Circulars implementing preferential enterprise income tax for the credit guarantee Fund for small and medium businesses _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pursuant to the law on corporate income tax 17 June 2003;
Pursuant to Decree 164/2003/ND-CP of December 22, 2003 detailing the Government's enforcement of the law on enterprise income tax and Decree No. 152/2004/ND-CP dated 6 August 2004 the Government's amendments and supplements to some articles of Decree 164/2003/ND-CP;
Pursuant to Decree No. 77/2003/ND-CP on 1st July 2003 of the Government regulation of the functions, duties, powers, organizational structure of the Ministry of finance;
Pursuant to decision No. 193/2001/QD-TTg dated 20 December 2001 by the Prime Minister on the establishment, organization, regulation and operation of credit guarantee Fund for small and medium business and decision No 115/2004/QD-TTg dated 25/6/2004 by the Prime Minister on the amendments additional regulation, the establishment, organization and operation of the credit guarantee Fund for small and medium enterprises attached to decision No. 193/2001/QD-TTg;
After the comments directed at the Prime Minister's letter No. 6626/VPCP-KTTH, on 15 November 2005 the Office of the Government, the Ministry of Finance shall guide the preferential enterprise income tax for the credit guarantee Fund for small and medium enterprises as follows: i. the APPLICABLE OBJECT and SCOPE 1. The audience enjoyed the preferential enterprise income tax according to the instructions in this circular includes the credit guarantee Fund for small and medium enterprises and local finance Fund to be Chairman of the provincial people's Committee charged with credit guarantee for small and medium sized enterprises (hereinafter referred to as the credit guarantee Fund) as defined in the regulations established , organization and operation of the credit guarantee Fund for small and medium enterprises attached to decision No. 193/2001/QD-TTg dated 20 December 2001 and decision No. 115/2004/QD-TTg dated 25 June 2004 of the Prime Minister.
2. tax incentives under the guidance of this circular is applicable only for credit guarantee operations for small and medium business credit guarantee fund.
II. PREFERENTIAL ENTERPRISE INCOME TAX 1. The enterprise income tax rate of 1.1. The new credit guarantee fund established in geographical areas not in list B or list C of the appendix attached to Decree 164/2003/ND-CP dated December 22, 2003 by government law enforcement detailed regulations of enterprise income tax (hereinafter referred to as category B, category C) is applied, the tariff of 20% in 10 years Since the start of operations of credit guarantee for small and medium businesses.
1.2. new credit guarantee fund established in the geographical list B applies the tax rate of 15% for 12 years, since the start of operations of credit guarantee for small and medium businesses.
1.3. new credit guarantee fund established in the geographical list C applied tariff of 10% in 15 years, since the start of operations of credit guarantee for small and medium businesses.
1.4. credit guarantee Fund is active if there are project to expand the scale of credit guarantee operation, then the tax rate applicable to income increased due to expanded investment brings the following:-the case of the expanded investment projects in the same area with the headquarters of the credit guarantee Fund shall apply according to the tariff that the Guarantee Fund credits are applied, since project completion put into use;
-The case of the expanded investment projects in different geographical areas, where the headquarters of the credit guarantee Fund to which this table belongs to a category B or category C shall apply the tax rate of 20% in the 10 years since the completion of projects put into use;
-The case of the expanded investment projects in geographical areas other than the main headquarters of the credit guarantee Fund to which this table belongs to category B, then apply the tax rate of 15% for 12 years, since project completion put into use;
-The case of investment projects in different geographical areas, where the headquarters of the credit guarantee fund to which this table belongs to category C shall apply the 10% tax rate in 15 years, since project completion put into use.
2. tax exemption period 2.1. The new credit guarantee fund established in geographical areas not belonging to category B or category C are exempt from corporate income tax for 8 years, since there is taxable income and 50% of the tax paid in the 3 subsequent years; cases meet more conditions of use many workers as defined in clause 2, article 33, of Decree 164/2003/ND-CP be amended and supplemented in paragraph 2, article 1, Decree No. 152/2004/ND-CP dated 6 August 2004, the Government of the time reduction of 50% of the tax is 5 years.
