies at the end of the tax period, including exchange rate differences due to reassessment of year-end balance are: cash, deposits, cash foreign currency accounts receivable (minus exchange rate difference loss due to reassessment of foreign currency liabilities at the end of the tax period).
In the period of construction investment to form fixed assets of a newly established enterprise, not yet in operation, exchange rate differences arise when paying monetary items denominated in foreign currencies for implementation. Construction investment and exchange rate differences arising when revaluation of liabilities denominated in foreign currencies at the end of the fiscal year are recorded separately on the Balance Sheet. When fixed assets are completed from construction investment and put into use, the exchange rate differences arising in the construction investment period (after offsetting the increasing and decreasing differences) are amortized into Financial income or financial expenses, the time of allocation does not exceed 5 years from the date the project is put into operation.
In the stage of production and business, including construction investment to form fixed assets of an operating enterprise, exchange rate differences arising from foreign currency transactions of cash items Currency denominated in foreign currency will be recognized as financial income or financial expense in the fiscal year.
For debts receivable and loans denominated in foreign currencies arising in the period, the exchange rate difference that is included in deductible expenses is the difference between the exchange rate at the time of debt recovery or recovery. loan at the rate at the time of recording the receivable or original loan.
2.23. Expenses for education funding not for the subjects specified at Item a of this Point or there is no record to identify the funding specified in Item b below:
a) Funding for education includes: sponsoring public, people-founded and private schools under the national education system in accordance with the education law, which is not capital contribution. , buy shares in schools; Funding facilities for teaching, learning and school activities; Funding for regular school activities; Sponsorship of scholarships for students of general education institutions, vocational education institutions and higher education institutions is specified in the Education Law (direct funding for students or through educational institutions, through agencies and organizations with the function of mobilizing funding according to the provisions of law); Sponsorship for contests on subjects taught in schools in which the contestants are learners; sponsoring the establishment of educational encouragement funds in accordance with the law on education and training.
b) Documentation of funding for education includes: A written confirmation of the funding, signed by the representative of the business as the sponsor, or the legal educational institution's representative as the recipient. sponsors, students (or agencies or organizations with the function of mobilizing sponsors) to receive funding (according to form No. 03 / TNDN attached to this Circular); attach invoices, vouchers of buying goods (if sponsoring in kind) or vouchers of payment (if sponsoring in cash).
2.24. Expenses for health financing not in accordance with the subjects specified at Item a of this Point or there is no record to identify the funding specified in Item b below:
a) Health financing includes: funding for medical facilities established in accordance with the health law that are not for capital contribution or share purchase in hospitals and centers. that health; funding medical equipment, medical tools, and medicines; funding regular activities of hospitals and medical centers; financial expenses for sick people through an agency or organization that has the function of mobilizing funding according to the provisions of law.
b) The application for determination of the medical sponsorship includes: The record certifying the sponsorship, signed by the sponsor's representative, representative of the donor (or agency or organization). function to mobilize sponsorship) according to form No. 04 / TNDN enclosed herewith with invoices, vouchers of purchase of goods (if donated in kind) or vouchers of money payment (if financed in cash ).
2.25. Expenses for funding for remedying consequences of natural disasters not for the subjects specified in Item a of this Point or without dossiers to identify the funding mentioned at Item b below:
a) Funding for disaster recovery includes: financial or in-kind financing for disaster recovery directly to organizations established and operating in accordance with law; individuals suffering from natural disasters through an agency or organization that has the function of mobilizing donations according to the provisions of law.
b) Dossier to determine the funding for disaster recovery includes: A written confirmation of the sponsorship, signed by the representative of the business as a sponsor, the representative of the organization damaged by natural disasters. ear (or agency or organization with function of mobilizing finance) is the sponsor (according to form No. 05 / TNDN issued together with this Circular) together with invoices and vouchers of goods purchase (if the support in kind) or vouchers of money payment (if financed in cash).
2.26. Spending on sponsorship to build houses of gratitude for the poor against the subjects specified in Item a of this Point; spending on sponsorship for building houses of gratitude for the poor, funding for building solidarity houses in accordance with law without a record to identify the funding mentioned in Item b below:
a) Recipients of funding are poor households as prescribed by the Prime Minister. Form of sponsorship: sponsorship in cash or in kind to build houses of gratitude for poor households either directly or through an agency or organization that has the function of mobilizing funding in accordance with the law.
b) Dossier to determine the sponsorship for building houses of gratitude for the poor, building solidarity houses, including: Minutes of certification of the sponsorship signed by the sponsor's representative of the enterprise or the beneficiary. (or agency or organization with function of mobilizing finance) is the recipient of sponsorship (according to form No. 06 / TNDN issued together with this Circular); local government's written certification of poor households (for sponsorship of building houses of gratitude for the poor); invoices, vouchers of buying goods (if sponsoring in kind) or vouchers of payment (if sponsored in cash).
2.27. Spending on funding for scientific research in contravention of regulations; funding not under the State program for localities in areas with extremely difficult socio-economic conditions.
Financing under the State's program is a program prescribed by the Government to be implemented in localities in areas with extremely difficult socio-economic conditions.
Documents for identifying funding under the State's program for localities in areas with extremely difficult socio-economic conditions include: Confirmation of sponsorship signed by the business representative industry is a sponsor, the beneficiary (or an agency or organization with function of mobilizing the sponsorship) is the sponsor (form No. 07 / TNDN issued together with this Circular); invoices, vouchers of buying goods (if sponsoring in kind) or vouchers of money expenses (if financed in cash).
Provisions on scientific research and procedures and dossiers of funding for scientific research comply with the Law on Science and Technology and relevant legal documents.
2.28. The cost of business management allocated by the overseas company to its permanent establishment in Vietnam exceeds the expenses calculated by the following formula:
|
Business management expenses allocated by the overseas company to its permanent establishment in Vietnam in the tax period |
= |
Taxable turnover of a permanent establishment in Vietnam in the tax period |
X | The total number of business administration expenses of the overseas company in the tax period. |
|
Total sales of companies abroad, including sales of permanent establishments in other countries in the tax period |
The basis for determining the expenses and revenue of the overseas company is that the financial statements of the company abroad have been audited by an independent auditing company which clearly shows the company's revenue in the country. in foreign countries, management expenses of overseas companies, part of overseas management expenses allocated to permanent establishments in Vietnam.
The company's overseas permanent establishment in Vietnam has not yet implemented the accounting, invoice and voucher regimes; if tax has not been paid according to the declaration method, it shall not be included in the reasonable expenses the business management expenses allocated by the overseas company.
2.29. Expenses are offset by other funding sources; Expenditures have been paid from the enterprise's science and technology development fund; Cost to buy golf membership card, golf fee.
2.30. Expenses related to hiring the manager for the prize-winning electronic game business and casino business exceeds 4% of the revenue from the prize-winning electronic game business or casino business.
2.31. Expenses that do not correspond to taxable revenues, except for the following:
- Actual expenses for HIV / AIDS prevention and control activities at the workplace of the enterprise, including: Expenses for training of enterprise's HIV / AIDS prevention staff, expenses for communication organization. HIV / AIDS for employees of the enterprise, fees for HIV counseling, examination and testing, and support costs for HIV-infected people who are employees of the enterprise.
- Actual expenses for performing tasks of defense and security education, training and activities of militia and self-defense forces and serving other defense and security tasks in accordance with law.
- Actual expenses to support Party organizations, socio-political organizations in the enterprise.
- Other expenses of specific nature, suitable to each industry and field according to the guiding documents of the Ministry of Finance.
2.32. Expenditure on investment in capital construction during the investment period to form fixed assets.
When starting production and business activities, the enterprise has not generated revenue but has incurred regular payments to maintain its production and business activities (not expenses for construction investment to if these expenses meet the prescribed conditions, they will be included in deductible expenses when determining taxable income.
If the enterprise has loan payments during the investment period, this expense will be included in the investment value. In the case in the investment period, the enterprise incurs both loan interest payments and deposit interests, the offset between the loan interest payment and the deposit interest, after clearing the difference. the rest recorded a decrease in investment value.
2.33. Expenses for local support; expenses for mass organizations and social organizations; charity expenses (except for funding for education, health, overcoming consequences of natural disasters, building houses of gratitude for the poor, building a house of solidarity; funding for scientific research, funding under programs of the State for localities in areas with extremely difficult socio-economic conditions specified at Points 2.23, 2.24, 2.25, 2.26, 2.27, Clause 2 of this Article).
2.34. Payments directly related to the issue of stocks (except for shares in the class of liabilities) and dividends of stocks (except dividends for stocks in the category of liabilities), treasury stock trading and other Other expenses are directly related to the increase or decrease in the enterprise's equity.
2.35. Expenses for insurance business, lottery business, securities business and some other specific business activities are not strictly followed by separate guidance documents of the Ministry of Finance.
2.36. The fines for administrative violations include: violation of traffic law, violation of business registration regime, violation of statistical accounting system, violation of tax law, including late payment interest. the Law on Tax Administration and other fines for administrative violations in accordance with the law.
2.37. Deductible or refundable input value-added tax; Input value-added tax on fixed assets being cars with 9 seats or less in excess of the prescribed level shall be deducted under the provisions of legal documents on value added tax; corporate income tax, unless the enterprise pays corporate income tax on behalf of a foreign contractor but as agreed in a foreign contractor's contract, foreign subcontractor, the turnover received by the foreign contractor or subcontractor not including corporate income tax; personal income tax, except for cases where enterprises sign labor contracts that stipulate that salaries and wages paid to employees are exclusive of personal income tax.
Article 7. Other income
Other incomes are taxable incomes in the tax period that do not belong to the lines of business stated in the business registration of the enterprise. Other income includes the following incomes:
1. Incomes from capital or securities transfer under the guidance in Chapter IV of this Circular.
2. Incomes from real estate transfer under the guidance in Chapter V of this Circular.
3. Income from the transfer of investment projects; transfer the right to participate in an investment project; transfer the right to explore, exploit and process minerals in accordance with the law.
4. Incomes from property ownership and use rights, including royalties in any form of payment for property ownership or use rights; income on intellectual property rights; income from technology transfer as provided for by law.
Income from royalties of intellectual property or technology transfer is determined by the total proceeds minus (-) the cost price or the costs of creating intellectual property rights or technology transferred, minus (- expenses for maintaining, upgrading and developing intellectual property rights, technology transferred, and other deductible expenses.
5. Income from property rental in any form.
Income from asset lease is determined by the revenue from asset lease minus (-) expenses: depreciation, maintenance, repair, maintenance, and rental of the property. sublease (if any) and other deductible expenses related to the lease of the property.
6. Income from property transfer, liquidation (except real estate), other valuable papers.
This income is determined by (=) revenue earned from the transfer or liquidation of assets minus (-) residual value of assets transferred or liquidated at the time of transfer or liquidation. and deductible expenses related to the transfer or liquidation of assets.
7. Income from deposit interest, loan interest including deferred interest, installment interest, credit guarantee fee and other fees in loan contract.
- In case the income from deposit or loan interests is higher than the loan interest payments as prescribed, after clearing, the remaining difference will be included in other income when determining the payable income. tax.
- In case the arising interest from deposit or loan interest is lower than the loan interest payments as prescribed, after clearing, the remaining difference will be deducted from the main business income when determine taxable income.
8. Income from the sale of foreign currencies: equal to the total proceeds from the sale of foreign currencies minus (-) the total buying price of the sold foreign currency volume.
9. Income from exchange rate difference is determined as follows:
In the tax year, the enterprise has exchange difference arising in the period and exchange difference due to reassessment of foreign currency liabilities at the end of the fiscal year:
- The exchange rate difference arising in the period directly related to the turnover and expenses of the main production and business activities of the enterprise shall be included in the expenses or income of the main production and business activities of the enterprise. . The exchange rate difference arising in the period is not directly related to the revenue and expenses of the main production and business activities of the enterprise.If there is a loss, the exchange rate difference will be included in the cost of main production and business. if the interest arises, the exchange rate difference will be included in other income.
