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Decree 57-Cp: Detailing The Implementation Of The Law On Income Tax And The Law On Amendments And Supplements To Some Articles Of The Law On Income Taxes

Original Language Title: Nghị định 57-CP: Quy định chi tiết thi hành Luật thuế lợi tức và Luật sửa đổi, bổ sung một số điều của Luật thuế lợi tức

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The DECREE detailing implementation of the law on income tax and the law on amendments and supplements to some articles of the law on GOVERNMENT income taxes: the Government Organization Act base on September 30, 1992;
Income Tax base is the National Assembly of the Socialist Republic of Vietnam tags VIII through June 30, 1990; Law on amendments and supplements to some articles of the law on income taxes is a National Assembly of the Socialist Republic of Vietnam tags IX through July 6, 1993;
According to the recommendation of the Minister of finance;
DECREE: chapter I SCOPE article 1 INCOME TAX. Tax payers including the business organizations of economic accounting independently and personal business income (business establishments) regular or not regular, having fixed business location or mobility are the provisions of article 1, article 2, income tax act.
CHAPTER II the TAX BASE and TAX article 2. The turnover for calculation of taxable income sales, money is money, money, money services and other revenues not excluding any expenses of a business establishment in the tax period defined accordingly with the characteristics of each industry, business activity , as defined in article 3 of Decree No. 55-CP on 28-8-1993 detailing the Government's enforcement of the law on turnover tax and the law on amendments and supplements to some articles of the law on turnover tax.
Article 3. The Ministry of finance to specific instructions defining taxable income specified in article 7 Tax Laws for each of the lines.
Article 4. The account is valid, reasonable expenses are subtracted to calculate the taxable income recorded in the Tax Law article 9 stipulates as follows: 1. Depreciation of fixed assets. The fixed assets are used for production and business activities must depreciate the cost of business.
2. Costs of raw materials, materials, fuels, energy (collectively material) calculated according to consumption and the prices reasonable, actual output used in the production of related business taxable income arising in the period.
3. Salary, wages, pay salary nature applicable to the profession of all economic sectors, based on wage and income policy by State regulations.
4. for private households and business are calculated excluding wages, outsource public money as defined in paragraph 3 of this article; wages, the wages paid to the private householder is not considered as costs, and not be defined unless the return tax.
5. other expenses beyond the cost comes in the account 1, 2, 3 this was recognized to be valid, reasonable, including: a) management costs are the expenses.
b) Spent on buying or pay money to use the technical documentation, patents, inventions, technology transfer license and technical services (not in fixed assets).
c) costs about consuming products or provide services.
d) The account to buy coverage under the State's unity mode.
e) the expenses with money under the regime.
g) minus taxes including tax, import tax, sales tax, consumption tax and special taxes or fees are directly related to the business activities such as tax, tax on capital income, resources, stamp fees, transportation fees, etc.
6. Don't count on more affordable, valid to determine taxable income, or not calculated to reduce taxable income minus the sum of the following: a) the broken product damage in excess of the quota allows, damage to stop production due to all causes, damages due to personal responsibilities cause or do not identify the object responsible for compensation material.
b) forfeit funds of business establishments.
c) expenses with prize money as a bonus from the bonus Fund, save, etc.
d) expenses are not in the right mode of State regulation.
e) other losses.
g) expenses due to other sources of capital.
h) Account of conservation which exceeded regulations.
Article 5.
a) business establishments (excluding small business merchant households, household trip) filed income taxes according to the tax rate on taxable income stable all year for each group of industries as follows: tariff of 25% of the electricity production sector; the mining industry, mining, forest products, fisheries, water production and service activities; metallurgy; mechanical machinery, equipment, transport means and transport animals; manufacture of basic chemicals; fertilizer production; manufacture of pesticides; production of building materials; transportation; construction; Hydro farm.
The tax rate of 35% for the industry consumer goods production; food industry, food processing and other manufacturing.
The tax rate of 45% for commercial, service and dining categories.
Business establishments, many different taxable trades must own taxable income accounting skills, professions and income tax according to the tax rate for each of the trades. If no separate accounting basis are subject to return of each profession, then apply the highest income tax rate for business industry, calculated on the total taxable income of the entire facility.
b) other income of the business establishments (in addition to the return of basic business services) are filed income taxes according to the income tax of the production and business activities.
Other income includes interest on bank deposits; interests on loans (not in credit operations); the return of rental properties; the return on asset liquidation, transfer of assets; the return on equity contribution; the return on other financial activities; the return of the joint venture activity. Private for profit from the joint venture activities shall have to file income taxes in the receiving unit, if not already filed taxes in the receiving unit to the venture must file income taxes on the profits are divided.
Article 6. Business establishments in addition to file income taxes according to the tax stability specified in point a of article 5 of this Decree, if taxable income exceed the extent specified, they must submit the additional tax, as follows: a) the private business if Household has taxable income, on average 10 million then the return over 10 million must file income tax News supplement 25%.
b) State economic organizations if taxable income per capita which, on average 10 million then the return over 10 million additional income taxes payable 25% c) State enterprises if taxable income is high because of the advantage of objectivity brought , additional income tax to be paid. Additional tax calculated on the portion remaining after the income tax calculated according to the tax rate stable and established three funds of enterprises cite as stipulated by the Government.
Business is business advantage because of the favorable conditions in business than other enterprises, should cost less and acquire a higher income, as has favorable business position; priority technical equipment; in business less competitive in the country.
Additional income tax for each scope, defined as follows: 30% for resource extraction industries, manufacturing, construction, transportation.
40% for the commercial sector, food and drink, service types;
Quote level established three funds make determining the additional tax shall be as follows: the Foundation encourages business development by 35% on the income remaining after income tax calculated according to the tax stability;
The reward Fund and welfare funds, each Fund calculated by the average wage for 6 months the actual rank of the enterprise, on the basis of a Government salary regime provided for in Decree No. 26-CP on 23-5-1993.
 

