Law 32/2013/qh13: Modifying, Supplementing Some Articles Of The Law On Enterprise Income Tax

Original Language Title: Luật 32/2013/QH13: Sửa đổi, bổ sung một số điều của Luật Thuế thu nhập doanh nghiệp

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LAW on amendments and supplements to some articles of the law on Enterprise Income Tax _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pursuant to the Constitution of the Socialist Republic of Vietnam in 1992 was revised, some additional articles by resolution No. 51/2001/QH10;

Congress enacted the law on amendments and supplements to some articles of the law on corporate income Tax No. 14/2008/QH12.

Article 1 amendments and supplements to some articles of the law on Enterprise Income Tax: 1. Item 3 article 2 be amended and supplemented as follows: "3. the permanent establishments of foreign enterprises is the production base, the business that through this facility, foreign business conduct part or all of the production activities trading in Vietnam, including: a) branch, Executive Office, factory, factories, transportation, oil, gas, mines or places of exploitation of natural resources in Vietnam;

b) location of construction, building construction, installation, Assembly;

c) facility provides services, including consultancy services through employees or other individuals, organizations;

d) agent for foreign enterprises;

DD) Vietnam representative in the case of the authorized representative to sign contracts on foreign enterprises or representative has no authority to sign contracts on foreign enterprises but often make the delivery of goods or provision of services in Vietnam. "

2. Paragraph 2 of article 3 be amended and supplemented as follows: "2. other income includes income from capital transfer, transfer capital contribution rights; income from transfer of property, investment project, transfer the right to participate in the project, grant investment in exploration, extraction and processing of minerals; income from property rights, ownership of property, including income from intellectual property rights according to the provisions of the law; income from the assignment of the lease, the asset liquidation, including the types of valuable papers; income from interest on deposits, loans, sale of foreign currency; proceeds from the debt already clear now claims to be; revenues from liabilities not identified; earnings from the business of the year before being abandoned and the other income, including income from production and business activities outside Vietnam. "

3. additional amendments clause 1 and clause 4 Article 4; addition of clause 8, 9, 10 and 11 on article 4 as follows: "1. The income from farming, livestock, aquaculture, the production of salt of the cooperative; the income of the cooperative activities in the areas of agriculture, forestry, fisheries, matchsticks in geographical socio-economic conditions of difficulty or in geographical socio-economic conditions particularly difficult; business income from farming, livestock, aquaculture in the geographical socio-economic conditions particularly difficult; the revenue from fishery activities. "" 4. Income from operations, business, goods, services of business from 30% of average workers in the years or are disabled, people withdrawal, then the virus infection causing immunodeficiency syndrome made in people (HIV/AIDS) and the average number of workers in the year from twenty or more people , not including businesses active in the financial sector, the real estate business. "" 8. Income from the transfer of the certified emissions reductions (CERs) of the enterprise are certified emissions reductions.

9. Income from performing the duties of the State Affairs of the Vietnam Development Bank credit operations investments in development, export credit; income from credit operations for the poor and other policy objects of the social policy Bank; the income of the Fund and other funds the State of active State not because profit target in accordance with the law; the income of the organization which the State owns 100% of the Charter capital established by the Government to handle the bad debt of credit institutions in Vietnam.

10. income do not partake of the base make socializing in the field of education and training, health and other social sectors to leave that facility investment and development under the provisions of the law on professional education and training, health and other social sectors; income form the assets do not partake of the cooperatives are established and operate in accordance with the law on cooperatives.