- Interest rate differences due to reassessment of liabilities payable in foreign currencies at the end of the fiscal year shall be offset against exchange rate difference losses due to reassessment of liabilities payable in foreign currencies at the end of the fiscal year. After clearing the exchange rate difference profit or loss directly related to the revenue, the expenses of the main production and business activities of the enterprise shall be included in the income or expenses of the main production and business activities of the enterprise. Karma. Exchange rate difference gain or loss that is not directly related to the revenue or expenses of the main production and business activities of the enterprise shall be included in other income or main production and business costs when determining taxable income. .
For debts receivable and loans denominated in foreign currency arising in the period, the exchange rate difference is included in deductible expenses or income as the difference between the exchange rate at the time of debt collection. or recover the loan at the rate at the time the receivable or loan was initially recognized.
The above exchange rate differences do not include exchange rate differences due to reassessment of the year-end balance: cash, deposits, money in transit, foreign currency receivables.
10. Bad debts written off now recovered.
11. Payable debts of unidentifiable creditors.
12. Income from production and business activities of the previous years is overlooked discovered.
13. In case an enterprise has revenues of fines, indemnities due to breach of contract by the counterparty or rewards due to good performance of commitments under the contract, higher than the payment of fines or compensation due to contract violation (these fines are not in the fines for administrative violations in accordance with the law on handling of administrative violations), after clearing, the remaining difference shall be included in other income. .
Where the enterprise has the income of fines, compensation due to the breach of the contract by the counterparty or the bonuses due to good performance of the contractual commitments, the amount is lower than the payment of fines, compensation money due to violation. contract (these fines are not in the fines for administrative violations in accordance with the law on handling of administrative violations), after clearing, the remaining difference shall be deducted from other income. . If the unit does not generate other income, it may be deducted from the income from production and business activities.
The above revenues from fines and compensation do not include the fines and compensation that decrease the value of the work in the investment period.
14. Difference due to reassessment of assets in accordance with law for capital contribution or asset transfer upon division, splitting, consolidation, merger or transformation of enterprises, specifically determined as follows: :
a) Increase or decrease difference due to reassessment of assets is the difference between the revaluation value and the residual value of assets recorded in accounting books and lump-sum calculation to other income (for difference increase) or decrease other income (for reduced difference) in the tax period when determining taxable income of corporate income tax at the enterprise having revalued assets.
b) The difference increases or decreases due to reassessment of the value of land use rights to: contribute, capital (to which the enterprise receiving the value of land use rights shall be gradually allocated the land value into deductible expenses), transferred when division, separation, consolidation, merger, conversion of business type, capital contribution to investment projects on building houses and infrastructure for sale in lump sum to other income (for increased difference) or deduction Other income (for reduced difference) in the tax period when determining taxable income of corporate income tax at enterprises having reassessed land use rights.
Particularly, the increased difference due to reassessment of land use right value to contribute capital to enterprises to form fixed assets for production and business, enterprises receiving the value of land use rights are not amortized and must not to gradually allocate land value to deductible expenses, this difference shall be gradually calculated into other income of re-evaluated enterprises with land use rights for a period not exceeding 10 years starting from the year of value of rights. land use is contributed as capital. Enterprises must notify the number of years they will allocate to other income when submitting dossiers of CIT finalization of the year they start to declare this income (the year when land use right value is reassessed. capital contribution).
In case the enterprise continues to transfer the contributed capital with the value of the land use right after contributing capital (including the case of transferring contributed capital 10 years earlier), the income from the transfer of contributed capital is equal to the land use right value, the tax must be calculated and declared according to the real estate transfer income.
The difference due to reassessment of land use rights includes: For long-term land use rights, it is the difference between the reassessment value and the land use right value recorded in the accounting books; For land use rights with definite term, it is the difference between the revalued value and the unallocated residual value of land use rights.
c) Enterprises receiving assets contributed as capital or assets transferred upon division, separation, consolidation, merger or transformation of enterprises may depreciate or amortize them gradually to expenses at the revaluation price (minus in case the value of land use rights are not amortized or allocated to expenses as prescribed).
15. Presents and gifts in cash or in kind; income received in cash, in kind from donor sources; income received from marketing assistance, expense support, payment discounts, promotional bonuses and other grants. In-kind income received, the value of in-kind is determined by the value of equivalent goods or services at the time of receipt.
16. Amounts, assets, and other material benefits received by the enterprise from organizations and individuals under the agreement or in a contract in accordance with civil law, which are handed over the old land location by the enterprise. relocation of the production and business establishment after deducting related expenses such as relocation costs (transportation and installation costs), residual value of fixed assets and other costs (if any).
Particularly for the money, assets and material benefits received by enterprises according to the State's policies, approved by the competent State agencies for relocation of production establishments, they shall be managed and used according to regulations. relevant laws.
17. Accrued expenses that are not used or are not used up according to the appropriation term but the enterprise does not account for cost reduction; reimbursement of construction work warranty reserves.
18. Incomes related to the consumption of goods and services which are not included in revenue such as: award for fast ship release, bonuses for serving in the catering industry, hotel after deducting expenses fees to generate that income.
19. Income from consumption of scrap and defective products, after deducting the cost of recovery and consumption, is determined as follows:
- In case an enterprise generates income from the sale of scrap and defective products generated during the production of products enjoying CIT incentives, this income is eligible for tax incentives. enter a business.
- In case the enterprise generates income from the sale of scrap and defective products generated during the production of products not entitled to corporate income tax incentives, this income shall be included in other income. .
20. The refund of import tax and export tax of goods actually exported or imported arising right away in the year of settlement of enterprise income tax shall be calculated for reduction of expenses in that settlement year. In case the import or export tax refund of goods actually exported or imported arises in the previous years of settlement of enterprise income tax, it shall be included in other income of the settlement year in which the income arises. This income is directly related to the production and business sectors that are enjoying CIT incentives. This income is entitled to corporate income tax incentives. If this income is not directly related to the production and business sector and is entitled to CIT incentives, this income is included in other income.
21. Incomes from domestic capital contribution of shares, joint ventures or economic associations shall be divided from income before enterprise income tax is paid.
22. Income received from overseas production and trading of goods and services.
- Vietnamese enterprises investing abroad that have income from overseas production and business activities and declare and pay enterprise income tax according to the provisions of Vietnam's current Law on Enterprise Income Tax. men, even where enterprises are enjoying income tax exemption or reduction according to the regulations of the host country. The corporate income tax rate for calculating and declaring tax on income from abroad is 22% (from January 1, 2016 is 20%), no preferential tax rate (if any). ) that Vietnamese enterprises investing abroad are enjoying under the current Law on Corporate Income Tax.
The tax authority has the right to assess taxable income from overseas production and business activities of Vietnamese enterprises investing abroad in case of violation of regulations on tax declaration and payment.
- Where the income from an overseas investment project has already been subject to corporate income tax (or a tax with the same nature as corporate income tax) abroad, when calculating corporate income tax, paid in Vietnam, Vietnamese enterprises investing abroad are entitled to subtract the tax paid abroad or paid by the host country partner on behalf of the investment-receiving country partner (including tax on dividends), but the tax amount be deducted not exceeding the amount of income tax calculated under the provisions of the Law on corporate income tax of Vietnam. The corporate income tax amount that Vietnam invests abroad is exempted or reduced for the profits earned from an overseas investment project in accordance with the law of the host country, also deducted when determining the tax amount. Import enterprises must pay in Vietnam.
Attached documents when declaring and paying tax of Vietnamese enterprises investing abroad on the income from overseas investment projects include:
+ The enterprise's document on the distribution of the overseas investment project's profit.
+ The enterprise's financial statements have been certified by an independent auditing organization.
+ The enterprise's income tax return for an overseas investment project (a copy certified by a competent representative of the overseas investment project);
+ The enterprise's tax finalization record (if any);
+ Confirmation of tax paid abroad or documents proving the tax paid abroad.
- In case the overseas investment project has not generated taxable income (or is incurring losses), when declaring the annual finalization of corporate income tax, the overseas Vietnamese investment enterprise must only pay. Financial statement certified by an independent auditing agency or a competent agency of the host country and the income tax return of the overseas investment project (submit 1 copy certified by authorized representative of an investment project in a foreign country with the enterprise's seal). Losses arising from overseas investment projects must not be deducted from the income earned by domestic enterprises when calculating corporate income tax.
- Income from overseas investment projects shall be declared in the corporate income tax finalization of the year following the fiscal year in which the overseas income arises or declared in the finalization of corporate income tax of the fiscal year together with the year the overseas income arises if the enterprise has sufficient grounds and documents to determine the income and the paid income tax amount of the overseas investment project.
With regard to income from production and business activities of an investment project in a country that has signed a Double Taxation Avoidance Agreement with Vietnam, Vietnamese enterprises investing abroad shall declare and pay tax according to regulations. in the Agreement.
23. Other income as provided for by law.
Article 8. Tax-exempt income
1. Incomes from cultivation, husbandry, aquaculture or salt production of cooperatives; Incomes of cooperatives operating in the fields of agriculture, forestry, fisheries and salt production in geographical areas with difficult socio-economic conditions or areas with special socio-economic conditions hard; Income of enterprises from cultivation, husbandry, and aquaculture in extremely difficult socio-economic areas; Income from fishing activities.
a) Incomes from cultivation (including products from planted forests), husbandry and aquaculture of cooperatives and enterprises exempt from tax specified in this Clause are income from products of enterprises. , cooperatives cultivating, breeding, farming, fishing by themselves, have not yet processed into other products or have only been preliminarily processed (excluding cases where cooperatives or enterprises buy back crop products, husbandry, aquaculture). Preliminary products are guided in legal documents on value added tax.
Enterprises and cooperatives must separately account tax-exempt incomes specified in this Clause. In case of failure to make separate accounting, tax-free incomes from cultivation, husbandry, and aquaculture shall be distributed according to the proportion of production costs of the cultivation, extraction and preliminary processing of ordinary products. in the total costs of the entire cooperative or enterprise (including management costs and selling expenses) in the tax period.
Rubber growing enterprises and cooperatives are exempt from tax on income from cultivation and extraction of fresh latex. In case the income from cultivation and extraction of fresh latex cannot be separately accounted, the tax-free income shall be distributed according to the proportion of costs of cultivation and extraction of fresh latex in the total cost of the whole enterprise or cooperation commune.
Tax-free income in this Clause includes income from liquidation of crops, livestock and aquaculture products (except for rubber plantations), income from sale of scrap related to products of cultivation, husbandry, and aquaculture.
Cultivation, husbandry and aquaculture products of the cooperative and the enterprise are determined according to the level 1 economic sector code of the agriculture, forestry and fishery sectors specified in the System of economic sectors. Vietnam.
b) Incomes of cooperatives operating in the field of agriculture, forestry, fisheries and salt production in geographical areas with difficult socio-economic conditions or areas with socio-economic conditions Particularly difficult to be exempt from tax is the whole income arising from production and business activities in the preferential areas, except for the incomes specified at Points a, b and c, Clause 3, Article 18 of this Circular.
Cooperatives operating in the fields of agriculture, forestry, fisheries and salt production as prescribed in this Clause and at Point f, Clause 3, Article 19 of this Circular are cooperatives meeting the ratio of product supply. Services for members who are individuals, households, legal entities engaged in agricultural, forestry, fishery and salt production activities in accordance with the Law on Cooperatives and Decree No. 193/2013 / ND -CP dated November 21, 2013 of the Government detailing a number of articles of the Law on Cooperatives.
2. Income from the provision of technical services directly in service of agriculture includes: income from irrigation and water drainage services; plowing and harrowing land; dredging inland canals and ditches; pest and disease control services for plants and animals; service of harvesting agricultural products.
3. Income from the performance of scientific research and technology development contracts; Income from sales of products during trial production and income from sales of products made from new technology applied for the first time in Vietnam. The maximum tax exemption period does not exceed one (01) year from the date of commencement of sales of products under contracts on scientific research and technology application, experimental production or production of new technologies. first applied in Vietnam.
a) Incomes from the performance of scientific research and technological development contracts to be exempt from tax must satisfy the following conditions:
- Having a certificate of registration for scientific research;
- To be certified by a competent State management agency in charge of science as a scientific research and technology development contract.
b) Income from the sale of products made from a new technology for the first time applied in Vietnam and eligible for tax exemption must ensure that the new technology is applied in Vietnam for the first time and is returned by state management agencies. Scientifically certified.
