Enterprise income tax law to promote production and business development and a part of the income to the State budget; ensure the fair, reasonable contribution between organizations, individual manufacturing, sales, service revenue;
Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992;
This law regulates the corporate income tax, chapter I 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-"Organization of production, sales of goods and services" include: State enterprise, limited liability company; joint-stock company; 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 to business, production of goods and services;
2-"personal production, trading goods, services" includes: households and business groups; 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" is the basis of business that this facility through 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) representative in Vietnam in the following cases: has the authority to sign the contracts on foreign companies;
Do not have the 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 law 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 law on Enterprise Income Tax.
4-Vietnam's citizens have a responsibility to help tax agencies, tax officers in the enforcement of this law.
CHAPTER II the TAX BASES 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 production and business operations, services and other income, including the income obtained from productive activity, business, service abroad.
Article 7. Determining taxable income 1-the taxable income from production and business operations, service by revenue except 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 assets, the interest rate on 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.
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.
In the case of revenue in foreign currency foreign currency exchange to the Vietnam according to official rates by the State Bank of Vietnam announced at the time of Exchange.
Article 9. 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 services, in accordance with the law;
b) cost of raw materials, materials, fuels, energy, real goods used in production, sales, services related to turnover and taxable income in the period, calculated according to consumption and actual output prices;
c) salaries, wages, mid-shift, the nature of salary, remuneration according to the prescribed regimes, except wages, the wages of private business owners, households producing, trading, services and earnings of the founder of the company that they are not directly involved in the Executive producer , sales, service;
d) costs of scientific research, technology; initiative, innovation; funding for education; of health; labor training according to the prescribed regimes;
DD) costs of services purchased from outside: electricity, water, telephone; repair of fixed assets; rentals of fixed assets; audit; property insurance; pay money to use the technical documentation, patents, technology licenses not belonging to fixed assets; the technical service;
e) expenses for female workers in accordance with the law; genus labor protection; genus protect business establishments; extract of the social insurance fund filing, medical insurance are the responsibility of the business base of employers; Union expenditure; deductions form the source for superior management costs according to the prescribed regimes;
g) payment of interests on loans to manufacturing, trading, banking services, credit institutions according to the actual interest rates; pay interest on the loan of objects according to the actual interest rate, but must not exceed the ceiling interest rate by the State Bank of Vietnam regulations for credit institutions;
h) Extract reserves according to the prescribed regimes;
I) retrenchment for workers;
k) costs of consumption goods, services;
l) cost of advertising, marketing, promotions are directly related to the production, sales, service and other costs are control must not exceed 7% of the total costs. For business activities, the total costs to determine the level of control is not included in the purchase price of the goods sold;
m) taxes, fees, land rental payable related to manufacturing operations, business services are included in the cost;
n) costs business management by foreign companies allocated for resident establishments in Vietnam according to the regulations of the Government.
2-don't count on reasonable cost terms: 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-reasonable expenses prescribed in paragraph 1 of this article are recorded in the accounting books in Vietnam. The case has cost in foreign currency foreign currency exchange to the Vietnam according to official rates by the State Bank of Vietnam announced at the time of the genus of Exchange.
Article 10. Tariff 1-corporate income tax rate applicable to business establishments in the country and the Organization, foreign individuals doing business in Vietnam not under the law on foreign investment in Vietnam is 32%.
Manufacturing, construction, transportation is filed income tax with the tax rate is 25%, now the corporate income tax with tax rate of 32% which may be difficult to apply the tax rate of 25% within three years, since this Act has effect; expiry of the three years, made the tax rate of 32%. Government regulation of the production, construction, transportation applied tax rate 25%.
Business establishments have higher income due to objective advantages bring then in addition to income tax according to the tax rate of 32%, also must pay additional 25% income tax on income by objective advantage high yield. Government Regulation method of determining income by objective advantage high yield.
For new investment projects in the field, industry, investment is encouraged to apply the tax rate 25%, 20%, 15% due to government regulations.
2-corporate income tax rates applicable to enterprises of foreign investment and foreign Parties involved in business cooperation contracts according to the tariff prescribed in article 38 of the law on foreign investment in Vietnam.
