GOVERNMENT DECREE detailing implementation of the law on enterprise income tax base GOVERNMENT Government Organization Law on September 30, 1992;
Pursuant to the law on enterprise income tax no. 03/1997/QH9 on 10 May 1997;
According to the recommendation of the Minister of finance DECREE: chapter I SCOPE article 1 CORPORATE INCOME TAX. The Organization, individual manufacturing, commodity trading, service income is business income tax include: 1. The production organisation, business, goods, services: State enterprises; 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; Business Administration Organization of production, goods, and services.
2. domestic production of personal, business, goods, services including: a) individual and group business individuals;
b) households;
c) independent practitioners: doctors, lawyers, accountants, auditors, painter, architect, musician and independent practitioners;
d) individual rental properties such as land, buildings, vehicles, machinery, equipment, and other property types;
e) households, farmers personal cultivation, animal husbandry, aquatic products worth over 90 million/year and have income on 36 million/year, corporate income tax payable for income on the 36 million/year.
3. Foreign companies doing business through permanent establishments in Vietnam.
Permanent establishments of foreign companies in Vietnam's business establishments through which this base foreign company made a part or the whole of its business operations in Vietnam to bring income. Permanent establishments of foreign companies include the following forms: a) branch, administrative offices, factories, workshops, warehouses and delivery of goods, means of transport, mines, oil or gas, the exploration or exploitation of natural resources, or media devices used for the exploration of natural resources;
b) location construction; the construction, installation, Assembly; monitoring of construction activities, building construction, installation, Assembly;
c) basis provides the services including consultancy services through employees or other object;
d) agent for foreign companies;
DD) representative in Vietnam in the case: 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 the 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.
4. Foreign individuals had business incomes generated in Vietnam.
Article 2. The object does not belong to an enterprise income tax includes households, individuals, group collaboration, agricultural production cooperatives have income from agriculture products, livestock, aquaculture, except households, individual farmers are prescribed in clause 2 article 1 of this Decree.
 
CHAPTER II the TAX BASES and TAX RATES article 3. The turnover for calculation of taxable income under the income tax Law article 8 enterprises are specified as follows: 1. For goods, services, facilities, the business of selling out is full sales, service provision, including subsidies, surcharges, additional production facilities business, enjoy. If production facilities, business value added tax under the method directly on the added value, the turnover for calculation of income including value added tax.
2. for goods sold under the installment method is the turnover of goods sold by the selling prices charged, not including deferred interest.
3. For goods or services used to Exchange, presentation, donation tax revenue according to the selling price of the product, goods, services of the same type or equivalent at the time of presentation, donation, exchanges.
4. for the products themselves, the turnover for calculation of taxable income is the cost to produce that product.
5. for the commodity is fabrication machining proceeds including wages, fuel, power, extra material and other costs for processing the goods.
6. for operations for rental property is the amount of money earned each rental period according to the lease. Prepaid rental-party cases for many months, years, the turnover is the whole of the proceeds.
7. for credit operations is the real lending interest earned during the period.
8. for other activities by the Ministry of finance regulations.
Article 4. Reasonable expenses to be deducted for the calculation of taxable income from production and business operations, services include: 1. Depreciation of fixed assets used for production, business. The level of depreciation of fixed assets due to The financial regulations.
2. Costs 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 price.
3. Salaries, wages and salaries in nature, the wages payable to the employee, the mid-shift: a) salaries, wages and salaries in nature, the wages payable to workers in State enterprises under the current regime.
b) salaries, wages and salaries in nature, the wages payable to workers in the other business establishments according to the employment contract. If not already done, the labor contract regimes of salary, wages and salaries in nature, the wages payable to the employees is calculated on the cost to calculate the taxable income based on the salary, the average wages of the local industries.
Not included in the cost of wages, the wages of the following expenses: salaries, remuneration of owners of private enterprises, households manufacturing, sales, service.
Wages, the wages of the founder of the company that they are not directly involved in the manufacture, sales, service.
c) costs mid-shift for workers.
4. The cost of scientific research, technology; initiative, innovation; funding for education; of health; labor training according to the prescribed regimes.
5. the costs of services purchased from outside: electricity, water, telephone, repair of fixed assets, fixed assets, lease auditing, property insurance, pay money to use the technical documentation, patents, technology licenses not belonging to fixed assets, technical services.
6. expenses for female workers in accordance with the law; genus labor protection; genus protect business establishments; extract of the social insurance fund filed; health 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.
7. 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.
8. Extract the reserves: discounts, discounted inventory stocks in the financial activities and the provision of backup.
9. Retrenchment for workers under the provisions of the law.