4. Income from the production and trading of goods and services of enterprises with the number of employees being disabled, drug addicts and HIV-infected people on average in a year accounts for 30% or more in the year. the average total number of employees in the year of the enterprise.
Tax-exempt incomes specified in this Clause do not include other incomes specified in Article 7 of this Circular.
Enterprises eligible for tax exemption specified in this Clause are those with an average of at least 20 employees per year and do not include businesses operating in the field of finance and real estate business. .
Enterprises with tax-exempt incomes specified in this Clause must satisfy the following conditions:
a) Enterprises employing disabled workers (including war invalids and sick soldiers) must obtain certification from a competent health authority about the number of disabled employees.
b) For enterprises employing post-detoxification workers, they must have certificates of completion of detoxification from drug detoxification establishments or relevant competent agencies.
c) For enterprises that employ HIV-infected workers, a competent health agency's certification of the number of HIV-infected employees is required.
5. Income from vocational training activities exclusively for ethnic minorities, people with disabilities, children in extremely difficult circumstances, social evils, detoxifying people, detoxifying people, people HIV / AIDS infection. If the vocational training institution has other subjects, the tax-exempt income is determined corresponding to the proportion of students being ethnic minorities, people with disabilities, children in extremely difficult circumstances. social evils, detoxifying people, people after detoxification, people infected with HIV / AIDS among the total number of trainees.
Tax-exempt income from vocational training in this Clause must satisfy the following conditions:
- The vocational training institution is established and operates in accordance with the legal documents on vocational training.
- Having a list of learners who are ethnic minorities, people with disabilities, children in extremely difficult circumstances, social evils, detoxifying people, people after detoxification, HIV / AIDS infected people .
6. Incomes divided from capital contribution, share purchase, joint venture or economic association with domestic enterprises, after the party receiving capital contribution, stock issue, joint venture or association has paid tax. Enterprise income tax under the provisions of the Law on Enterprise Income Tax, even where the party receiving capital contribution, issuing shares, joint venture or associate is entitled to CIT incentives.
Example 11: Enterprise B receives contributed capital from enterprise A. Its pre-tax income corresponding to the contributed capital share of enterprise A in enterprise B is VND 100 million.
- Case 1: Enterprise B is not eligible for CIT incentives and enterprise B has fully paid enterprise income tax, including the income received by enterprise A, the income that enterprise A receives. from capital contribution activities is 78 million dong [(100 million - (100 million x 22%)], enterprise A is exempt from corporate income tax on this 78 million dong.
- Case 2: Enterprise B is entitled to a 50% reduction of corporate income tax and enterprise B has fully paid enterprise income tax, including the income received by enterprise A according to the amount of income tax. If the decrease in income, the income that Enterprise A receives from capital contribution is VND 89 million [100 million - (100 million x 22% x 50%)]. Enterprise A is exempt from corporate income tax on 89 million VND. this.
Case 3: Enterprise B is exempt from corporate income tax, the income enterprise A receives from capital contribution is VND 100 million, and enterprise A is exempt from corporate income tax on this VND 100 million. .
7. Grants received to be used for educational, scientific research, cultural, artistic, charitable, humanitarian and other social activities in Vietnam.
If the sponsoring organization uses the above grants for improper purposes, the sponsorship recipient must calculate and pay corporate income tax calculated on the portion of improper use in the tax period in which the misuse arises. purpose.
The sponsorship receiving organization specified in this Clause must be established and operate in accordance with the law and comply with the provisions of law on statistical accounting.
8. Income from the first transfer of emission reduction certificates (CERs) of the enterprise that is granted the certificate of emission reduction; For subsequent transfers, corporate income tax shall be paid according to regulations.
Income from transferring tax-exempt certificates (CERs) must be guaranteed when the sale or transfer of certificates of emission reduction (CERs) must be certified by the competent environmental authority in accordance with the regulations.
9. Incomes related to the performance of the tasks assigned by the State Bank of Vietnam from development investment credit activities, export credit; Income from credit activities for the poor and other beneficiaries of the Social Policy Bank; Income of a one-member limited liability company managing the assets of Vietnamese credit institutions; Income from revenue-generating activities from performing State-assigned tasks of State financial funds: Vietnam Social Insurance Fund, Deposit Insurance Organization, Health Insurance Fund, Study Support Fund occupations, Overseas Employment Support Fund under the Ministry of Labor, War Invalids and Social Affairs, Vietnam Legal Aid Fund, Public-Utility Telecommunication Fund, Local Development Investment Fund, Vietnam Environment Protection Fund , Credit Guarantee Fund for Small and Medium Enterprises, Cooperative Development Fund, Fund for Poor Women, Fund for protection of workers and legal entities abroad, Housing Development Fund, Business Development Fund SMEs, Land Development Funds, Farmers Support Funds, Capital Support Funds for Poor Laborers and Self-Employment and Other State Funds operating for non-profit purposes as prescribed by law. These funds are established and operate under the regulations of the Government or the Prime Minister
In cases where the units generate incomes other than those from revenue-generating activities assigned by the State, they must calculate and pay tax according to regulations.
10. Undivided income:
a) Undivided income of socialization institutions in the education-training, health care and other socialization sectors (including the Judicial Examination Office) left for development investment That facility is in accordance with the specialized law on education - training, healthcare and other socialization fields. The tax-exempt undivided income of the socialization establishments specified in this Clause does not include the units left behind to invest in expanding other professions and business activities not in the education sector - training, medical and other socialized fields.
The basis of socialization is:
- The non-public establishments are established and meet the conditions to operate according to the regulations of competent state agencies in the socialization domains.
- Enterprises are established to operate in the fields of socialization and satisfy all conditions for operation according to regulations of competent state agencies.
- Public non-business establishments that contribute capital, raise capital, enter into joint ventures or associates in accordance with law to establish independent accounting establishments or enterprises operating in the socialized fields according to law. decision of a competent state agency.
The socialization establishment must satisfy the list of types, criteria, scale and standards on the list set by the Prime Minister.
b) Undivided income of the cooperative to form the cooperative's assets.
c) If the undivided income as prescribed in this Clause, the units divide or spend for wrong purposes will be subject to retrospective collection of corporate income tax at the tax rate at the time of division or for wrong purposes. and sanction tax law violations according to regulations.
11. Incomes from technology transfer in the domains prioritized for transfer to organizations and individuals in areas with extremely difficult socio-economic conditions.
Procedures for technology transfer are specified in the Law on Technology Transfer, Decree No. 133/2008 / ND-CP dated December 31, 2008 of the Government detailing the implementation and guiding the implementation of number of articles of the Law on Technology Transfer and legal documents guiding the implementation of the Law on Technology Transfer.
Technologies prioritized for technology transfer are those on the list of technologies encouraged to transfer (issued together with Decree No. 133/2008 / ND-CP) and documents amending and supplementing this Decree ( if).
Article 9. Loss determination and carry forward
1. Loss arising in a tax period is the negative difference in taxable income excluding losses carried forward from previous years.
2. If an enterprise suffers a loss after tax settlement, it shall fully and continuously transfer the loss to its income (taxable income minus tax-free income) for the following years. The time for carrying forward losses is calculated continuously not exceeding 5 years, counting from the year following the year the loss arises.
Enterprises temporarily transfer losses into income of the quarters of the year after making quarterly provisional declarations and officially change them into the year after making annual tax finalization declarations.
Example 12: In 2013, enterprise A made a loss of 10 billion dong, in 2014, enterprise A made an income of 12 billion dong, the entire loss incurred in 2013 was 10 billion dong, enterprise A had to transfer all into 2014 income.
Example 13: In 2013, enterprise B made a loss of VND 20 billion, in 2014, enterprise B made an income of VND 15 billion:
+ Enterprise B must transfer all losses of VND 15 billion into its 2014 income;
+ The remaining loss amount is 5 billion VND, enterprise B must continuously monitor and transfer all of them continuously according to the principle of carrying forward the loss of 2013 above into the following years, but not exceeding 5 years from the year following the year. losses are incurred.
- Enterprises having losses between quarters in the same fiscal year may offset the previous quarter's losses against the subsequent quarters of that fiscal year. When finalizing corporate income tax, the enterprise determines the loss for the whole year and continuously transfers the loss to the taxable income of the year following the year the loss occurred according to the above provisions.
- The enterprise shall determine by itself the loss deducted from income according to the above principle. In the case of carrying forward losses, such losses (excluding losses carried forward from the previous period) will be carried forward in full and for no more than 5 consecutive years, counting from the following year. the year the loss occurred.
If the agency competent to examine and inspect the finalization of corporate income tax determines that the loss amount transferred is different from the loss determined by the enterprise, the loss carried forward shall be determined according to the agency's conclusions. inspecting and inspecting losses, ensuring that the losses are carried forward completely and continuously for no more than 5 years, counting from the year following the year the losses arise according to regulations.
Past a period of 5 years from the year following the year the loss arises, if the incurred loss has not been fully transferred, it will not be transferred to the income of the following years.
3. Enterprises converting types of enterprises, merging, consolidating, dividing, separating, dissolving or bankrupting must make tax finalization with the tax offices up to the time the decisions on conversion of enterprises or forms of enterprises are issued. merger, consolidation, division, separation, dissolution, bankruptcy of a competent authority, the enterprise's losses arising before the transformation, merger or consolidation must be monitored in detail according to the year of occurrence and compensation. deduct from the income of the same year of the enterprise after conversion, merger, consolidation or continue to be transferred to the income of the following years of the enterprise after the conversion, merger or consolidation to ensure the principle carry forward the loss continuously for no more than 5 years, counting from the year following the year the loss arises.
Article 10. Appropriation of an enterprise's scientific and technological development fund.
1. Enterprises established and operating under the provisions of Vietnamese law may deduct up to 10% of their annual taxable income before calculating enterprise income tax to set up a scientific and technological development fund for enterprises. Karma. Enterprises shall determine by themselves the level of appropriation for the scientific and technological development fund according to regulations before calculating corporate income tax. Every year, if the enterprise sets up a science and technology development fund, the enterprise must make a report on the appropriation and use of the science and technology development fund and declare the level of appropriation and the amount of appropriation in the tax finalization declaration. corporate income. The report on the use of the Science and Technology Development Fund is submitted together with the corporate income tax finalization return.
For enterprises with more than 50% of charter capital held by the State, apart from deducting from science and technology development funds under the provisions of this Article, they must also ensure the minimum fund deduction rate specified in the Law on Science. and technology.
2. Within 5 years from the date of setting up, if the Science and Technology Development Fund is not used or not used up to 70% or used for improper purposes, the enterprise must pay to the State budget. corporate income tax is calculated on income that has been appropriated to the fund but is not used or used for improper purposes and the interest is derived from such corporate income tax.
The amount used for improper purposes will not be included in the total amount used for the purposes of science and technology development.
- The corporate income tax rate used to calculate the recovered tax is the tax rate applicable to the enterprise during the establishment of the fund.
- The interest rate for the tax recovered on the unused part of the fund is the one-year treasury bond interest rate (or the one-year treasury bill rate) applicable at the time. recovery and interest period is two years.
3. Scientific and technological development funds of enterprises may only be used for investment in scientific research and technological development by enterprises in Vietnam. Expenditures from the Science and Technology Development Fund must have full legal invoices and documents as prescribed by law.
4. Enterprises are not allowed to include expenses already paid from their scientific and technological development funds to the costs of their production and business activities when determining taxable incomes in a tax period. In case the enterprise has not spent enough on its scientific research and technological development investment from the science and technology development fund, the remaining difference between the actual expenditure and the amount deducted from the fund will be included in the cost of production and business activities when determining taxable income.
5. If an operating enterprise has a change in the form of ownership, consolidation or merger, the newly established enterprise from the change of ownership, consolidation or merger form may inherit and take responsibility. on the management and use of the scientific and technological development fund of the enterprise before the transformation, consolidation or merger.
If an enterprise has a science and technology development fund that has not been used up when divided or split, the newly established enterprise from the division or separation may inherit and take responsibility for the management and use of the scientific development fund. and technology of the business before splitting. The division of Science and Technology Development Funds is decided by enterprises and registered with the tax authorities.