When the income transfer abroad, foreign investors must pay a tax on the transfer income abroad according to the tariff prescribed in article 43 of the law on foreign investment in Vietnam.
The phrase "the return", "profits" recorded in article 38 and article 43 of the law on foreign investment in Vietnam under this law is understood as "income" to make the tax base.
3-the enterprise income tax rates for individuals, organizations and foreign countries in conducting the search, exploration and exploitation of oil and gas is 50%; exploit scarce resources otherwise applicable tax rate from 32% to 50% match with each project, each business establishment.
The Government detailing this.
CHAPTER III DECLARATION, TAX, TAX article 11. The responsibility of the base business business establishments have the responsibility: 1-accepted modes of accounting, invoices, vouchers in accordance with the law;
2-the full declaration 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 the materials, accounting books, reports, invoices, accounting documents related to the calculation of income tax at the request of tax authorities.
Article 12. Tax Declaration 1-business establishments every year, based on the results of production, sales, service of the year before and the ability to declare himself the next year's revenue, expenses, taxable income in the form of tax authorities and submitted to the tax authorities directly managed on Jan. 25 at the latest delay. After receiving the Declaration, tax authorities check, determine the number of tax amount temporarily paid in a year, have divided each quarter to notify business establishments pay tax; If the situation in manufacturing, business services, in five big changes then the business establishments must report the tax authorities directly managed to adjust the tax amount temporarily paid quarterly.
2-business establishments not yet implemented accounting regime, bills, vouchers, tax monthly according to the mode of securities turnover 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 in full, due to the State budget according to the tax notice of tax authorities. Quarterly tax period are given in the notices are not too precious last days.
2-business establishments prescribed in clause 2 article 12 must pay tax to the State budget every month according to the notice of the tax authorities. The time limit for the submission of tax, are credited in the notices for 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, individual foreign business has no permanent base 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-base business had to make annual tax to the tax authorities. Tax must be true, complete the account: 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-Year 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 sixty 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 event of a 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 date of the decision to merge, 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 the powers and duties of the following responsibilities: 1-guide business establishments, declaring, according to the tax regulations of this law;
2-information for businesses regarding tax and tax period in accordance with the regulations; If the tax deadlines indicated on notice that business establishments not yet filed then continue out the message about the number of tax and fine amounts slowly filed under the provisions of clause 2 of article 24 of this Law; If business is still not sufficient amounts of the fines under the notice shall have the right to apply handling measures prescribed in paragraph 4 to article 24 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, inspection 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, the tax authorities have the right to redefine to ensure proper collection, collecting enough corporate income tax;
4-handling administrative violations of tax and tax-related complaints;
5-requires business establishments providing accounting books, invoices, vouchers and records other documents related to tax calculation and payment; ask credit institutions, banks and organizations, other relevant individuals provide documents related to tax calculation and tax;
6-keep and use data, documents, business establishments and other objects provided according to the prescribed regimes.
Article 16. The right 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) No declaration or incorrect Declaration of the tax base or does not prove the bases already stated in the Declaration at the request of tax authorities;
c) refuse the present accounting books, invoices, vouchers and other necessary documents relating to the calculation of corporate income tax;
d) business without business registration that was discovered.
2-the tax authorities based on the documents of investigation on the situation of the business activity of the business or facility based on the taxable income of the business establishments in the same industry, have equivalent business scale to determine the taxable income.
In cases where business establishments disagree with assessments of taxable income shall have the right to appeal to the superior tax authority directly; While pending, base business still must pay tax according to the rate specified.
