The enterprise income tax law-------------To contribute to promote the production, business development and motivate an income to the State budget; ensure the fair, reasonable contribution between organizations, individual manufacturing, trading goods, services of the income;

Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992 was amended and supplemented by resolution No. 51/2001/QH10 on 25 December 2001 of the Xth Congress, session 10;

This law regulates the corporate income tax.

Chapter 1: GENERAL PROVISIONS article 1. Income tax payers organization business, personal business, production of goods and services (hereinafter referred to as business establishments) are income have to file corporate income tax, except the object prescribed in article 2 of this law.

Article 2. The object does not belong to an enterprise income tax households, individuals, group collaboration, agricultural production cooperatives have income from cultivation, animal husbandry, aquaculture products not belonging to an enterprise income tax, except for households and individuals farmers produce goods have high income as stipulated by the Government.

Article 3. Explanation of terms In this law, the terms below are interpreted as follows: 1. the production organisation, business, goods, services including: State enterprises; limited liability company; joint-stock company; partnerships; businesses have foreign capital and foreign Parties involved in business cooperation contracts under the law on foreign investment in Vietnam; foreign companies and organizations doing business in Vietnam not under the law on foreign investment in Vietnam; private business; the cooperative; the combination; the economic organization of political organization, social-political organizations, social organizations, social-professional organization, the people's armed units; agencies, business units have produced business, goods, services.

2. production of personal, business, goods, services include: individual and group business households; household, individual agricultural production; personal business; independent practitioners; individuals who have rental property; foreign individuals had business incomes generated in Vietnam.

3. permanent establishments of foreign companies in Vietnam's business establishments through which this base foreign companies conduct part or all of its business activities in Vietnam bringing income, including: a) branch, Executive Office, factory, workshop , means of transport, mines, oil or gas, or any other place of extraction of natural resources in Vietnam;

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

c) facility provides services including consultancy services through employees or other object;

d) agent for foreign companies;

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

In case the agreement avoiding double taxation to which the Socialist Republic of Vietnam signed a decree on permanent basis shall follow the provisions of that agreement.

Article 4. Obligation, responsibility for implementing the enterprise income tax Act 1. Business establishments are obliged to pay tax in full, in a timely manner according to the provisions of this law.

2. The tax authorities within the scope of the task, their powers are responsible for the correct implementation of the provisions of this law.

3. State agencies, political organizations, social-political organizations, social organizations, social-professional organization, the people's armed units in the range of functions and tasks, their powers of surveillance, in collaboration with the tax authorities in the enforcement of the provisions of this law.

4. The population of Vietnam have the responsibility to help the tax authorities, tax officers in the enforcement of the provisions of this law.

Chapter 2: the TAX BASE and TAX RATES article 5. Tax base tax base is taxable income and the tax rate.

Article 6. Taxable income taxable income includes income from manufacturing operations, business, goods, services and other income, including the income obtained from productive activity, trading goods and services abroad.

Article 7. Determining taxable income 1. Taxable income from the active business, production of goods and services by revenue minus reasonable expenses related to taxable income.

2. other taxable income includes income from the difference in buying, selling, stock ownership, the right to use the property; income from transfer of land use right or land rent right; interest from the transfer, leasing, liquidation of assets, deposits, loans, sale of foreign currency; the reserve account balances; currency debt already handle cleared now claims to be; currency the liabilities not identified; the earnings from the business of the year ago missed new discovery and other earnings.

The Government detailing the method of determining taxable income with earnings from the transfer of land use right or land rent and income according to progressive tariff sections do not exceed 30% for the remaining income from the transfer of land use right or land rent right after corporate income tax.

In case the agreement avoiding double taxation to which the Socialist Republic of Vietnam signed a decree on the method of determining the taxable income of resident establishments shall comply with the provisions of that agreement.

Article 8. Turnover the turnover for calculation of taxable income sales, money is money, money services, including subsidies, surcharges, additional base business; the case of the revenue in foreign currency, they must convert the Vietnam according to the exchange rate by the State Bank of Vietnam announced at the time of incurring the revenue in foreign currency.

Article 9. The cost of 1. Reasonable expenses to be deducted for the calculation of taxable income shall include: a) depreciation of fixed assets used for production operations, business. Depreciation rates are based on the value of fixed assets and depreciation periods. Production facilities, business, goods, services of the high economic efficiency is fast depreciation but must not exceed 2 times the level of depreciation according to the mode to quickly innovate technology.