6. If the Government's Decree provides for investment and the financial mechanism for scientific and technological activities, there are other regulations on setting up the science and technology development fund of enterprises, The Ministry of Finance and the Ministry of Science and Technology will issue an Inter-Ministerial Circular guiding the addition of this content to ensure compliance with legal documents on corporate income tax and the Decree on investment and financial mechanism for science and technology activities.
Article 11. Corporate income tax rate
1. As of January 1, 2014, the enterprise income tax rate is 22%, except for the cases specified in Clauses 2 and 3 of this Article and cases eligible for preferential tax rates.
Example: An enterprise applies the fiscal year from April 1, 2013 to March 31, 2014. In case the enterprise is applying the common tax rate and is not enjoying the preferential tax rate, upon finalizing CIT, the enterprise shall calculate and distribute the payable corporate income tax amount as follows:
|
CIT payable |
= |
Taxable income in the tax period |
x 9 months x 25% + |
Taxable income in the tax period |
x 3 months x 22% |
|
12 months |
12 months |
From 01/01/2016, the case subject to the tax rate of 22% shall switch to the tax rate of 20%.
2. Enterprises established under the provisions of Vietnamese law (including cooperatives and non-business units) engaged in the production and trading of goods and services with total annual turnover not exceeding VND 20 billion may the tax rate of 20% is applied.
Total annual revenue as a basis for determining the enterprise eligible for the tax rate of 20% specified in this Clause is the total revenue from the sale of goods or provision of services of the preceding year, determined on the basis of target code [01] and index code [08] on the Appendix of business results of the preceding year tax period according to Form No. 03-1A / TNDN attached to the CIT finalization declaration No. 03 / TNDN issued together with Circular No. 156/2013 / TT-BTC dated November 6, 2013 of the Ministry of Finance on tax administration.
Example 14: Company A, applying the tax period according to the fiscal year from April 1 of this year to the end of March 31 of the following year, has a turnover from the sale of goods providing code services [01] and revenue from operations. The financial action code [08] on Appendix 03-1A / TNDN attached to the CIT finalization declaration No. 03 / TNDN of fiscal year 2013 (from April 1, 2013 to March 31, 2014) does not exceed 20 billion VND, from the fiscal year 2014 (from April 1, 2014 to the end of March 31, 2015) Company A is entitled to the CIT rate of the fiscal year 2014 of 20%, if the total revenue of the fiscal year Exactly 2014 is determined according to the above guidance that if over VND 20 billion, the fiscal year 2015 (from April 1, 2015 to the end of March 31, 2016) Company A applies the CIT rate of 22%.
For enterprises whose previous year is less than 12 months, the total annual revenue as a basis for determining that the enterprise is eligible for the tax rate of 20% specified in this Clause is the total turnover of goods sale and supply. services of the preceding year are determined on the basis of index code [01] and index code [08] on the Appendix of production and business results of the preceding year tax period according to Form No. 03-1A / TNDN attached to the CIT finalization declaration No. 03 / TNDN divided by the actual number of months of production and business activities in the year, if the average revenue of the months in the year does not exceed VND 1.67 billion the following year, the enterprise is entitled to the CIT rate of 20%.
Example 15: Company A applies the tax period according to the calendar year, calendar year 2014, to suspend business for 3 months, and starts its business from April 1, 2014 to December 31, 2014. Sales of goods providing service codes [01] and revenue from financial activities code [08] on Appendix 03-1A / TNDN attached to the CIT finalization declaration No. 03 / TNDN 2014 is 18 billion VND, the average revenue in May 2014 is 18 billion VND divided (:) 9 months is equal to (=) 2 billion VND, in 2015 Company A is not applied the CIT rate of 20%, must apply the CIT rate 22%, if the average revenue in May 2014 does not exceed 1.67 billion VND, in 2015 Company A shall apply the CIT rate of 20%.
If the enterprise is newly established in a year for less than 12 months, in that year, it shall make quarterly declaration at the tax rate of 22% (except for cases eligible for tax incentives). At the end of the fiscal year, if the average revenue of the months in the year does not exceed VND 1.67 billion, the enterprise shall finalize the payable corporate income tax of the fiscal year at the rate of 20% (minus the incomes specified in Clause 3, Article 18 of this Circular). Turnover is determined based on the target of the enterprise's total revenue from selling goods and providing services, the criterion code [01] and the index code [08] on the Appendix of production and business results. according to Form No. 03-1A / TNDN attached to CIT finalization declaration No. 03 / TNDN issued together with Circular No. 156/2013 / TT-BTC dated November 6, 2013 of the Ministry of Finance on tax administration. The average revenue of the first year does not exceed 1.67 billion VND, the next year, the enterprise is applied CIT rate of 20%.
3. The enterprise income tax rate applicable to petroleum prospecting, exploration and exploitation in Vietnam is between 32% and 50%. Based on the exploitation location, exploitation conditions and field reserve, the enterprise having an investment project to search, explore and exploit oil and gas shall send the investment project dossier to the Ministry of Finance for submission to the Prime Minister. decide specific tax rates for each project, each business establishment.
Corporate income tax rate for the search, exploration and exploitation of rare natural resources (including: platinum, gold, silver, tin, wonfram, antimony, gemstones, rare earths except petroleum ) the tax rate of 50% applies; For rare and precious natural resources mines with at least 70% of the assigned area in geographical areas with extremely difficult socio-economic conditions on the list of geographical areas eligible for enterprise income tax, promulgated together with the Decree No. 218/2013 / ND-CP of the Government applies the corporate income tax rate of 40%.
Chapter III
TAX PAYMENT PLACE
Article 12. Principle of determination
Enterprises pay tax at the head office. In case an enterprise has dependent cost-accounting production facilities (including processing and assembling facilities) operating in a province or centrally run city different from the locality where its head office is located, the tax is payable at the head office and where the manufacturing facility is located.
The distribution of the payable tax amount specified in this Clause does not apply to the enterprise having dependent cost-accounting works, work items or construction establishments.
Article 13. Determination of payable tax amount
The payable enterprise income tax amount in the province or centrally run city where the dependent cost-accounting production establishment is located is determined by the payable enterprise income tax amount in the period multiplied by (x) the cost ratio of The cost of production depends on the total cost of the business.
The cost ratio is determined by the cost ratio between the total cost of the dependent accounting production establishment and the total cost of the enterprise. The cost ratio is determined as follows
|
The cost ratio of the production establishment depends on the accounting |
= |
Total cost of dependent accounting production establishment |
|
Total cost of the business |
The data used to determine the expense ratio is based on the enterprise's income tax finalization data of the year preceding the year of tax calculation, which is self-determined by the enterprise as a basis for determining the payable tax amount and used. to declare and pay corporate income tax for the following years.
In case an operating enterprise has dependent cost-accounting production facilities in the locality, the data to determine the cost ratio of the head office and dependent cost-accounting production establishments shall be determined by the enterprise itself. based on the 2008 corporate income tax finalization data and this rate has been used stably from 2009 onwards.
In case a newly established enterprise or an operating enterprise establishes or narrows dependent cost-accounting production establishments in localities, the enterprise must determine the percentage of expenses by itself for the first tax period. for cases of this change. From the next tax period the expense ratio will be used stably according to the above principle.
Dependent cost-accounting units of industry-wide-accounting enterprises that have income outside the main business activities shall pay tax in the province or centrally run city where such production and business activities arise.
Chapter IV
INCOMES FROM CAPITAL TRANSFER, SECURITIES TRANSFER
Article 14. Incomes from capital transfer
1. Scope of application:
Incomes from capital transfer of an enterprise are those obtained from the transfer of part or all of the enterprise's capital amount invested in one or more other organizations or individuals (including the sale of an enterprise). . Time of determination of income from capital transfer is the time of transfer of capital ownership.
In case the enterprise sells the entire single-member limited liability company owned by an organization in the form of capital transfer associated with real estate, it shall declare and pay corporate income tax according to the transfer. real estate and declared under the corporate income tax return (form 08) attached to this circular.
In case the enterprise transferring capital does not receive cash but assets or other material benefits (stocks, fund certificates ...) and generates income, it must be subject to corporate income tax. The value of assets, shares, fund certificates ... is determined according to the selling price of the product on the market at the time of receiving the asset.
2. Tax bases:
a) Taxed income from capital transfer is determined:
|
Taxable income |
= |
Transfer price |
- |
Purchase price of the capital transferred |
- |
Transfer cost |
Inside:
- The transfer price is determined to be the total actual value collected by the transferor under the transfer contract.
Where the capital transfer contract provides for the payment in the form of installment or deferred payment, the revenue of the transfer contract shall not include the interest on installment or deferred payment according to the time limit specified in the contract.
In case the transfer contract does not specify the payment price or the tax agency has a basis to determine that the payment price is inconsistent with the market price, the tax office may examine and fix the transfer price. If an enterprise transfers a portion of capital contribution in an enterprise but the transfer price of such capital contribution is not consistent with the market price, the tax authority may reassess the entire value of the enterprise at the time of transfer to re-determine the transfer price in proportion to the capital share transferred.
Bases for assignment of transfer prices are based on investigation documents of tax authorities or capital transfer prices of other cases at the same time, same economic organizations or similar transfer contracts at the time transfer. In case the tax agency's assignment of a transfer price is inappropriate, it shall be based on the appraised price of a professional valuation organization competent to determine the transfer price at the time of transfer in accordance with regulations.
If an enterprise transfers capital to an organization or individual, the part of the capital transferred under the transfer contract valued at twenty million dong or more must have a non-cash payment voucher. In case the capital transfer does not have a non-cash payment voucher, the tax agency may fix the transfer price.
- Purchase price of the transferred capital is determined in each case as follows:
+ If it is the transfer of contributed capital to establish an enterprise, it is the value of the capital contribution on the basis of books, records and accounting documents at the time of capital transfer and is invested by the parties or participating in a contract. business cooperation certification, or audit results of independent auditing companies for 100% foreign-owned enterprises.
+ If it is the capital acquired by the acquisition, the purchase price is the capital value at the time of purchase. The purchase price is determined based on the capital contribution redemption contract and payment vouchers.
In case the capital contributed or repurchased by an enterprise is partly due to the borrowing of capital, the purchase price of the capital transferred includes the interest payment expenses for capital investment.
If the enterprise does the accounting in a foreign currency (approved by the Ministry of Finance) and transfers the contributed capital in a foreign currency, the transfer price and the purchase price of the transferred capital amount shall be determined in the foreign currency; In cases where the Vietnamese dong accounting enterprises transfer their contributed capital in foreign currencies, the transfer price must be determined in Vietnam dong at the average exchange rate on the inter-bank foreign currency market by the Bank. The State of Vietnam announced at the time of transfer.
- Transfer expenses are actual expenses directly related to the transfer, with legal vouchers and invoices. In case transfer costs arise abroad, the original documents must be certified by an independent notary or audit agency of the country where the cost incurred is incurred and the documents must be translated into Vietnamese. authorized representative).
Transfer expenses include: expenses for carrying out necessary legal procedures for the assignment; fees and charges payable when completing transfer procedures; expenses for transactions, negotiation, signing of transfer contracts and other expenses with supporting documents.
Example 16: Enterprise A contributes 400 billion VND, including 320 billion VND of the factory value and 80 billion VND in cash to establish a joint venture enterprise to manufacture toilet paper, and then enterprise A transfers such capital contribution. for enterprise B at the price of VND 550 billion, the contributed capital of enterprise A at the time of transfer on the bookkeeping is VND 400 billion, and expenses related to the capital transfer are VND 70 billion. In this case, the income for calculating income tax from capital transfer is VND 80 billion (550 - 400 - 70).
b) If an enterprise has income from capital transfer, this income is determined as other income and declared in taxable income when calculating corporate income tax.
c) For foreign organizations doing business in Vietnam or earning income in Vietnam but these organizations are not operating under the Law on Investment, Law on Enterprises (collectively referred to as foreign contractors) having activities of capital transfer then, declare and pay tax as follows:
Capital transferees shall determine, declare, withhold and pay payable corporate income tax amounts on behalf of the foreign organization. If the transferee is also a foreign organization that does not operate under the Law on Investment or the Law on Enterprises, the enterprise established under Vietnamese law where the foreign organization invests capital shall declare and pay. to replace the corporate income tax payable from the capital transfer of the foreign organization.