CHAPTER IV TAX, ENTERPRISE INCOME TAX article 17. Tax free, tax breaks for business establishments newly established 1-business establishments in the country: a) the newly established production base was the first two-year tax exemption, since the taxable income and the 50% reduction of the payable income tax during the next two years; the own production base set up in the mountains, Islands and regions with other difficult tax time was extended by two more years;
b the new base in) the project investment incentives are tax free, tax breaks: for new manufacturing facility established in the first two years, the tax exemption since there is taxable income and 50% reduction of the payable income tax up to four next year; private investment in the region of mountains, Islands and regions with other difficult time tax free income to add from one to two years, 50% reduction of the payable income tax add from one to the next five years;
For cargo business establishments newly established services, 50% reduction of the payable income tax during the period from one to two years, since the taxable income; private investment in the region of mountains, Islands and other difficult areas are exempt from income tax in the period from one to two years early, since there is taxable income and 50% reduction of the payable tax in time to a maximum of five years.
2-for business foreign investment and foreign Parties involved in business cooperation contracts: a) based on the investment, the investment provisions in the law on foreign investment in Vietnam, businesses invested abroad and foreign Parties involved in business cooperation contracts can be tax free income during a maximum of two years, since the taxable income and the 50% reduction of the payable income tax during the next two years is the maximum;
b) in the case of enterprises with foreign investment and foreign Parties involved in business cooperation contracts with project implementation has many standard investment incentives are tax free income within a maximum period of four years, since the taxable income and the 50% reduction of the payable income tax during a maximum of four years;
c) for the special case of investment incentives, income tax exemption period of a maximum of eight years.
The Government specified the tax exemption and reduction prescribed in this article.
Article 18. Tax free, tax breaks for business establishments in the country in case of investment in building new production lines, expansion, technological innovation, improve the ecological environment, raise production capacity production base construction of new production lines, expansion , technological innovation, improve the ecological environment, enhance the production capacity are exempt from corporate income tax for the first year's increase in income and 50% tax for the next two years due to new investments.
Article 19. Tax refund for the reinvestment income for business foreign investment and foreign Parties involved in business cooperation contract business for foreign capital and foreign Parties involved in business cooperation contracts used is divided into income to reinvest in projects that encourage investment , will be refunded in part or the whole of the income tax already paid for the reinvested income. The Government reimbursement rate depending on the field, area, form and time limit for re-investment.
Article 20. Tax exemption for businesses moving to the mountains, Islands and regions with other difficult business move to the mountains, Islands and other difficult areas are exempt from corporate income tax for three years, since a taxable income.
Article 21. Tax exemption for other cases 1-corporate income tax exemption for the portion of the income of the business establishments in the country, as follows: a) the income from the performance of contracts on scientific research;
b) income from the implementation of technical service contracts in direct service of agriculture;
c) income from production and business operations, services of business establishments reserved for disabled workers;
d) income from job-training reserved for disabled people, ethnic minorities, children in particularly difficult circumstances, the object of social ills;
DD) households producing, trading, low income services prescribed by the Government.
2-tax, corporate income tax reduction for foreign investors as follows: a) Vietnam Who settled in foreign investment the country according to the law on foreign investment in Vietnam was reduced 20% of tax revenue compared to the same project, except enjoy the income tax rate is 10%; enjoy tax rates transfer tax offshore income is 5% of the income transfer abroad;
b) patents, technical know-how, technological processes, technical services to contribute to the capital are exempt from income tax;
c) tax exemption or reduction of 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-income tax Reduction for domestic business establishments and enterprises with foreign capital operating in manufacturing, construction, transport, use more women as prescribed by the Labor Government.
Article 22. Move the hole business establishments in the country and business venture 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 23. Consider the tax exemption and reduction of tax 1-The tax exemption and reduction prescribed in articles 17, 18, 19, 20 and 21 of this Act apply only in respect of the business made the right accounting mode and pay tax according to the Declaration.
2-Government Regulation Authority, duty free, tax-reduction procedure stipulated in articles 17, 18, 19, 20 and 21 of this law.
Chapter V HANDLE infringement, COMMENDED article 24. Processed in breach of tax for tax payers tax payers violates the law on Enterprise Income Tax shall be handled as follows:
1-Not strictly the regulations on the accounting mode, invoices, vouchers, Declaration, filing taxes, tax as prescribed in articles 11, 12, 13 and 14 of this law, then, depending on the nature and extent of the violation that sanctioned violation of tax administration;
2-submission of tax money, fine slow compared to the prescribed amount or the date of decision for tax processing shall in addition submit sufficient amounts of the fines, the daily fine is still slow submission 0.1% (one thousand) slow amount filed;
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 is a fine of 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 by filing the notice or decision for tax processing then dealt as follows: a) deposits of businesses in banking, Treasury, credit institutions to pay tax, fine.
