Circular 96/2015 / TT-BTC on corporate income tax

THE FINANCIAL --------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------
No. 96/2015 / TT-BTC	Hanoi, June 22, 2015

CIRCULARS

GUIDANCE ON CORPORATE INCOME TAX IN THE GOVERNMENT'S DECREE NO.12 / 2015 / ND-CP dated February 12, 2015, detailing the implementation of the Law Amending and Supplementing a Number of Articles OF THE LAW ON TAXES AND AMENDMENT AMENDMENT TO A NUMBER OF ARTICLES OF TAX DECREE AND AMENDMENTS TO A NUMBER OF ARTICLES OF CIRCULAR NO. 78/2014 / TT-BTC DATED June 18, 2014, CIRCULAR NO.119 / 2014 / TT-BTC DATE August 25, 2014, CIRCULAR NO. 151/2014 / TT-BTC dated October 10, 2014 of the Ministry of Finance

Pursuant to the Law on Enterprise Income Tax No. 14/2008 / QH12 and Law No. 32/2013 / QH13 amending and supplementing a number of articles of the Law on Enterprise Income Tax;

Pursuant to Law No. 71/2014 / QH13 amending and supplementing a number of articles of the Tax Law;

Pursuant to the Government's Decree No. 218/2013 / ND-CP dated December 26, 2013, detailing and guiding the implementation of a number of articles of the Law on Enterprise Income Tax;

Pursuant to the Government's Decree No. 12/2015 / ND-CP dated February 12, 2015, detailing the implementation of the Law amending and supplementing a number of articles of the Laws on tax and amending and supplementing a number of articles Tax Decrees;

Pursuant to the Government's Decree No. 215/2013 / ND-CP dated December 23, 2013 defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the request of the Director of the General Department of Taxation,

The Minister of Finance guides the implementation of corporate income tax as follows:

Article 1. Amending and supplementing Clause 1 Article 3 of Circular No. 78/2014 / TT-BTC dated June 18, 2014 of the Ministry of Finance guiding the implementation of Decree No. 218/2013 / ND-CP dated December 26 / 2013 of the Government stipulates and guides the implementation of the Law on Corporate Income Tax (collectively referred to as Circular No. 78/2014 / TT-BTC) as follows:

"first. The payable enterprise income tax amount in the tax period is taxed income minus the deduction of the science and technology fund (if any) multiplied by the corporate income 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

Corporate income tax rate

- Vietnamese enterprises investing abroad that transfer their incomes after they have paid their overseas corporate income tax to Vietnam, for countries that have signed agreements on double taxation avoidance, comply with regulations. Agreement; For countries that have not signed the Double Taxation Avoidance Agreement, if the corporate income tax in the countries the investment enterprises relocates has the lower corporate income tax rate, the difference will be collected. corporate income tax is calculated according to the Law on Enterprise Income Tax of Vietnam.

- Vietnamese enterprises investing abroad that have income from overseas production and business activities and declare and pay corporate income tax according to the provisions of Vietnam's current Enterprise Income Tax Law. Male, including cases 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 the 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.

- 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.

- In case Vietnamese enterprises investing abroad remit their income back home without declaring and paying tax on the income remitted, the tax authority shall assess taxable income from activities. production and business activities abroad in accordance with the Law on Tax Administration.

 

- Attached documents when declaring and paying tax of Vietnamese enterprises investing abroad on the income from overseas investment projects include:

+ A copy of the overseas income tax return, certified by the taxpayer;

+ Copies of overseas tax payment receipts with the taxpayer's certification or the original of the foreign tax authority's certification of the paid tax amount or a photocopy of equivalent documents certified by the taxpayer .

- Income from overseas investment projects shall be declared in the corporate income tax finalization of the year in which the income is remitted in accordance with the law on offshore direct investment. The income (profit) or loss arising from an overseas investment project must not be deducted from the enterprise's loss or domestic income (profit) when calculating corporate income tax.

Article 2. To amend and supplement Clause 2 Article 4, Circular No. 78/2014 / TT-BTC as follows:

"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 follows:

Income taxes

=

Revenue

-

The cost is deducted

+

Các khoản thu nhập khác

 

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 3, Article 19 of Circular No. 78/2014 / TT- BTC.

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 This loss is offset against the profit of production and business activities (including other income specified in Article 7 of Circular No. 78/2014 / TT-BTC. to the following years within the time limit for carrying forward losses as prescribed.

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 the enterprise carries out the dissolution procedures, after the decision on dissolution is issued, if there is a transfer of real estate as 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 as prescribed) in the tax period in which real estate transfer occurs ”.

Article 3. To amend and supplement Clause 2 Article 5 of Circular No. 78/2014 / TT-BTC as follows:

"2. Time of turnover determination to calculate taxable income is determined as follows:

a) For goods sale, it is the time when the right to own or use goods is transferred to the buyer.

b) For service provision is the time when the service provision is completed or the service provision is partially completed, except for the case specified in Clause 3, Article 5 of Circular No. 78/2014 / TT. -BTC, Clause 1 Article 6 of Circular No. 119/2014 / TT-BTC.

c) For air transport, it is the time when the delivery of transport services is completed for the buyer.

d) Other cases as prescribed by law ”.

Article 4. Amending and supplementing Article 6 of Circular No. 78/2014 / TT-BTC (as amended in Clause 2, Article 6 of Circular No. 119/2014 / TT-BTC and Article 1 of Circular No. 151 / 2014 / TT-BTC) as follows:

“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) The actual expenses are incurred in connection with the production and business activities of the enterprise.

b) The expenditures have 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 a purchase of goods or services with a value of twenty million dong or more each time indicated on the invoice but by the time the expense is recorded, the enterprise has not paid, the enterprise shall be included in deductible expenses. 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 to inspect and examine the tax period in which this expense arises).

For goods and service purchase invoices already paid in cash before the effective date of Circular No. 78/2014 / TT-BTC, 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).

In case an enterprise buys goods or services related to its business and production activities and has invoices printed directly from the cash register in accordance with the law on invoices; If this invoice has a value of VND 20 million or more, the enterprise shall base on this invoice and the enterprise's non-cash payment vouchers to include deductible expenses when determining taxable income.

In case an enterprise buys goods or services related to its business and production activities and has invoices printed directly from the cash register in accordance with the law on invoices; If this invoice is worth less than VND 20 million and is paid in cash, the enterprise shall base on this invoice and the enterprise's cash payment vouchers to include deductible expenses when determining income. taxable.

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:

- An inventory record of the value of assets and goods lost, made by the enterprise.

An inventory record of the value of assets and lost goods must clearly identify the value of the property, 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.

- 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) If goods are damaged due to changes in the natural biochemical process, expired or not compensated, they shall be included in deductible expenses when determining taxable income.

Dossier for goods damaged due to changes in natural biochemical process, expired goods are included in deductible expenses as follows:

- An inventory record of damaged goods, made by the enterprise.

Record of inventory of damaged goods must clearly identify the value of damaged goods and the cause of damage; categories, 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 responsibility before the law. .

- 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 above-mentioned documents are kept at the enterprise and presented to the tax authority at the request of the tax authority.

