CIRCULAR guiding the implementation of Decree 57-STOCKS in August 1993 detailing the Government's enforcement of tax Laws and the Tax Law Amendment _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ the base income tax Law to be National Assembly VIII through June 30, 1990; Additional amendment of some articles of the law on income taxes to be National Assembly IX through July 6, 1993;
Pursuant to Decree No. 57-stocks on 28 August 1993 detailing the Government's enforcement of tax Laws and the law amending and supplementing a number of articles of the law on income tax;
The Ministry of finance instructed as follows: I-SCOPE of TAX 1-tax payers.
According to article 1 of law, the income tax, individual organizations of economic accounting independently in all economic sectors to benefit immediately from the business activity on the territory of Vietnam are to file income taxes;
The case of dependent accounting units () on enterprises of economic accounting independently, but made a full accounting, identify the revenues, costs, return on the own this unit may be the tax payers;
-The whole industry accounting unit has produced other trading activities in the local tax declaration must then return to the local tax authorities about the taxable income due to different business activities bring about;
-The business units, the units operated by funding State-level career, if there are production and business activities to organize a private accounting results of business activities and income tax;
-Base case applied business leveraging for the collective or the individual in the form of capital delivery, goods ... for recipients and determine the amount to be paid periodically (for example, retail shop for sale Park trade stalls, payable monthly store some money ...) then the recipient must pay turnover tax on the stock , income taxes according to the tax rate of the industry. The funds filed securities is accounted on the income of securities delivered basis to gather on public income as the basis of determining taxable income.
The object does not belong to an income tax: according to article 2 of the law on income tax of the production and business operation is not subject to tax includes:-enterprises established and operated under the law on foreign investment in Vietnam then filed income taxes under the provisions of article 26 of the law on foreign investment in Vietnam.
-Agricultural activities of agricultural cooperatives, corporations, individual producers (farmers) under an agricultural taxable or taxable use of agricultural land.
2-taxable object taxable income: object is the gains from outsourcing operations, manufacturing, construction, transport, agriculture, farm station, food and beverage businesses, service types and other business activities of the organizations and individuals, as defined in article 1 income tax act.
Taxable income includes: the return of the business activity, beyond basic; the return of the rental LOAN; gains in the liquidation, LOAN gains due to the transfer of assets, the transfer of shares; the return on shares; the return of the financial business, joint venture activities in economic links.
II-the TAX BASE income tax calculation base the provisions in article 6 income tax Law is the total annual taxable income and the tax rate.
1-total taxable income in a year.
The total annual taxable income (calculated by calendar year) including the return of taxable business activities, in addition to basic, other income and are defined as follows: taxable income = [revenue-cost validation-external tax taxes] + other income 2-about the turnover for calculation of taxable income revenue to calculate taxable income specified in article 2 of Decree 57-stocks on 28 August 1993 detailing the Government's enforcement of tax Laws and the law amending and supplementing a number of articles of the law on income tax, as the entire sales money, money, money roses , money services and other revenues not excluding a cost of business establishments in the tax period and be determined consistent with characteristics of each profession, business activities, as defined in article 3 of the Decree No. 55-CP dated 28 August 1993 detailing the Government's enforcement of the law on turnover tax and the law on amending and supplementing a number of articles of the law sales tax and your I/B circular 73A TC, TCT on August 30, 1993 Department of finance guidelines on sales tax.
Particularly for products subject to special consumption tax revenue to calculate the taxable income is the sales revenue (including the special consumption tax).
3-more affordable, valid for the calculation of taxable income.
According to the tax law, article 9, article 4 of Decree 57-CP on August 28, 1993, the Government's reasonable cost, valid is defined as follows: a) depreciation of fixed assets: LOAN value depreciation as a base is the real price of purchase plus (+) installation costs transportation, storage (if any).
For the LOAN of the State enterprises, the price is determined to ensure the proper conservation of the current capital regime.
-Basic depreciation Rates: follow the rate specified in the TC 507-GIA CONSTRUCTION & decision on July 22, 1986, and the current rules of the Ministry of finance.

