Circular of the Ministry of finance number: 97-TC, TCT on October 30, 1995, guiding the implementation of Decree No. 95/CP dated 27 December 1995 from the Government detailing the implementation of the law on turnover tax and the law on amendments and supplements to some articles of the law on turnover tax pursuant to the law on turnover tax was the EIGHTH National Assembly passed on 30 June 1990; Additional amendment of some articles of the law on turnover tax was National Assembly IX passed on 5/7/1993 and the law amending and supplementing a number of articles of the law on turnover tax was National Assembly IX through October 28, 1995;
Pursuant to Decree No. 96/CP dated 27 December 1995 from the Government detailing the implementation of the law on turnover tax and the law on amendments and supplements to some articles of the law on turnover tax;
The Ministry of finance instructed as follows: A/the SCOPE of APPLICATION of the LAW on TURNOVER TAX I/TAX PAYERS, the TAXABLE OBJECT as defined in article 1, article 8 of the law on turnover tax and article 1 of Decree 96/CP of the Government organizations, individual business (collectively referred to as business establishments) of all trades , economic sectors, irrespective of the form of business, there are business establishments in Vietnam or had business establishments in Vietnam if any revenues arising from the business activities in Vietnam are to pay the sales tax under the provisions of the law on turnover tax.
II/object is NOT SUBJECT to SALES TAX as defined in article 2 of law sales tax and article 2 of Decree No. 95/CP of the Government, the following activities are not subject to tax revenues: 1. agricultural production in an agricultural land use tax.
Do not collect sales tax for agricultural products because agricultural production sold unprocessed or just preliminary processing (sorting, drying, dry as bark removal: tea and preliminary processing of dry, seasoned cashews are not yet split the shell; coffee bean, corn nuts, cassava, potato, sliced ... drying.
Agricultural products was over processed forms such as: dry LaTeX rubber latex, the kind made from latex water through drying, sauna; cashews roasted cashews, soaked crust separation; cane pressed plants, into the street, Suite; grinding, milling, paddy, wheat, maize; the processing of the leaves, plants, roots, fruits, ... oil for the oil etc. must pay sales tax according to the manufacturing and processing activity.
2.-production of goods subject to special consumption tax which the production base has declared the special consumption tax is not remitted sales tax this item in production.
If the organized production of shops selling the items subject to special consumption tax, then the store must pay sales tax according to the commercial business activities.
The basis of the import items subject to special consumption tax when sold these items to pay sales tax according to the commercial business activities.
3. export goods production (including production, outsourcing offshore export, export processing zones and sell to sales tax free shop) in the following cases: a/the goods because of direct production base for export to foreign countries, according to the contract signed with foreign countries (including the case brought by the goods production base to sell products in the overseas exhibition).
Establishments must present to the tax authorities:-production contract, signed with foreign countries.
-Export invoices, charged for processing goods overseas.
-Customs Declaration has confirmed the goods were exported.
b/the goods due to manufacturing or selling or trading establishments authorised for import and export for export or sale to duty-free sales outlets (the items prescribed by the Government), according to the economic contract fits with the business license.
Establishments must present to the tax authorities:-the sales contract or contract-mandated export.
-Sales invoice, shipment export mandate consistent with the contract.
-A contract settlement (when finalizing the contract) as the tax base.
-Copy of business license of import and export businesses.
c/goods due to contract machining establishments receiving processed directly from the base contract to work with foreign countries.
Example: A is the base base business export directly contracted outsourcing foreign clothes sewing, then signed to the base B directly machined, then the base B in the object does not have to pay tax revenues. The base case B does not directly work-which handed back to C then the machining facilities to the base B and C must pay tax revenues.
Basis outsourcing must present the receipt to the tax authorities:-contract receive work accompanied by a copy of the contract signed with the outsourcing delivery basis.
-Return export processing invoices match the contract manufacturing for export.
-Outsourcing contract settlement (at the end of the contract) as the tax base.
In addition to the case of the production of export goods, not tax revenue above, production activities, other machining must pay tax revenue, including the following cases:-production facilities to sell their products to other establishments for the production, processing, export packing.
-Production and business establishments brought raw materials for other production base into products or goods then export goods processing facility must then pay tax according to the activities, facilities brought his power password must pay tax according to the capacity of business operations.
4-credit operations of the Bank, credit institutions, financial companies. Private professional service activities such as billing, account opening; foreign exchange trading activities, the pawn and other business of this Organization (if any) must pay sales tax according to each operation.
Capital lending activities of other establishments are permitted by law is also not tax revenue.
III/TEMPORARY OPERATIONS NOT YET COLLECTING SALES TAX as defined in article 12 Suspected No. 96/CP of the Government temporary rules have yet to collect sales tax for these activities: 1. radio and television broadcasting under the plan, State-level budget.
2. geological exploration, cartography under State planning programs, using State budget funds.
3. release the magazine, a specialist news service not internal revenue tax, if the selling currency money pay sales tax.
4. Activities directly serve the agricultural production of hydraulic and agricultural tax revenue not for irrigation proceeds. The original breed herd maintenance activity cattle, poultry is not tax revenue for the sales of the original breeds, breeding to maintain the original breed or multiply the original breed herd; If there are sales of other products such as eggs, milk ... still must pay sales tax.
5. The repair operation, maintenance of roads, dredged channel, ports, bridges, dams, levees built houses of affection; restoration of cultural works of art; preserving the environment, maintain the Zoo, gardens, parks, green areas by the career due to State budget grant or contribution of money to the people.
Active base for repair, maintenance, dredging the Creek in the case do not have to pay tax on the turnover here, if there are other revenue associated with the implementation of this activity must pay sales tax.
Example: the basis of dredging the Creek in the case do not have to pay tax revenue to dredging activity but have land sales, sand and gravel dredging are, base pay sales tax according to the mining operation for the sale of land, sand, and gravel.
6. Sale of fixed assets (to renew fixed assets), the fixed assets have been used units from 7 years or more and have been tracking, management, depreciation under the regime of fixed asset management.
7. The sale of State-owned houses for people who are hiring and the specified currency 100% money sell House on State budget.
8. Health insurance, social insurance, labor insurance.
9. the sale of scrap, scrap recovery already discounted into accounting, production costs reduction, if not reduce accounting, traffic charges payable tax turnover.
10. The active self serving meals in the organs, enterprises, schools, armed forces.
11. The other specific cases prescribed by the Government.
B/TAX BASE and tax Law article 7 according to the TARIFF revenues, tax revenue base is the tax revenue and the tax rate.
I/SALES TAX CALCULATION.
As defined in article 3, article 8 and Revenue Tax Act specifies in article 3 of Decree 96/CP of the Government tax revenue, the sales money, money, money, money, money services ... (including surcharges if applicable) incurred during the tax period, irrespective of the amount of money that was obtained or not obtained.
Tax revenue for certain specified activities as follows: 1.-for the production (including production, processing, assembling, mining) tax revenue is money selling products production base: regardless of the product that is: finished products, semi-finished products, raw materials machinery and equipment, mineral resources ...
Private:-for the production of electricity sales tax calculation is the proceeds of sale of commercial power.
-For works in the sales tax calculation is the entire proceeds from the print product to the customer, or in the products for sale. Separately in the book, sales tax revenue not charge paper.-for works published tax revenues are proceeds of publishing activities.
2.-with regard to activities tax revenue as proceeds, including: public money, money, motivation, extra material and other costs to be determined by the contract work (except the main raw materials and semi-finished products put offshoring).
The case of the main raw materials due to the receiving party provides machining (including purchase of households in all forms) are not considered as activities, must calculate sales tax according to the production activity.