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, libraries, kindergartens, sports facilities and equipment, furniture eligible as fixed assets to be installed in the above works; clean water tanks, garage; vehicles transporting workers, direct housing for workers; expenses for construction of material foundations, expenses for purchasing machines and equipment that are fixed assets used for organizing vocational education activities are depreciated and included in deductible expenses when determining taxable income.

b) Depreciation expenses for undocumented fixed assets 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 shall notify the directly managing tax authority of its chosen fixed asset depreciation method before making depreciation (for example, notice of choosing 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 according to regulations, the enterprise receiving these fixed assets shall be depreciated into expenses. Fee is deducted at the cost of revaluation. For other types of assets that do not qualify as fixed assets contributed as capital, transferred when dividing, splitting, consolidating, merging or converting the type and these assets are reassessed according to regulations, the enterprise 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 that are tools, tools, circulating packaging, ... that do not meet the conditions for determining as fixed assets, the above asset purchase expenses shall be gradually amortized into expenses production and business activities in the period but not exceeding 3 years.

dd) Depreciation for fixed assets which have been fully depreciated.

e) Some specific cases are determined as follows:

- Not included in deductible expenses when determining taxable income: Depreciation corresponding to historical cost in excess of VND 1.6 billion / vehicle for passenger cars with 9 seats or less (minus: cars used for passenger transportation, tourist business, hotels; cars used for modeling and test drives for car business); depreciation for fixed assets being civil aircraft, yachts not used for the business of transporting goods, passengers, tourism, hotels.

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 business registration certificate or the registration certificate. Business registration with registration of one of the following industries: passenger transportation, tourism, hotel business and licensed to do business in accordance with the legal documents on transport, passenger and 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 However, in the business registration certificate or the enterprise registration certificate of the enterprise, there is no registration of cargo transportation, passenger transportation, tourism or hotel business.

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 of fixed assets according to the regime of management, use and depreciation of fixed assets up to the time of vehicle transfer or liquidation.

Example 8: Enterprise A purchases 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 the management, use and depreciation regime of fixed assets is 1 billion VND (depreciation period is 6 years according to the document 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: VND 5 billion - (VND 6 billion - VND 1 billion) = VND 0

- Depreciation for works on land used for both production and business and for other purposes is not included in deductible expenses for the value of works on land corresponding to the unused area. 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:

+ Have a certificate of land use right in the name of the enterprise (in case the land is owned by the enterprise) or have a land lease or land loan contract between the enterprise and the unit or individual having land and the representative of the business 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 work 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.

- Where 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.

- Long-term land use rights are not amortized and amortized to deductible expenses when determining taxable income; Land use rights for a definite term, if they have all invoices and vouchers and follow the procedures prescribed by law, participate in production and business activities, 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 in the land price list on the duty of 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 being 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 prescribe the regulations at the time of property purchase.

2.3. Expenditures in excess of consumption norms of raw materials, materials, fuels, energies and goods for a number of raw materials, materials, fuels, energies and goods already promulgated by the State.

2.4. Expenses of the enterprise buying goods and services (without invoices, is allowed to make a list of purchases of purchased goods and services according to form No. 01 / TNDN attached to Circular No. 78/2014 / TT-BTC) but do not make a list with payment vouchers for sellers or service providers in the following cases:

- Buying agricultural, forestry and aquatic goods directly sold by producers or fishermen;

- 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 soil, rock, sand and gravel directly from exploiting households and individuals;

- Purchase of scrap from collectors directly;

- Buying assets and services directly sold by non-business households and individuals;

- Purchase of goods and services from individuals and business households (not including the above cases) whose turnover is below the value-added taxable turnover threshold (VND 100 million / year).

List of purchase of goods and services signed by the legal representative or authorized person of the enterprise and is responsible before the law for its accuracy and truthfulness. Enterprises purchasing goods and services are allowed to make a list and be included in deductible expenses. These expenses do not require proof of non-cash payment. 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. Expenses for property rent of an individual who does not have the following documents and documents:

- In case an enterprise leases an individual's property, the documents to determine deductible expenses are the asset lease contract and the asset rental payment receipt.

- In case an enterprise leases assets of an individual and there is an agreement on the asset lease contract that the enterprise pays tax on behalf of an individual, the documents to determine deductible expenses are the property lease contract and payment receipt. Rent property and tax payment vouchers on behalf of individuals.

- In case an enterprise leases property of an individual but an agreement on property rental in the property lease agreement does not include tax (value added tax, personal income tax) and the enterprise pays tax on behalf of the individual. If the enterprise is multiplied, it is deducted from the total property rental including the tax paid on behalf of the individual.

2.6. 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, bonuses, and life insurance payments for employees are not specified the entitlement condition and the rate of entitlement in one of the following documents: Labor contract; Collective labor agreement; Financial regulations of the Company, the Corporation, the 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 an enterprise signs a labor contract with a foreigner which states the payment for the tuition fees for the foreigner's children studying in Vietnam according to the educational level from preschool to high school, the enterprise shall pay quality of salaries and wages and having sufficient invoices and vouchers as prescribed shall be included in deductible expenses when determining taxable income of enterprise income tax.

- In case the enterprise signs a labor contract with the employee in which the house rent is paid by the enterprise to the employee, this payment is of the nature of salary, wages and full invoices and vouchers according to regulations shall be included in deductible expenses when determining taxable income of corporate income tax.

- In case a Vietnamese enterprise signs a contract with a foreign enterprise which states that the Vietnamese enterprise must bear accommodation expenses for foreign experts during their time in Vietnam, the rent will be for Foreign experts working in Vietnam paid by Vietnamese enterprises shall be included in deductible expenses when determining taxable income of enterprise 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 a tax period according to a positive year. Enterprise A recently 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.

2.7. Expenditures on outfits in kind for employees without invoices and documents. The expense of outfits in cash to the employee in excess of 05 (year) million / person / year.

In case an enterprise pays outfits both in cash and in kind to the employee to be included in deductible expenses, the maximum amount of expenses for cash payment must not exceed VND 5 (five) million / person / year. In kind, there must be invoices and vouchers.

For business lines of particular nature, these expenses shall comply with specific regulations of the Ministry of Finance.

2.8. 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.

2.9. Payment of allowances for traveling on vacation in contravention of the provisions of the Labor Code.

Payment of allowances for workers on business trips, travel expenses and accommodation rent for workers on business trips if there are sufficient invoices and documents to be included in deductible expenses when determining taxable income . In case an enterprise has a contract for traveling, accommodation and allowances for the employee on business trip and complies with the enterprise's financial regulations or internal regulations, it shall be included in deductible expenses. travel, accommodation, and allowances.

In case the enterprise sends workers for business trip (including domestic and foreign business), if there is an expense of 20 million VND or more, the cost of buying air tickets but these expenses are Payment by individual bank card is eligible as a non-cash payment and included in deductible expenses if the following conditions are met:

- Have appropriate invoices and documents delivered by the goods or service provider.

- The enterprise has a decision or a document to send workers to work.

- Financial regulations or internal regulations of the enterprise allow employees to pay travel expenses and air tickets with a bank card by the individual who is the cardholder and these expenses are then paid by the enterprise. pay back to the employee.