Tax declaration and payment comply with the legal documents on tax administration.
Article 15. Incomes from securities transfer
1. Scope of application:
An enterprise's income from securities transfer is the income earned from the transfer of stocks, bonds, fund certificates and other securities as prescribed.
In case an enterprise issues additional shares to raise capital, the difference between the issue price and the par value is not included in taxable income to calculate corporate income tax.
If an enterprise undergoes division, split, consolidation or merger and swap shares at the time of division, split, consolidation or merger, if income is generated, such income shall be subject to turnover tax. Karma.
If the enterprise transferring securities does not receive cash but assets or other material benefits (stocks, fund certificates ...) and generates income, it must be subject to corporate income tax. The value of assets, shares, fund certificates ... is determined according to the selling price of the product on the market at the time of receiving the asset.
2. Tax bases:
Taxed income from securities transfer in the period is determined to be equal to the securities sale price minus (-) the buying price of the transferred security, minus (-) the expenses related to the transfer.
- The selling price of securities is determined as follows:
+ For listed securities and securities of unlisted public companies registered for trading at a securities trading center, the securities sale price is the actual selling price of securities (the order matching price or negotiated price) according to the notice of the Stock Exchange or the Securities Trading Center.
+ For securities of companies other than those mentioned above, the selling price is the transfer price stated in the transfer contract.
- The purchase price of securities is determined as follows:
+ For listed securities and securities of unlisted public companies registered for trading at a securities trading center, the securities purchase price is the actual securities purchase price (the order matching price or the price (agreement) according to the notice of the Stock Exchange or the Securities Trading Center.
+ For securities purchased through auction, the securities purchase price is the price stated on the notice of the share auction winning result of the share auction organization and the money order.
+ For securities not falling into the above cases: the securities purchase price is the transfer price stated in the transfer contract.
- Transfer expenses are actual expenses directly related to the transfer, with legal vouchers and invoices.
Transfer expenses include: expenses for carrying out necessary legal procedures for the assignment; Fees and charges payable when completing transfer procedures; Securities depository fee according to the regulations of the State Securities Commission and receipts of the securities company; The securities trust fee is based on the receipts of the trustee; Expenses for transactions, negotiation, signing of transfer contracts and other expenses with supporting documents.
Enterprises having income from securities transfer are determined as other income and declared in taxable income when calculating corporate income tax.
Chapter V
INCOME FROM REAL ESTATE TRANSFER
Article 16. Taxable objects
1. Enterprises subject to income tax on real estate transfer include: Enterprises of all economic sectors, all industries with incomes from real estate transfer activities; Real estate enterprises have income from land sublease activities.
2. Incomes from real estate transfer activities include: income from the transfer of land use rights, the transfer of land lease rights (including the transfer of projects associated with the transfer of land use rights, land lease rights according to provisions of law); Income from land sublease activities of real estate enterprises in accordance with the provisions of the land law, irrespective of whether or not infrastructures or architectural works are attached to land; Incomes from the transfer of houses, constructions on land, including properties associated with such houses or works, if the value of the property is not separated, regardless of whether or not the transfer is made. assignment of land use rights, assignment of land lease rights; Incomes from the transfer of assets attached to land; Incomes from transfer of ownership or use of a house.
Incomes from land sublease of real estate enterprises do not include enterprises leasing houses, infrastructures and structures on land only.
Article 17. Tax bases
The bases for calculating income tax on real estate transfer are taxed income and tax rate.
Taxed income is equal to (=) taxable income minus (-) previous years' losses from real estate transfer (if any).
1. Taxable income.
Taxable income from real estate transfer is determined by the revenue earned from the real estate transfer minus the cost of the real estate and deductible expenses related to the real estate transfer. .
a) Revenue from real estate transfer.
a.1) Revenue from real estate transfer is determined according to the actual real estate transfer price under a real estate transfer, purchase and sale contract in accordance with the law (including surcharges and additional charges if any).
In case the land use right transfer price under the real estate transfer or sale contract is lower than the land price shown on the land price list prescribed by the People's Committee of a province or city directly under the Central Government at the time of signing the transfer contract for real estate, the land price is determined by the People's Committee of the province or centrally run city at the time of signing the real estate transfer contract.
- The time of determination of taxable turnover is the time when the seller hands over the real estate to the buyer, regardless of whether the buyer has registered the property ownership, land use rights, and established land use rights at competent state agencies.
- In case an enterprise implements projects of investment in infrastructure, houses for transfer or lease, and collects advances from customers according to progress in any form, the time of determination of income taxable Provisional payment enterprise is the time of collecting money from customers, specifically:
+ In case the enterprise collects money from the customer and can determine the cost corresponding to the recorded revenue (including the accrued cost of the estimate of unfinished work items corresponding to the revenue already recognition), the enterprise declares and pays corporate income tax according to turnover minus expenses.
+ If the enterprise collects money from the customer but the costs corresponding to the turnover cannot be determined, the enterprise shall declare and temporarily pay enterprise income tax at the rate of 1% of the collected revenue and this turnover. not included in the turnover for calculating corporate income tax in the year.
When handing over the real estate, the enterprise must make final settlement of corporate income tax and re-settlement of payable corporate income tax. If the temporarily paid corporate income tax is lower than the payable enterprise income tax amount, the enterprise must fully pay the outstanding tax amount into the State budget. If the temporarily paid corporate income tax amount is larger than the payable tax amount, the enterprise may subtract the overpaid amount from the subsequent period's payable corporate income tax or be refunded.
For real estate enterprises that collect customers' advances according to schedule and declare tax provisional payment at the rate% of the revenue earned, this turnover is not included in the revenue for calculating income tax. Enterprises in the year that incur costs of advertising, marketing, promotion, and brokerage commissions when starting the offering in the year when revenue is generated according to progress, these expenses are not included in the year. incurred expenses. These expenses for advertising, marketing, promotion and brokerage commissions are included in deductible expenses according to the prescribed limit in the first year of real estate handover, generating taxable income. enterprise.
a.2) The revenue used to calculate taxable income in some cases is determined as follows:
- In case an enterprise subleases land, the revenue for calculating taxable income is the amount the lessee pays each period under the lease contract. Where the lessee pays the rent for many years in advance, the revenue for calculating taxable income shall be distributed over the number of years paid in advance or determined by the revenue of lump-sum payment. The selection of the one-time payment revenue form is only determined when the enterprise has fulfilled its financial obligations to the State, and ensured obligations to the subleasing parties for the end of the lease term. back to the ground.
In case the enterprise is enjoying CIT incentives and chooses the method of revenue determination to calculate taxable income which is the entire rent paid by the lessee for many years, the determination of the tax amount collected Entering the enterprise each year of tax exemption or reduction is based on the total corporate income tax of the number of years of prepayment divided (:) the number of years the lessee pays in advance.
- In case a credit institution receives the value of land use rights as loan security to replace the performance of the secured obligation, if there is a transfer of land use right as collateral, the revenue will be calculating taxable income is the transfer price of land use right as agreed by the parties.
- In case the land use right transfer is distrained property to secure the judgment execution, the revenue for calculating taxable income is the land use right transfer price agreed upon by the involved parties or the price determined by the Price Valuation Council. concentration.
The determination of turnover for the cases mentioned in Item a2 must ensure the principles stated in Item a1 of this Point.
b) Real estate transfer expenses:
b.1) Principles of cost determination:
- Deductible expenses for determining taxable income from real estate transfer in the tax period must correspond to turnover for calculating taxable income and must satisfy the conditions for eligible expenses. minus and non-deductible expenses specified in Article 6 of this Circular.
- In case an investment project is partially completed and gradually transferred according to the completion schedule, the general expenses used for the project, direct expenses used for the completed project part shall be allocated according to m2 land transferred to determine taxable income of the transferred land area; include: Cost of internal roads; green campus; investment expenses for construction of water supply and drainage systems; electric transformer station; compensation for property on land; The remaining cost of compensation, support, and resettlement and the remaining funds for organizing the ground clearance compensation approved by a competent authority must not be deducted from the land use levy or land rent according to the own regulations. books on collection of land use levies, collection of land rents, land use levies and land rents payable to the State budget, and other expenses on investment on land related to the transfer of land use rights or land lease rights.
The distribution of the above expenses is made according to the following formula:
|
Expenses for the allocated land |
=
|
Total investment in infrastructure |
|
Total area of land allocated for projects (excluding land area used for public purposes in accordance with the land law) |
|
x
|
The transferred land area |
In case a part of the project's non-transferable area is used for other business activities, the above general expenses shall also be allocated to this area for monitoring, accounting, and tax declaration and payment. Enter the enterprise for other business activities.
In case an enterprise has investment in construction of infrastructure for many years and only finalizes the value of infrastructure when the whole job is completed, when summing up real estate transfer expenses for the the area of land transferred, the enterprise is entitled to temporarily allocate the actual investment cost of infrastructure that has arisen according to the ratio of the area of the transferred land according to the above formula and deduct in advance the construction investment expenses. infrastructure construction corresponding to the revenue recognized when determining taxable income. After completing the construction investment process, the enterprise calculates and adjusts the temporarily allocated infrastructure investment costs and accrues for the transferred area to match the total value of the infrastructure. In case the overpaid tax arises compared to the payable income tax on real estate transfer, the enterprise may deduct the overpaid tax from the payable tax amount of the next tax period or get a refund. under the current regulations; If the paid tax amount is not enough, the enterprise has the responsibility to pay the deficit in full according to regulations.
b.2) Deductible real estate transfer expenses include:
- The cost price of land transferred is determined in accordance with the origin of land use rights, specifically as follows:
+ For land allocated by the State with collection of land use levies or land rents, the cost price is the land use levy or the land lease amount actually paid to the State budget;
+ For land received by other organizations or individuals, on the basis of contracts and vouchers of lawful payment of land use rights or land lease rights; in case there is no contract and legal payment vouchers, the cost price is calculated according to the price set by the People's Committee of the province or centrally-run city at the time the enterprise receives the real estate transfer.
+ For land originating from capital contribution, the cost price is the value of land use rights or land lease rights according to the asset valuation record upon capital contribution;
+ In case the enterprise exchanges the work for the State's land, the cost price is determined according to the value of the converted work, unless it is subject to separate regulations of a competent state agency.
+ The winning price in the case of auction of land use rights or land lease rights;
+ For enterprise's land originated from inheritance according to civil law; If they are given, donated or donated but the cost price cannot be determined, the price of the types of land decided by the People's Committee of the province or city under central authority shall be determined based on the price bracket table of different types of land set by the Government determined at the time of inheritance, giving, donation or gift.
In case the enterprise's land was inherited, given, donated or donated before 1994, the cost price is determined according to the price of land types decided in 1994 by the People's Committee of the province or centrally run city based on the Table the price bracket for different types of land is specified in Decree No. 87 / CP of August 17, 1994 of the Government.
+ For land mortgaged with loan security or distrained property to secure judgment execution, the land cost price is determined on a case-by-case basis according to the instructions at the above points.
- Expenses for land damage compensation.
- Cost of compensation for damage to crops.
- Compensation, support, and resettlement expenses and expenses for organization of compensation, support and resettlement in accordance with law.
The above expenses for compensation, compensation, support, and resettlement, and expenses for organizing the implementation of compensation, support and resettlement mentioned above, if there is no invoice, a list shall be made, clearly stating: name; address of the recipient; the amount of compensation and support; the recipient's signature and is certified by the authority of the ward or commune where the compensation or assistance land is located in accordance with the law on compensation, support and resettlement when the State recovers the land.
- Charges and fees as prescribed by law related to the grant of land use rights.
- Expenses for land improvement and ground leveling.
- Investment in construction of infrastructure such as roads, electricity, water supply, drainage, post and telecommunications ...
- Value of infrastructure and architectural works on land.
- Other expenses related to the real estate transferred.
If an enterprise operates in many different industries, the expenses must be separately accounted. In case the expenses of each activity cannot be separately accounted, the general expenses shall be distributed according to the ratio of revenue from real estate transfer to the total revenue of the enterprise.