3.-for building activity: a/for construction activities (irrespective of whether or not the bidding contractors with supplies, raw materials) tax revenue is the total value of works, construction projects, regardless of the value of the entire machinery and furniture attached to the work (if any).
According to this provision, tax revenue calculated construction activities according to the value of works, construction projects, regardless of the form of contract and construction facility amount received.
The entire machinery and furniture do not calculate the taxable revenue in construction activities is the kind that can install or shopping activity with separation construction such as: types of machinery and equipment for the production and installation of production facilities; tables, chairs, beds, cabinets, television. installed in the hotel.
If the contractor building the supply of machinery, equipment, furniture for home works they must pay tax revenues by business operations.
The value of the equipment, decorative paving, cladding, building, electrical, water system ... is located in building structures, not excluding in value when determining the taxable turnover construction.
If the contractor's supply to the construction works and materials, raw materials ... kind of a lie in the structure, included in the taxable revenue of the construction not pay tax according to the commercial business activities.
Example: the Hanoi construction company (called the B side) get built for factory (called side A) a factory, the total value of the works is 8,100 million. In which:-the value of workshops, fences, Wall Street building (including the value of materials: bricks, cement, iron, etc., other costs public money) is: 5,000 million.
-Remuneration and installation of machinery and equipment is: 100 million.
-The value of machinery and equipment are: 3,000 million (no installation costs).
According to the contract party A pays party B is 1,600 million including wages and other costs.
Sales tax calculation this construction activity is defined as follows: value-minus (-) values of machinery and equipment are: 8,100 tr. dd-3,000 VND = 5,100 tr. tr. dd-sales tax must pay 4% on sales tax calculation: 5,100 tr. dd x 4% = tr. 204.
(In this example the turnover tax payable not by the amount the party A pays party B is 1,600 tr.).
The entire equipment case due to the Hanoi construction company sold to the factory, construction companies also must pay sales tax according to the business of selling the equipment.
Construction contracting parties and party construction owners must provide subcontract agreements, contracts and contracting documents related to tax calculation and payment documents, such as a settlement contract for tax authorities where the construction works.
The case of the party building and home construction does not provide for the tax agency contracts and determining the value of construction works for the calculation of the tax, the tax authorities based on the price of each period, assign tax rates for each of the works.
Example: the family t. in 1996 Hanoi built a House 3 storeys (two floor), when his building contracting party, t. and not provide full contract and determining the value of the House construction, tax authorities are right to assign tax rates and sales tax payable as follows :-define m2 construction: assumes a floor are, 3 floors with 210 m2.
-Type of construction Price this home at the time of tax determined by an average of 1, 2tr./m2.
Sales tax to be paid is determined by revenue tax calculation is: 210m2 x 1.2 tr. VND/m2 = 252 b. b.
Sales tax payable is: 252 pp. dd x 4% = 10.08 tr. b.
If construction work is completed, do not determine the basis (or the contractor) built to collect taxes, the owner of the work must pay tax in lieu of the receiving party.
b/for survey design activities and other activities in the building tax revenue is the entire proceeds from this activity.
c/for a building activities, projects have many units to participate in construction, in the form of one or several units directly contracting with construction works (called the main contractor), and the other contractor signed the contract the main contractor (known as subcontractors) sales tax calculation and counting on the value or class projects, and are defined as follows:-for construction works in one place due to a tax collection agency, sales tax due the prime contractor filed charged on the value of public works contractor, the sub-contractors do not have to pay tax revenue to build the section of the main contractor, contractor , tax authorities have the responsibility to check, identify the main contractor had revenue tax instead of subcontractors.
-For the categories of projects have built in many different local subcontractors must declare turnover tax in local construction. When tax revenues with tax authorities, the main contractor are reduced tax revenue to subcontractors have filed in the other for the local value of the main contractor contractor (if certified by the tax authorities accompanied by vouchers or tax voucher copies).
d) The case of contractor then moved the entire bidding for other establishments, contractors must pay a transfer tax base according to brokerage operations, tax revenues as commissions or spreads contractor subcontract prices.
e) The business made a contract to sell the products, materials, equipment, work or home building contractors, must declare turnover tax under production (if the product because the base product), or commercial business. These contracts are not considered construction contract to calculate tax according to the rules above.
g) for construction of public works must pay over the period, the turnover tax is calculated according to the value of projects or work completed.
4-for transport operations, tax revenue is money the cost of transporting goods, passengers, luggage and other revenues from transportation activities such as loading, goods, surcharges, fees, etc. included in the tariff or freight revenue.
For air transport operations, ships, rail ... international transport activity, tax revenue is determined as follows:
-Transport establishments to licensing transport business tax declaration signed in Vietnam, sales tax calculation is the charge on the territory of Vietnam and from Vietnam (first port) to the last foreign port where the passengers, baggage, goods arrived. Active private international air shipping, tax revenues for this activity is the portion of revenues that Vietnam's tax payers are entitled under the Convention of international air transport.
-For foreign transport facilities have no business in Vietnam but has operated passenger, baggage, goods from the ports of Vietnam abroad, tax revenue is the charge calculated from the ports of Vietnam (first port) to port finally abroad where passengers , luggage, goods arrived, regardless of where the purchase cost or the form of payment of shipping charges. The foreign shipping base under this provision is the home of the foreign media not to grant the registration of active transport business in Vietnam but have active transport from the port of Vietnam.
Example: a vessel of Hong Kong made goods shipping contract from Haiphong to go to France, sales tax calculation for this ship is identified as shipping rates from the port to the port of Haiphong to in France, not the ports that cruise ships on the way through.
Active transport is the use of the vehicles, or devices: train, car, plane, boat, barge, raft, the pipeline ... to transport.
The ports as defined above including the airports, river ports, sea ports, railway stations, car terminals, the warehouse or the place where the goods, or to the passenger.
5-for the business activity tax revenue is eating the entire proceeds of sales of food, drink, tobacco (not made or purchased from outside) and other fees associated with business activities such as eating proceeds dining room, money, money serves the customer's services.
6-for commercial business activities tax revenues are determined by each form: a) tax on sales is the entire proceeds of the sale (including surcharges if applicable).
b) tax on the difference between the sales price with the purchase price.
-The sales price is the actual price selling items on the sales invoice, voucher; surcharge (if any) for selling out, not be reduced except in price when calculating the price difference.
-The purchase Price is the actual price paid for the seller indicated on the vouchers, invoices and purchase orders.
With respect to imported goods prices to calculate variances include: purchase price at the gate Vietnam (CIF) plus (+) with the import tax (if any), plus (+) with the special consumption tax (if any). Surcharge (if any) with regard to imports into the community are not the purchase price when calculating the price difference.
The sales price, the price of purchase tax revenue base is made by the method of buying and selling is defined as follows: – where the sale through agents, tax revenue is determined by the number of sales (x) for resellers, the Commission paid to the agent was on the cost accounting of consumption (except in the case of the dealer must pay sales tax instead of owners as stipulated in point 7 below).
-The case of sales according to the installment sales method, the sales tax is the proceeds of the sale the buyer must pay, is determined by the number of items sold (x) with sale price (sale price charged by the sale price paid once at the time of sale, installment interest not included).
-Case discount sale for customers to purchase multiple items, fast tax revenue payment is calculated according to the purchase price actually collect the money. The customer return the item, the sales tax is not charged for payment of return customers.
-Shipment activities tax revenue for each shipment of tax revenues, determined according to the sales price in the local markets where freight transport.