+ Cases enterprises have difficulties in production and business, the LOAN does not use the full capacity of design, business results, the loss of the local tax Bureau was considering for decreased levels of basic depreciation but must ensure principles: reduced levels correspond to the actual capacity of the LOAN not to exceed 50% of the level specified in the TC-507 decisions excessive play hole and not GIA CONSTRUCTION & born in the year.
Handle basic depreciation rate reduction before free proposal, reducing the use of GOVERNMENT EXCESSIVE capital proceeds.
+ Investment business case stores LOAN by borrowing capital, producing effective business, needs to increase the level of basic depreciation to create sources of quick repayment of the loan according to the deed, tax authorities will look at the handling of the proposal to increase the level of basic depreciation of investment property by the loan but must ensure the principle : * must submit sufficient indirect taxes (income, special consumption) annual and capital losses;
* Lack of business due repayment sources after having mobilised the resources themselves have (investment capital construction funds, encourage the development of business ...);
* Quote Levels increase basic depreciation does not exceed the balance to repay the loan and the time the basic depreciation recovered enough not lower loan repayment time according to the debt contract.
On the basis of the above principle, the business must have the full explanation text metrics, having suggested in writing to their local tax Bureau, Ministry of Finance (tax administration) agreement to each particular case in writing. The decision to extract the basic depreciation rate increases implemented when there are five settlement reports.
Fixed assets in all sources of capital depreciation already off but still used, continued LOAN depreciation to reflect true costs, but the level is not higher than the quoted rate specified in the TC 507/GIA CONSTRUCTION & decisions and not be charged to the cost to determine the taxable income.
-The level of the big fix: depreciation depreciation is charged to major repair costs is real valid logical spent about major repair LOAN in States in which large repair + outsource computer according to the actual amount paid under the contract with the contractor;
+ Large repair DIY computer according to the actual costs reasonably incurred.
Specific sectors, private fixed assets major repairs must periodically, can extract before on business expenses deductions about big repair LOAN, but must use the true purpose for the major repair of fixed assets, not used to expand or invest. The level of criticism before the depreciation of major repairs, must not exceed the percentage specified in the TC 507/GIA CONSTRUCTION & decision on July 22, 1986, the Ministry of finance. The local tax Bureau review and decide each case specifically.
b) cost of raw materials, materials, fuels, energy (referred to as cost of materials):-materials calculated for only the cost of materials used are directly related to the production process and formation of taxable income in the tax-calculation period.
-Consumption of materials: the actual consumption is reasonable on the basis of the norms prescribed by the State or the competent authority. The base case does not have the limit based on the actual level of the previous years and aligns with the saving of material to review.
-The price of materials: materials Prices to calculate the cost of supplies is the actual purchase price, cost of transportation, unloading, procurement, fabrication, processing, import tax for imported materials (if any). For inventory supplies be allowed to reassess every time there is a change in price as prescribed. The case materials is calculated according to the actual costs reasonably produce supplies.
-During use, if materials are recovered then the scrap recovered scrap is reduced accounting costs of materials according to the sale price or value reviews when recovered.
-Don't count on the cost of materials and the bonuses for the purchase, exploitation of materials.
-For the business sector, food and drink, worth buying of goods sold is calculated as the cost of supplies on. Private costs of shipping, unloading, acquisition, preservation was not included in the purchase price.
c) salary costs, remuneration: wages, salary costs are calculated on the basis of the number of employees of the base and the salary level, salary allowance (if any) under the current regime tied to production and business results of the facility.
-Employees of the facility including the labor contract, short term, long term, workers engaged in production business generates taxable income in the tax period;
-Enterprises pay wages according to the unit price of products, salary according to revenue or business efficiency is based on the current salary mode in order to determine unit cost of salary: + for products, management of State service price, unit cost of salary by State regulations.
+ For those products or services by the business units built on the basis of the current salary mode.