Not being included in real estate transfer expenses expenses paid by the State or with other capital sources.
2. The enterprise income tax rate applicable to real estate transfer is 22% (from January 1, 2016, 20%).
3. Determination of the corporate income tax payable:
The corporate income tax amount in the tax period for real estate transfer is the taxed income from real estate transfer multiplied (x) by the tax rate of 22%.
Income from real estate transfer must be separately determined for tax declaration and payment. No preferential tax rates; Tax exemption and reduction period is under the guidance in Chapter VI of this Circular for income from real estate transfer.
If the real estate transfer has a loss, such loss shall comply with the instructions in Clause 3, Article 9 of this Circular.
Dossiers of tax declaration and payment, and receipts for payment of income tax on real estate transfer arising in the locality where the real estate is transferred are the basis for making tax finalization procedures where the head office is located.
4. In cases where a credit institution receives the real estate value as a loan security property to replace the performance of the secured obligation, the credit institution, when permitted to transfer real estate under the provisions of The law must declare and pay income tax on real estate transfer into the State Budget. In case of auction of real estate as loan security property, the proceeds will be paid in accordance with the Government's regulations on loan security of credit institutions and tax declaration and payment according to regulations. After paying the above amounts, the remaining amount will be paid to the business organizations that have pledged their real estate to secure the loan.
Where a credit institution is allowed to transfer the mortgaged real estate in accordance with law to recover capital, if the cost price of the real estate cannot be determined, the cost price shall be equal to (=) loan capital. payables under the real estate mortgage contract plus (+) unpaid interest expenses up to the time the real estate is disbursed under the credit contract plus (+) expenses incurred when transferring real estate real estate if there are legal invoices and documents.
5. In cases where the judgment enforcement agency sells real estate as judgment enforcement property, the proceeds shall comply with the provisions of the Government's Decree on distraint and auction of land use rights for warrant execution. The organization authorized to sell real estate auctions shall declare and deduct the income tax from real estate transfer paid to the State budget. On the documents clearly stating the tax declaration and payment on behalf of the sale of the judgment enforcement property.
In case the judgment enforcement agency transfers real estate that is the judgment enforcement property, if the cost price of the real estate cannot be determined, the cost price is determined by (=) the amount of the debt to be paid under the decision. Court's for judgment execution plus (+) expenses incurred when transferring real estate if there are legal invoices and documents.
Chapter VI
ENTERPRISE INCOME TAX INCENTIVES
Article 18.- Conditions for application of enterprise income tax incentives.
1. Enterprise income tax incentives only apply to enterprises that apply the accounting, invoice and voucher regimes and pay enterprise income tax according to declaration.
2. During the time of enjoying enterprise income tax incentives, if the enterprise conducts many production and business activities, the enterprise must calculate separately income from production and business activities entitled to tax incentives. Business income (including preferential tax rates, tax exemption rates, tax reductions) and income from business activities not entitled to tax incentives for separate tax declaration and payment.
In case in the tax period, the enterprise does not calculate income from production and business activities entitled to tax incentives and income from production and business activities is not entitled to tax incentives, then the income from production and business activities The tax incentive business is (=) the total taxable income multiplied (x) by the percentage (%) of the tax-incentive revenue or cost of the tax-incentive business compared to the total business. revenue or total deductible expenses of the enterprise in the tax period.
If there is a deductible revenue or expense that cannot be separately accounted, the deductible turnover or expenses shall be determined according to the ratio between the deductible turnover or expenses of the beneficial production and business activities. tax incentives on total revenue or deductible expenses of the business.
3. Enterprise income tax incentives are not applied and the tax rate of 20% is applied (including enterprises subject to the tax rate of 20% as prescribed in Clause 2, Article 11 of this Circular) for revenues. enter the following:
a) Incomes from capital transfer or transfer of the right to contribute capital; income from real estate transfer (except income from investment in social housing business specified at Point d, Clause 3, Article 19 of this Circular); income from the transfer of an investment project, the right to participate in an investment project, or the right to explore and exploit minerals; income received from production and business activities outside of Vietnam.
b) Incomes from prospecting, exploration and extraction of oil, gas, and other rare and precious resources and from mineral extraction.
c) Incomes from service provision are subject to special consumption tax in accordance with the Law on Special Consumption Tax.
4. Enterprises whose investment projects are entitled to enterprise income tax incentives because they meet the conditions on the field of investment incentives, the incomes from the fields of investment incentives and incomes such as liquidation scrap and rejects of the products in the domains eligible for investment incentives, exchange rate differences directly related to the revenue, costs of the preferential sectors, interest on demand deposits, and revenues Other directly related incomes are also entitled to corporate income tax incentives.
Enterprises whose investment projects are entitled to CIT incentives due to their satisfaction of local conditions (including industrial parks, economic zones, and hi-tech zones) shall enjoy preferential income. Corporate income tax is the entire income arising from production and business activities in a preferential area except for the incomes specified at Points a, b, c, Clause 3 of this Article.
Enterprises subject to the tax rate of 20% are entitled to the tax rate of 20% on all their incomes minus the incomes specified at Points a, b and c, Clause 3 of this Article.
5. New investment project:
a) New investment projects eligible for corporate income tax incentives specified in Article 15 and Article 16 of Decree No. 218/2013 / ND-CP are:
- The project is granted the investment certificate for the first time from January 1, 2014 and generates the revenue of that project from the date of being granted the investment certificate.
- Domestic investment projects associated with the establishment of a new enterprise with an investment capital of less than VND 15 billion and not on the List of fields of conditional investment are granted an enterprise registration certificate from January 1. January 2014.
- Investment project that was granted an investment license or investment certificate before January 1, 2014 but is in the investment process, has not come into operation, has not generated revenue and has been granted the certificate. amendment of investment license or adjusted investment certificate from 01/01/2014 of that project.
- Investment projects independent of projects with operating enterprises (including projects with investment capital of less than VND 15 billion and not on the List of conditional investment domains) with Investment Certificate investment from January 1, 2014 to implement this independent investment project.
b) In case the enterprise modifies or supplements an investment license or investment certificate of a project that has been put into operation without changing the conditions for enjoying incentives, the income from the adjusted operation, supplementary continue to enjoy incentives of the project before being adjusted or supplemented for the remaining time or extended incentives for investment if they meet preferential conditions as prescribed.
c) New projects of investment eligible for CIT incentives under the new investment category do not include:
- An investment project formed from: division, separation, merger, consolidation, or transformation of an enterprise in accordance with law;
- Investment projects formed from the conversion of owners (including the implementation of a new investment project but still inheriting assets, business locations, lines of business of the old enterprise to continue production activities, acquisition of active investment projects).
Enterprises established or enterprises with investment projects from enterprise transformation, ownership transformation, division, separation, merger or consolidation may inherit enterprise income tax incentives. or an investment project, prior to conversion, division, separation, merger or consolidation, for the remaining period if the conditions for preferential corporate income tax continue to be satisfied.
d) For enterprises enjoying corporate income tax incentives as newly established enterprises from investment projects, only applicable to incomes from production and business activities that satisfy investment incentive conditions. recorded in the enterprise's first business registration certificate. For enterprises doing business, if there is a change in the business registration certificate but the change does not change the satisfaction of the tax incentives as prescribed, the enterprise may continue. enjoy tax incentives for the remaining time.
6. Incentives for expansion investment
a) Enterprises having investment projects to develop investment projects are operating such as expanding production scale, increasing capacity, renovating production technology (collectively referred to as expansion investment project) in the field of Areas and geographical areas eligible for corporate income tax incentives under the provisions of Decree No. 218/2013 / ND-CP (including economic zones, hi-tech parks, and industrial parks, except for industrial zones located in such areas). urban districts of special-grade urban centers, centrally-run grade I urban centers and industrial parks within provincial-affiliated grade I urban centers), if one of the three criteria specified at this Point is satisfied, choose to enjoy corporate income tax incentives for the remaining period of time (if any) or to enjoy tax exemption or reduction for the additional income brought about by expansion investment. (not entitled to the preferential tax rate) equal to the tax exemption or reduction period applicable to new investment projects in the same areas or domains eligible for corporate income tax incentives. In case an enterprise chooses to enjoy CIT incentives under an operating project for the remaining period, the expansion project must be in the field or area eligible for CIT incentives as prescribed by Decree No. 218/2013 / ND-CP is also in the fields and areas with active projects.
The expansion investment projects specified at this Point must satisfy one of the following criteria:
- The historical cost of fixed assets increases when the investment project is completed and put into operation at least VND 20 billion for an expansion investment project in the field entitled to corporate income tax incentives as prescribed by Decree No. 218/2013 / ND-CP or from VND 10 billion for expansion investment projects implemented in areas with difficult or extremely difficult socio-economic conditions according to the provisions of the Decree. Decree No. 218/2013 / ND-CP.
- The proportion of prime cost of additional fixed assets reaches at least 20% of the total historical cost of fixed assets prior to the investment.
- The design capacity when expanding investment increases at least 20% compared to the design capacity according to the technical and economic feasibility study before the initial investment.
In case an enterprise chooses to enjoy incentives in the form of expansion investment, the additional income due to expansion investment is accounted for separately. In case an enterprise cannot separately account for the additional income brought about by expansion investment, the income from expansion investment is determined by the ratio of the historical cost of a newly invested fixed asset. for production and business on the total historical cost of fixed assets of the enterprise.
The tax exemption or reduction duration specified in this Clause is counted from the year when the expansion investment project is completed and put into production and / or business with income; If there is no taxable income in the first three years, counting from the first year there is revenue from an expansion investment project, the tax exemption or reduction period is counted from the fourth year the investment project generates revenue. .
In case an operating enterprise invests in upgrading, replacing or renovating technology of an operating project in the fields or geographical areas eligible for tax incentives according to the provisions of Decree No. 218/2013 / ND-CP that If one of the three criteria specified at this point is not met, the tax incentives are granted for the current active project (if any).
Tax incentives specified in this Clause are not applicable to investment in expansion due to division, split, merger or ownership transformation (including the implementation of a new project of investment but still inheriting assets. production, business location, lines of business of the old enterprise to continue production and business activities), acquisition of an enterprise or acquisition of an active investment project.
Enterprises having investment projects from ownership transformation, division, separation, merger or consolidation may inherit the enterprise income tax incentives of the enterprise or investment project before the transformation, division, or division. separation, merger or consolidation for the remaining period if the conditions for preferential corporate income tax continue to be satisfied.
b) Enterprises that are currently operating and enjoy tax incentives invest in building new production lines, expanding production, adding production and business lines, and increasing capacity (collectively, open investment). not in the fields or areas eligible for tax incentives under the provisions of Decree No. 218/2013 / ND-CP on corporate income tax, are not entitled to corporate income tax incentives for the additional income. from investment bring expansion.
In the case in the tax period, the enterprise cannot calculate the added income due to expansion investment, the additional income due to expansion investment is not eligible for CIT incentives, which is selected determined according to 1 of 2 ways:
Option 1:
|
The additional income due to expansion investment does not apply corporate income tax incentives |
= |
Total taxable income in the year (excluding other income ineligible) |
x |
Value of fixed assets to expand investment and use for production and business |
|
Total historical cost of fixed assets actually used for production and business |
Total historical cost of fixed assets actually used for production and business includes: value of fixed assets for investment expansion completed and handed over and historical cost of existing fixed assets currently used for the assets. business production according to the figures at the end of the period on the annual balance sheet.
Method 2;
|
The additional income due to expansion investment does not apply corporate income tax incentives |
= |
Total taxable income in the year (excluding other income ineligible) |
x |
The value of the expanded investment capital used for production and business |
|
The total actual investment capital used for production and business |
The total actual investment capital used for production and business is the total equity capital and loans of the enterprise used for production and business according to the figures at the end of the period on the annual balance sheet.
Enterprises are only allowed one allocation of income generated from an expansionary investment activity.