11. Income from the transfer of technology in the priority sectors transferred to organizations, individuals in the geographical socio-economic conditions particularly difficult. "

4. Paragraph 3 article 7 be amended and supplemented as follows: "3. The income from property transfer operations, assign projects, grant joined the project, grant investment in exploration, mining, mineral processing are determined to declare tax. Income from transfer of investment projects (except the project exploration, mineral extraction), income from the transfer of the right to participate in investment projects (except the transfer of the right to participate in projects of exploration, mineral extraction), income from transfer of property if the hole of this hole are compensated with the interest rate of production operations business in the tax-calculation period. "

5. Article 9 is amended and supplemented as follows: "article 9. The expenses are deducted and not deducted in determining taxable income 1. Except expenses specified in item 2 of this article, except for any business expenses when determining taxable income if it meets the following conditions: a) the actual expenses incurred related to manufacturing operations, business enterprises; expenses national defence missions, security of the business under the provisions of the law;

b) expenses have sufficient invoices, vouchers in accordance with the law. The purchase invoice for the goods, services, each valued at twenty million or over must have payment vouchers not used cash, except the circumstances aren't required to have payment vouchers not used cash as stipulated by law.

2. expenses not deducted in determining taxable income include: a) the payments do not meet the conditions specified in paragraph 1 of this article, excluding the value of losses due to natural disasters, epidemics and other unforeseen circumstances not be compensated;

b) fines due to administrative violations;

c) expenses are offset by other funding sources;

d) portion of the business management costs caused by foreign enterprises to allocate to their resident establishments in Vietnam exceeded calculated according to the method of allocation by the Vietnam law regulations;

DD) part exceeded according to the provisions of the law of extract formed reserve;

e) part payment of interests on the loan production, the business object is not credit institutions or economic organizations exceeded 150% of the basic interest rate by the State Bank of Vietnam announced at the time of the loan;

g) Account the fixed assets depreciation are not rules of law;

h) deductions in advance on costs not properly regulated by law;

I) salary, wages of private business owners; remuneration paid to founding members not directly involved in the business is executive producer, business; salary, wages, other expenditure accounting items to pay for workers but does not pay or no bills, vouchers in accordance with the law;

k) part payment of interests on the loan corresponds to the capital part is missing;

l) part of the input value added tax has been deducted, the value added tax, filed under deduction method, the enterprise income tax;

m) part of advertising, marketing, promotions, reception, brokerage commissions, conferences, marketing support, support costs directly related to manufacturing operations, sales in excess of 15% of the total expenditure was subtracted. The total number of genera are not included unless otherwise specified expenditures at this point; with respect to commercial activity, total spending was except not including the purchase price of the goods sold;

n) grants, except grants for education, health care, scientific research, disaster recovery, make great House, home of gratitude, for policy objects under the provisions of the law, grants under the State's program for the local Department of the geographical socio-economic conditions particularly difficult;

o) excerpts filed voluntary retirement fund or social security nature, voluntary pension insurance for employees exceed the provisions prescribed by law;

p) expenses of operations: banking, insurance, securities, lottery and some other specific business activities as specified by the Minister of finance.

3. Expenses in foreign currency are deducted in determining taxable income must redeem the Vietnam average transaction rate on the inter-bank foreign currency market by the State Bank of Vietnam announced at the time incurred expenses in foreign currency.

The Government detailing and guiding the implementation of this. "

6. Article 10 is amended and supplemented as follows: "article 10. Tax rate 1. The enterprise income tax rate is 22%, except in the case prescribed in clause 2, paragraph 3 of this article and subject are about the tax incentives provided for in article 13 of this law.

These cases in an applied tariff of 22% of the provisions in this paragraph moved to apply the tax rate of 20% from January 1, 2016.

2. enterprises had a total turnover in no more than twenty billion tax of 20%.

The revenue base of enterprise determined to apply the tax rate of 20% in this account is the turnover of the previous year's adjacent.

3. the enterprise income tax rates for the search operation, exploration and exploitation of oil, gas and other precious resources in Vietnam from 32% to 50% match with each project, each business establishment.