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. In case the enterprise cannot recover the employee's boarding pass, the documents used as a basis for calculating deductible expenses are the electronic flight ticket, decision or document on sending the employee to work and the proof. from non-cash payments of businesses that have individuals participating in the transport itinerary.

2.10. The following deductible expenses, but if they are not spent on the right subjects, for the wrong purposes or in excess of 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.

- Expenses for organizing additional health check-ups in the year such as occupational, 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.

2.11 Spending in excess of VND 01 million / month / person / for: deduction of payment to the voluntary pension fund, purchase of voluntary pension insurance for employees.

The deduction for payment to the voluntary retirement fund, the purchase of voluntary pension insurance, for the employee is included in deductible expenses, apart from not exceeding the level specified at this point, the conditions for entitlement and benefit level must be specified 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.

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. Job loss benefits for employees are not in compliance with 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 enterprises renting production and business locations directly pay electricity and water charges to electricity and water suppliers without electricity and water bills and contracts on lease of production and business locations.

b) In case an enterprise hires a production and business location to pay electricity and water charges to the owner that leases the production and business location without proof of payment for electricity and water charges to the lessor of the production and business location. business in accordance with the actual amount of electricity and water consumed and the lease contract at 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 the goodwill and the value of the right to use the trademark contributed as capital shall not be included in deductible expenses when determining revenue. taxable entry.

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 that are investment capital) according to the capital contribution progress stated in the enterprise's charter, even where the enterprise has gone into manufacturing business. Interest payments on loans during the investment are recorded into the value of the asset and the value of the investment.

In case the enterprise has fully contributed its charter capital and during the business process has loan interest payments to invest in another enterprise, this expense shall be included in deductible expenses when determining taxable income.

Payment of loan interests in proportion to the outstanding charter capital according to the capital contribution progress stated in the enterprise's charter must not be deducted when determining taxable income is determined as follows:

- If the loan amount is less than or equal to the outstanding charter capital, the entire loan interest is a non-deductible expense.

- In case the loan amount is larger than the outstanding charter capital according to the capital contribution schedule:

+ If the enterprise only arises one loan, the interest payment must not be deducted by the outstanding charter capital multiplied by (x) the interest of the loan multiplied (x) the missing charter capital contribution period.

(Loan interests are specified at Point 2.17 of this Article)

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 bad debts warranty claims, product, goods, construction works and occupational risk provisions 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 increase 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 deduction according to the estimate, the enterprise may add this difference to deductible expenses.

2.21. 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 are recorded separately at the end of the fiscal year. 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.

2.22. Expenses for funding for education (including expenses for sponsoring vocational education activities) not for the subjects specified in Item a of this Point or there is no record to identify the funding specified at 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; The sponsorship of scholarships for pupils and students of general education institutions, vocational education institutions and higher education institutions is specified in the Education Law (direct funding for students staff 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 (form No. 03 / TNDN issued together with Circular No. 78/2014 / TT-BTC); enclosed with invoices, vouchers of buying goods (if sponsoring in kind) or vouchers of payment (if sponsoring in cash).

2.23. 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 medical sponsorship includes: A written confirmation of the sponsorship, signed by the sponsor's representative, representative of the recipient (or agency or organization). function to mobilize funding) using form No. 04 / TNDN attached to Circular No. 78/2014 / TT-BTC together with invoices, vouchers of purchase of goods (if sponsorship in kind) or vouchers of payment money (if financed with money).

2.24. 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 damage from natural disasters through an agency or organization that has the function of mobilizing financial supports according to the provisions of law.

b) Dossier for determination of funding for disaster recovery includes: A written confirmation of the sponsorship, signed by the representative of the enterprise as a sponsor or representative of the organization damaged by natural disasters. ear (or agency or organization with function of mobilizing sponsorship) is the sponsor (form No. 05 / TNDN issued together with Circular No. 78/2014 / TT-BTC) enclosed with invoices and documents from purchasing goods (if donating in-kind) or vouchers of payment (if sponsoring in cash).

2.25. Spending on sponsorship for building houses for the poor against the subjects specified in Item a of this Point; Spending on sponsorship for building houses of gratitude, building houses for the poor, building solidarity houses in accordance with law without a record to identify the funding mentioned in Item b below:

a) With regard to funding for building houses for the poor, beneficiaries of funding are poor households as prescribed by the Prime Minister. Form of sponsorship: funding in cash or in kind to build houses for poor households by either directly or through an agency or organization that has the function of mobilizing funding in accordance with the law.

b) Documentation of sponsorship for building houses of gratitude, building houses for the poor, or building solidarity houses includes: Minutes of certification of the sponsorship, signed by the sponsor's representative, the recipient the sponsor is the sponsor (according to form No. 06 / TNDN issued together with Circular No. 78/2014 / TT-BTC); local authority's documents certifying the poor households (for sponsorship of building houses for the poor); invoices, vouchers of buying goods (if sponsoring in kind) or vouchers of payment (if sponsoring in cash).

In case the recipient is an agency or organization with the function of mobilizing sponsorship, the sponsorship documentation must include: Confirmation of the sponsorship signed by the representative of the enterprise as the sponsor. and agencies and organizations with the function of mobilizing sponsorships are donors; invoices, vouchers of buying goods (if sponsoring in kind) or vouchers of payment (if sponsoring in cash).

2.26. Spending on funding for scientific research in contravention of regulations; funding for policy beneficiaries not in accordance with the law; funding not under the State program for localities in areas with extremely difficult socio-economic conditions.

Financing under the State program is a program prescribed by the Government to be implemented in localities in areas with extremely difficult socio-economic conditions (including corporate sponsorship for building new bridges for people living in extremely difficult socio-economic areas according to the Project approved by competent authorities).

Spending on sponsorship for policy beneficiaries shall comply with relevant laws.

Dossier for determining funding under the State's program for localities in areas with extremely difficult socio-economic conditions; Enterprise funding for the construction of new bridges for people living in extremely difficult socio-economic areas according to the scheme approved by competent authorities; Sponsorship for policy beneficiaries as prescribed by law includes: A written certification of the sponsorship signed by the corporate representative who is the sponsor, the person receiving the sponsorship (or an agency or organization having function of funding mobilization) is the recipient of sponsorship (according to form No. 07 / TNDN issued together with Circular No. 78/2014 / TT-BTC); invoices, vouchers of buying goods (if sponsoring in kind) or vouchers of payment (if sponsoring 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.

2.27. 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 Total sales of companies abroad, including sales of permanent establishments in other countries in the tax period

x

The total number of business administration expenses of the overseas company in the tax period.

Expenses for business management of the foreign company allocated to the permanent establishment in Vietnam are only calculated from the time the permanent establishment in Vietnam is established.

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 regime; 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.

2.28. 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.

2.29. 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.

2.30. Expenses that do not correspond to taxable turnover, 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 operations of militia and self-defense forces and other defense and security tasks in accordance with relevant laws. .

- Actual expenses to support Party organizations, socio-political organizations in the enterprise.

