DECREE amending and supplementing a number of articles of Decree No. 30/1998/ND-CP dated 13 May 1998 from the Government detailing the implementation of the law on Enterprise Income Tax _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ based on Government Organization Law, 30 September 1992;
Pursuant to the law on Enterprise Income Tax (No. 3/1997/QH9 on 10 May 1997);
Account base 11, paragraph 12 article 1 of law amendments and supplements to some articles of the law on foreign investment in Vietnam (No. 18/2000/QH10 on 9 June 2000);
According to the recommendation of the Minister of finance DECREE: article 1. Modifying, supplementing a number of articles of Decree No. 30/1998/ND-CP dated 13 May 1998 from the Government detailing the implementation of the law on Enterprise Income Tax as follows: 1. Amendments, supplements the account 1, 6 and 7 of article 3 regulates the turnover for calculation of taxable income are as follows : a) paragraph 1 of article 3 be amended and supplemented as follows: "1. for goods, services, facilities, the business of selling out is full sales, service provision, including subsidies, surcharges, additional production and business establishments are affected. If production facilities, business value added tax under the method directly on the added value, the turnover for calculation of taxable income including value added tax. Time determine the turnover for calculation of taxable income shall be the time goods and services are consumed, irrespective of whether the money has earned the money. The Ministry of finance specifies the turnover for calculation of taxable income for certain specific activities ".
b) Clause 6 of article 3 is amended as follows: "6. for operations for rental properties is the right amount individual States under contract. The case of prepaid rent party for many years, the turnover is calculated according to the distribution of the respective prepaid ".
c) Clause 7 of article 3 is amended as follows: "7. for credit operations is the loan interest receivable arising in the tax-calculation period".
2. Amendments, supplements account 6, paragraph 7 article 4 regulations regarding the reasonable costs to be deducted for the calculation of taxable income are as follows: a) Clause 6 article 4 be amended and supplemented as follows: "6. The expenses for the female workers under the provisions of the law; genus labor protection; genus costume work under maximum control level by the Ministry of finance regulations; genus protect business establishments; extract of the social insurance fund, medical insurance are the responsibility of the business base of employers; Union expenditure; deductions form the source of cost management for upper level according to the specified mode ".
b) Item 7 article 4 is modified as follows: "7. Payment of interests on loans of credit organizations and institutions and individuals under real interest when the loan contract, but not exceeding the maximum lending rate of commercial banks announced at the time of signing the contract".
3. Article 5 is amended as follows: "The account turnover, reasonable expenses are recorded in the accounting books of the business establishments in Vietnam. The case has generated revenue, the cost in foreign currency, they must convert the Vietnam according to the average exchange rate of the interbank market at the time of the sales, costs incurred in foreign currency ".
4. Paragraph 3 article 9 is amended as follows: "3. The business base has convenient business location, business category less competition bring high income, after tax according to tax business income 32% that the remaining income compared to the equity we have a 20% higher then the number exceed 20% suffered additional business income tax with the tax rate of 25%.
Temporarily not yet collecting additional business income tax for the following cases: a) base business applies enterprise income tax rate of 25% within 3 years from the date the enterprise income tax laws are enforceable under the provisions of clause 2 article 9 of Decree 30/1998/ND-CP dated 13 May 1998 from the Government;
b) investment projects in the field, industry, investment is encouraged to apply enterprise income tax rate of 25%; 20%; 15% under the provisions of clause 4, clause 5 article 9 of Decree 30/1998/ND-CP dated 13 May 1998 from the Government;
c) production base to export over 50% of the products produced or export earnings accounted for over 50% of the revenue ".
5. Article 12 is amended as follows: ' ' income earned by foreign investors due to investment in Vietnam (including income tax amount to be refunded and the tax revenue collected by the capital transfer) if moved abroad or retained outside Vietnam are taxed on income transfers abroad.
Transfer of income tax rates abroad are specified as follows: 1. the 3% tax rate applicable to: a) Who settled in Vietnam foreign investment on water under the law on foreign investment in Vietnam;
b) foreign investors investing in industrial parks, export processing zones, high-tech zones;
c) foreign investors contribute capital or capital to make business cooperation contract from the 10 million or more;
d) foreign investors invest in geographical socio-economic conditions particularly difficult in the category encouraged investment.
2. Tax rate of 5% applicable to: a) foreign investors contribute capital or capital to make business cooperation contract from 5 million to 10 million USD;
b) foreign investors investing in projects in the fields of healthcare, education and training, scientific research.
3. Tax rate of 7% applies to foreign investors contribute capital or capital to make business cooperation contracts not in the case prescribed in clause 1 and 2 of this Article ".
Article 2. The Decree has effect after 15 days from the date of signing and apply to the corporate income tax from 2001 onwards.
The provisions of Decree No. 30/1998/ND-CP dated 13 May 1998 from the Government detailing the implementation of the law on Enterprise Income Tax and other guidance documents contrary to this Decree are repealed.
Article 3. The Minister of Finance shall guide the implementation of this Decree.
The Ministers, heads of ministerial agencies, heads of government agencies, the Chairman of the people's committees of provinces and cities under central authority responsible for the implementation of this Decree.