7-for the active agent, entrusted the sale as Commission and other revenues from operations. The case of the receiving party, the receiving agent-mandated proceeding, the agency mandated to purchase and sales agents are always for shippers, the right agent, mandated in addition to tax revenue on an active agent, mandated to also pay tax revenues instead of the shippers under commercial operations; tax revenue agents filed instead for shippers is the proceeds of Sales minus (-) Commission.
Case sales agents for foreign institutions, foundations get sales agents in addition to tax revenue on the dealer also must pay sales tax and income tax according to the commercial business activities instead of shippers; sales tax filed instead of owners is sales revenue minus (-) commissions paid to agents.
Sales case dealership, sales base in addition to pay tax on the dealership also must pay a sales tax instead of the shippers under the business operations, on sales revenue minus (-) Commission.
Do not apply the tax revenue on disparity with respect to wholesale dealers, dealership, mandated the sale.
The following are eligible to be recognized as the new dealers, dealership, mandated and are filed turnover tax charged on the Commission: – has the business license of commercial activity.
-Contract between the party and the party receiving the goods dealer, dealership, mandated. In the contract must specify the number, type, price and Commission are entitled.
The base implementation of dealer, dealership, mandated purchases must send a copy of the contract for the tax authorities directly managed facilities.
-Perform the selling dealer, dealership, mandated purchases according to the price stated in the contract.
-Make serious book mode, accounting, invoice vouchers, clear, proper accounting Sales Commission, entitled on the dealer, dealership, the mandate and the related costs. The case for non-consignment sales business, no invoices to open the window to specify the name of the sender address, the sale, the number, type, price sale items.
If the receiving party sales dealer, dealership, sales, purchase mandate not eligible say according to the sales tax payable on business activities and business tax imposed on the whole of the sales revenue. Case sales for business establishments not yet registered tax declaration, the basis of the sale still have to pay tax instead of the shipping base.
8. With respect to the operation of the service tax revenue is the entire proceeds from the operation of the service: a/for repair operations irrespective of the trades, repair products, tax revenues include public money to repair, money supplies, fuel and other costs to repair.
b/for business activities in the sales tax room is room rent and proceeds (if any).
c/for business travel, tax revenue is the entire proceeds from this activity; private households expenditures for customers is determined in the contract: the cost of travel tickets, vacation hotels (if there are valid vouchers) are not in the sales tax calculation with respect to the operation of this service.
d/for the postal service, telecommunications sales tax calculation is the postal charges proceeds, postal stamp sales, installation proceeds and the Subscriber telephones, pagers, fax machines ... the currency of information network transmission including the surcharge (if any) and other revenues of the postal service.
With respect to the operation of international telecommunications, sales tax calculation is the amount that Vietnam's tax payers are entitled to according to international practices.
For the base not in the industry of telecommunications has operated postal services such as phone, fax ... tax revenue is Commission entitled or proceeds rates compared to the increase in pay for the postal sector.
e/for activities of insurance and reinsurance tax revenue is the proceeds of an insurance business (the currency of the original premium, the premium received reinsurance, inspection and other income from this activity).
Get free private reinsurance from the business of insurance and reinsurance activity on the territory of Vietnam that the facility has filed turnover tax for the transfer of reinsurance costs then get reinsurance basis do not have to pay tax revenues expenses get this reinsurance (follow the provisions section I-circular No. : TC 43/TCT on 5/6/1995 of the Ministry of finance guidelines on sales tax for the business activities of insurance and reinsurance).
g/for pawn operations tax revenue is the difference between proceeds with payment in advance for customers.
For example: customers take a motorbike to pawn basis, clients are advance (loan) 14 trđ after a month the client to pay to get it back to the car, the amount payable is 15 trđ, tax revenue in this case is 1 trđ (15 trđ-14 trđ). The case of the pawn khạch property sale to recover the capital tax revenue, this activity is the full amount of the actual pawn base obtained from the sale of property (sale of property total revenue minus (-) number is charged to customers under contract, or law). The above example also according to the contract agreement, the time limit for paying the base was pawned, sold the motorcycle to recover capital and interest. For example, the car sold 19 trđ, pawn base are charged to the customer 4 trđ, tax revenue is 15 trđ (19 trđ-4 trđ). If the contract does not specify the amount of base pay pawn customers, tax revenue is the entire proceeds of the sale of motorcycles (19 trđ).
h/for activities for the rent, furniture, machinery, equipment, vehicles, etc. tax revenue is the entire proceeds from this activity. Side cases for foreign tax, tax revenue is the entire amount of the rent party to pay yet except for expenses, including tax money.
In the case of money for rent, many, many years (in any form), tax revenue is the full amount has been collected.
Basis as a service to other establishments or household rental rent to rent back is only entitled to wear the Red from this service, apply currency according to brokerage operations.
I/for the lottery and other lotteries types is the real revenue earning ticket sales, sale of cards (the revenue according to the ticket price, price tag (-) minus commissions paid to travel agents, to sell the card if available).
k/for business Golf (golf) tax revenue as proceeds of sale of membership cards, sell tickets to play golf, exercise proceeds, tool rental, golf accessories and other revenues. Business activities other services associated with the business of golf as business hotels, dining, travel and. tax revenues are determined by each activity.
Sale of membership cards are determined by the actual card number (=) sold (including the card sold in Vietnam and overseas sales) multiply (x) with the sale price indicated on the card.
l/revenue for the operation of the ship agent's entire proceeds from this activity, minus (-) the expenses for contract media owners such as: port fee, Portage, quarantine of goods ... (if you have a valid voucher).
m/for advertising activity tax revenue is the entire proceeds from advertising activities: advertising on radio, television, books, newspapers, put to sea or advertising icons, advertising and other forms of advertising.
The ad service basis if signed with other institutions such as radio, television, books, newspapers, ... make a part of advertising services, the revenue was transferred to other establishments perform ad (determined by the contract and the fact of payment) are deducted in the sales tax calculation base of advertising activities. Activities such as: draw the sea, making the electronic Panel, made up of the management program ad form reports etc. because the basis of DIY or outsource is not advertising costs be reduced except in advertising revenues.
Advertising services-making facility if the advertising services contract, then signed the contract for transfer of other establishments perform the entire ad service just enjoy commissions from services, and application of tax collectors by brokerage activities.
9.-tax revenue for some specified as follows: a/business base case used goods, materials, equipment ... to Exchange, the payment of the debt, for the internal activities, offering others including offering clients in all forms of marketing, advertising , must calculate and submit sales tax. Sales tax calculation is determined according to the sale price of the item of the same type, same time.
b/construction activities do pay sales tax, the sales tax is the value of public works or construction projects.
Tree planting activities private, perennial care during construction before turning to business does not have to pay tax revenues.
10/base business revenues in foreign currency lodging tax in foreign currency or in the currency Vietnam. If filed by the Vietnam currency to exchange rates by the State Bank of Vietnam announced at the time of the tax calculation. If filed in foreign currency payable in foreign currency conversions.
Based on the sales tax schedule was revised, additional attached to the revised law, the addition of a number of articles of the law on turnover tax and the provisions of article 4 of Decree No. 95/CP of the Government regulations on the application of sales tax. The Ministry of Finance shall guide the application of sales tax rates for each of the trades, business activities are as follows: 1.-business establishments operating in many professions, taxable sales tax sales tax different according to the tariff for each industry. If no separate accounting basis are revenues for each industry the highest tax rate shall apply for the business industry.
2.-production base medium items taxable under the branches, just taxable according, if the tax rate according to the lower tax rate application according to industry, the applied tax rate according to the use.
Example: manufacturing plastic toys, plastic industry tax is 4% the production of children's toys 0.5%, 0.5% tax rate applies to children's toys made of plastic.