- Expenses for vocational education and vocational training for employees include:

+ Costs paid to teachers, learning materials, equipment used for vocational education activities, materials for practice, other expenses to support learners.

+ Training costs of the enterprise for the employee recruited to work in the enterprise

- Expenses of a welfare nature that are directly paid to the employee such as: spending the filial piety and happiness of themselves and the employee's family; expenses for vacation, expenses for treatment support; support for additional learning knowledge at training institutions; expenses for employees' families affected by natural disasters, enemy sabotage, accidents or illnesses; pay and reward for the employees' children with good academic achievements; support expenses for traveling on holidays and New Year holidays for employees; payment of accident insurance, health insurance, and other voluntary insurance for employees (except for the payment of life insurance for employees as instructed at Point 2.6, voluntary pension insurance for employees. (referred to at point 2.11 of this Article) and other expenses of a welfare nature. The total amount of the above-mentioned welfare expenses must not exceed 01 month of the actual average salary paid in the tax year of the enterprise.

The determination of the actual average 01-month salary in the tax year of the enterprise is determined by the salary fund made in the year divided (:) by 12 months. If the enterprise has not operated for 12 months, the actual average monthly salary paid in the tax year is determined by the salary fund made in the year divided (:) the actual number of months of operation in the year. year.

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).

- Other expenses of specific nature, suitable to each industry and field according to the guiding documents of the Ministry of Finance.

2.31. 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 case in the period of capital construction investment, the enterprise incurs both loan interest payments and deposit interests, the offset between the loan interest payment and the deposit interest, after offsetting minus the remaining difference, record a decrease in investment value.

2.32. Expenses for local support; expenses for mass organizations and social organizations; charity expenses (except for funding for education, health care, overcoming consequences of natural disasters, building houses of gratitude, building houses for the poor, building a house of solidarity; funding for scientific research, sponsorship for policy beneficiaries as prescribed by law, funding under the State program for localities in areas with extremely difficult socio-economic conditions specified at Points 2.22, 2.23, 2.24, 2.25, 2.26, Clause 2 of this Article).

2.33. Payments directly related to the issue of shares (except for shares in the class of liabilities) and dividends of stocks (except dividends on shares of payable debt classes), treasury stock trading and other Other expenses are directly related to the increase or decrease in the enterprise's equity.

2.34. The amount for granting mineral mining rights is in excess of the actual arising amount of the year.

In case of lump-sum payment, the actually arising amount in the year is determined on the basis of the total amount of money for granting mineral mining rights allocated to the remaining mining years. In case of annual payment, the actually arising amount is the amount of money for granting mineral mining rights of the year that the enterprise has paid to the State budget.

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 which stipulate that salaries and wages paid to employees are exclusive of personal income tax ”.

Article 5. To amend and supplement a number of contents in Article 7 of Circular No. 78/2014 / TT-BTC as follows:

1. To amend and supplement the first paragraph of Article 7:

“Article 7. Other income

Other income includes the following income: ”

2. To amend and supplement Clause 9 Article 7:

“9. Income from exchange rate differences 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 or expenses of the main production and business activities of the enterprise.If there is a loss, the exchange rate difference will be included in financial expenses, if arising Interest rate difference is included in other income when determining taxable 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 which 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 financial expenses 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 the exchange rate differences due to reassessment of the year-end balance: cash, deposits, money in transit, foreign currency receivables ”.

3. To replace Clause 22 of Article 7 with the new Clause 22 as follows:

“22. In case the enterprise accepts new capital contributors as prescribed by law, the amount of capital contributed by new capital contributors is higher than the value of that member's contributed capital out of the total charter capital of the enterprise then handle as follows:

If this higher difference is determined to be owned by the enterprise and added to the business capital, it will not be included in taxable income to calculate the corporate income tax of the enterprise receiving the capital contribution.

If this higher difference is divided among the former capital contributors, the difference is the income of the former capital contributors ”.

Article 6. To amend and supplement a number of contents in Article 8 of Circular No. 78/2014 / TT-BTC (as amended and supplemented in Article 4 of Circular No. 151/2014 / TT-BTC) as follows:

1. To amend and supplement Clause 1a, Article 8 of the Circular No. 78/2014 / TT-BTC as follows:

"first. Incomes from cooperatives' cultivation, husbandry, rearing and processing of agricultural and aquatic products; Incomes of cooperatives operating in the fields of agriculture, forestry, fisheries, and salt production in areas with difficult socio-economic conditions or in areas with special socio-economic conditions difficult difference; Incomes of enterprises from cultivation, husbandry, farming and processing of agricultural and aquatic products in regions with extremely difficult socio-economic conditions; Income from fishing activities.

a) Incomes from cultivation (including products from planted forests), husbandry, breeding, and processing of agricultural and aquatic products of cooperatives and enterprises are eligible for tax incentives (including tax incentives. Tax exemption or reduction) specified in this Circular is income from products grown, raised and raised by enterprises and cooperatives, and income from processing agricultural and aquatic products (including cooperatives and enterprises buying agricultural and aquatic products for processing).

Incomes of products and goods processed from agricultural and aquatic products eligible for tax incentives (including tax incentives and tax exemption or reduction) specified in this Circular must simultaneously satisfy the following conditions:

- The ratio of the value of raw materials being agricultural and aquatic products to the production cost of goods or products (production costs of goods or products) is from 30% or more.

- Products and goods from processing agricultural and aquatic products are not subject to special consumption tax, except for cases decided by the Prime Minister at the proposal of the Ministry of Finance.

Enterprises must separately determine income from products and goods processed from agricultural and aquatic products to enjoy CIT incentives.

Tax-free income in this Clause includes income from liquidation of crop, livestock and farming products (except for rubber garden liquidation), income from sale of scrap related to these products. products of cultivation, husbandry, breeding, and processing of agricultural and aquatic products.

Products from cultivation, husbandry, and breeding of the cooperative and the enterprise are determined according to the code of the level 1 economic sector of the agriculture, forestry and fishery sectors specified in the Vietnam Economic System. Male".

2. To amend and supplement Clause 9 Article 8 of Circular No. 78/2014 / TT-BTC (as amended and supplemented in Article 4 of Circular No. 151/2014 / TT-BTC as follows:

“9. Incomes from performing the tasks assigned by the State Bank of Vietnam in the 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 assets of Vietnamese credit institutions; income from income generating activities assigned by the State financial funds: Vietnam Social Insurance Fund, Deposit Insurance Organization, Health Insurance Fund, Vocational Training Support Fund, The Overseas Employment Support Fund under the Ministry of Labor, War Invalids and Social Affairs, the Farmers Support Fund, the Vietnam Legal Aid Fund, the Public Telecommunication Fund, the Local Development Investment Fund, the Environment Protection Fund Vietnam School, Credit Guarantee Fund for Small and Medium Enterprises, Cooperative Development Fund, Fund for Poor Women, Fund for the protection of citizens and legal entities abroad, Housing Development Fund, Fund SMEs development, National Science and Technology Development Fund, National Technology Innovation Fund, Capital Support Fund for poor laborers to create self-employment, income from performing State tasks allocation of the land development fund and other State funds to operate for non-profit purposes as stipulated or decided by the Government or the Prime Minister to be established and operated under the a law.