10. Expenses for consuming goods, services including: packaging, shipping, warehouse rental, beach, Portage, product warranty.
11. The 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. With regard to business activities of costs to determine the level of control is not included in the purchase price of the goods sold.
The Ministry of Finance shall guide the level control this match cost of each profession.
12. Taxes, charges and fees land rents payable related to manufacturing operations, business services (except enterprise income tax) including: export Tax; Special consumption tax; value added tax (for business value added tax according to the direct method on value); tax; the resource tax; agricultural land use tax; land tax;
The fee way, cross the bridge, ferry, airport fees, fees for deed ...;
Land lease.
13. business management costs because foreign companies allocated for resident establishments in Vietnam according to the proportion of permanent establishments compared with total revenue of companies abroad.
Article 5. Turnover, reasonable expenses are recorded in the accounting books of the business establishments in Vietnam. The case of revenue, the cost in foreign currency, they must convert the Vietnam according to the exchange rate by the State Bank of Vietnam announced at the time of currency, foreign currency.
Article 6. Don't count on reasonable expenses the following expenses: 1. previous deductions on the cost of that fact not spend like the big fix about deductions, charges warranted goods, construction works and other advance deductions;
2. expenses no vouchers or vouchers not legal;
3. The fines as penalties, breach of contract, violations of traffic laws, punishment violating business registration regimes, violations of accounting statistics, administrative tax violations and penalties;
4. expenses not related to turnover and taxable income such as expenses for capital construction investment; local support, unions, social organizations; genus charity and other expenses not related to turnover and taxable income;
5. expenses due to other funding sources, such as coverage costs my career; genus difficult subsidies often, sudden difficulties ... Article 7. Taxable earnings include: 1. The disparity in purchasing, selling securities;
2. the owner of the income, the right to use the property: a) the income of the property for rent.
b) income from the use of, or the right to intellectual property.
c) other income of ownership, the right to use the property.
3. The interest rate from the assignment, liquidation of assets;
4. Interest on deposits, loans;
5. Difference due to sale of foreign currencies;
6. The last amateurs reserves discounted room inventory, reserve stock discount, offset the account provision;
7. Currency the account already wiped accounting now claims to be;
8. Currency the liabilities do not identify the creditors;
9. Earnings from production, sales, service of the year ago missed new discovery;
10. The earnings received from production activities, business, service abroad.
The cases received were earnings overseas income tax, the business must determine the number of earnings before income tax in the foreign enterprise income tax. When determining the income tax year will income tax already paid abroad but minus tax amount does not exceed the income tax amount calculated according to the law on corporate income tax for income received;
11. The earnings related to the consumption of goods, providing services not included in the revenue, after deducting the expenses according to the regulations of the Ministry of finance to generate incomes;
12. The other earnings.
Article 8. Base business income received by the business recipient equity contribution, associating economic divide (after tax), not corporate income tax for incomes but to be included in income after tax to determine the additional income tax.
Income from the oil and gas business activities prescribed by the Government.
Article 9. 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 as follows: 1. General tax rate is 32%;
2. Tax rate of 25% applicable to business establishments below within a period of 3 years from when the enterprise income tax law in effect enforced: mining, minerals, forestry and fisheries;
Metallurgy; producing mechanical products;
Manufacture of basic chemicals, fertilisers, pesticides;
Production of building materials (except cement production);
Construction (except for prospecting, designing, consulting, monitoring);
Of transport (except air transportation, transportation);
3. business establishments have convenient business location, business category less competition brings higher income after corporate income tax according to the tax rate of 32% is also payable in additional income tax with tax rate of 25% for the remaining income on existing capital (excluding loans) is higher than 12%.
Yet temporary additional income tax for the following cases: business establishments apply enterprise income tax rate of 25% within 3 years since the enterprise income tax laws are enforceable under item 2, this.
Investment projects in the field, industry, investment is encouraged to apply enterprise income tax rate of 25%; 20%; 15% under the provisions of paragraph 4, paragraph 5 of this Article.
Manufacturing exports over 50% of the products produced or export earnings accounted for over 50% of total revenue;
4. for new investment projects in the fields of industry, investment incentives in accordance with the applicable government tax rate 25%;
5. The projects in the fields of industry, investment incentives, if investment in the District of ethnic minorities in mountainous and island regions, have difficulties in accordance with applicable government tax rate is 20%; If investment in the District Department of minorities in a high mountain under the provisions of the Government is the tax is 15%.
Article 10. Corporate income tax rates applicable to enterprises with foreign investment and foreign parties involved in business cooperation contracts under the law on foreign investment in Vietnam is as follows: 1. General tax rate is 25%.
2. Apply a tariff of 20% in the 10 years since the term of operation, business for the investment project has one of the following criteria: a) to export at least 50% of the product.
b) use from 500 or more workers.
c) cultivating, processing agricultural products, forestry products, marine products.
d) using advanced technology, investing in research and development.
DD) using many raw materials available in Vietnam; processing, efficient extraction of natural resources in Vietnam; production of products with high localization ratio.
3. Apply a tariff of 15% within 12 years since manufacturing activities, business for the investment project has one of the following criteria: a) to export at least 80% of the product.
b) investments in the field of metallurgy, basic chemicals, engineering, petrochemical, fertilizer, electronics manufacturing, automobile parts, motorcycles.
c) construction-structural work business infrastructure (bridges, roads, water supply, electricity, building ports...).
d) perennial industrial crops.
DD) investment into the region has difficulties (including the hotel project).
e) delivered do not reimburse for the Vietnam State assets after the end of active period (including hotel projects).
g) projects have two standards in paragraph 2 of this Article.