Example 16: Company A is a plastic-manufacturing enterprise in an industrial park in Ho Chi Minh City. Ho Chi Minh City (The industrial park is not in the favored area) and is enjoying CIT incentives: applied tax rate of 15% for 12 years since revenue is generated, CIT exemption for 3 years since revenue taxable import, 50% reduction of corporate income tax in the next 7 years, in 2014, company A has expanded investment, the total value of new investment machinery and equipment in the year is VND 5 billion. Knowing that the total value of fixed assets at the end of 2014 is 20 billion VND, the total taxable income incurred in 2014 is 1.2 billion VND, of which other income not entitled to incentives is 200 million VND, then:
Incomes from expansion investment that are not eligible for incentives are:
|
The additional income due to expansion investment does not apply corporate income tax incentives |
= |
(1.2 billion VND - 200 million VND) |
x |
5 billion VND |
|
20 billion VND |
||||
|
|
= |
250 million VND |
|
|
The taxable income not enjoying CIT incentives in 2014 is: VND 200 million + VND 250 million = VND 450 million
The taxable income eligible for corporate income tax incentives in 2014 is:
1.2 billion VND - 450 million VND = 750 million VND
7. In the same tax period, if there is an income subject to the application of preferential corporate income tax rates and tax exemption or reduction periods in many different cases, the enterprise may select by itself one of the the most favorable case of corporate income tax incentives.
8. During the time of enterprise income tax incentives, if in a tax year, the enterprise fails to fully satisfy one of the conditions for tax incentives specified in Clauses 7,8 and 12, Article 1 of the Amending Law. and supplementing a number of articles of the Law on Enterprise Income Tax and Article 19 of Decree No. 218/2013 / ND-CP, enterprises are not entitled to incentives in that tax year but must pay corporate income tax. according to the common tax rate and that year will be deducted from the time enjoying tax incentives of the business.
9. Where in the same tax period, an enterprise having a business activity entitled to tax incentives suffers a loss, the business activity is not entitled to tax incentives or other income from business activities (exclusive includes income from the transfer of real estate, the transfer of investment projects; income from the transfer of the right to participate in an investment project, the transfer of the right to explore, exploit and process minerals in accordance with the law. the law) has income (or vice versa), the firm offset against the taxable income of the income generating activities selected by the firm. The remaining income after clearing, corporate income tax rate will be applied at the rate of the remaining income activity.
Where in the previous tax period, the enterprise is making losses (if it is still in the loss transfer period), the enterprise must carry forward the loss corresponding to the activities with income. If the enterprise cannot separate the loss of each activity, the enterprise shall convert the loss into the income of the activity entitled to CIT incentives before and then still have a loss, then convert it into the income of the non-incentive activity. corporate income tax incentives (excluding income from real estate transfer, investment project transfer; income from transfer of right to participate in investment projects, transfer of rights of exploration and mining in accordance with the law).
Example 17: In the tax period of 2014, enterprise A has:
- Loss from software production with tax incentives is 1 billion VND.
- Profit from computer trading not subject to tax incentives is VND 1 billion.
- Profit from securities transfer (other income from business activities) is VND 2 billion.
In this case, enterprise A may choose to offset between losses from software production and profits from computer trading or profits from securities transfer; The rest of the income will be taxed at the rate of the income portion.
Specifically: offset the loss of 1 billion dong of software production against the profit of 1 billion dong from computer trading or securities transfer.
=> The enterprise still has an income of 2 billion VND and must pay CIT at the rate of 22% (2 billion VND x 22%).
Example 18: In the tax period of 2014, enterprise B has:
- Profit from software production eligible for tax incentives is VND 2 billion (this activity is subject to 10% corporate income tax rate).
- The profit from computer trading not subject to tax incentives is VND 2 billion.
- Loss from securities trading (other income from business) is 1 billion VND.
In the tax period of 2013, enterprise B has a loss from computer trading of VND 1 billion, when determining the taxable income of 2014, enterprise B must carry forward the loss transfer as follows:
Specifically:
- Offsetting the profit and loss arising in 2014: the enterprise chooses to offset the loss from securities trading against the income of computer trading, the remaining profit from computer trading is (2 billion - 1 billion) = 1 billion VND.
- Transfer losses from computer trading activities in 2013 to offset with profits from computer trading activities in 2014: (1 billion - 1 billion = 0 billion)
Declaring, calculating and paying CIT on activities eligible for tax incentives:
2 billion VND x 10% = 200 million VND
=> Corporate income tax payable is: 200 million VND
Example 19: In the tax period of 2014, enterprise C has:
- Profit from software production eligible for tax incentives is VND 2 billion (this activity is subject to 10% corporate income tax rate).
- The profit from computer trading not subject to tax incentives is VND 2 billion.
- Loss from securities trading (other income from business) is 1 billion VND.
In the tax period of 2013, enterprise C had a loss of VND 2 billion, but it could not separate the loss from which activity so enterprise C must offset the loss against the income of the preferential activity. before (software production activities).
Specifically: - Offset between the profit and loss incurred in 2014: the enterprise chooses to offset the loss from securities trading into computer trading, the profit from computer trading is (2 billion - 1). billion) = 1 billion VND
- Transfer losses in 2013 to offset with profits from software manufacturing activities in 2014: 2 billion - 2 billion = 0 billion
Declaring and paying corporate income tax at the rate of 22% of the business activities not entitled to tax incentives, specifically: 1 billion x 22% = 220 million VND.
10. During the time the enterprise is enjoying enterprise income tax incentives according to regulations, the agency competent to examine, inspect and examine and discover:
- Increasing the amount of corporate income tax entitled to tax incentives compared to the unit that self-declared (even if the enterprise has not declared to enjoy tax incentives), the enterprise is entitled to corporate income tax incentives. regulations on corporate income tax detected by examination and inspection (including the additional corporate income tax and corporate income tax that is eligible for tax incentives according to the declared regulations but the preferential tax amount has not been determined).
- If the enterprise income tax amount entitled to tax incentives is reduced compared to the self-declared unit, the enterprise is only entitled to corporate income tax incentives according to regulations on the corporate income tax amount due to examination and inspection. detection.
- Depending on the severity of the violation of the enterprise, the competent agency shall inspect and apply the prescribed levels of sanctioning tax law violations.
Article 19. Preferential tax rates
1. The preferential tax rate of 10% for a period of fifteen years (15 years) applies to:
a) Income of enterprise from performing new investment projects in: areas with extremely difficult socio-economic conditions specified in the Appendix issued together with Decree No. 218/2013 / ND-CP Economic zones, hi-tech zones, including concentrated information technology zones, are established under decisions of the Prime Minister.
b) Income of enterprise from performing new investment projects in the fields of scientific research and technological development; high technology application on the list of high technologies given priority for investment and development under the provisions of the Law on High Technologies; High-tech incubation, high-tech business incubation; venture investment in hi-tech development is on the list of high technologies prioritized for development in accordance with the law on high technologies; investment in construction - business of high-tech incubators and hi-tech business incubators; investment and development of water plants, power plants, water supply and drainage systems; bridge, road, railway; airport, seaport, river port; airports, railway stations and other particularly important infrastructure works as decided by the Prime Minister; manufacturing software products; production of composite materials, light construction materials, and rare and precious materials; producing renewable energy, clean energy, energy from waste destruction; biotechnology development.
c) Income of enterprise from performing new investment projects in the field of environmental protection, including: production of equipment for environmental pollution treatment, equipment for environmental monitoring and analysis; pollution treatment and environmental protection; collection and treatment of wastewater, waste gas, solid waste; recycling and reusing waste.
d) High-tech enterprises and agricultural enterprises applying high technologies in accordance with the Law on High Technologies.
High-tech enterprises and agricultural enterprises applying high technologies in accordance with the Law on High Technologies are entitled to tax incentives from the year they are granted the certificates of hi-tech enterprises or applied agricultural enterprises. high technology.
High-tech enterprises and hi-tech agricultural enterprises are entitled to corporate income tax incentives calculated on the entire income of enterprises except for incomes specified at Points a, b and c, Clause 3, Article 18. This circular.
In case an enterprise is enjoying corporate income tax incentives or has fully enjoyed corporate income tax incentives under the legal documents on corporate income tax and is granted an industrial enterprise certificate For hi-tech enterprises and agricultural enterprises applying high technologies, the preferential rates applicable to hi-tech enterprises and agricultural enterprises applying high technologies shall be equal to those applied to hi-tech enterprises and enterprises. agriculture and agriculture applying high technology specified in Clause 1, Article 15 and Clause 1, Article 16 of Decree No. 218/2013 / ND-CP minus the incentive period enjoyed by newly established enterprises and investment projects. newly established (both in terms of tax rate and period of exemption or reduction if any).
dd) An enterprise's income from execution of new investment projects in the manufacturing sector (except for projects on production of goods subject to special consumption tax or mineral extraction projects) that satisfy one of the following two criteria: :
- Projects with initial registered investment capital of at least 6 (six) trillion VND, disbursed no more than 3 years after being granted investment certificates and having minimum total revenue of at least 10 (ten) trillion VND / year at the latest after 3 years since the year of revenue (at the latest in the 4th year since the year of turnover, the enterprise must achieve a minimum total revenue of 10 (ten) trillion VND / year. ).
- Projects with initial registered investment capital of at least 6 (six) trillion VND, disbursed within 3 years from the date of being issued Investment Certificate and employing more than 3,000 employees at the latest after 3 years since the year of turnover (at the latest in the 4th year since the year of turnover, the enterprise must meet the conditions for using an average of 3,000 regular employees per year).
The number of employees specified at this Point is the number of employees who have a full-time labor contract, excluding the number of part-time and short-term workers under 1 year.
The annual average number of regular employees is determined under the guidance in the Circular No. 40/2009 / TT-BLDTBXH dated December 3, 2009 of the Ministry of Labor, War Invalids and Social Affairs.
In case an investment project does not meet the criteria specified at this Point (regardless of progress delay due to objective reasons in the ground clearance, settlement of administrative procedures of state agencies or due to natural Either accident, enemy sabotage or fire is approved by the investment certificate-granting agency and reports to the Prime Minister for approval), the enterprise is not entitled to CIT incentives, and the enterprise must declare , pay the enterprise income tax amount declared for preferential treatment in previous years (if any) and pay the late payment interest according to regulations, but the enterprise is not sanctioned for false declaration as prescribed by law on tax administration.
2. For an investment project specified at Points b and c, Clause 1 of this Article with a large scale, high technology or new special need to attract investment, the time for applying the preferential tax rate of 10% may drag but the total time of applying tax rate of 10% does not exceed 30 years according to the Decision of the Prime Minister based on the request of the Minister of Finance.
3. The preferential tax rate of 10% during the entire operation is applicable to:
a) Income of enterprise from socialization activities in the fields of education - training, vocational training, health, culture, sports and the environment (hereinafter referred to as socialization).
The list of types, criteria, sizes and standards of enterprises implementing socialization shall be made according to the list set by the Prime Minister.
b) Income from publishing activities of the Publisher according to the provisions of the Publishing Law.
Publishing activities include publishing, printing and distributing publications in accordance with the Law on Publishing.
Publications shall comply with the provisions of Article 4 of the Publishing Law and Article 2 of the Government's Decree No. 111/2015 / ND-CP of August 26, 2005. In case there are changes in the provisions of the Publishing Law, Decree No. 111/2005 / ND-CP and other legal documents related to the publishing field, the corresponding new regulations shall apply. , in accordance with these documents.
c) Income from printing press activities (including advertisements on printed newspapers) of press agencies according to the provisions of the Press Law.
d) Income of enterprise from performing investment projects - social housing business for sale, for lease, or for lease purchase for the subjects specified in Article 53 of Housing.
Social houses specified at this Point are houses built by the State or organizations and individuals of all economic sectors and satisfy criteria for housing, house selling prices and rental prices. , regarding the rental purchase price, the subjects and conditions to buy, lease, or lease purchase social housing in accordance with the housing law and the determination of income is subject to the 10% tax rate. at this point it does not depend on the time of signing the sale, lease or lease purchase contract of social housing.
In case an enterprise invests and trading in social housing signs a house transfer contract with customers' advance payment on schedule before January 1, 2014 and continues to collect money from January 1, 2014. January 2014 (the enterprise has declared for temporary payment of corporate income tax on income or as a proportion of the collected money) and has the time to hand over the house from January 1, 2014, the income from This house transfer is subject to the 10% tax rate.
