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Circular 53/2003/tt-Btc: Guide To Applying The Tax Regime For The Law Office, Law Firm Partnership

Original Language Title: Thông tư 53/2003/TT-BTC: Hướng dẫn áp dụng chế độ thuế đối với Văn phòng luật sư, Công ty luật hợp danh

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CIRCULAR Guide applies the tax regime for the Law Office, law firm partnership-------------------------based Attorney Ordinance No. 37/2001/PL-UBTVQH10 due commissions of the National Assembly adopted on 25/7/2001;

Pursuant to Decree No. 95/2001/ND-CP dated December 12, 2001 detailing the Government's enforcement of the Ordinance on lawyers;

Pursuant to Decree No. 86/2002/ND-CP on 5/11/2002 of government functions, tasks, powers and organizational structure of ministries, ministerial agencies;

Pursuant to Decree No. 175/CP dated 28/10/1994 of government mandates, powers and organization of the Ministry of finance;

The Ministry of finance instructed the tax regime applicable to lawyers, law firm partnership and individual practicing lawyers as follows: A/OBJECTS: the object of this circular is applicable law office, law firm partnership was established and operated according to the Ordinance on 25 lawyers/7/2001 and the guidance documents Ordinance lawyers.

B/tax and BUDGET: I/VALUE ADDED TAXES (RATES): activities legal advice, legal services and participate in the proceedings subject to bear the VAT with tax rate of 10%. Lawyers Office, law firm partnership filed VAT according to tax deduction method.

VAT calculation base is the tax rates and tax rate.

Tax Identification Number: VAT payable = output Vat (1)-the input Vat was deductible (2) (1) = output Tax revenue (no VAT) of legal advisory services, legal services, participation in proceedings x 10% of revenue (no VAT) of legal consulting services , legal services, to participate in the proceedings is the full provision of services (no VAT) includes the surcharge and additional costs beyond the price that law office, law firm partnership are entitled.

(2) the input Vat is equal (=) the total of the invoice VAT RATES buying goods, services (including fixed assets) for legal operations, legal services and participate in the proceedings.

The Declaration, tax, tax, VAT reimbursement made under the provisions of the law on VAT and the writing guidelines.

II/ENTERPRISE INCOME TAX: Law Office, law firm partnerships have taxable income payable enterprise income tax according to the provisions of the corporate income tax Law. The method of tax calculation, tax, VAT, corporate income tax made under the provisions of the corporate income tax Law and implementation guidance documents.

Some specific instructions as follows: *. Tax base the business income is taxable income and the tax rate.

1. taxable income: taxable income (calculated according to the calendar year or fiscal year) include taxable income from the operation of domestic services, service activities abroad and other taxable income.

The taxable income is determined as follows: taxable income in the tax period = the turnover for calculation of taxable income in the tax period (a)-at reasonable cost in the tax period (b) + other taxable income in the tax period (c) (a). The turnover for calculation of taxable income revenue to calculate the taxable income is the full provision of services that law office, law firm partnership are entitled.

Time determine the turnover for calculation of taxable income shall be the time the service was offered, irrespective of whether the money has earned the money.

Services were offered to ensure one of the following two conditions: + When the service has been completed.

+ When ADDED VALUE invoice.

(b) The reasonable expenses to be deducted for the calculation of taxable income: The reasonable expenses related to taxable income in the tax period are deducted for the calculation of taxable income shall include the cost of items prescribed in the law on enterprise income tax and the writing guidelines.

Lawyers Office, law firm partnerships are not calculated into reasonable expenses the expenses not related to turnover and taxable income.

(c) another taxable earnings:-income from the business, goods or services in Vietnam.

-The disparity in purchasing, selling securities.

-Income from ownership, the right to use the property.

-Income from transfer of property, liquidate assets:-interest rate deposits, interest rates for loans.

-Sale of foreign currency by the disparity.

-The balances of the account: extract before not spent, the prevention of debt difficult to reclaim, discount backup stock.

-Currency revenues already offset by reserves now claims to be.

-Collect about breach of contract fine economy after subtracting money penalty or breach of contract.

-Currency the liabilities do not identify the creditors.

-Earnings from the business activity of the service years ago missed new discovery.

-The earnings received from the service business operations abroad.

2. the enterprise income tax: corporate income tax made under the provisions of the corporate income tax Law and implementation guidance documents.

III/INCOME TAX for HIGH INCOME EARNERS: individuals working for the Office of the lawyer or law firm partnership if high income have to file income taxes according to the Ordinance on income tax for high income earners.

IV/BINGE: TAX Office lawyers partnership law firms, tax article subjects as defined in Decree No. 75/2002/ND-CP dated 30/8/2002 by the Government and writing guidelines. Lawyers Office, law firm partnership tax article subjects based on the registered capital recorded at registration Certificate in accordance with the economic organization.

V/The account of another budget submission: Office of the solicitor, law firm partnership paid land use, land rent, taxes and other income under current rules.

C/incentives, TAX EXEMPTIONS: Law Office, law firm partnership if there are industries in the area are entitled to investment incentives under Decree No. 35/2002/ND-CP on 29/3/2002 of the Government and have other conditions free perks, reduce business income taxes money, land use, land lease (if any) prescribed in Decree No. 51/1999/ND-CP on 8/7/1999 of the Government and the circulars of the Ministry of finance. To enjoy tax incentives, Law Office, law firm partnership must be registered with the tax authorities about the management conditions are entitled to tax incentives, preferential tax rates. Every year, the Office of the solicitor, law firm partnership identified the number of tax exemptions, the tax has been filed, the tax is also payable, surplus in tax send tax authorities directly managed and responsible before the law for the accuracy of the figures have declared.

D/TAX REGISTRATION PROCEDURES: slow for 10 days from the date of granting the registration office, lawyer, law firm partnership must be registered with the tax authority of local taxes headquarters and granted tax code as specified. Case law office, law firm partnership was active, but not yet granted active registration shall remain payable taxes according to the instructions in this circular.

This circular has the effect after 15 days from the Post Gazette. In the process, if there are obstacles, suggest that the agencies, organizations, personal reflections in time about the Ministry of finance to study the additional instructions.