-All price of salary as the basis to calculate on costs to calculate taxable income must be registered with the direct tax administration agency;
-All expenses salaries outside the regime, in addition to single reviews don't count on reasonable costs to calculate taxable income;

-For the State's economic base (cooperatives, production, private enterprise, individual household, stock company) salary, wages of labor are included in the costs according to the unit cost public money, salary products and according to the contract agreed upon between workers with businesses.
To ensure fairness, rationality, the tax Department, the city may be based on the salary mode of applying for State companies, the situation of prices to calculate the level of wages, the wages for each lines of the provincial people's Committee, the city decided in each specific period.
-The determination of salary costs, the wages are deducted for the calculation of taxable income shall ensure the principle: the rate of growth of wages, the wages are lower than the rate of growth of real income.
-Private household and Business Owners are entitled to the whole of the income due to bring business results after the deduction of reasonable expenses, and submit the prescribed taxes (including income taxes). Hence salaries, remuneration for private households and business owners were not identified as costs when calculating taxable income.
d) other expenses are recognized as valid, including reasonable expenses prescribed in article 9 law on income taxes and score 5, article 4 of Decree 57-CP on August 28, 1993 and the text of the State's current rules, namely:-the cost of management is the general nature such as : Administrative management costs, the cost of labor protection, on recruitment, training, fostering worker, to pay interest on borrowed money, including investment loans depth charged by the lending interest rate by the State Bank regulations;
-The costs of buying and paying to use the technical documentation, patents, technology transfer license and service technician (not in the LOAN) is calculated by the method of allocating the cost of business in.
-The expenses directly related to the consumption of products or provide services, generate taxable income in the tax-calculation period as: costs of packaging products, maintenance products, the cost of shipping and unloading of goods, advocacy advertising, product sales consistent with General provisions;
-Expenses on insurance fund according to the uniform mode of State such as: social insurance, insurance of property of the business establishments, health insurance as defined in the circular number 12 TT/LB on September 18, 1992 of the Ministry of finance-health-labour, invalids and Social Affairs;
-The taxes to be paid as sales tax, special consumption tax, tax resources, money collected on the use of capital, these types of fees ... related to determine taxable income in the tax-calculation period.
-Annuity contribution.
e) other costs in addition to the costs noted above as the cost of receptions, foreign transaction concerned directly to the production process calculated according to actual costs, but costs must not exceed 5% of the total costs.
All the costs specified at points a, b, c, d, e mentioned above must have a valid invoice, voucher. Particularly for agricultural products, seafood ... buy direct from producer that the seller does not have the invoice, they must establish a stats buy goods stating the name of the seller's address number, unit price amount.
4-don't count on business expenses to determine the taxable income or taxable income reduced except the following:-The interest rate payments overdue bank debt, the loan interest rate payments of the other object is higher than the rate of interest prescribed by State Bank;
-Higher level of capital preservation Account must preserve as fact;
-The account losses on products damaged beyond the level of State regulation in a number of sectors (casting, glass ...);
-Damage to stop production due to other causes such as due to outside causes, by itself, cause companies due to natural, won in an unexpected accident; damage to assets, supplies, funds which do not identify the object responsible for material compensation as damages in the payment of the debt;
-Account of the damage caused by personal responsibility;
-Offset, buy tickets for officials and employees, money train bus vacation year;
-Penalties: penalty due to breach of contract the economy, reporting, business registration, tax declaration, registration delays, late tax, perjury, hide contraband, tax violation invoices mode...;
-Expenses on training is not in the approved plan;
-The expenses due to the other capital allowances: + spent staff member Chu;
+ Expenses for food;
+ Grant expenditures difficult often, sudden difficulties;
+ More details about XDCB, about expert service for construction works;
+ Local support, social organizations, unions etc.;
+ Costume expenses exceeded the norms prescribed regimes;
+ Genus lunch;
+ The nature of bonuses as rewards savings, other bonuses;
-The losses other than losses are specified in point d, article 13 of Decree 57-CP on August 28, 1993 by the Government.
5-determining the account other income to taxable income calculation.