Banking, Treasury, credit institutions have the responsibility 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 25. The tax agency's competence in handling the violation of tax 1-the tax agency heads directly manage tax collectors was the right handle towards the violation of tax payers to the provisions in paragraphs 1, 2 and 3 of article 24 of this Law.
2-Director, Director of the tax organ directly manage currency tax applied handle measures prescribed in paragraph 4 to article 24 of this law and transfer of records to the competent authority for handling in accordance with the law for violations of the provisions of paragraph 3 of article 24 of this Law.
Article 26. Handle violation of internal taxes and other individual 1-other personal, tax officer abusing Office powers to constitute unlawful appropriation of money, taxes, fines, they must reimburse the State the full amount of tax, the amount of the fine was illegal use, appropriating and depending on the nature that infringement levels, being disciplined or prejudice criminal liability under 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 being disciplined or prejudice criminal liability under the law.
3-the tax officers, other individuals taking advantage of the prerogatives, powers to connivance, covering up for the violation of the income tax act or other acts violating the provisions of this law shall, depending on the nature and extent of the violation being disciplined or prejudice criminal liability under the law.
4-Who hinder or incited others to obstruct the implementation of the law on Enterprise Income Tax, then depending on the nature and extent of the violation which dealt with administratively or prejudice criminal liability under the law.
Article 27. Rewarded by tax authorities, the tax officer complete the assigned tasks; Organization, individual achievement in the implementation of the law on Enterprise Income Tax; business establishments make good tax obligation shall be rewarded.
The Government specifies the rewards.
CHAPTER VI COMPLAINTS and TIME LIMITS Article 28. The rights and responsibilities of tax payers in the complaint of tax 1-tax payers have the right to appeal the tax officers, tax authorities incorrect enforcement of enterprise income tax 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 case the complainant does not agree with the decision of the Agency to resolve complaints or too the time limit stipulated in article 29 of this law that has not been resolved then has the right to appeal to the superior tax offices or directly to the Court under the provisions of the law.
Article 29. The responsibility and authority of the tax authorities in resolving complaints about taxation 1-the tax authorities upon receipt of complaining about taxes is considered resolved within fifteen days from the date of the complaint; for the complex case that time limit may be extended but not be too thirty days. If the case is not in their jurisdiction, they must transfer the record or report the Agency has jurisdiction and inform the complainant know within ten days from receipt of the complaint.
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 authorities to repay the amount of the tax, the 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-If the findings and conclusions the perjury, 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 evasion or confused about taxes. In cases where business establishments do not register, Declaration, filing taxes, the tax collection period, fines, since the business began operations.
5-level tax on agency heads are responsible for resolving complaints about the tax of the tax payers for the tax authorities.
The decision of the Minister of finance to resolve complaints about taxes is the final CHAPTER VII IMPLEMENTATION article 30.
The Government directs the implementation of enterprise income tax laws in the country.
The Minister of finance are responsible for implementation and examine the implementation of enterprise income tax laws in the country.
The people's Committee in the scope of its powers, duties and directing the implementation and examine the observance of the income tax act in local businesses.
CHAPTER VIII TERMS OF IMPLEMENTATION of Article 33.
The enterprise income tax law in force from January 1, 1999.
Abolition of income tax Law, the law on amendments and supplements to some articles of the income tax Act and the income tax regulations in the other legal texts, since the corporate income tax Law in effect executed.
Tackling the existence of tax, tax, tax exemptions and handle breach of the income taxes before January 1, 1999 is made according to the corresponding provisions of the Tax Law, the law on amendments and supplements to some articles of the income tax Act and the income tax regulations in the legal text.
Government regulations detailing the implementation of this law.
This law was the National Assembly of the Socialist Republic of Vietnam 11-session IX, courses through May 10, 1997.