Incomes from investment - social housing business subject to the tax rate of 10% in this Clause are income from the sale, lease, or lease-purchase arising from January 1, 2014. In case the enterprise does not separately accounting for the income from the sale, lease, or lease-purchase of social houses arising from January 1, 2014, the income is subject to the tax rate of 10% determined according to the ratio of operating revenue. Social housing sale, lease, or lease purchase over the total revenue in the respective period of the enterprise.
e) Income of the enterprise from: planting, tending and protecting forests; farming, forestry and aquaculture in difficult socio-economic areas; production, multiplication and crossbreeding of plants and animals; Salt production, extraction and refinement except salt production specified in Clause 1, Article 4 of Decree No. 218/2013 / ND-CP, investment in post-harvest preservation of agricultural products, preservation of agricultural, aquatic and food products. .
f) Income of the cooperative operating in the fields of agriculture, forestry, fishery, salt production is not in difficult socio-economic areas and extremely difficult socio-economic areas.
4. The preferential tax rate of 20% for a period of ten years (10 years) applies to:
a) Income of enterprise from performing new investment projects in areas with difficult socio-economic conditions specified in the Appendix issued together with Decree No. 218/2013 / ND-CP of the Government .
b) Income of enterprise from execution of new investment projects: high-class steel production; manufacturing energy-saving products; manufacture of machinery and equipment for agricultural, forestry, fishery and salt production; manufacture of irrigation equipment; production and refining of feed for livestock, poultry and aquatic animals; development of traditional industries (including construction and development of traditional professions in handicraft production, processing of agricultural products and foodstuffs, cultural products).
Enterprises implementing new projects of investment in the fields and geographical areas eligible for tax incentives specified in this Clause from January 1, 2016 shall apply the tax rate of 17%.
5. The preferential tax rate of 20% during the entire operation (from January 1, 2016 to 17%) is applicable to People's Credit Funds, Cooperative Banks and Organizations. Microfinance.
For people's credit funds, cooperative banks and microfinance institutions newly established in geographical areas with extremely difficult socio-economic conditions specified in the Appendix enclosed herewith 218/2013 / ND-CP of the Government, after the expiration of the 10% tax rate applicable time limit specified at Point a, Clause 1 of this Article, the 20% tax rate shall be applied; From January 1, 2016, to apply the tax rate of 17%.
Microfinance institutions specified in this Clause are organizations established and operating under the provisions of the Law on credit institutions.
6. The duration for application of the preferential tax rates specified in this Article is counted consecutively from the first year an enterprise has turnover from a new investment project to enjoy tax incentives. For high-tech enterprises, agricultural enterprises applying high technologies are counted from the year they are recognized as high-tech enterprises or agricultural enterprises applying high technologies; hi-tech application projects are counted from the year they are granted the certificates of hi-tech application projects.
Article 20.- Tax exemption and reduction duration preferences
1. Tax exemption for four years, 50% reduction of tax payable for the next nine years for:
a) Incomes of enterprise from execution of new projects of investment are prescribed in Clause 1 Article 19 of this Circular.
b) Income of enterprise from performing new investment projects in the field of socialization shall be performed in areas with difficult or extremely difficult socio-economic conditions specified in the enclosed Appendix. Decree No. 218/2013 / ND-CP.
2. Tax exemption for four years, reduction of 50% of tax payable for the next five years for enterprise's income from the execution of new investment projects in the field of socialization implemented in areas not on the list of geographical Desk with difficult or extremely difficult socio-economic conditions is specified in the Appendix issued together with the Government's Decree No. 218/2013 / ND-CP.
3. Tax exemption for two years and a reduction of 50% of tax payable for the next four years for incomes from the execution of new investment projects specified in Clause 4, Article 19 of this Circular and enterprises' incomes from implementation. new investment projects in industrial zones (except for industrial zones located in inner districts of special grade urban centers, grade I urban centers directly under the central government and industrial zones located in grade-I urban centers. directly under the province). Where the Industrial Park is located in both favorable and unfavorable areas, the determination of tax incentives for the Industrial Park shall be based on the area with the larger portion of the industrial park area.
The determination of special-grade and grade-I urban centers prescribed in this Clause shall comply with the Government's Decree No. 42/2009 / ND-CP of May 7, 2009, on urban classification and documents. amending this Decree (if any).
4. The tax exemption or reduction duration specified in this Article is counted from the first year an enterprise has taxable income from a new investment project to enjoy tax incentives; In case an enterprise has no taxable income for the first three years, counting from the first year it has revenue from a new investment project, the tax exemption or reduction period is counted from the fourth year that the new investment project arises. revenue.
Example 20: In 2014, enterprise A has a new investment project to manufacture software products.If in 2014, enterprise A has earned taxable income from the project of software product production, then its tax exemption or reduction period calculated continuously from 2014. In case enterprise A's new investment project produces software products, it generates revenue from 2014, until 2016, the new investment project of enterprise A still has no revenue. If the import is taxable, the tax exemption or reduction period is calculated continuously from 2017.
5. The year of tax exemption or reduction is determined to be consistent with the tax period. The time for starting to calculate the tax exemption or reduction period is counted from the first tax period an enterprise starts to have taxable income (not yet subtracting the loss carried forward in the previous tax period).
In case, in the first tax period with taxable income, the enterprise's new investment project has a time of production and business and is entitled to tax incentives of less than 12 (twelve) months, the enterprise may be selected. choose to enjoy tax incentives for a new investment project right in that first tax period or register with the tax agency the starting time of enjoying tax incentives from the next tax period. In case an enterprise registers the tax incentive period in the next tax period, the payable tax amount of the first tax period must be determined for remittance into the State budget according to regulations.
Article 21. Other cases of tax reduction
1. Enterprises operating in the fields of production, construction and transportation employ from 10 to 100 female employees, of which the number of female employees accounts for over 50% of the total number of employees who are regularly present or use regularly. More than 100 female employees whose number of female workers account for more than 30% of the total number of regular employees of the enterprise are entitled to a reduction of corporate income tax payable corresponding to the amount actually spent on female employees as guided in Item a, Point 2.9, Clause 2, Article 6 of this Circular, if possible separately.
Non-business units, offices of corporations not directly engaged in production and business are not entitled to tax reduction under this Clause.
2. Enterprises employing ethnic laborers are entitled to a reduction of enterprise income tax payable corresponding to the actual amount of money actually spent on ethnic minority laborers guided at Point b, Point 2.9, Clause 2 of Article. 6 This Circular if accounting separately.
3. Enterprises transferring technologies prioritized for transfer to organizations and individuals in geographical areas with difficult socio-economic conditions are entitled to a 50% reduction of the payable enterprise income tax amount. on the income from technology transfer.
Article 22.- Procedures for application of enterprise income tax incentives
Enterprises determine by themselves the conditions for tax incentives, preferential tax rates, tax exemption and reduction duration, and loss deducted (-) from taxed income for self-declaration and tax finalization with the agency tax.
When examining and inspecting enterprises, tax authorities must check the conditions for enjoying tax incentives, the amount of corporate income tax eligible for tax exemption or reduction, and the loss to be deducted from taxable income in accordance with the article. actual events that the business can meet. In case enterprises fail to satisfy the conditions for applying preferential tax rates and tax exemption or reduction periods, tax agencies shall handle tax arrears and sanctioning tax-related administrative violations according to regulations.
Chapter VII
IMPLEMENTATION ORGANIZATION
Effect of implementation
1. This Circular takes effect from August 2, 2014 and applies to the corporate income tax period from 2014 onwards.
2. Enterprises having investment projects which, by the end of the tax period 2013, are still in the time of being eligible for enterprise income tax incentives (including also those who are enjoying the incentives or are not yet enjoying the incentives. incentives) in accordance with legal documents on corporate income tax, continue to enjoy for the remaining time as prescribed by such documents; If the conditions for tax incentives are satisfied under the provisions of Decree No. 218/2013 / ND-CP on corporate income tax, they may choose the currently enjoying or preferential incentives according to Decree No. 218/2013 / ND-CP on corporate income tax under incentives for new investment projects (including tax rate, tax exemption period, tax reduction) for the remaining time if eligible for incentives corporate income tax incentives under the category of enterprises newly established from investment projects or under preferential treatment for expansion investment for the remaining time if they are eligible for incentives under the category of expansion investment. The expansion investment projects selected for concessional conversion as prescribed in this Clause are expansion investment projects implemented from December 31, 2008 and earlier and these projects are put into production and business activities. business from 2009 and earlier.
The remaining time to enjoy tax incentives is calculated consecutively from the implementation of the provisions on tax incentives in legal documents on foreign investment in Vietnam, on domestic investment promotion and corporate income tax issued before the effective date of this Circular.
The remaining time period is equal to the number of years the enterprise is still entitled to tax incentives (preferential tax rate, tax exemption period, tax reduction) as guided in the Circular minus the number of years the enterprise has enjoyed the incentives (tax rate incentives, tax exemption and reduction duration) in accordance with the previous legal documents on corporate income tax. The determination of the remaining preferential period mentioned above must ensure the following principles:
- By the end of the 2013 tax period, an enterprise whose time to enjoy tax incentives has expired according to previous legal documents on corporate income tax may not be converted to tax incentives ( Preferential tax rates, tax exemption and reduction period) for the remaining time are guided in this Circular.
- By the end of the tax period 2013, the enterprise is enjoying tax incentives (preferential tax rate, tax exemption and reduction period) in accordance with previous legal documents on corporate income tax. then continue enjoying the number of years to which the tax rate and preferential tax rates, tax exemption or reduction period are applied for the remaining time under the guidance in this Circular
- By the end of the tax period 2013, the enterprise is enjoying the preferential tax rate, but has just passed the tax exemption period according to the previous legal documents on corporate income tax, the tax exemption period is not but only enjoy the entire number of years of tax reduction as guided in this Circular, continue to enjoy the number of years of application of tax rates and preferential tax rates for the remaining time as guided in this Circular.
- By the end of the tax period 2013, if the enterprise is enjoying the preferential tax rate and is in the time of tax reduction according to the previous legal documents on corporate income tax, the remaining years of tax reduction is equal to The year of tax reduction as guided in this Circular minus (-) the number of years the enterprise has reduced tax until the end of the tax period in 2013, continuing to enjoy the number of years of application of tax rates and preferential tax rates for the remaining period according to instructions in this Circular.
- By the end of the tax period 2013, an enterprise whose tax exemption or reduction period has expired according to the previous legal documents on corporate income tax is not eligible for tax incentives (preferential tax rates, tax exemption and reduction period) according to the guidance in this Circular.
3. Enterprises implementing expansion investment projects before January 1, 2014 and bringing expansion investment projects into production and business activities, generating revenue from January 1, 2014, if This expansion investment project belongs to the domains and geographical areas eligible for enterprise income tax incentives under the provisions of Decree No. 218/2013 / ND-CP (including economic zones, hi-tech parks, and industrial parks. except for industrial zones located in urban districts of special grade urban centers, central grade I urban centers and annual industrial parks within provincial level I urban centers), they are entitled to tax incentives. Enterprise income for the additional income brought about by expansion investment under the guidance in this Circular.
4. This Circular replaces Circular No. 123/2012 / TT-BTC dated July 27, 2012 of the Ministry of Finance.
5. To annul the guidance on corporate income tax issued by the Ministry of Finance and other branches inconsistent with the guidance in this Circular.
6. The settlement of problems in taxation, tax finalization, tax exemption and reduction and handling of violations of the law on corporate income tax before the tax period of 2014 shall comply with corresponding regulations guiding corporate income tax issued before the tax period of 2014.
7. In cases where the Socialist Republic of Vietnam is a signatory to an Agreement or International Treaty for which such Agreement or International Agreement provides for the payment of corporate income tax differently from the the guidance in this Circular shall comply with the provisions of such international treaties.
Article 24. Responsibility for implementation
1. Tax offices at all levels shall disseminate and guide enterprises to comply with this Circular.
2. Enterprises regulated by this Circular shall comply with the instructions in this Circular.
In the course of implementation, if any problems arise, organizations and individuals are requested to promptly report them to the Ministry of Finance for study and settlement.
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KT. MINISTER
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