3-base extraction, the direct production of mining product is used or manufactured to produce other products then apply tax by industry or product manufactured, tax revenue is the sale of the final product.
Example:-iron ore mining facilities used iron ore brought in training, production of steel products, apply taxes according to metallurgical operations for manufacturing steel products.
-Fibre and fabric manufacturing facility produces fiber used as raw materials in production of cloth, not tax revenue of the fiber fabric production, the turnover tax charged on the sale of the fabric according to the tariff of textile fabric.
Mining apply sales tax calculated on the mining activities sale of local stone and stone products the size by direct extraction facility, crushed. If the facility that produced the stone paving, stone to ga-ni-Bowl, apply taxes produced building materials for the manufacture of this product.
4.-production and Assembly of electronic products, the tariff of 8%.
Private:-manufacturing and Assembly of machinery specialized electronic equipment, computers 4% sales tax included:-the production and Assembly of electronic equipment (telephone, broadcasting, reception) for telephony, radio-telegraphy radio and television.
-Assemble the radar equipment.
-Produce, assemble the specialized electronics control system signal lamp, alarm sirens, traffic, fire protection systems, fire.
-Manufacture and Assembly of electronic equipment for installation in operating the production facilities or in the machinery, equipment, means of transport.
-Manufacture and Assembly of electronic equipment specialized researchers, medical testing.
-Production and Assembly of computers and printers attached to a computer.
The case of the production of specialized electronic devices in sync with the enclosed electronic products. Example: the receiver, played with Sonic, micờrô ... then sync devices attached are applied the same tax rate of 4%.
In addition to specialized electronic products listed above, the production and Assembly of electronic products such as: television, Radio, cassette, viđiô head, audio, speakers, microphones, telephones, pagers, etc. the tax of 8%.
5.-production of power cables, cable, optical cable and the metal wires of the kind the tax of 4%.
6.-production of electrical products, including electric fans, washing machines, air conditioners have electronic controls Division applicable tariff of mechanical products.
Manufacturing-Assembly of the product: tags, weight, (except electronic), safes, motorcycles, sewing machines, civil products of aluminum, enameled iron sheet metal roofing, zinc coated, Tin, bucket, hot ton tax 2% (5-section I tariffs).
7.-basic chemicals production tax of 1%, the basic chemicals are identified by category of the Ministry of heavy industry (now the Ministry of industry).
The production of the drugs kill the rats, cockroaches, flies, mosquitoes (including divisions except mosquitoes) 0.5% tax rate applies.
8.-production of building materials, the tariff 4%:-concrete Mortar mortar types including structured cement and have the adhesive such as bitumen, etc.. used in the construction of buildings, roads, bridges ... or to the production of prefabricated concrete structures.
-Cement manufacturing tariff is applied for according to standard Vietnam cement grades, including cement producers from bast ke import or purchase of other production facilities.
9.-production tax rate 6% (13-section I) applicable to alcohol for medical and industrial use (defined according to product characteristics or the economic contracts and sales invoice). Alcoholic foods to produce alcohol must submit the special consumption tax; the case does not determine what type of alcohol is then applied to the special consumption tax.
10.-produced ice for fishing 2% tax rate is determined by the economic contracts and invoices of sales, sold to the mining facilities caught fisheries to take into the chilled, preserved seafood. Case basis sells ice manufacturing ice for many different consumer object not identified separately for ice fishery shall apply 6% tax on gross sales.
11.-yarn production, weaving, cotton.
Synthetic fibres applied tax rate of 4% is fibers are manufactured from synthetic fiber or synthetic fiber blends with cotton, natural fiber.
12.-production of music tapes, videotapes, optical discs recorded programs to apply the tax rate of 1% for the product due to the direct base construction program, the Organization recorded, recorded on the music tapes, videotapes, optical discs to publish under license published by the cultural industry.
The operation of the service in the tape, to tape the tape had the program the tax of 8%.
13.-cotton production, sanitary health tax of 1% includes the type of cotton, bandages, medical tape, tape the toilet for women, is the governing body of the medical product or agency determines eligible medical hygiene.
14.-The agricultural production base has the processing of agricultural products must pay sales tax according to tax the industry, product processing: processing of rubber from latex LaTeX latex to dry, Eastern countries tariff 4%, processed coffee, cashews, tea 6% 4% ...
Agricultural production is not subject to tax on agricultural land use, sales of agricultural products (crop, livestock), including farming, fish fry, remove nested drop the tax of 2%. Separately, the trees just like the tax by 1%.
Soil cultivators, plough agriculture tax of 2%.
15.-activities tax 6% regardless of profession, taking public goods.
Business establishments brought raw materials for other basis of processing into goods the product base put work must pay tax according to the tax revenue of the industry sales; If the basis of selling these items for foreign (export) sales tax under the export business is 1% of the export earnings.
16.-inner city passenger transport by bus a 1% tax applies both for the case of transport on the routes from the inner city to the neighboring region.
Example: From Hanoi to HA Dong town; From Ho Chi Minh City to bien Hoa, applicable bus transportation fares inner city state regulation.
Urban passenger transport, by taxi, airport blue etc. the tax is 4% of the passenger.
17.-commercial business tax: a/Selling items below list the items the tax by 1% (point 1, section IV-tariff revenue): food: rice, rice-, corn, sweet potato, tapioca and food is over processed like vermicelli, noodle wheat ...-fresh food and fresh vegetables.
-The type of supplies, production materials including: fuel (excluding petrol), gas, burning oils, lubricants, coal types (including the processing of coal into coal cinder, grasp the hive for sale), fabric vertical blinds, awning fabric, yarn, cotton fiber.
-Means of transport: boats, boats, car transport, car to car, passenger car, agro-industrial, forklift, cranes, goods push (not including bicycle, motorcycle, car types from 24 seats).
-Machinery, equipment and production type such as: types of machine tools, the motivation, the sync devices and removable devices ... electrical wire, cable and other types of fishing nets, production tools.
-Sale of spare parts and machinery, equipment, transport means, (not including parts of consumer products such as: bicycles, motorcycles, watches, cameras, ...).
-Sale of spare parts and machinery, equipment, transport means, (not including parts of consumer products such as: bicycles, motorcycles, watches, cameras, ...).
-Sold (issued) books, newspapers, movies (the kind that has turned into a film, coated to Passport).
b/business to business selling items not identified as machinery, equipment, raw materials for the production of goods or the regular tax of 2%.
Example: Selling items below the tax 2%:-pressed plywood, wooden and civil to other materials, glass, mirror, paint, colors, food, wooden doors, plastic doors, aluminum frame glass doors and interior installations including air-conditioning, heater, bathtub, sanitary equipment etc.
-Electrical, electronic, mechanical, including consumer telephones, pagers, hand-held drills, sewing machines, water pumps under 10m3/hour, transformers, voltage under 15A, wires, switches, sockets and other electrical appliances, knives, scissors, pliers, hammers, mechanical repair completes, normal power.
c/shipment business tax according to the tax group item sales, if not identified groups of business shall apply a 2% sales tax on all sales to the shipment.
d/The hotel, the restaurant has held sold goods, souvenirs, if private sales are accounting, tax is applied according to the trading business.
18.-trading gold, silver, precious stones applied tariff is as follows: a/business buy, sell pure tax business operations. The case of the DIY business establishments such as soy sauce, cut, hit often, rings cut into yellow gold into small pieces for sale ... sale price is still calculated according to the price of gold be considered commercial business activities.
b/base business gold, silver has the works: get gold silver, weight map processing gold for customers, gold, silver, precious stones into jewelry, art tax according to each operation.