The return of the base business is the account interest rate of bank deposits, the interest rate on loans (except the banks, credit institutions, financial) return of property rental, gains on disposals of property, transfer of assets, the transfer of shares (except the base business real estate , stocks, bonds), interest on share, on financial activity, the return of the joint venture activity.
Particularly for gains from venture activities, links are handled as follows: a) the case of enterprises, which is a joint venture enterprise established in the country under the form of a joint stock company, limited liability company, has filed income taxes in the receiving unit venture then the income is split from the joint venture companies under the equity shares not included in the taxable income of the enterprises, but the business must declare on accounting income of the enterprises.
b) where enterprises (organizations and individuals) in water with the institutions, foreign individuals in the form of business cooperation contract as defined in article 8, article 17 of Decree 18-CP on 15 April 1993 the Government detailing the implementation of the law on foreign investment in Vietnam , then return Vietnam divided party charged to the taxable income of the business and filed income taxes according to the tax rate applicable to trades of venture activity as specified in article 15 of Decree 57-CP on August 28, 1993 by the Government.
-The case of individuals and economic organizations in the country to venture together in the form of a contract, the gains of venture activity have to file income taxes according to the tax rate applicable to trades of venture activity. The receiving side of the venture is responsible to declare and pay tax return. After tax income, the income is divided by the side of the venture is not included in taxable income, but must declare and accounting income.
If the joint venture agreement executed in the form of joint venture production sharing, part of products is divided into that venture has not yet filed the income tax base must declare and pay income taxes.
The business has operated joint venture must declare, to present the full range of relevant documents to the tax authorities as joint venture agreement, the minutes against the debt, the confirmation of the local tax authorities receive venture of the tax amount already paid then income is divided into sections not included in taxable income.
c) for businesses that have active sales receipt, consignment sales, agency mandate the tax return of the goods received, mandated resellers are handled as follows:-The organization, the individual is domestic enterprises have registered business have put goods go to dealership Commission, accompanied by the invoice or invoice cum slip of the output goods taken away, mandated count on the return of the unit has put away the dealership, mandated to determine the taxable income.
-Organizations and individuals in the country but not the business, have put goods go, mandated sale, do not enclose invoices or invoice cum slip output, not subject to income tax declaration, then the receiving party consignments, mandated the sale must file the tax return on behalf of the party go dealership , mandated;
-The institutions, foreign individuals have put goods go to dealership, formula, the tax of goods are handled as follows: + If the Organization, individuals in foreign countries that have signed agreements to avoid double taxation with Vietnam, the tax return is done according to content recorded in income tax treaties;
+ If the Organization, individuals in foreign countries have not yet signed the Treaty to avoid double taxation with Vietnam the Vietnam party receive consignments, mandated to submit to the tax change has come, mandated.
Income taxes due to the receiver, trustee, sales agents filed instead for dealership, mandated, sales agents are consistency according to the tariff of 3% on the actual selling price minus (-) Commission, mandated.
Instead of filing tax is deducted on consignment sales payment, mandated.
6-income tax rates.
a) stable income tax provisions of article 5 of Decree No. 57-stocks on 28 August 1993 detailing the Government's enforcement of tax Laws and the law amending and supplementing a number of articles of the law on income tax, to be applied as follows: tax payers according to the tax rate on taxable income stable all year for each industry group profession, including the business establishments to determine taxable income (except for small business and households household shipment).
Tax rate applicable under point a, article 5 of Decree 57-CP on August 28, 1993.
The tax payers in article 5 above, when the industry classification is based on the national economic sector panels due to the General Department of statistics.
The repair operation has the industrial nature of work such as repair of means of transport, machinery and equipment shall be based on the nature of the activity to the respective industry.
For example, ship repair, cars are lined up on the tax rate of 25% of the production of means of transport.
Repair activities catering to consumer demand as electrical repair, electronic repair, bicycle repair, motorcycle tax services 45%.

Other income tax return be filed according to the tariff of basic business operations. The case of the basic business operations have applied many of the tax, the other being income tax according to the tax rate of taxable income trades accounted for the highest percentage.