The Ministry of finance regulation standards of fixed assets and depreciation rates prescribed in this point;

b) cost of raw materials, materials, fuels, energy, real goods used in production, trading goods, services related to turnover and taxable income in the period was calculated according to consumption and actual output prices;

c) wages, remuneration and allowances under the provisions of the labor code, the mid-shift, except for salaries, remuneration of owners of private enterprises, households and business income of the founder companies not directly involved in the production, Business Executive;

d) costs of scientific research, technology; initiative, innovation; of health; labor training according to the prescribed regimes; funding for education;

DD) costs of services purchased from outside: electricity, water, telephone; repair of fixed assets; rentals of fixed assets; audit; legal services; the design, establishment and protection of trademarks; property insurance; pay money using technical documentation, patents, technology licenses not belonging to fixed assets; technical services and other services purchased from outside;


e) expenses for female workers in accordance with the law; genus Workwear or costumes; genus protect business establishments; genus diem; extract of the social insurance fund filing, medical insurance are the responsibility of the business base of employers; Union expenditure; support for the activities of the Communist Party, unions in business establishments; deductions form the source for superior management costs and the funds of the association according to the prescribed regimes;

g) payment of interests on the loan production business, goods, services of banks and other credit institutions, of the economic organizations under the actual interest rates; pay interest on the loan of objects as real interest when the loan contract, but must not exceed 1.2 times the interest rate for loans by commercial banks at the time of the loan;

h) Extract reserves according to the prescribed regimes;

I) retrenchment for workers;

k) costs of consumption goods, services;

l) cost of advertising, marketing, promotions directly related to manufacturing operations, business, goods, services and other costs are control must not exceed 10% of the total cost; for business activities, the total costs to determine the level of control does not include the purchase price of the goods sold;

m) taxes, fees, land rental payable related to manufacturing operations, business, goods, services are calculated into reasonable expenses;

n) costs business management by foreign companies allocated for resident establishments in Vietnam under the provisions of the Government;

o) the cost of procurement of goods and services of the Organization, the individual does business, no invoices due to government regulations.

2. The following expenses are not calculated into reasonable expenses: a) before deductions on the cost of that fact not spent;

b) expenses no vouchers or vouchers not legal;

c) fines, expenses not related to turnover and taxable income tax;

d) expenses due to other sources of capital.

3. The reasonable costs specified in paragraph 1 of this article are recorded in the accounting books in Vietnam; case of expenses in foreign currency, they must convert the Vietnam according to the exchange rate by the State Bank of Vietnam announced at the time of the genus of Exchange.

Article 10. Tax rate 1. Corporate income tax for business establishments is 28%.

2. the enterprise income tax for business establishments conducting exploration, oil and gas extraction and other scarce resources from 28% to 50% match with each project, each business establishment.

The Government detailing this.

Chapter 3: DECLARATIONS, TAX, TAX article 11. The responsibility of the base business business establishments have the responsibility: 1. Accepted Accounting regime, invoices, vouchers in accordance with the law;

2. full disclosure of revenues, costs, income in the correct mode by Ministry of finance regulations;

3. Submission of full, timely tax, fines on the State budget of tax authorities;

4. Provide documentation, accounting books, accounting reports, invoices, documents related to tax calculation at the request of tax authorities;

5. Buy, sell, Exchange and value accounting of goods and services according to the market price.

Article 12. Tax Declaration 1. Every year, business establishments based on the results of production, business, goods, services of the previous year and next year's ability of self declaration of revenues, expenses, taxable income, the tax year, have divided each quarter in the form of tax authorities and submitted to the tax authorities directly managed on Jan. 25 is the slowest; If the situation in manufacturing, trading of five major changes then the business establishments must report the tax authorities directly managed to adjust the tax amount temporarily paid in a year and each quarter. In case tax authorities discovered the tax declaration of business establishments not yet match then has the right to assign tax numbers each quarter and the whole year temporarily.

2. business establishments not yet implemented accounting regime, bills, vouchers, the tax is calculated by the monthly stock turnover mode and rate of taxable income in accordance with each of the lines authorized by the tax authorities.

Article 13. 1. Base business quarterly tax amount temporarily paid according to declarations or according to the fixed tax agencies tax in full, due to the State budget. Quarterly tax period is the slowest day last quarter.

Government tax filing procedure simple, convenient, enhance the sense of responsibility of the business before the law, and intensify inspection, test, handle breaking the law of the tax authorities, ensures strict tax collection management, effective.