4. Apply a tariff of 10% within 15 years, since the activities of production, trading for the project: a) of infrastructure construction in the region difficult.
b) invest in mountain regions, Islands, remote areas.
c) afforestation.
d) The projects in the portfolio of special projects to encourage investment.
5. With respect to the project under contract to the BOT, BTO, BT, infrastructure construction projects of industrial zones, export processing zones, the preferential tax rate of 20%, 15%, 10% apply for the duration of the project.
6. The tax referred to in item 2, 3, 4, 5 this does not apply to the hotel project (except investing in the difficult, mountainous island, no transfer of property for State reimbursement of Vietnam), project finance, banking, insurance, service providers , commercial.
Article 11. Corporate income tax rates applicable to individuals, organizations and foreign countries in conducting the search, exploration and exploitation of oil and gas is 50%; Another rare resource extraction, you can apply the tax rate from 32% to 50% match with each project, each business establishment. The Ministry of Finance decided that are specific to each organization's investment project, individuals in the country; the Agency has the authority to license investment decisions specific to the project to have foreign investment, but must be approved by the Ministry of finance.
Article 12. Income earned by foreign investors due to investment in Vietnam (including income tax amount to be refunded and the revenue due to the transfer of capital) if moved abroad or retained outside Vietnam are taxed on income transfers abroad.
Transfer tax offshore income apply as follows: a) the 5% applicable to foreign investors contribute capital or capital to business from the 10 million or more and who settled in Vietnam foreign investment on water;
b) 7% Rate applicable to foreign investors contribute capital or capital to business from 5 million to 10 million USD;
c) 10% of the Level applicable to foreign investors contribute capital or capital to business under 5 million.
 
CHAPTER III registration, DECLARATION, filing taxes, TAX article 13. The basis of responsible business enterprise income tax registration with the register value added tax. Tax registration procedures according to Decree No. 28/1998/ND-CP dated 11 May 1998 the Government's detailed guide to value added tax law.
Article 14. Businesses have the responsibility to declare and pay the tax for the whole year temporarily for the tax authorities at the latest on 25 of March is annual. Model by the Ministry of Finance tax provisions. If the temporary tax declaration filed in a year of business establishments do not have bases, the tax authorities have the right to determine the tax amount temporarily paid each quarter and the whole year.
Article 15. The adjusted income tax amount temporarily paid quarterly and a year just in case of major change of production, business. The tax authorities receive recommendations to adjust the tax amount temporarily paid quarterly and a year of business, must consider if there is major change on productivity, business, about the income tax amount temporarily paid, are reported to temporarily number accordingly.
Article 16. General tax guide the stock Declaration of revenues and the proportion of taxable income apply on turnover of business establishments have not made proper accounting regime, bills, vouchers under item 2 article 12 corporate income tax laws, in accordance with each of the business lines, between the District of the same province the city, and between the neighboring districts of two provinces, cities.
Article 17. The corporate income tax is specified as follows: 1. Business quarterly tax amount temporarily paid in full, due to the State budget according to the tax notice of tax authorities. Tax deadlines are stated in the notices are not too precious last days.
2. Business establishments have not made proper accounting regime, bills, vouchers, the tax rate taxable income on sales, must pay tax monthly 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 and individuals, foreign business without resident establishments in Vietnam but having incomes generated in Vietnam, the Organization, individuals in Vietnam pay income tax deductions are responsible under the guidance of the Ministry of finance and filed into the State budget at the same time shifting pay held foreign individuals.
Article 18. Corporate income tax is calculated and filed in Vietnam.
Article 19. Business to business income tax with the tax agency annually according to the template specified by the Ministry of finance.
Tax year 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.
Tax must be true, complete the account: 1. Sales.
2. Reasonable costs.
3. taxable income.
4. income tax payable.
5. Income tax amount temporarily paid in the year.
6. Income tax amount already paid abroad for earnings received from abroad.
7. Income tax amount overpaid or underpaid.
Article 20. Businesses have to file tax reports to tax authorities within a period of 60 days from the date of the end of the calendar year or the fiscal year; full tax filing missing according to report within 10 days from the date of submission of report; If the surplus was deducted tax of the next period.
Article 21. The case of a merger, amalgamation, splitting, dissolution, bankruptcy, business establishments must still make tax with tax authorities and submit the report within 45 days from the date of the decision to merge, merge, split, splitting, dissolution, bankruptcy.
Article 22. After receiving the tax-settlement reports, tax authorities should consider checking. In case of need, be allowed to proceed with checking in the base business. End check to have the minutes and recommendations disposal measures.
Businesses have a responsibility to follow a check of tax authorities.
Article 23. In the course of tax inspections, if the purchase price, sale price, charges the business of business establishments, tax authorities have the right to redefine by price in domestic and foreign markets in order to ensure the proper collection, collecting enough corporate income tax.
Article 24. The tax authorities have the duties, powers, responsibilities for the following: 1. base business guide declaring, pay taxes in accordance with the provisions of the law on enterprise income tax.
2. To notify business establishments of 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; If business is still not sufficient amounts of the fines under the notice shall have the right to apply or request the competent authorities to apply measures for handling prescribed in clause 4 Article 24 of the law on enterprise income tax 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 according to the provisions of the law.
3. test, inspection Declaration, tax filing, tax of business establishments.
4. Handling of administrative violations of tax and complaints about the tax.