19.-catering business tax rate is 6%. Private dining, specialty tax rate of 10% applies to:-the restaurant equipment, good facilities.
-Processing, selling the restaurant dishes that rare, precious or follow the menu.
20/the tax rate applicable to a number of services as follows: a/remittances service brokerage Commission, the tax at 6%, the same professional service tax of the banking institutions, credit, financial company.
b/the activity looks to keep cars, motorcycles, bicycles, electronic games business and other games such as table tennis table rental, snooker, table football game, ticket sales activity collect money on the entertainment tax 4% (other services).
c/transport service activities such as: introduction to rental owners or means of transport, the introduction of shipping source for media owners, including doing the service paperwork, test monitoring of the transport of goods, etc. for shippers; If individual organizations do this service only affects the service commissions, while the media rental expenses, Portage shipping by shippers or shippers household expenditure are identified in the contract, then economic units do this service must pay sales tax according to the tax rate of 15% on sales or Commission is entitled from that service group (15 h-VI-tariffs revenue) irrespective of the name of the contract is the dealer, broker or transportation services.
The case of the unit signed a contract with shippers make transport of goods according to the method of package (package), the contract does not specify the expenses and commissions; application of computer in sales tax according to the tax rate of 2% as transport activities, tax revenue is total revenue received (regardless of transport units or outsourced).
d/the postal service activities tax of 6%.
In the postal sector establishments have other activities, applied sales tax according to each operation (if separate accounting of revenues) as follows:-release the book, report the tax by operation of release.
-The business of selling equipment such as telephones, pagers ... the tax according to the commercial business activities.
-Tv operation press the tax according to the activity, publish newspapers.
Other facilities not under the postal sector have active phone service, faxes etc. apply the 15% export tax on sales is entitled: commissions or revenues increased compared with the rates charged for the postal sector (such as active agents). If there is private accounting revenue section entitled, as prescribed in the postal services sector performance lease, 6% calculated on the entire proceeds of the client.
e/horse racing business tax rate of 20% applies to the sale of tickets for select horse racing (not revenue minus the bonus payment and other costs), 4% tax rate applicable to the sale of tickets for people to watch.
g/for rent wedding clothes and other belongings to apply the tax rate of 10%.
h/salvage operation rescue (survey, salvage, lai pimp on the banks of) the tax of 2%.
I/Navigator activities, hybrid ship into port out pimp the tax by 30%.
The tax administration is responsible for the direction, instruction, check the application of the tax for business establishments according to the tariffs and rules on this. The unknown case the tax would, General Department of taxation reported to the Ministry of finance guidelines.
C/REGISTRATION STATEMENTS FILED TURNOVER TAX.
According to the regulation article 10 and article 11 of law sales tax, every business must do: 1. Declaration for tax registration: a/business base are made up and file declarations for tax registration (prescribed form) to send to the local tax authority when it granted a business license or the investment license , the case has not yet been licensed but actually running the business, must enumerate registered at the start of trading.
The base has registered for tax declaration, if there are changes to business, merger, dissolution, organization branch shops etc. additional registration with the tax authorities about changes in business organization. Branch establishments, shops and. .. belongs to the Corporation, the company must register for tax declaration with the local tax authorities where the branches, shop ...
Active base building to register for tax declaration with the local tax authority headquarters, at the same time tax declaration must be registered with the local tax authorities where the construction works.
The production facility in a local (provinces and cities under central), but has its headquarters, Office sales procedures in one other local establishments have to declare tax revenue producing activities in local production facilities.
Examples: milk factory in Dong Nai (produced in Dong nai), have a sales office in Ho Chi Minh City, the factory must declare tax in in milk production; If the plant has the Organization branch, direct store selling local products (province, City) others stores, branch must register, Declaration filed turnover tax under business to business activity at the place of sale.
b/These business establishments, businesses want to apply sales tax on the difference between the sales price with the purchase price, the facility must submit proposed the tax agency management to review the decision.
Commercial businesses have enough the following conditions apply and submit sales tax on the difference between the sales price purchase prices:-Buy, sell the goods, invoice vouchers (invoices, proof of use is legitimate, valid type). The purchase price, sell the invoice vouchers in accordance with the actual price.
-Proper accounting records, determine mode of the difference between the selling price with the purchase price of the goods.
-Registered with the tax authorities the tax revenue on the difference and be the tax authorities check to confirm eligibility.
The tax authorities upon receipt of proposal of tax base, is responsible for checking, timely notification to the basis of the applied or not applied tax on the difference (reason not be applied).
The base is only done on the tax disparity when tax authorities check the review of eligibility and notify the application.
c/the base implementation of security mechanism for the collective, individual business (irrespective of the trades, stock form), the collective, the individual receiving the securities are directly registered, tax declaration with the tax agency revenue management unit; If the received package, take care of the costs and income, collective, individuals receive the securities have to file the taxes and other revenue. Stock delivery basis must pay tax for the turnover of share recipient must submit to the base. Tax authorities identify thuể tax revenue tools suit every form of securities.
Declaration for tax registration and tax registration application on the disparity, the basis must establish two tax offices send check, confirm (a return of business establishments, a tax agency save track made).
2. to declare the turnover tax: according to the provisions of article 5 of Decree 95/CP of the production base, the business must have the responsibility to declare tax revenues with local tax authorities where the production facilities, business.
The business must establish a monthly sales tax sent to the tax authorities according to the form prescribed. Time to send declarations of June at the latest to day 5 of the next month. Building base irrespective of the prime contractor or subcontractors, shall be declared to the local tax authority where commercial construction works or projects by construction establishments (including cases not pay tax revenues still have to send declaration sheets).
The tax authorities have a responsibility to check, tax notice tax of last month sent to tax payers before July 10 of next month.
In cases where business establishments not sent sheets of tax declaration, or incomplete declaration, no proper regulations, the tax authorities have the right to base on the business situation of the base and the census to determine revenues and taxes payable, notice to the base implementation. If the business does not agree with the level of revenue and tax fixed by the tax authorities, have the right to complain, but while still pending to be paid according to the tariff level has been determined.
For base construction activity is subcontractors, subject to paying sales tax construction activities (by the main contractor was filed), the tax authorities must examine the specific confirmation, not sales tax revenue to the basis that tax base.
For those households, small business tax imposed on revenue securities, tax authorities based on the tax rates of the stocks out tax notices to individual business households make.
Specifies the tax declaration for some cases such as the following: a/business base in the commercial sector have fixed locations offering goods for sale in addition to registered local business to tax declaration before cargo shipment operations follower, part shipment tax revenues have not filed their tax selling out.
b/business establishments, commercial export of goods from the warehouse to the store to sell, transfer of the goods from the store to the other stores in the internal unit, if there are enough valid documents identify every rotation is not internal revenue tax for internal transfer.
Each commercial business facility only applies computer and pay tax revenue to business operations in one of two forms: tax on revenue or calculated on the difference between the sales price with the purchase price. Basis according to this regulation is subject to registered tax declaration and tax revenues with the local tax authorities. Businesses pay tax on the difference calculated offset taxable difference between groups of rows have the same tax rate and are compensated the difference in between, in the same quarter.
The facility has applied computer sales tax on the difference if violating the conditions, depending on the extent of violations, tax authorities for tax violations processing at the same time decide or announce the suspension of the application of calculated sales tax on the difference since, discovered the base does not perform properly regulated conditions. The penalty of perjury, the tax base for illegally violating the regulations on the tax on the difference must be charged on sales.
b/base business export purchase of production facilities, export, if the Trust sold in water, in addition to filing sales tax according to tax business commercial, also must pay a sales tax or a special consumption tax as the tax sectors, manufacturing items (instead of production facilities to be paid).