2. Business establishments prescribed in clause 2 of article 12 of this Law must pay tax to the State budget every month according to the notice of the tax authorities. Monthly tax deadline noted in the notices is the 25th of the next month.

3. shipment business establishments have to declare and pay tax for each shipment to the tax authority where the purchase order before shipping.

4. organizations and individuals, foreign business without resident establishments in Vietnam but have incomes generated in Vietnam, the Organization, individuals pay income tax deduction is responsible according to the rate specified by the Ministry of finance calculated on the total amount paid and filed into the State budget at the same time shifting pay held foreign individuals.

Article 14. Tax 1. Businesses must make annual tax to the tax authorities. Tax must be true, complete the following: a) revenue;

b) reasonable expenses;

c) taxable income;

d) tax payable;

DD) income tax amount temporarily paid in the year;

e) Of the income tax already paid abroad for earnings received from abroad;

g) Of the income tax filing is missing or overpaid.

2. The year the tax is calculated according to the calendar year; the case of business establishments be allowed to adopt a fiscal year other than the calendar year shall be the financial year according to the settlement. Within a period of ninety days from the end of the calendar year or fiscal year, businesses have to file tax reports to tax authorities and paying the full tax amount owed to the State budget within ten days from the date of submission of report; If overpaid shall be deducted from the tax of the next period.

In the case of business transformation, merger, amalgamation, Division, separation, dissolution, bankruptcy, business establishments shall have to make tax with the tax authorities and tax settlement report within a period of forty-five days from the day the decision to convert the types of business, merger , merge, split, splitting, dissolution, bankruptcy.

The Ministry of finance instructed the enterprise income tax prescribed in this article.

Article 15. The duties, powers and responsibilities of the tax authorities the tax authorities have duties, powers and responsibilities: 1. Guide business establishments make tax declaration, filing taxes as prescribed by this law;

2. To notify business establishments on the slow filed declarations, late tax payment and decides to sanction the violation of tax legislation; If businesses do not fully pay tax, the penalty amount under the notice shall have the right to apply measures of handling specified in paragraph 4 to article 23 of this law to ensure enough tax revenue, the amount of the fine; If made on processing measures that businesses are still not fully tax and fine amounts, then the transfer of records to the State agency authorized to handle in accordance with the law;


3. check the Inspector, tax declaration and payment of tax, business establishments, ensuring correct implementation of the provisions of the law. In case of detection of the purchase price, sale price, business expenses and other factors are not reasonable, then the tax authorities have the right to redefine to ensure proper collection, collecting enough corporate income tax;

4. Handling of administrative violations of tax and tax-related complaints;

5. request business establishments providing accounting books, invoices, vouchers and records other documents related to tax calculation and payment; require banks, other credit institutions and organizations, concerned individuals provide documents related to tax calculation and payment;

6. Keep and use data, documents, business establishments and other objects provided according to the prescribed regimes.

Article 16. Authority to determine taxable income 1. The tax agency to determine taxable income tax for business establishments in the following cases: a) Not done or done incorrectly the accounting mode, bills, vouchers;

b) Not declare or improperly declaring bases for tax calculation or don't prove to be recorded in the base declaration at the request of tax authorities;

c) refuse the present accounting books, invoices, vouchers and necessary documents relating to the calculation of corporate income tax;

d) business business registration No.

2. The tax authorities based on the documents of investigation on the situation of the manufacturing activities, business, goods, services of the business or facility based on the taxable income of the business establishments in the same industry, have equivalent business scale to determine taxable income; the case of business establishments disagree with assessments of taxable income shall have the right to complain to the superior tax authorities directly according to the rule of law; While pending, base business still must pay tax according to the rate specified.

Chapter 4: tax exemption and reduction of ENTERPRISE INCOME TAX article 17. Tax exemption for investment projects established business establishments, cooperatives, business relocation 1. Project to establish a new business in branches, sectors, encouraged investment, cooperatives were the tax of 20%, 15%, 10%.

2. Investment project for the establishment of new businesses in branches, sectors, encouraged to invest and businesses move location according to the master plan, the business moved to encouraged investment tax exemption for a maximum of four years, since the taxable income and 50% tax maximum is nine years.

Specific government regulations of industries, sectors, geographical areas are encouraging investment; tax rates and the applicable periods for each of industries, sectors, geographical areas are encouraging investment; the extent and duration of tax exemption and reduction prescribed in this article.