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 ”.

3. To add Clause 12 to Article 8 of the Circular No. 78/2014 / TT-BTC as follows:

"twelfth. Income of the office in excess of redundancy (except income from activities other than redundancy activities) during the pilot implementation in accordance with the law on civil judgment enforcement.

The office of redundant playback and redundant activity shall comply with the provisions of relevant legal documents on this issue ”.

Article 7. Amending and supplementing Clause 3 Article 9 of Circular No. 78/2014 / TT-BTC as follows:

“3. Enterprises converting types of enterprises, merging, consolidating, dividing, separating, dissolving or going bankrupt must make tax finalization with the tax authorities up to the time of the decision on enterprise conversion, merger, consolidation, division, separation, dissolution, bankruptcy of a competent authority (except for cases where tax finalization is not required). Losses incurred by the enterprise before the transformation, merger or consolidation must be monitored in detail by the year it arises and offset against the same year income of the enterprise after the conversion, merger, consolidation or continue transferring to the income of the following years of the enterprise after conversion, merger or consolidation to ensure the principle of carrying forward losses continuously for no more than 5 years, counting from the year following the year the loss arises.

Losses incurred by the enterprise before the division or split into another enterprise and still in the period of carrying forward losses as prescribed, this loss will be distributed to the enterprise after the division or separation according to the equity ratio. Friendship is divided and separated ”.

Article 8. Amending and supplementing the second bullet point at Point a Clause 2 Article 14 of Circular No. 78/2014 / TT-BTC as follows:

“- 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 accumulated capital contribution up to the time of capital transfer on the basis of accounting books, records and vouchers and is invested or participated by parties. business cooperation contract confirming, or audit results of an independent auditing company 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.

If the enterprise meets all conditions for accounting in foreign currency and complies with the provisions of law on accounting regime with transfer of contributed capital in foreign currency, transfer price and purchase price of transferred capital is determined in a foreign currency; In case the enterprise that does the accounting in Vietnam dong transfers its contributed capital in foreign currency, the transfer price must be determined in Vietnam dong according to the buying exchange rate of the commercial bank where the enterprise opens its account at the time. transfer point ”.

Article 9. To amend and supplement Clause 3 Article 17 of Circular No. 78/2014 / TT-BTC as follows:

“3. Determining 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%.

Incomes from real estate transfer must be separately determined for tax declaration and payment and not subject to corporate income tax incentives.

Dossiers of tax declaration and payment, and receipts for payment of income tax from real estate transfer arising in the locality where the real estate is transferred are the basis for carrying out tax finalization procedures where the head office is located ”.

Article 10. To amend and supplement a number of contents in Article 18 of Circular No. 78/2014 / TT-BTC (as amended in Article 5 of Circular 151/2014 / TT-BTC) as follows:

1. To amend and supplement Khoarn3 to Article 18 of the Circular No. 78/2014 / TT-BTC as follows:

“3. Corporate income tax incentives are not applied and the tax rate of 20% is not applied (including enterprises subject to the tax rate of 20% as prescribed in Clause 2 Article 11 of Circular No. 78/2014 / TT-BTC. for the following incomes:

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 Circular No. 78/2014 / TT-BTC); 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. ”.

2. To amend and supplement Clause 4 Article 18 of the Circular No. 78/2014 / TT-BTC as follows:

“4. Enterprises having investment projects are entitled to enterprise income tax incentives because they meet the conditions on the fields of investment incentives and geographical areas where investment incentives are given as follows:

a) Enterprises whose investment projects are entitled to CIT incentives due to their satisfaction of the conditions on the field of investment incentives, incomes from the field 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.

b) The enterprise whose investment project is eligible for CIT incentives due to its satisfaction of favorable conditions in geographical areas (including industrial parks, economic zones, and hi-tech zones) shall enjoy income. CIT incentives are all of the income generated from production and business activities in a preferential area, minus the incomes specified at Points a, b and c, Clause 1 of this Article.

- Enterprises having investment projects in the transport business are entitled to corporate income tax incentives due to their satisfaction of favorable conditions in localities (including industrial parks, economic zones and hi-tech parks. ), the enterprise is entitled to corporate income tax incentives for income from transport services based on the locality where the investment project is established in the locality that is eligible for the tax incentives and has a departure or destination point. in the area where the investment project is established.

Example 15a: In 2015, a newly established enterprise in Son La province (in an area with extremely difficult socio-economic conditions) operates in the transport service business. Enterprises are entitled to corporate income tax incentives due to meeting conditions in areas with extremely difficult socio-economic conditions.

In 2015, the company has many fixed bus routes (going from Son La to Hanoi city and vice versa; going from Son La to Ha Long city and vice versa) and routes running under contracts (go from Son La to Da Nang city and vice versa; going from Hanoi city to Da Nang city and vice versa; going from Bac Ninh city to Son La).

The determination of corporate income tax incentives for income from transport services of the enterprise is based on the locality where the investment project is established (in Son La province - in an area with economic conditions. society is particularly difficult) and has a departure or destination in the area where the investment project is established (in Son La province), specifically as follows:

+ Income from transport services for vehicle routes eligible for corporate income tax incentives due to the departure or destination in Son La province: fixed car route (from Son La to the city Hanoi and vice versa; going from Son La to Ha Long City and vice versa) and the route runs under contracts (from Son La to Da Nang city and vice versa; going from Bac Ninh city to Son La ).

+ Income from transport services for the vehicle route that is not eligible for corporate income tax incentives because the departure or destination is not in Son La province: the route from Hanoi to Da city Nang and vice versa.

- The enterprise whose investment project is entitled to CIT incentives because it meets the conditions in the locality where income is generated outside the locality where the investment project is implemented:

(i) If this income is generated in an area that is not in a favored area for investment, it is not eligible for CIT incentives according to local conditions.

(ii) If this income is generated in a geographical area eligible for investment incentives, it will be entitled to CIT incentives according to local conditions. The determination of enterprise income tax incentives for this income is determined by each locality based on the time and level of enterprise income tax incentives in the locality where the investment project is implemented.

* Example 15b: Corporate income tax incentives due to meeting local conditions (manufacturing activities):

In 2015, the enterprise has a new investment project to implement a production project in Ha Giang province (areas with extremely difficult socio-economic conditions). Enterprises are entitled to corporate income tax incentives due to meeting conditions in areas with extremely difficult socio-economic conditions.

In 2015, the company started to manufacture products in Ha Giang province and sell products in Ha Giang province (the area where the project is implemented - areas with extremely difficult socio-economic conditions) and neighboring provinces (outside of Ha Giang province) such as Cao Bang province (areas with extremely difficult socio-economic conditions), Lao Cai city (areas with difficult socio-economic conditions), Hanoi city (not in preferential areas). Since the products sold are made in Ha Giang province (the area where the investment project is implemented), income from products sold in Ha Giang province and other provinces are eligible for preferential corporate income tax. produced in Ha Giang province.