The Government detailing and guiding the implementation of this. "

7. Article 13 is amended and supplemented as follows: "article 13. Preferential tax rate 1. Apply a tariff of 10% during the fifteen years for: a) the income of the enterprises from implementing new investment projects in geographical socio-economic conditions particularly hard, economic zones, high-tech zones;


b) income of the enterprises from implementing new investment projects, including: scientific research and technological development; the application of high technology in the category of high technology investment priorities to be developed in accordance with the law of high technology; incubator of high-tech business incubator; venture capital for high-tech development in the category of high-tech development investment priority according to the provisions of the law of high technology; construction-business incubator facility, high-tech business incubator; investment in infrastructure development especially important by the State under the provisions of the law; production of software products; production of composite materials, lightweight construction materials, rare materials; the production of renewable energy, clean energy, energy from the destruction of waste; biotechnology development; protection of the environment;

c) income of high-tech enterprises, agricultural business and high-tech applications in accordance with the law of high technology;

d) income of the enterprises from implementing new investment projects in the manufacturing sector (except the project produced items subject to special consumption tax, mineral extraction projects) meets one of two criteria:-scale projects invested a minimum of six trillion , make disbursements do not exceed three years from the date of investment certificates and have minimum total revenue reached ten thousand billion per year, at the latest after three years from the year in revenue;

-Projects with minimum capital investment scale of six trillion, made disbursements do not exceed three years from the date of investment certificates and use the above three thousand workers.

2. Apply a tariff of 10% with respect to: a the income from the business) made social activities in the field of education, vocational training, health, culture, sports, and the environment;

b) income of the business from the investment project-social housing business for sale, lease, hire purchase for the object prescribed in article 53 of the law on housing;

c) press agency's income from operations, including the printing press print advertising under the provisions of the Press Law; the Agency's publishing income from publishing activities according to the provisions of the law on publication;

d) income of the business from: planting, care, protect forests; farming, agriculture, forestry and fisheries in the geographical socio-economic difficulties; production, and the breeder seed, livestock; production, extraction and refining salt salt production, except for the provisions in paragraph 1 of article 4 of this Law; investment in the preservation of agricultural produce after harvest, preservation of agricultural, fisheries and food;

DD) income of the cooperative activities in the areas of agriculture, forestry, fisheries, non-professional matches in conditions of social-economic difficulties or geographical socio-economic conditions particularly hard, except for the income of the cooperative prescribed in paragraph 1 of article 4 of this Law.

3. Apply the 20% tax in time for ten years: a) the income of the enterprises from implementing new investment projects in geographical socio-economic conditions are difficult;

b) income of the enterprises from implementing new investment projects, including: production of high grade steel; the production of energy efficient products; manufacture of machinery and equipment for agriculture, forestry, fisheries, matchsticks; irrigation equipment manufacturing; production of refined, animal food, poultry, fisheries; development of traditional industries.

From January 1, 2016, the income of the business provided for in this paragraph is applicable tax rate of 17%.

4. Apply the 20% tax for income of people's credit Funds and microfinance organizations.

From January 1, 2016, the income of the people's credit funds and microfinance institutions apply the tax rate of 17%.

5. for special needs project attracting large scale investment and high technology, the time to apply the tax incentives may be stretched, but extended the period not exceeding fifteen years.

6. The time the tax incentives provided for in this Article shall be calculated from the first year of the new investment project business revenue; for high-tech businesses, agricultural business and high-tech applications are calculated from the date the certification was the high-tech enterprises, agricultural enterprises of high technology applications; for high-tech applications project is calculated from the date of the certification project for high-tech applications.

The Government detailing and guiding the implementation of this. "

8. Article 14 be amended and supplemented as follows: "article 14. Incentives of the tax exemption period 1. Business income from implementation of the new investment project stipulates in paragraph 1, point a of paragraph 2 of article 13 of this Law and high technology enterprises, agricultural business and high-tech applications are tax must not exceed four years and 50% reduction of the payable tax must not exceed nine next year.

2. The income of the business from the new investment project stipulates in paragraph 3 article 13 of this law and of business income from new investment projects in industrial zones, except in industrial zone have socio-economic conditions favorably under the provisions of the law are tax must not exceed two years and 50% reduction of the payable tax must not exceed four years.