The facility must submit a specific statement of the goods purchased for export but domestic sale, the purchase price and the sale price as a base tax, if not to determine the purchase price to calculate the tax on production, must be calculated on the selling price.
Example: base buy clothes for export, but selling in the country.
-The purchase price of the production base of 60,000 VND/Ministry.
-Selling price is 80,000 VND/Ministry.
Sales tax payable Base: 4000 d/. Where: + filed under apparel industry tax 4% is: 60,000 x 4% = 2400 b.
+ Filed under business sales tax 2% x 2% = 80,000 is 1,600.
If not determine purchase price sales tax payable on the sale price included is: 80000 VND x (4% + 2%) = 4,800 t. c/manufacturing shop, accounting branch depend production base, directly consumed by products production base, when tax calculation and tax revenue to pay for the goods sold in the store , branch, base to calculate sales tax according to the tax rate of the manufacturing sector on the actual sales revenue at the store, but the branch tax revenue that affiliates, the store has filed under business to business activity at the place of sale. If branch, the store has the business of selling other goods, the base must be declared separately and not be deducted must file in production facilities.
Establishments must present to the tax authorities the tax voucher attached to the table on every sale transfer production facilities at the branch stores.
Example: Msg A company in bien Hoa, a consumption of MSG in some provinces.
-1995 sales export company 1,000 tons of MSG.
Where: + Export sale at production facilities in bien Hoa, 600 tons with price trđ/10 ton 6,000 sales tr. + for the shops in 400 tons, the reality in the year the store sold 360 tons, the selling price of 11 tr d/T, there is turnover tax was VND tr 3960 according to sales operations at the local level.
3969trđ x 2% = 79.2 trđ 95 year sales tax the company must file are defined:-tax revenue: trđ 6,000 + trđ = 9,960 3,960 trđ-sales tax payable: 9,960 trđ x 6% (tax rate SX) = trđ Minus 597.6 number filed at the locality where the sale, also payable at bien Hoa in 1,995,597.6 trđ-trđ = 518.4 79.2 trđ production facilities when the shipment from the place of production to the door portfolio, branch sales invoicing must specify the price of production. When monthly sales tax declaration, if the production base has not offers lists, vouchers as a base determined revenue and tax number of the transfer was filed to sell at the store, branch, then the tax payable calculated on the basis of the whole row has been to the store According to the branch, the sales price at the place of production facilities.
The stores, the branch must register for VAT, tax revenue in tax authorities where the sale and the purchase invoice must be used at the local tax authorities where the sale.
The rules of tax declaration for the goods due to the transfer of production facilities to sell at the store, accounting branch depends on this, do not apply to:-store independent business accounting with manufacturing facilities, shops have adopted stock trading mode and shops selling the items subject to special consumption tax.
d/The lottery company is responsible for paying the tax instead of the lottery ticket sales agent before payment of commissions paid to agents.
e/Vietnam's tax payers get the vendor of goods for foreign parties; go rent machinery, equipment, transport means of foreign countries; perform services for foreign objects do not directly tax registration in Vietnam, the Vietnam's tax payers must register, Declaration, filing sales tax and income tax changes for foreign parties before payment pay sales, rentals, service money , for the foreign. Sales tax amount payable is determined by the tax change each trades, operations, private income taxes pursuant to the tax provisions, the Ministry of finance will identify specific submission rate calculated on the turnover for each of the trades.
In the case of performing the aforementioned contract, the basis of the sales receipt, go rent the media etc. must send a copy of the contract for the tax authorities; If the facility doesn't do deduct taxes filed rather revenue charged abroad, the basis to file instead of the.
f/foreign airlines if any Office or branch office in the Vietnam representative office or branch responsible for registration, tax declaration for his airline.
3-the tax deadlines tax authorities directly tax base management based on the characteristics of business situation, the average tax amount payable on a monthly basis to the provisions on tax payable periodically. For these facilities have large monthly tax may assign tax filing day, periodically 5, 10, 15 times a day. Based on the revenues generated each, the unit made the tax paid to the State Treasury.
Every month based on the number of taxes filed and fixed date filed notice of tax, business tax payer implementation into the State Treasury; in places where the Treasury has not yet held tax revenues, then score the tax authorities and tax payer revenues directly into the State Treasury according to stipulations. The base in May had temporarily paid periodically fixed by the tax authorities, is responsible for a lack of tax sufficient, (reportedly), if the surplus was deducted tax of the next month. In all cases, the time limit for payment of the month before the latest not so on January 15 of the next month. If tax revenues last month after the 15th of the following month, the penalty or slow submission.
-Shipment basis to declare the turnover tax and income tax for each shipment with the local tax authorities before shipping.
To ensure that the tax be uniform in each local, lost against price, tax authorities or district level organizations should grasp the fluctuations in the market price the items that the shipment activities often buy and sell locally, to notify the stations, the tax base is to define tax rates for wholesale operations.
-Fixed business premises, go buy the raw materials, the purchase of goods, carriage of goods basis goes on sale or Exchange with other establishments, transport within the facility must have sufficient invoices, vouchers as specified invoice and voucher regimes with regard to goods traffic on the road. If there is no invoice, voucher according to the regulations, the facility must pay tax according to shipment activities, imports have to access the import tax revenues.
4/in all cases, the tax authorities collect taxes to the level of tax receipts or vouchers to confirm the tax collected for taxpayers with receipts, certificate from the Ministry of finance by the tax issue.
The tax authorities have the responsibility to guide and inspect the base business books regimes, accounting records and invoice vouchers used as prescribed; organizing the management of tax revenue in the correct mode and business processes.
5/pursuant to article 10, Decree No. 95/CP of the Government guidelines article 14 of law sales tax on small business tax households according to turnover stock mode each period.
Small business households was adopt tax regime counted on stock sales as households have average revenue level, regulations for each industry are as follows:-under the industry: 8 million-the construction industry under: 8 million-transport Industry under: 6 million-commercial business under : 8 million-dining business under: 6 million-business services: 4 million of these households in small business if done well the sale have vouchers, invoices and accounting records applied computer and pay tax according to the Declaration.
The tax payers in the base according to the Declaration, if not complete the purchase, sale, invoice, no accounting records regulation, the tax authorities based on the business situation to determine the revenue and tax.
D/TAX RELIEF-TAX FREE pursuant to article 18 of law sales tax and the provisions of article 11 of Decree 96/CP of the Government, the Ministry of Finance regulates procedure and the Authority considers tax reduction as follows: i. the CASE of EXEMPTION, TAX RELIEF for the tax exemption: 1, the elderly, the disabled , small business people, errands, extra, extra economic families ... have monthly income of just the equivalent of the minimum wage under the current rules is 120,000 VND/month (determined by income revenue minus (-) costs).
Business households was tax revenue securities regimes according to article 14 of law sales tax, if the actual number of days in the month of business under the tax exemption for 5 on sales of that month; If the actual number of days in the business, under a 15-day, 50% reduction of the payable tax amount, which, if the business from 15 days or more must submit sufficient securities tax rates.
The tax Bureau is responsible for coordinating with the Council tax consultancy Commune, Ward test households produce business income subject to tax exemption for low and small business tax households according to how the market collect mode, realistic business tax exemption or reduction of taxes under the provisions of this article.
The total tax declaration procedure instructions, check the tax exemptions for households business under the rules.