CHAPTER III TAX, VAT, INCOME TAX article 7. Organizations and individuals in the economic component must implement the accounting mode under the Ordinance on statistical accounting on May 10, 1988, and the Charter of State accounting organization issued under Decree No. 25-dated 18-3-1989 by the Council of Ministers (Government) and the decisions , The circular of the Ministry of finance.
Article 8. The Ministry of Finance issued uniform invoices used for business establishments in the country.
Article 9. When the tax authorities have asked about documents related to the tax return check, business establishments, have the task: 1. Sufficient, timely the necessary documents at the request of tax authorities;
2. Explain, demonstrate the unknown clause in the Declaration or bookkeeping, invoices and vouchers;
Business establishments do not Institute the secret reason pharmaceutical career or other reasons to refuse to produce, provide or explain the above required documents at the request of tax authorities.
The tax authorities have to keep the secret about the documents provided by business establishments.
Article 10. The business entity, business not personal tax payers have to do monthly lease, filed income tax declarations and tax income was temporarily prescribed by the tax authorities. Last year to settlement and the frontal bar tax with the tax authorities.
Article 11. Small business households and business establishments, shipment, filed income taxes according to the equity method on sales be filed definitively monthly and each shipment. Last year was not settlement with the tax authorities.
Article 12. The Organization, the individual tax payer or slow burn fine in a tax notice, the tax receiver or command decided to sanction, in addition to sufficient amount of tax or penalty under the rules, each day slowly filed also fined 0.2% (two per thousand) on the amount remitted is slow.
 
CHAPTER IV REDUCE the INCOME TAX EXEMPTION, article 13. The tax reduction, the income tax exemption provisions are as follows: a) cases are tax exempt: those weak prices, disability, small business people, errands, extra, extra economic families ... have monthly income just to ensure minimum living standards for themselves.
The transport operations by means of primitive in mountainous as the car, attach three guards, animal drawn vehicles, rafting, boat motor No.
The new production facility and officially active since 1993 income tax exemption for the first two years since the return.
The business moved locations from the region swept up mountains, islands are exempt from income taxes for three years, since the beginning of the operation in the mountainous island.
Scientific research contracts, the contracts of service engineering.
Production products are exempt from income taxes for six months since the try production.
b) cases are reduced income tax: new production facility established after the income tax exemption for the first two years, as specified in point a of this, 50% reduction of the payable tax in the next two years.
Private new production facilities in the region are difficult, the 50% reduction of the payable tax in the next four years.
Personal and business organizations in the region have been difficult considering reducing up to 50% of the tax payable; tax reduction period not exceeding two years.
Production facilities and some other professions need to encourage investment, if investment expands production business or invest that higher efficiency than before then are reduced income taxes. The reduced level of income taxes by the amount of actual reinvested (minus the free additional capital); but the reduced levels must not exceed 50% of the tax payable for a year and do not exceed the number of additional investment income. In consideration of the facilities that hold back no more than 30% of the tax payable under the plan to invest and not more than 50% of the tax increase by justifying the investment. When finalizing the year will determine the tax reduction according to the fact.
Production enterprises need to replace imports by category by the State Planning Commission announced, was considering reducing the not so 50% of the tax payable of the item need replacing imports in one year, since production began there the return.
c) In this, some words are interpreted as follows: the Mountain Region is the mountainous Township, are noted in the text the current provisions of the Committee of ethnic and mountainous areas of the Government.
The difficulty is that the region has harsh natural conditions, the infrastructure too weak to directly impact business results and income of workers in the enterprise only to ensure minimum living standards for themselves.
The new manufacturing facility is a new facility was built according to the investment authority's decision, is the business registration license. The facilities have established previously, now divided, split, merged, renamed, or have investment improvement, change the items produced are not the basis of the newly established subject to review tax breaks under this regulation.
d) production and business establishments have difficulties due to natural disasters, accidents, enemy, the risk of unexpected or unforeseen reasons that business capital loss results, be direct management agency collects check verification, shall be transferred to the hole of the business year to next year to taxable income deducted before calculation of income tax. The time was transmitted to computer tax area of not more than two years.
The Ministry of Finance regulates the income tax reduction, exemption declaration procedure to be tax free, tax reduction, transfer of the hole and then the specific regulations about the procedure, the Authority reviews the tax rebate, tax free, for turning of holes into the following year, as defined in this article.
 
Chapter V FINAL PROVISIONS article 14. The Government has its own rules for rewarding modes of organization and individuals instrumental in the enforcement of tax Laws and sanctions against those organizations and individuals violating the tax Laws.
Article 15. This Decree shall take effect on September 1, 1993, replacing Decree No. 353-dated 2 October 1990 of the Council of Ministers.
The provisions of the previous income tax is contrary to the provisions of this Decree are repealed.
Article 16. The Minister of Finance shall guide the implementation of this Decree.
Ministers, heads of ministerial agencies, government agencies, the Chairman of the provincial people's Committee, the central cities is responsible for organizing the execution of this Decree.