3. tax period for income tax of enterprises from implementing new investment projects stipulated in clause 1 and clause 2 of this is calculated from the first year's taxable income from the investment project, the case has no taxable income in the first three years, since the first year of the project, the revenue from tax the tax reduction is calculated from the fourth year. Tax, tax breaks for high-technology businesses, agricultural business and high-tech applications specified in point c paragraph 1 article 13 of this law shall be calculated from the date the certification was the high-tech enterprises, agricultural business and high-tech applications.

4. Business for the investment project development investment projects are operating in the field, the enterprise income tax incentives under the provisions of this law expanded the production scale, advanced performance, technological innovation of production (expand) if it meets one of the three criteria specified in this paragraph shall be chosen to enjoy tax incentives under the project are activities for the rest of the time (if available) or tax exemption, tax relief for income increase due to investment in expansion. Tax, reduce taxes for income increase due to investment in expanding the provisions of this paragraph by the time tax exemption applicable to new investment projects on the same geographical areas of enterprise income tax incentives.

Project to extend the preferential entitlement prescribed in this paragraph must meet one of the following criteria: a) the price of fixed assets increase when completed investment projects in operation reached a minimum of from twenty billion for the expansion of investment projects in the field of enjoy enterprise income tax incentives under the provisions of this law or from ten billion for the expansion of investment projects implemented in geographical socio-economic difficulties or geographical socio-economic conditions particularly difficult under the provisions of the law;

b) proportion of the original fixed assets increased from minimum 20% original fixed assets before investing;

c) design capacity increased by 20% from the minimum design capacity before investing.

The case of the active business expansion in the fields of investment, tax incentives under the provisions of this law that does not meet one of the three criteria specified in this paragraph shall apply for tax incentives under the project are active for the rest of the time (if available).

The business case was entitled to tax incentives as an open investment income increased due to expanded investment is private accounting; where does the private accounting, the income from investment activities extend determined by the ratio between resources price of fixed assets put into use new investments for the business, manufacturing of raw price of fixed assets of enterprises.

The tax exemption period specified in this paragraph shall be calculated from the year completed investment projects into production, business.

Tax incentives provided for in this paragraph do not apply to the case of the expanded investment by the merger, acquisitions or investment projects are operating. The Government detailing and guiding the implementation of this. "

9. additional paragraph 3 in article 15 the following: "3. The enterprise performs transferring technology in the priority sectors transferred to organizations, individuals in the geographical socio-economic difficulties that are 50% reduction of corporate income tax is charged on income from transfer of technology."

10. Article 16 is amended and supplemented as follows: "article 16. Move the hole 1. The enterprise has transferred to the following year's hole holes; This loss be deducted from taxable income. Time was moving the hole no more than five years, since the next year year incurred losses.

2. Business losses from property transfer operations, transfer of investment projects, the transfer of the right to participate in the project after the investment has made compensation according to the provisions in paragraph 3 article 7 of this law if the longer holes have holes from probing rights transfer activity mining, be transmitted to the following year on the income tax of that activity. The time switch holes as specified in paragraph 1 of this article. "

11. Article 17 paragraph 1 be amended and supplemented as follows: "1. enterprises established and operating in accordance with the law of Vietnam was to extract a maximum of 10% of the annual taxable income to Fund science and technology development of the business. Private enterprises, in addition to the implementation of CITES Scientific Development Fund and technology according to the provisions of this law have to insure quote rate the Fund for science and technology development to a minimum according to the provisions of the law on Science and technology. "

12. Article 18 is amended and supplemented as follows: "article 18. Conditions apply for tax incentives


1. enterprise income tax incentives provided for in articles 13, 14, 15, 16 and 17 of this Act apply to the business accounting regimes, invoices, vouchers and pay tax according to the Declaration.

Enterprise income tax incentives as an investment project stipulates in article 13 and article 14 of this Act do not apply to the case of split, split, merge, merge, convert, convert business forms and other cases prescribed by law.