2.-business establishments have difficulties due to natural disasters and accidents, unexpected enemy was considering reducing tax revenue. Reduced levels are calculated according to the percentage (%) of damage to property, but must not exceed 50% of the turnover tax payable and the amount of tax be reduced by not more than 30% of the value of the damaged property, tax reduction period not exceeding 12 months from the month following turnover may damage occurs.
Example: a facility was fire in January 1996-the total value of damage 150trđ is determined by 60% of the total value of the property, from March 1996, marks the next restore production base, sales tax revenues are from March 1996 to the end of February, 1997 (12 months) and the rate is reduced in this case is the maximum level of 50% (not reduced according to the extent of going damage 60%), but if the tax amount is reduced by 50% of the big 12 exceeded 30% of the value of the damaged property, the maximum reduction level by 30% damage; in this case the number is reducing the maximum 150trđ x 30% = 45 trđ.
3.-the cases are falling under paragraph 3 to article 18 as follows: a/business base of operations in the mountains, Islands, exploiting fisheries in off-shore waters, scientific research, new technology applications, testing new technology, if trouble arises, hole, are considering reducing tax revenues in the first time. Tax number are considering decreasing each year (by calendar year) corresponding to the number of holes, but must not exceed 50% of the tax payable and tax reduction period not exceeding 2 years (24 months).
The basis of fisheries exploitation in offshore waters is the basis of authority to protect the aquatic resources permit exploitation of fisheries activities in off-shore waters, according to the Ministry of finance circular-fisheries the number 199-TT/LB on 31/12/1993 guidelines decision No. 400/TTg dated 7 August 1993 by the Prime Minister about the tax free for tapping hydro in off-shore waters.
To review tax base basis please tax breaks must clearly define the loss amounts for each case, example: A manufacturing base in 1995 installed A test run of new technology, settlement of 1995 sales tax payable 500 trđ, 700 trđ holes after having dealt with by other measures 600 trđ-hole in which determined by running an assembly line should new technologies be hole 300 trđ, are considering reducing tax revenue in 1995 of 250 trđ, respectively 50% of the turnover tax payable, the case of holes due to this cause is defined as 100 trđ (instead of trđ 300), the base was considering reducing 100 trđ. Until 1996, the base is still the hole due to this difficulty, is considering reducing the sales tax for 1996.
b.-production base items need to replace imports, was considering a 50% reduction in the sales tax, the first time since the product sold is determined enough quality standard regulations and limited time validity of the table listing the alternative goods imports. For items that are under 6 month production cycle, tax reduction period is 1 year (12 months) for items containing production cycle from 6 months or more, tax reduction period is 2 years (24 months).
Example: A factory producing electric lamps of high pressure, from 1995, on 1/1/1996 the Ministry of planning and investment announced this item category are encouraged to produce import substitute. Through product quality control, management of product quality measurement confirmation from 1/4/1996 bulb products due to industrial production of Vietnam quality standard, the base will be considered 50% sales tax this 12 months from 1 April 1996. The case to 1/2/1997 the Ministry of planning and investment announced the new category in the category no longer items, the tax reduction is also only done through the end of January 1997.
c.-production basis (in the trades specified in section I-the schedule of sales tax) newly established since 1993, difficulty of manufacture, product consumption, about repaying the loan investment, was considering the reduction of 50% sales tax during the period of one year (12 months) since may have revenue; These facilities were difficult, the next year in a tax reduction if the loss was considering tax breaks next, consider tax reduction corresponding to the number of holes after having dealt with by other measures but must not exceed 50% of the tax and the total time to be considering reducing taxes not to exceed 2 years (24 months) own production base, in mountainous areas, Islands not exceeding 3 years (36 months), the first reduction since March.
The new production facility case has other business activities, when considering the reduction of sales tax under this provision, only considering reducing sales tax manufacturing operations.
The new production facility is the new facility construction, licensed production, direct tax declaration registration revenue with tax authorities. The facilities have established before this present divided, split, merged, renamed, or have investment in renovating production expansion, additional production, product changes and the base was established in the case of acquisition of production facilities had the capital contribution or participation by the property machinery, equipment, factory facilities have established previously not subject to be considering reducing sales tax under this provision.
4.-business establishments if the same time is considering reducing sales tax according to the different cases according to the law on turnover tax, the law encourages domestic investment and the other provisions shall only be reduced by a tax case.
Example: A cloth textile company is newly established basis from April 1, 1996, the company was also the basis of the application of new production technology. If your company is eligible to be considering tax relief under the provisions of the new production facilities shall not consider reducing the sales tax under other circumstances.
II. procedure for the REVIEW of RECORDS, SALES TAX REBATE application for reduction of tax base sent to the tax authorities are defined as follows: 1. The case of difficulties due to natural disasters, accidents, unexpected enemy Please reduce turnover tax pursuant Paragraph 2 article 11 of Decree 96/CP of the Government , profile:-single (dispatch) Please reduce the unit's tax disaster stating the situation occurring damage, please reduce the tax amount and time.
-Minutes of the test determines the cause and extent of damage certified by the responsible agency (police agencies, the Council identified damage or financial agencies manage capital facility).
-Settlement reports, or other documents as a base identify capital assets before the base makes them unable to happen damage.
-Report on the tax agency's inspection unit management clearly defines the grounds related to the review of the tax reduction.
The case is not in the jurisdiction of the tax base management agencies, tax authorities must consider the opinion in writing, submit the record of the unit onto the superior tax authorities to consider settling.
2.-The case of difficulties please tax relief under the provisions of Clause 3a, article 11 of Decree 96/CP of the Government, records including:-single or dispatch Please reduce the tax basis of the stated case and the tax number please reduce.
-A financial settlement in a tax reduction, please enclose a check of tax authorities to determine the number of holes and the cause of the hole.
The case of new technology applications, testing new technology must be certified by the State administration on technology application, or test new technology.
The case is not in the jurisdiction of the tax base management agencies, tax authorities must consider the opinion in writing, submit the record of the unit onto the superior tax authorities to consider settling.
3.-The case of alternative production imported goods under the provisions of Clause 3b article 11 of Decree 96/CP of the Government, records include:-the application of the tax basis, stating the items produced in the category alternative production encouraged imports, and tax time please reduce.
-Confirmation of the State administration of quality standard products ensure the Vietnam standards or replaced the goods enter clearly periods are recognized. The tax authorities responsible unit managers check against the list of items needed to encourage import substitution production to solve under the authority or the tax authorities issued recommendations on the consideration and resolution.
4.-for new production facilities please tax relief under the provisions of Clause 3 c, article 11 of Decree 96/CP of the Government, records include:-the application of the tax basis, stating the reason, time and number of tax reduction, please.
-Decided to establish production facilities, business registration certificate clearly define industry, product. Case of households produce new just business license clearly define industry production items.
-The documents proving the fact new shopping building, machinery and equipment (or rent) of factory manufacturing (General Declaration of value investment property in sets, the type of property), factory rental contract (if any), certified check of the tax authorities to manage the unit.
For the State enterprises, companies, enterprises (except households produce small) must have investment, settlement or a new Commission construction shifted to production.
-Production variant of the year please specify tax revenue and the number of sales tax payable.
-A registered certified signed tax declaration to the tax authorities.
The tax authorities responsible unit managers check record and the fact clearly define the start time, if sales of production units subject to new production facilities planned to consider the reduction of sales tax under the law, review the decision for tax relief under the jurisdiction, or to submit a proposal in writing your profile up on the level of tax authorities to consider settling.
5-about the application for remission of the tax agency send basis according to the rules above must be a tuning have full administrative procedures of the text. Case profile contains the text copy: If a text is copy vouchers by the Agency, other units, such as the decision to establish the business, business license ... to seal the certified copy; If the text is copy of facilities such as: a settlement or other related documents, to seal the copy submitted by the facility.