Active business establishments, many industry groups have different tax rate to the taxable income in the private accounting of each industry and the tax income taxes according to each industry. The base case does not separate accounting is taxable income of the individual lines, the applied tax rate for the highest income taxes of industries whose business calculated on the total of the taxable incomes of the base.
b) additional income tax.
Pursuant to article 6 of the Decree 57-CP on August 28, 1993, the Government's business base in addition to file income taxes according to the tax rate steady as said above, if the taxable incomes exceed specified the additional tax payable as follows:-private business Households if taxable income, on average 10 million then the benefit News under tax over 10 million to pay the additional tax of 25%.
-State economic organizations such as the joint stock company, limited liability company, the collective economy ... if taxable income per capita which, on average 10 million then the taxable income exceed 10 million to pay the additional tax of 25%.

The average taxable income, on the capital contribution = total taxable income in the year the total number of shareholders capital x 12, for example, company X in textiles, has a registered capital of 2 billion divided into 100 shares, the shareholders number is 10 and the number of shares the same taxable income for the year, 1,800 million.
+ Income tax payable according to the capacity of stability: 1,800 million x 35% = 630 million.

The average taxable income + 1, the person had either = 1,800 million 10 x 12 months = 15 million + Part of taxable income not filed income taxes additional: 10 million x 12 months x 10 shareholders = 1,200 million.
+ Additional income tax payable: (1,800 million-1,200 million) x 25% = 150 million.
+ Total corporate income tax payable: X 630 million + 150 million = 780 million.
-State enterprises have a high taxable income due to the advantage of objectivity brought, must pay the additional tax. Additional tax calculated on the income remaining after income tax under the tax stability of business and Enterprise Fund established the three excerpts as prescribed by Government (production Development Fund business, Welfare Fund, Fund Awards).
+ Business objective advantage is the business that the favorable conditions in the business than the other businesses, such as in the convenient location in the business, providing the raw materials, materials, product sales, service provision; the State investment, capital support, priority technical equipment, operating in the less competitive industries etc.
+ Annually based on conditions and business efficiency of the business tax of the provinces, the city identified the businesses have to file income taxes filed and level-specific supplements.
+ Additional income tax rates are applied: * 30% tax rate for the resource extraction industry, manufacturing, construction, transportation;
* Tax rate of 40% for the commercial sector, food and drink, service types;
+ Business establishments to apply to additional tax under a tax rate. The case of business establishments have many professions, the additional income tax are calculated according to the category of taxable income.
+ Determining the additional income taxes: additional tax = taxable income x tax rate supplement supplement additional tax = taxable income-tax payable under the tariff stabilization fund – three additional enterprise's * Level of Enterprise Fund established three excerpts make determining taxable income income supplements are regulated as follows : production Development Fund business by 35% of taxable income left after deducting income tax amount calculated according to the tax rate stable.
Welfare Fund and fund rewards: Each Fund calculated by the average wage for 6 months the actual rank of the business on the basis of a Government salary regime provided for in Decree No. 26-CP on May 23, 1993.
+ Case the base business is the specialized fund: Fund additional capital reserves, risk precaution Fund ... then the source extract taken from the income remaining after income tax and additional tax.
+ Return divided by interest income from shares remaining after the income tax under the tax stability and additional income tax.
For example, Enterprise X taxable income as follows: taxable income (tr.) stable tax (%)



Income taxes (tr.) supply and services business 2,500 45 1,125 transport business 50 25 12.5 in other manufacturing 80 35 28 other income Plus 120 45 54




1.219.5-2,750 average salary fund Total actual reasonable rank both the prescribed year: 864 million.
-Income taxes according to the tax stability: 1,219.5 million-fund Enterprise [(2,639, 5tr 1,219-tr) * 35%] + 864tr = 1,399.6 million.
-Additional tax payable (according to the tariff of commercial services).
(tr-2670 1,219, 5tr-1,404, 6tr) x 40% = 52, 4tr.
-The total amount of tax payable, 5tr 1,219 + 52, 4tr = 1,271, 9tr.