Article 18. Tax free, tax breaks for business investment in building new production lines, expansion, technological innovation, improve the ecological environment, enhancing the capacity of business establishments investing in the construction of new production lines, expansion, technological innovation, improve the ecological environment the production capacity, are exempt from corporate income tax for the income increase due to investments yield a maximum of four years and a 50% reduction of the payable tax of up to seven years.

Government regulations specifying additional investment income yield and tax, reduce taxes for each of the cases specified in this article.

Article 19. Tax exemption for other cases 1. Corporate income tax exemption for income of the business establishments as follows: a) the income from the performance of contracts on scientific research and technological development, the product is in trial production period, products made from the new technology was first applied in Vietnam;

b) income from the implementation of technical service contracts in direct service of agriculture;

c) income from manufacturing operations, business, goods, services of business establishments reserved for disabled workers;

d) income from job-training reserved for disabled persons, children in particularly difficult circumstances, the object of social ills;

DD) income of the cooperative, productive households, business goods, low-income services prescribed by the Government.

2. corporate income tax Exemption for investment by patents, technical know-how, technological processes, technical services; reduce corporate income tax for income from transfer activities in the value of the stake foreign investors for Vietnam business according to regulations of the Government.

3. the enterprise income tax for business establishments manufacturing, construction, transportation uses many female workers under the Government's regulations.

4. the enterprise income tax for business establishments using more labor, labor is the minorities as stipulated by the Government; corporate income tax exemption for income from job-training reserved for ethnic minorities.

Article 20. Transfer business base hole after tax with the tax authorities of that loss shall be transmitted to the following year, the number of holes to be deducted from taxable income. Time was moving the hole no more than five years.

Article 21. Procedure to make tax free, tax and transfer tax exemption The hole and hole transfer as stipulated in articles 17, 18, 19 and 20 of this Act apply only to business establishments have made accounting regime, invoices, vouchers and pay tax according to the Declaration, except households produce , trading commodities, low income services. Business establishments themselves determine the conditions to enjoy tax incentives, tax rates, tax reductions, transmitted to register with the tax authorities and executed when the tax.

The tax authorities have the task of checking the conditions to enjoy tax incentives, determine the number of taxes that businesses are exempt, lose, loss amounts that businesses be deducted from taxable income.

In cases where business establishments defined incorrectly on conditions incentives, tax exemption, reduction, the loss amounts to be deducted from the taxable income of the sanctioned administrative offense on taxes.

Chapter 5: REWARDS and TREATS breach of article 22. Rewarded by tax authorities, tax officers completing assigned tasks, organization, individual achievement in the implementation of the provisions of this law, business establishments, implementation of tax obligations shall be rewarded.

The Government specifies the rewards.

Article 23. Processed in breach of tax for tax payers tax payers violates the provisions of this law shall be dealt with as follows: 1. Do not perform properly the provisions on accounting mode, invoices, vouchers, tax declaration, tax filing, tax under the provisions of article 11 , 12, 13, 14 and 21 of this law, then, depending on the nature and extent of the violation that sanctioned the violation of tax administration;

2. slow Tax Filing penalties compared to the prescribed date is filed or decided to handle the tax in addition to sufficient amounts of the fines, the daily fine is still slow submission 0.1% (one thousandth) of the money filed slowly;

3. Perjury, tax evasion, the tax payable in addition to the full tax under the provisions of this law, depending on the nature and extent of the violation, also fined from one to five times the number of tax fraud; tax evasion in large numbers or were sentenced to administrative violations of tax but also the violation or other serious violations being blind for criminal liability in accordance with the law;

4. Do not pay tax, the penalty according to the notice filed or decided to handle the processing of tax as follows:


a) deposits of base business at banks, other credit institutions, Treasury to pay tax, fine.

Banks, other credit institutions, Treasury is responsible to extract money from the deposit account of the business establishments to pay tax, forfeit to the State budget according to the decision of tax processing of tax authorities or competent authorities before collecting the debt;

b) Keep the goods, exhibits to ensure enough tax revenue, the amount of the fine;

c) levy of property under the provisions of the law to ensure enough tax revenue, the amount of the fine is missing.

Article 24. Competence of tax authorities in the handling of tax infringement 1. The tax agency heads directly manage tax collectors was the right handle towards the violation of tax payers to the provisions in paragraph 1, item 2 and a fine from one to five times the number of fraudulent tax according to the provisions in paragraph 3 Article 23 of this law.