* Example 15c: Corporate income tax incentives due to the satisfaction of local conditions (construction activities):

In 2015, a newly established enterprise in Ha Giang province (areas with extremely difficult socio-economic conditions) operates in the construction sector. Enterprises are entitled to corporate income tax incentives because they satisfy conditions in geographical areas with extremely difficult socio-economic conditions.

In 2015, the company carried out construction activities in Ha Giang province, and also carried out construction activities in neighboring provinces such as Cao Bang (areas with extremely difficult socio-economic conditions). Lao Cai City (areas with difficult socio-economic conditions), Hanoi City (not in preferential areas). Because construction activities are carried out in Ha Giang province, income from construction activities in Ha Giang province is entitled to preferential corporate income tax according to Ha Giang province. For incomes from construction activities in neighboring provinces, CIT incentives are determined as follows:

+ For income in Cao Bang province (areas with extremely difficult socio-economic conditions): are entitled to corporate income tax incentives according to the remaining rate and duration of tax incentives of the enterprise.

+ For income in Lao Cai city (areas with difficult socio-economic conditions): enjoy CIT incentives according to the difficult socio-economic conditions. the rate and duration of corporate income tax incentives according to the conditions in Lao Cai city for the remaining time of the enterprise.

+ For incomes in Hanoi city (not in preferential areas): not entitled to corporate income tax incentives due to construction activities in areas not in preferential areas.

* Example 15d: Corporate income tax incentives due to meeting local conditions (operating in the service sector):

In 2015, newly established enterprises in Ha Giang province (areas with extremely difficult socio-economic conditions) operated in the service sector. Enterprises are entitled to corporate income tax incentives due to meeting conditions in areas with extremely difficult socio-economic conditions.

In 2015, the company provided its service activities in Ha Giang province, and also provided services in neighboring provinces such as Cao Bang province (areas with extremely difficult socio-economic conditions). Lao Cai city (areas with difficult socio-economic conditions), Hanoi City (not in preferential areas). Because service activities are performed in Ha Giang province, so income from service activities in Ha Giang province is entitled to preferential corporate income tax according to Ha Giang province. For income from service activities in neighboring provinces, CIT incentives are determined as follows:

+ For income in Cao Bang province (areas with extremely difficult socio-economic conditions): are entitled to corporate income tax incentives according to the remaining rate and duration of tax incentives of the enterprise.

+ For income in Lao Cai city (areas with difficult socio-economic conditions): enjoy CIT incentives according to the difficult socio-economic conditions. the rate and duration of corporate income tax incentives according to the conditions in Lao Cai city for the remaining time of the enterprise.

+ For incomes in Hanoi city (not in preferential areas): not entitled to corporate income tax incentives due to service activities performed in areas not in preferential areas.

c) Enterprises subject to the tax rate of 20% are entitled to the tax rate of 20% on all incomes except for the incomes specified at Points a, b, c, Clause 1 of this Article ”.

3. To amend and supplement Clause 5, Article 18 of Circular No. 78/2014 / TT-BTC (as amended in Article 5 of Circular No. 151/2014 / TT-BTC) as follows:

“5. About new investment projects:

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 was granted an investment certificate for the first time from January 1, 2014 and generated revenue from that project after 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 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.

- Notary offices are established in areas with difficult or extremely difficult socio-economic conditions.

New investment projects eligible for corporate income tax incentives as prescribed must be granted investment licenses or investment certificates by a competent State agency or be permitted to invest in accordance with the law on investment. private.

b) New projects of investment that are 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 and business 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.

c) For enterprises enjoying corporate income tax incentives as newly established enterprises from investment projects, only applicable to income from production and business activities that satisfy investment incentive conditions. listed in the enterprise registration certificate or the initial investment certificate of the enterprise. For enterprises doing business, if there is a change in the business registration certificate or investment certificate, but such change does not change the satisfaction of the project's conditions for tax incentives. According to regulations, the enterprise will continue to enjoy tax incentives for the remaining time or incentives for expansion investment if they meet the preferential conditions as prescribed.

d) For an investment project licensed for investment but in the dossier of initial investment registration sent to the investment licensing agency for which the investment capital amount is registered, investment phases together with progress of investment, In case of actual implementation of the next stages, it shall be considered a component project of an investment project that has been licensed for the first time if it is implemented according to schedule (except in case of force majeure or difficulties due to customer reasons. In the process of site clearance, settlement of administrative procedures of State agencies, due to natural disasters, fires or other difficulties or force majeure), the component projects of the first investment projects are entitled to tax incentives for the remaining time of the first investment project starting from the time the component project has incomes that enjoy the incentives.

For investment projects licensed before January 1, 2014 and implementing investment phases like the above case, the component projects are entitled to tax incentives according to the applicable preferential rates. The first investment project for the remaining incentive period is from January 1, 2014.

Incomes of component projects of investment projects for the first time before January 1, 2014, are entitled to CIT incentives in accordance with legal documents before January 1, 2014. In 2014, there will be no adjustments to tax incentives already enjoyed before January 1, 2014.

During the implementation of the component projects in each of the above phases, if the investor is invested by a State management agency in charge of investment (prescribed in the Law on Investment No. 59/2005 / QH11 dated November 29, 2005 and legal documents guiding the implementation) allowing the project to be extended and enterprises implementing the extended deadline are also entitled to tax incentives according to the above provisions.

dd) Enterprises operating in the field of socialization are established as a result of changing the type of enterprise in accordance with the law and meet the criteria on the basis of socialization under the Prime Minister's Decision. When converting, they are not entitled to CIT incentives according to the field of tax incentives, they will be entitled to tax incentives like new investment projects since the transformation.

When the enterprise transforms the form of enterprise that satisfies the criteria on the basis of socialization under the Prime Minister's Decision, 10% corporate income tax rate is applied to the income from society. If such goods are converted, this preferential tax rate will be applied ”.

4. To amend and supplement Point a, Clause 6, Article 18 of Circular No. 78/2014 / TT-BTC, which was amended and supplemented in Article 5 of Circular No. 151/2014 / TT-BTC as follows:

“6. On 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 or geographical areas eligible for corporate income tax as prescribed in Decree No. 218/2013 / ND-CP (including economic zones, hi-tech zones, and industrial parks, except for industrial zones located in the areas of 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 (including tax rate, exemption period if any) or apply tax exemption or reduction period to the revenue The increase in imports brought about by expansion investment (not entitled to preferential tax rates) is equal to the tax exemption or reduction period applicable to new investment projects in the same area or territory. Business 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 also belongs to the same fields or 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 designed capacity when expanding investment increases at least 20% compared with 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 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, starting 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 a project operating in a field or area eligible for tax incentives according to Decree No. 218/2013 / ND-CP, If one of the three criteria specified at this point is not met, the tax incentives are granted for the active project for the remaining time (if any).

Enterprises having investment projects are enjoying tax incentives but in the period 2009 - 2013, additional investment in regular machinery and equipment in the production and business process is not included in the expansion investment project mentioned above. Above, the additional income due to the additional investment in regular machinery and equipment is also entitled to tax incentives according to the rate the project is applying for the remaining period from the tax period 2014.