5. request business establishments providing accounting books, invoices, vouchers and records other documents related to tax calculation and payment; ask credit institutions, banks and other private organizations to 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 25. The tax authorities have the right to determine taxable income tax for business establishments in the following cases: 1. Not done or done incorrectly the accounting mode, invoices and vouchers.
2. 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.
3. Refuse the present accounting books, invoices, vouchers and other necessary documents related to tax calculation.
4. business without business registration that was discovered.
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 the pending business establishments still must pay tax according to the rate specified.
 
CHAPTER IV TAX, ENTERPRISE INCOME TAX Article 26. Domestic production base of the newly established corporate income tax exemption for 3 years, since the taxable income and the 50% reduction of corporate income tax payable during the next 2 years. Case production base established in the mountains, Islands and regions with other difficult tax time was extended by two more years.
Article 27. The new production facility established in the fields of industry, investment incentives are prescribed by the Government are tax free, tax reduction as follows: 1. investment in the district in addition to mountainous areas, Islands and other difficult areas are free of income tax on the first two years, since a taxable income and 50% reduction of the payable income tax within 3 years the next.
2. Invest in the district in the region of ethnic minorities in the mountainous high income tax exemption within a period of 4 years, since there is taxable income and 50% reduction of the payable income tax within the next nine years.
3. Invest in the District of ethnic minorities in mountainous and island are tax free income within a period of 4 years, since there is taxable income and 50% reduction of the payable income tax within the next seven years.
4. Invest in these difficult regions are tax free income within 3 years, since the taxable income and the 50% reduction of the payable income tax within the next 5 years.
Article 28. Base business, the new services established in branches are investment incentives under the Government's regulations are tax free, tax reduction as follows: 1. investment in the district in addition to the ethnic minorities, mountains, Islands and other difficult areas 50% reduction of the payable income tax in the first two years of , since a taxable income.
2. Invest in the district in the region of ethnic minorities in the mountainous high income tax exemption within a period of 2 years, since the taxable income and the 50% reduction of the payable income tax within the next 5 years.
3. Invest in the District of ethnic minorities in mountainous and island are tax free income within the first two years, since a taxable income and 50% reduction of the payable income tax within the next four years.
4. Invest in these difficult areas are exempt from income tax in the first year, since the taxable income and the 50% reduction of the payable income tax within the next 3 years.
Article 29. Domestic 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% reduction of the payable income tax for the next two years due to new investments bring.
The Ministry of Finance shall guide the methods of determining income increased due to new investments bring tax-exempt, tax breaks.
Article 30. Business establishments in the country to move to the mountains, Islands and other difficult areas of enterprise income tax exemption for 3 years, since there is taxable income.
Article 31. Corporate income tax exemption for the portion of the income of the business establishments in the country, as follows: 1. income from the realization of the scientific research contracts.
2. income from the realization of technical service contracts directly serving agriculture.
3. income from production and business operations, services of business establishments reserved for disabled workers.
4. income from job-training reserved for disabled people, ethnic minorities, children in particularly difficult circumstances, the object of social ills.
5. individual Household production, business, services, average income in the year under the minimum wage prescribed by the State for State servants.
Article 32. The tax exemption and reduction of enterprise income tax for enterprises with foreign investment and foreign Parties involved in business cooperation contracts under the law on foreign investment in Vietnam to apply as follows: 1. The projects recorded in item 2 article 10 of this Decree are tax free income for 1 year Since taxable income and 50% reduction of the payable income tax in the next 2 years.