III. JURISDICTION TO REVIEW TAX BREAKS AND REDUCED PROCEDURE SEQUENCE.
1-jurisdiction to consider reducing the sales tax regulations as follows: a the tax Bureau Chief) are considering tax exemptions for low income households and the households in small business tax payers securities business in the case of tax breaks, tax exemption prescribed in point 1 Of section I-the cases are exempt, the tax reduction.
b) Director of taxation are gaining and decided to reduce the tax for business establishments in the case of tax reduction under the law with reducing tax revenue for each case under 50 million and tax reduction period not exceeding one year (12 months).
c) General Director of the tax Bureau is considering and deciding on tax relief for the manufacturing business, in the case of tax reduction under the law with reducing tax revenue for each case under 200 million and tax reduction period not exceeding one year (12 months).
d) Minister of finance review the decision for tax relief under the law in cases not under the control of the tax agencies tax levels.
General Director of taxation and Director of tax in the case of reviews, decided to reduce the tax for a new manufacturing facility, producing items that replace imports is based on the number of tax reduced according to determine the jurisdiction to decide.
Basis to review tax exemptions under the law, there have been tax reduction application sends tax authorities, in time the review authority has not yet been decided for tax reduction, the base case loss, tax authorities consider facility management and the facility was temporarily late tax corresponding to 70% of the hole but must not exceed the recommended review tax reduction.
2.-the order procedure for tax reduction.
In all cases the basis suggested considering tax relief must file tax rebate as prescribed please send the tax agency to manage the unit. Upon receipt of the application for remission of the tax agency, facility management unit must check received clearly define: there is in the case of non-statutory tax reduction, profile set has true enough as a rule or lack or mistake, against the actual profile , clearly define the figures, the situation related to the tax breaks.
If the unit's records are incomplete or have errors to require additional control units in a timely manner.
The case of the proposal of no basis in case of tax breaks under the law, the tax authorities must respond in writing to the unit knows why not consider reducing taxes.
-The case of consider the tax breaks are not under the control of the tax base management agencies, tax authorities after checking, reviewing records and the actual situation of the basis of the written comments submitted to tax authorities granted on the address, the tax authorities must send the entire unit's records were checked the same text reviewed recommendations of the tax authorities at the same time notify in writing to the unit know records has moved to. Profile send a superior tax offices have to specify the list of records.
-The case for tax relief, the Agency decided to reduce the tax reduction decision issued to send tax reduction facility and associated units made.
Based on the decision to be free, tax breaks, tax authorities made with base settlement of sales tax payable and determine profit results and other budget revenues.
-The agency review the decision to reduce the tax is responsible for records management, retention tax breaks in the correct mode.
According to article 19 of law sales tax, the sales tax Law violations dealt with as follows: 1. the sanctioned administrative offense of tax with respect to the violation: a) individual organizations is not done correctly the provisions on disclosure, registration, establishment of bookkeeping, using and storing documents invoice, in accordance to article 10 and article 11 of the law on turnover tax, the mild or severe depending on the extent to which were warned or fined.
b) Organization, individual acts of perjury tax evasion shall in addition pay enough tax revenue according to law, while fined from one to three times the number of fraudulent tax:-first offense: Fine;
-The second infringement: penalty twice;
-The third infringement: Penalty of three times;
In case of violation there aggravating then a first offense may also be fined between two and three times the number of pirated time tax;
c) Organization, individuals filed taxes or fines for delay recorded in the tax notice, the tax receiver or command decided to sanction, in addition to tax fully or statutory fines, each day also fined 0.2% slow submission (two per thousand) the amount filed slowly;
Determine the amount of time to calculate a penalty slowly filed is:-About sales tax payable of the previous month if the 15th next month basis have not filed sufficiently on the State Treasury.
-About the forfeit is the time fixed by the tax authorities notice a fine or tax collectors, fine command.
d) Organization, personal tax filing delays, forfeit shall be handled as follows:-Extract money organization, individuals at the Bank to pay tax, fine. The Bank is responsible pursuant to the notice, order or sanction on taxes collected by the tax authorities send to implement CITES member businesses to file taxes, fines on the State budget.
-Custody of goods, exhibits to ensure enough tax money, fine;
-Levy of property under the provisions of the law to ensure that the amount of tax, penalties, is still missing.
The tax agency issued when the business establishments in violation of the law on turnover tax, must check the identified violations, degree, cause offense; the responsibility of the organization or individual for each violation, setting records as prescribed. Based on the regulation on sanction regimes administrative violations in the field of taxation, the tax agency decides to treat or report to the superior tax review, decides to treat according to the authority.
2.-blind criminal liability in the case of personal tax evasion in large quantities or dealt with the administration under the provisions of point 1 above but also in violation of tax evasion in large quantities or guilty of other serious cases being prejudice criminal liability is stipulated in article 169 of the criminal code.
G.-CLAIMS AND TIME LIMITS.
1. The right to complain about taxes.
According to article 24 and article 25 sales tax laws, organizations, individuals have the right to complain about the enforcement of the law on turnover tax not properly with individual organizations.
A complaint must be sent to the tax authorities issued the order currency or processing decisions within 30 days from the date of the order or the decision process. While pending, organization, individual complaints still must submit sufficient and timely tax amount, the fines were announced.
If held, the individual complaint does not agree with the decision of the tax authorities to resolve the complaint, or too time limit of 30 days from the date of filing have not received comments addressed the Organization, individuals have the right to appeal to the tax authorities.
2.-responsibilities and powers of the tax authorities.
Tax authorities granted upon receipt of a complaint about its tax base tax must be reviewed, resolved within 15 days from the date of the application. For complex cases, should verification investigations take a long time, you need to notify the litigant knows, but the latest resolution time nor too 30 days from the date of receipt.
According to the provisions of article 26 and article 27 law on turnover tax, tax authorities received a complaint must be decided with one of the following:-do not change the decision before processing;
-Change the form, extent, measures to handle;
-Cancel the decision process and suspend the disposal;
In the case of tax authorities to change or cancel the decision dealt before, as in the case of processing decision of tax authorities, tax authorities have decided to treat depression must pay taxes, penalties, turnovers and pay compensation for damages (if any) for the base. The time limit for solving not more than 15 days from the date the decision to handle or receive processing decisions of tax authorities.
If the test findings and conclusions be perjury, tax evasion or confused about the tax calculation, fine processing, tax authorities have the responsibility for collection or retrieval of complete tax amount, incorrect calculation of fines within 3 years from the date of the perjury, tax evasion or confused about tax calculation , on the handling of tax penalties.
1/this circular have effective from January 1, 1996, replacing the circular 73A TC/TCT 30/8/1993, circular No. 114 TC, TCT on December 16, 1994 and circular No. 40 TC/TCT on 25/5/1995 of the Ministry of finance guidelines on sales tax.
Guidelines on sales tax in other text contrary to this circular are repealed.
The review of tax cases in 1995 and earlier are resolved according to the previous provisions, the decision to reduce sales tax according to the provisions previously made by the level and timing of tax reduction already decided.
2/General Director of the tax Bureau is responsible for organizing and directing tax industry, check out the instructions the unit perform the correct sales tax Law, Decree No. 96/CP on December 27, 1995 by the Government, "detailing the implementation of the law on turnover tax and the law on amendments and supplements to some articles of the law on turnover tax" and this circular.
In the process if there are difficulties and obstacles, suggest units, agencies timely to reflect on the Finance Ministry to study the additional instructions.