Tax incentives specified in this Clause are not applicable to investment in expansion due to division, split, merger or ownership transformation (including the execution of an investment project but still inheriting assets. , 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 in the remaining time if the conditions for preferential corporate income tax continue to be satisfied ".

5. To add Clause 8a to Article 18 of Circular No. 78/2014 / TT-BTC as follows:

“8a. In the case in the first tax period, the enterprise's investment project (including new investment projects, expansion projects, hi-tech enterprises, agricultural enterprises applying high technologies) has The time of production and business activities enjoying tax incentives of less than 12 (twelve) months, the enterprise may choose to enjoy tax incentives for investment projects right from that first tax period or register with the Tariffs start enjoying tax incentives from the next tax period. In case an enterprise registers for a 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 11. Amending and supplementing a number of contents in Article 19 of Circular No. 78/2014 / TT-BTC as follows:

1. To amend and supplement Clause 1 Article 19 of Circular No. 78/2014 / TT-BTC as follows:

"first. The preferential tax rate of 10% for a period of fifteen years (15 years) is applicable 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 and 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 in 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.

Projects to invest and develop water plants, power plants, water supply and drainage systems; bridge, road, railway; airport, seaport, river port; airports and railway stations must generate revenue and income from the operation of the above investment projects to be eligible for tax incentives. In case enterprises execute these works, the income from construction and construction activities is not entitled to tax incentives under this regulation.

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, agricultural enterprises applying high technologies are entitled to corporate income tax incentives for incomes from hi-tech activities, high-tech applications and directly related incomes. from hi-tech activities and high-tech applications due to the satisfaction of conditions for investment incentive fields specified in Clause 4, Article 18 of Circular No. 78/2014 / TT-BTC (as amended and supplemented at Point a, Clause 2, Article 10 of this Circular).

In case an enterprise is enjoying corporate income tax incentives or has fully enjoyed CIT incentives in accordance with legal documents on corporate income tax and is granted an industrial enterprise certificate For hi-tech enterprises or agricultural enterprises applying high technologies, the preferential rates applicable to hi-tech enterprises or agricultural enterprises applying high technologies shall be equal to those applicable to hi-tech enterprises or 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 duration 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 within 3 years from the time they are licensed for the first time in accordance with the provisions of the investment law and have a minimum total revenue of 10 (ten) trillion / year at the latest after 3 years from the year of revenue from the investment project (no later than the 4th year since the year of revenue, the enterprise must achieve total revenue. at least 10 (ten) trillion dong / year).

- Projects with initial registered investment capital of at least 6 (six) trillion VND, disbursed within 3 years from the time they are licensed for the first time in accordance with the provisions of the investment law and Employing more than 3,000 employees regularly at least after 3 years from the year of revenue from the investment project (at the latest in the 4th year since the year of turnover, the enterprise must meet the conditions for using the normal number of regular employees per year, over 3,000 employees).

The annual average number of regular employees is determined under the guidance in Circular No. 40/2009 / TT-BLDTBXH dated December 3, 2009 of the Ministry of Labor, 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 licensing agency and reports to the Prime Minister for approval), the enterprise is not entitled to corporate income tax incentives, and at the same time the enterprise must declare and pay. The amount of corporate income tax that has been declared for preferential treatment in previous years (if any) and paid late payment of tax according to regulations, but the enterprise is not sanctioned for false declaration as prescribed by law. about tax administration.

e) Income of enterprise from performing investment projects in the manufacturing sector, except for projects on production of goods subject to special consumption tax and mineral exploitation projects, with minimum investment capital scale of 12 (twelve) trillion VND, the use of technology must be appraised according to the provisions of the Law on High Technologies, the Law on Science and Technology, disbursing the total registered investment capital no more than 5 years from the date of investment is permitted in accordance with the law on investment.

g) Incomes of enterprise from execution of new investment projects to manufacture products on the List of supporting industrial products prioritized for development that satisfy one of the following criteria:

- Ancillary industry products for high technologies in accordance with the Law on High Technologies;

- Products of supporting industry for production of products of: textile - garment; leather - shoes; electronics and information technology; car production and assembly; mechanical engineering which, up to January 1, 2015, cannot be domestically produced or produced but must meet the technical standards of the European Union (EU) or equivalent.

The list of supporting industrial products prioritized for development eligible for enterprise income tax incentives comply with the List of supporting industrial products prioritized for development issued in Decision No. 1483 / QD-TTg dated August 26. 2011 by the Prime Minister; When legal documents related to the List of supporting industrial products prioritized for development are amended and supplemented, relevant amendments, supplements or replacements shall be applied.

2. To amend and supplement Clause 2 Article 19 of the Circular No. 78/2014 / TT-BTC as follows:

"2. Cases in which the period of preferential tax rates may be extended:

a) For an investment project specified at Points b and c, Clause 1 of this Article with large scale and high or new technology that needs special investment attraction.

b) For a project specified at Point e, Clause 1 of this Article, one of the following criteria is satisfied:

- Manufacturing globally competitive products and goods, with revenue of over VND 20,000 billion / year within 5 years at the latest after having revenue from investment projects;

- Regularly employing over 6,000 employees;

- Investment projects in the field of economic and technical infrastructure, including: investment in developing water plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seaports , river ports, airports, railway stations, new energy, clean energy, energy saving industries, petrochemical projects.

c) Based on the request of the Minister of Finance, the Prime Minister decides to extend the period of application of the preferential tax rate specified in this Clause but not exceed 15 (fifteen) years. ".

3. To amend and supplement Point a, Clause 3, Article 19 of the Circular No. 78/2014 / TT-BTC as follows:

“3. The preferential tax rate of 10% during the operation is applicable to:

a) Income of enterprise from socialization activities in the fields of education - training, vocational training, health, culture, sports and environment, judicial assessment (hereinafter referred to as domains socialization).

The list of types, criteria, sizes and standards of enterprises carrying out socialization is made according to the list set by the Prime Minister ”.

4. To amend and supplement Point e, Clause 3, Article 19 of the Circular No. 78/2014 / TT-BTC as follows:

“3. The preferential tax rate of 10% during the operation is applicable to:

e) Income of the enterprise from: planting, tending and protecting forests; income from cultivation, husbandry, breeding, and processing of agricultural and aquatic products in difficult socio-economic areas; Forest product farming in areas with difficult socio-economic conditions; Produce, multiply and cross-breed plants and animals; Salt production, extraction and refinement, except for 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, including investments to directly preserve or lease and preserve agricultural, aquatic and food products ”.

5. To add Clause 3a to Article 19 of Circular No. 78/2014 / TT-BTC as follows:

“3a. 15% tax rate on enterprise's income from cultivation, husbandry, and processing in the agricultural and fishery sectors in areas not in areas with difficult socio-economic conditions or areas with conditions the socio-economic situation is extremely difficult ”.

Article 12. To amend and supplement a number of contents in Article 20 of Circular No. 78/2014 / TT-BTC as follows:

1. To amend and supplement Clause 1, Article 20 of the Circular No. 78/2014 / TT-BTC as follows:

first. Tax exemption for four years, 50% reduction of tax payable for the next nine years for:

a) Incomes of enterprise from the execution of investment projects specified in Clause 1 Article 19 of Circular No. 78/2014 / TT-BTC (amended and supplemented in Clause 1, Article 11 of this Circular) ”.