2. Director, Bureau Chief of the direct tax authorities tax management measures are handled according to the provisions in paragraph 4 to article 23 of this law and transfer of records to the competent authority for handling prescribed by law for cases of violation of the provisions in paragraph 3 Article 23 of this law.

Article 25. Handle violation of internal taxes and other individual 1. Tax officers, other individuals taking advantage of the prerogatives, powers to constitute, appropriating money taxes, fines, they must reimburse the State the full amount of tax, the amount of the fine was illegal use and depending on the nature and extent of the violation that severely disciplined, save for criminal liability in accordance with the law.

2. the tax officers, other individuals lack of responsibility or incorrect handling causing damage to the taxpayers pay compensation in accordance with the law and depending on the nature and extent of the violation that severely disciplined, save for criminal liability in accordance with the law.

3. the tax officers, other individuals taking advantage of the prerogatives, powers to connivance, covering up the offense or have other acts violating the provisions of this law shall, depending on the nature and extent of the violation that severely disciplined, save for criminal liability in accordance with the law.

4. Who obstruct or incited others to obstruct the enforcement of this Act, then, depending on the nature and extent of the violation which dealt with administratively or be blind for criminal liability in accordance with the law.

Chapter 6: COMPLAINTS and TIME LIMITS Article 26. The rights and responsibilities of the tax payers of the tax complaint 1. Tax payers have the right to appeal the tax officers, tax authorities incorrect enforcement of the provisions of this law.

A complaint must be sent to the tax authorities collect taxes management directly within thirty days from the date of the notice or decision on disposal of tax officials, tax authorities.

While pending, tax payers must still follow the notice or decision disposing of the tax authorities.

2. In the case of the complainant does not agree with the decision of the Agency to resolve complaints or too time limit prescribed by the law on complaints, accusations which have not been resolved then has the right to complain to the tax agency supervisor or sue in court under the provisions of the law.

Article 27. The responsibility and authority of the tax authorities in resolving complaints about taxes 1. The tax authorities upon receipt of complaining about taxes is reviewed, resolved within the time limit prescribed by the law on complaints and denunciation.

2. The tax authorities receive the complaint have the right to request the complainant to provide the records, documents relating to the complaint; If the complainant refused to provide records, the document shall have the right to refuse to consider complaint resolution.

3. the tax authority must reimburse the amount of tax, penalty amount currency is not true for the business establishment within a period of fifteen days from the date of the decision of tax authorities handling superior or competent authority under the provisions of the law.

4. In the case of discovery and concluded the perjury tax, tax evasion or confused about taxes, tax authorities have the responsibility for collection of money taxes, fines or tax refund within a period of five years earlier, since checking the perjury tax, tax evasion or confused about taxes; the base case does business tax registration, tax declaration, tax, the tax collection period, fines are calculated from the date the business started operation.

5. superior tax agency heads are responsible for resolving complaints about the tax of the tax payers for the tax authorities. The decision to settle tax claims of the Minister of finance is the final decision.

Chapter 7: ORGANIZING Done 28 the Government directing the implementation of this Law in the country.

Article 29 the Minister of finance are responsible for implementation and examine the implementation of this law in the country.

Article 30 of the people's Committee in the scope of its powers, duties and directing the implementation and examine the observance of this law in their localities.

Chapter 8: terms of IMPLEMENTATION Article 31 1. This Act has effect from January 1, 2004.

2. the enterprise income tax law on 10 May 1997 expired from date of enforcement of this Law is in effect.

Complete deregulation of business income tax already paid for the reinvested income, transfer tax offshore income specified in article 42 and article 43 of the law on foreign investment in Vietnam.

Abolition of regulations on land use right transfer tax for business establishments prescribed in the law on land use right transfer tax. Income from transfer of land use right of the base business is business income taxable according to the provisions of this law. Income from transfer of land use right of the individual not business taxed for income of individuals under the provisions of the law.

The previous regulations on corporate income tax is contrary to this law are abrogated.

3. Enterprise with foreign investment, foreign Parties involved in business cooperation contracts have been granted investment licenses, enterprises in the country have been granted investment preference certificates continue to enjoy tax incentives specified in the investment license, certificate of investment incentives; in the case of investment licenses, investment incentive certificates regulations rate lower incentives preferential tax according to the provisions of this law shall be entitled to preferential rates under the provisions of this Act for the remaining time.

Article 32 the Government detailing and guiding the implementation of this law.

This law was the National Assembly of the Socialist Republic of Vietnam tags XI, 3 session through June 17, 2003.