2. Businesses must own accounting of income from production and business operation are tax incentives specified in article 13 and article 14 of this law with the income from production and business operations are not tax incentives; where does the private accounting, the income from production and business operation are tax incentives is determined by the ratio between the turnover of manufacturing operations, business are tax incentives on the total revenue of the business.

3. a 20% tax rate prescribed in clause 2 article 10 and rule on tax incentives in paragraph 1 and paragraph 4 Article 4, article 13 and article 14 of this Act do not apply to: a) income from capital transfer, transfer capital contribution rights; income from transfer of property, except social housing provisions in article 13 of this law; income from transfer of investment projects, the transfer of the right to participate in investment projects, grant exploration, mineral extraction; income from production and business activities outside Vietnam;

b) revenue from the search operation, exploration and exploitation of oil, gas, other precious and rare resource and income from mining operations;

c) revenue from business services subject to special consumption tax under the provisions of the law on special consumption tax;

d) other circumstances as stipulated by the Government.

4. In the same time, if businesses enjoy more preferential tax rates vary for the same earnings then the selected business application of preferential tax rates to benefit the most. "

Article 2 1. This Act has effect from January 1, 2014, except for the provisions in paragraph 2 of this Article.

2. Provisions on the tax of 20% for companies with total revenue in no more than twenty billion in paragraph 6 to article 1 and the provisions of the tax of 10% for the income of the business from the investment project-social housing business in item 7 article 1 of this law to be implemented from 1 July 2013.

3. Business for the investment project that relating tax period in 2013 are still in time to enjoy enterprise income tax incentives (tax rates, tax reduction, exemption period) under the provisions of the legal text of the corporate income tax prior to the time this law has effect shall continue to be entitled for the time remaining under the provisions of the a it. The case meets the conditions of tax incentives under the provisions of this law shall be preferential selection are affected or incentives under the provisions of this act as an incentive for new investments for the rest if you are entitled to as an established business from the investment project or as an incentive for investment to expand for the rest if you are entitled to According to an expanded investment.

Relating tax period in 2015, business case investment projects are being applied tariff of 20% provided for in article 13 paragraph 3 of enterprise income tax law No. 14/2008/QH12 is modified and supplemented in paragraph 7 article 1 of this Law since January 1, 2016 was moved to apply the tax rate of 17% for the remaining time.

4. Removal of content regulations on corporate income tax in the article, the following law's clause: a) item 2 article 7 of the law on deposit insurance number 06/2012/QH13;

b) item 2 article 4 of the health insurance Law No. 25/2008/QH12;

c) clause 1 article 10; Article 12 paragraph 1; item 2 Article 18; item 2 article 19; item 1 and item 2 Article 22; paragraph 3 to article 24 and Article 28 of the law on item 2 tech no. 21/2008/QH12;

d) items 1, 4, 5, 6, 7 and 8 Article 44, article 45 of the law on technology transfer 80/2006/QH11;

DD) clause 1 Article 53, paragraph 5 to article 55 and Article 86 paragraph 3 of law No. 76/vocational 2006/QH11;

e) clause 1 Article 68 of the law of Vietnam laborers to work abroad the number 72/2006/QH11;

g) item 2 article 6 of the social insurance Law No. 71/2006/QH11;

h) paragraph 3 article 8 of the law on legal assistance of 69/2006/QH11;

I) paragraph 3 to article 66 of the law on education no. 08/2012/QH13;

k) Article 34 of law No. 51/2010/QH12;

l) paragraph 4 Article 33 of the law on investment of 59/2005/QH11;

m) item 2 Article 58, paragraph 2 Article 73, paragraph 3 Article 117 and paragraph 3 Article 125 of law business/2005/QH11.

5. Government Regulation details, guide the implementation of the articles, be delivered in terms of law.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ this law was the National Assembly of the Socialist Republic of Vietnam tags XIII, 5 session through June 2013.