2. To amend and supplement Clause 4, Article 20 of the Circular No. 78/2014 / TT-BTC as follows:

“4. The tax exemption or reduction period 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.

The tax exemption or reduction period for hi-tech enterprises and hi-tech agricultural enterprises is counted from the year of being granted the Certificate of recognition as a hi-tech enterprise or agricultural enterprise. industrial application of high technology ”.

Article 13. Adding Clause 2a, 2b, 2c, 2d, 2dd to Article 23; To amend and supplement Clause 23 of the Circular No. 78/2014 / TT-BTC as follows:

1. To add Clause 2a, 2b, 2c, 2d, 2đ to Article 23 of Circular No. 78/2014 / TT-BTC as follows:

"2 a. Enterprises whose expansion investment projects have been granted investment licenses by a competent authority or made investments in the period 2009 - 2013, up to the 2014 tax period, are eligible for tax incentives ( preferential fields or geographical areas, including industrial zones, economic zones, hi-tech zones) according to the provisions of Law No. 32/2013 / QH13, Law No. 71/2014 / QH13 and guiding documents for implementation, they are entitled to tax incentives for investment in expansion under the provisions of Law No. 32/2013 / QH13, Law No. 71/2014 / QH13 and documents guiding implementation for the remaining period from the period. tax year 2015.

Enterprises having investment projects to expand production to 31/12/2008 are investing in construction in progress, in 2009 the project will continue the construction in progress and from 2010 onwards will be completed. The city goes into production and business that satisfies the conditions for tax incentives (preferential fields or preferential areas including industrial parks, economic zones, hi-tech zones) as prescribed at the time of actual decision. Currently, the expansion investment is entitled to receive incentives for the additional income from expansion investment in accordance with the legal documents at the time of the decision to implement the expansion investment or according to regulations. of Law No. 32/2013 / QH13, Law No. 71/2014 / QH13 and documents guiding implementation for the remaining period from the tax period 2015.

2b. Enterprises implementing projects to invest in industrial parks in the period 2009 - 2013, up to the tax period of 2014, satisfy the conditions for tax incentives (preferential fields or areas) according to the provisions of Law No. 32/2013 / QH13, Law No. 71/2014 / QH13 and documents guiding the implementation are entitled to tax incentives under the provisions of Law No. 32/2013 / QH13, Law No. 71/2014 / QH13 and other guiding documents for the remaining time from the 2015 tax period.

2 C. Enterprises having investment projects in geographical areas that are not eligible for tax incentives before January 1, 2015 (including industrial parks, economic zones, and hi-tech parks), until January 1, 2015 In areas of tax incentives specified in Law No. 32/2013 / QH13, Law No. 71/2014 / QH13 and documents guiding the implementation, they are entitled to tax incentives according to Law No. 32/2013 / QH13, Law No. 71/2014 / QH13 and documents guiding implementation for the remaining time from the tax period 2015.

In case an enterprise has a project of investment in an area eligible for tax incentives but enjoys a lower incentive level, by January 1, 2015, the enterprise satisfies the tax incentive condition in the locality that is entitled to a higher incentive rate. in Law No. 32/2013 / QH13, Law No. 71/2014 / QH13 and documents guiding the implementation, they are entitled to tax incentives according to Law No. 32/2013 / QH13, Law No. 71/2014 / QH13 and guiding documents for the remaining time from the 2015 tax period.

2d. After January 1, 2015, the locality where the enterprise is having an investment project is converted into a tax-incentive locality, the enterprise is entitled to tax incentives for the remaining time from the tax period upon conversion.

2đ. For the cases of preferential conversion mentioned in Clauses 2a, 2b, 2c of this Article, until the tax period 2015, there is no revenue from the investment project, the time to apply the preferential tax rate is counted from the first year. Tax incentives are obtained from investment projects. For the cases of preferential conversion mentioned in Clauses 2a, 2b, 2c above, until the tax period 2015 has no income from the investment project, the tax exemption or reduction period is counted from the first year. have taxable income from investment projects entitled to tax incentives (if the enterprise has no taxable income in the first three years, starting from the first year of revenue from the investment project, the tax exemption or reduction period tax is calculated from the fourth year the investment project generates revenue) ”.

2. To amend and supplement Clause 3 Article 23 of Circular No. 78/2014 / TT-BTC as follows:

“3. Enterprises newly established from investment projects that have been granted investment licenses or investment certificates before January 1, 2014 but are in the investment process, have not come into operation, have not generated any revenue yet. enjoy enterprise income tax incentives under new investment projects according to the provisions of Law No. 32/2013 / QH13; Law No. 71/2014 / QH13 and documents guiding the implementation.

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 the project This expansion investment belongs to the domain or geographical area 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 for industries located in the inner districts of special grade urban areas, central grade I cities and industrial zones located in provincial level I urban centers) shall enjoy income tax incentives. business for the additional income brought about by expansion investment under the guidance in Circular No. 78/2014 / TT-BTC ”.

Article 14. Entry into force

1. This Circular takes effect from August 6, 2015 and applies to the corporate income tax period from 2015 onwards.

- For enterprises that apply a fiscal year other than the calendar year:

+ The transition of corporate income tax incentives (tax exemption or reduction period, time of application of preferential tax rates) in accordance with this Circular is calculated for the remaining period from the tax period 2015 .

+ Other amendments and supplements will be implemented from January 1, 2015.

- Incomes from overseas investment projects arising from the 2014 tax period or earlier, the enterprise shall declare and pay tax according to the provisions of the Circular on corporate income tax at the respective time; From 2015, if the above income remittance is transferred to Vietnam, it is not required to declare and pay tax on this income. Income from overseas investment projects from the tax period of 2015 is guided in this Circular.

2. To annul Point 2.21, Clause 2, Article 6, Clause 5, Article 20 of Circular No. 78/2014 / TT-BTC and guidance on corporate income tax promulgated by the Ministry of Finance and other branches that are inconsistent with regulations. specified in this Circular.

Article 15. Responsibility for implementation

1. The People's Committees of the provinces and cities directly under the Central Government shall direct the functional agencies to strictly organize the implementation of the Government's regulations and the Finance Ministry's guidance.

2. Tax offices at all levels shall disseminate and guide enterprises to comply with this Circular.

3. Enterprises regulated by this Circular shall comply with the guidance 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./.

Recipients: - Central Office and Committees of the Party; - Congress office; - Office of the President; - Office of the General Secretary; - People's Procuratorate of the Supreme; - Central Anti-Corruption Steering Committee Office; - People's Supreme Court; - State audit; - Ministries, ministerial-level agencies, government agencies, - Central Offices of Unions; - People's Councils, People's Committees, Department of Finance, Tax Department, State Treasury provinces and centrally-run cities; - Announcement; - Department of Document Inspection (Ministry of Justice); - Government website; - Website Ministry of Finance; Website of General Department of Taxation; - Units under the Ministry of Finance; - Save: VT, TCT (VT, CS).

KT. MINISTER DEPUTY