2. recording projects in paragraph 3 article 10 of this Decree are tax free income within the first two years, since there is taxable income and 50% reduction of the payable income tax in the next 3 years.
3. The projects recorded in paragraph 4 of article 10 of this Decree are tax free income for 4 years, since there is taxable income and 50% reduction of the payable income tax in the next four years.
4. The forest planting projects and construction projects of infrastructure in mountainous areas, Islands and other special projects that encourage investment income tax exemption within a period of 8 years, since there is taxable income.
5. The exemption of income tax on this does not apply to the hotel project (except investing in mountainous and island regions with difficult or non-reimbursement of transfer the property to the State Vietnam after the end of active period), the investment projects in the financial sector banking, insurance, trade, service providers.
Article 33. Tax, corporate income tax reduction for foreign investors in the following cases: 1. Vietnam Who settled in foreign investment the country according to the law on foreign investment in Vietnam was reduced 20% of income taxes payable, except enjoy the income tax tax rate is 10%.
2. Patents, technical know-how, technological processes, technical services to contribute capital.
3. corporate income tax Exemption for foreign investors in the event of transfer of shares for the State enterprises or enterprises in which the State seized the shares. The 50% reduction of enterprise income tax to foreign investors to transfer shares to another Vietnam businesses.
Article 34.
1. foreign investors used the revenue to be divided to reinvest refundable corporate income tax already paid by the number of income reinvested, if it meets the following conditions: invest in projects in the field of investment incentives outlined in article 10 of this Decree;
Capital reinvestment is used 3 years older.

Have enough capital in the investment license.
2. The level of income due to reinvest as follows: 100% of the projects specified in paragraph 4 of article 10 of this Decree.
75% for the projects specified in paragraph 3 of article 10 of this Decree.
50% for the project defined in item 2 article 10 of this Decree.
3. The provisions of the financial procedures, the profile to review income and income tax refund decision.
Article 35. Domestic business establishments and enterprises with foreign capital operating in the manufacturing sector, construction, transport use from 10 to 100 female workers and of women workers accounted for over 50% of the total number of workers present frequently or regularly used on 100 women workers accounted for over 30% of the total number of regular workers of the enterprise income tax reduction by the level the cost increase for women workers.
The Ministry of finance detailing the expenses increased more for women's labor provisions in this article.
Article 36. The tax exemption applies only to business establishments have made true accounting mode and pay tax according to the Declaration.
The Ministry of Finance tax exemption procedures guide, tax reduction and tax exemption, the decision to reduce the tax for business establishments in the country.
For enterprises invested abroad and foreign Parties involved in business cooperation contracts under the law on foreign investment in Vietnam the tax exemption and reduction of tax included in the investment license granted by the competent authority after the unity of the Ministry of finance.
Article 37. Domestic business establishments and enterprises with foreign investment after the settlement with the tax authorities of that loss shall be transmitted to the following years, the number of holes to be deducted from taxable income. The time switch holes no more than 5 years.
 
Chapter V HANDLE VIOLATION of Article 38. Tax payers, tax officials and other individuals violate the law on enterprise income tax, then depending on the level of violation, acts which dealt with under article 24, article 26 of the law on corporate income tax and other legal documents on the handling of administrative violations in the field of taxation.
Article 39. The tax authorities, the tax officer complete the assigned tasks; Organization, individual achievement in the implementation of the law on enterprise income tax; tax payers make good tax obligations are rewarded according to the regulations of the Government.
 
CHAPTER VI ORGANIZATION of the IMPLEMENTATION of Article 40. The Decree has effect from January 1, 1999.
Tackling the existence of tax return before 1 January 1999 is made according to the provisions of the income 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.
Article 41. The Minister of Finance shall guide the implementation of this Decree.
The Ministers, heads of ministerial agencies, government agencies, the Chairman of the provincial people's Committee, the central cities is responsible for the implementation of this Decree.