2.2. new credit guarantee fund established in the geographical list B are tax free, since there is taxable income and 50% tax in the 7 next year; cases meet more conditions of use many labour under the provisions of clause 2, article 33, of Decree 164/2003/ND-CP be amended and supplemented in paragraph 2, article 1, Decree No. 152/2004/ND-CP time 50% reduction of the payable tax is 12 years; cases meet more conditions of use more labor, in which labour is the number of minorities accounted for over 30% of the total number of labor used in the average time a 50% reduction of the payable tax is 9 the next year.
2.3. the new credit guarantee fund established in the geographical list C tax exemption for 04 years after taxable income is generated and the 50% reduction of the payable tax in 11 years; cases meet more conditions of use many workers as defined in clause 2, article 33, of Decree 164/2003/ND-CP be amended and supplemented in paragraph 2, article 1, Decree No. 152/2004/ND-CP time 50% reduction of the payable tax is 12 years; cases meet more conditions of use more labor, in which labour is the number of minorities accounted for over 30% of the total number of labor used in the average time a 50% reduction of the payable tax is 9 the next year.
2.4. the credit guarantee fund to implement projects of expansion of activity of credit guarantee for small and medium sized businesses are tax, corporate income tax for the income increase due to expanded investment projects brings the following: a) Are tax free, and 50% tax within 10 years if the investment projects implemented at the the area not part of the category B or category C;
b) Are tax free, and 50% of the tax in the next 5 years if the investment projects implemented in geographical list B;
c tax exemption for 04 years) and 50% tax in the 7 next year if investment projects implemented in geographical list C. tax exemption period is counted from the year completed investment projects started to put into action.
Credit guarantee fund is a separate accounting income increase due to investments brought to determine the number of corporate income tax exemption, reduction. Case of credit guarantee Fund is not the private accounting income increase due to investments bring the income increase are tax reduction are defined as follows: the extra income tax exemption, tax = Part of taxable income in the year x the value of fixed assets put into use new investments for credit guarantee operation Of original Member the actual fixed assets used for the operation of credit guarantee Fund


 

The total fixed assets original fact for the operation of credit guarantee Fund including: the value of fixed assets investment has completed the handover brought into use and the original price of the existing fixed assets are used for production as of end of period balance sheet accounting year.
3. for operations out of credit guarantee operations for small and medium business credit guarantee Fund to organize a separate accounting of revenues, expenses and income of the activity and make the enterprise income tax obligations as required by law; where does the private accounting, the income from the operation of credit guarantee for small and medium sized businesses are tax incentives is determined by the ratio between the revenue from credit guarantee operations for small and medium enterprises in comparison with the total revenue of the credit guarantee Fund.
III. IMPLEMENTATION 1. Principles, procedures to enjoy enterprise income tax incentives as stipulated in section II, this circular is made according to the instructions in section IV, part E, circular No. 128/2003/TT-BTC dated 22 December 2003 by the Ministry of Finance shall guide the implementation of Decree No. 164/2003/ND-CP of December 22, 2003 detailing the Government's enforcement of the income tax act and according to the instructions in circular No. 88/2004/TT-BTC on August 6, 2004 of the Ministry of finance amend, complement the circular No. 128/2003/TT-BTC.
The other tax rules follow the rule of law.
2. This circular have effect after 15 days from the date The report. The credit guarantee fund to be established prior to the date of this circular in force enforced enjoy enterprise income tax incentives as defined in this circular for the remaining time. Time to enjoy the tax incentives were identified by the time enjoy preferential tax rates according to the instructions in paragraph 1 of section II of this circular minus (-) to the time since the credit guarantee fund to begin operation until the day this circular effect. Time to be tax free, tax breaks are determined by the remaining time to be tax free, tax reduction according to the instructions in paragraph 2, section II, of this circular minus (-) to the time since the credit guarantee Fund have taxable income from credit guarantee operations for small and medium enterprises until the day this circular effect.
In the process, if any obstacles, suggest the unit reflects on the Finance Ministry to study the resolution.