The additional tax is determined when all five official settlement and filed once within 20 days from the receipt of the notice of the tax authorities.
c) tax payers according to the tax calculated on the stock sales is the business households and private household shipment of small business are defined in paragraph 1, 2, 3, article 11 income tax Law.
-Taxable turnover average monthly stock of small business households by the tax authorities to decide on the basis of the results of the investigation, have discussed openly, with the democratic base business.
-The turnover of the shipment is worth the price of each shipment of wholesale prices in the market at the time where every take.
The subjects are filed income taxes payable simultaneously with the stock tax revenues according to tariffs specified for each type of business activity.
III-DECLARATION, TAX, TAX RETURN 1-organizations, individual business in the economic component must implement the accounting mode under the Ordinance on statistical accounting by the State Council announced by the order number 06/LCT-HĐNN on May 20, 1988 and the Statute of the State accounting organization issued under Decree No. 25-dated May 18, 1989 by the Council Ministers and the decisions, circulars of the Ministry of finance.
The grounds for determining taxable income is the vouchers, accounting reports and other relevant documents of the business establishments are the tax authorities to check, confirm legitimate, valid under the provisions of the State. If the business is not done properly the accounting mode under the regulations, the tax authorities have the right to determine taxable income, in this case the base business income tax must be made at the discretion of the tax authorities.
2-to ensure the tax calculation, filing income taxes right regulation mode, businesses must declare full, accurate and timely filing of the declaration according to the regulations of the tax authorities.
3-personal and business organizations not belonging to the securities filing, periodic (monthly, quarterly) must set up interim Declaration filed tax form (attachment) sent to the tax authorities in the first 10 days of the following month. States pay tax by the tax authorities to directly manage rules.
The tax agency checking, tax calculation and notification of tax payable at the latest on the 15th of the following month.
Business establishments are responsible for monthly income taxes temporarily by the announcement of the tax authorities, at the latest on the 20th of the following month.
4-the end of the year, when the official settlement, businesses must submit the table declaration about income tax settlement form (attached) to the tax authorities at the latest 45 days after the end of the year. The tax authorities have a responsibility to check, calculate tax incomes of notification to submit all official tax return income tax number, temporarily have to filed of business establishments. Business establishments must fully pay income tax number is missing the latest is 15 days from the receipt of the notice of the tax authorities. The case of a business establishment income tax overpaid shall be repaid surplus next year by subtracting the number of payable tax next year.
5-small business households and business establishments, shipment and payment according to the equity method on sales be filed monthly or finality of each shipment. Last year was not settlement with the tax authorities.
Business establishments if the dissolution, merger, Division, business must stop and send tax return Declaration to tax authorities before the dissolution, to stop the official business must fully pay income taxes under article 14 of the income tax Act.
IV-TAX REDUCTION, EXEMPT A-the CASE of TAX FREE INCOME 1-The elderly, the disabled, small business people, do household ... have monthly income of just ensuring minimum living standards for themselves (the minimum standard of living as the average income level, 90,000) on a labor have directly engaged in production business.
2-transport operations by means of rough mountain bicycle, such as in cars, rickshaws, attach animal car, boat, rafting is not.
3-new manufacturing facility established and officially active since 1993 income tax exemption for the first two years since the return.
For example, the official business activities since 1993, business results in 1993. In 1994 with interest is tax free for 2 years in 1994 and 1995.
4-The business moved locations, from the region of mountains, Islands swept up are exempt from income taxes 3 years since its operation in the mountains, Islands, must have confirmation of where to go, where to and new business licenses issued in the place of.

5-scientific research activities, the service contract engineering science as defined in points 1, 2, 3, section I. Circular No. 55/TT-LB on 2 October 1992 of the Ministry of Finance-State Science Commission and ensure the conditions specified in point 1, 2 section II-circular No. 55/TT-LB of tax-free income for the just profit numbers do make scientific contracts, the contracts of service engineering. Medium base case production and business activities, scientific research, scientific and technical services to the private accounting of each operation.
6-Tax Exempt 6 months since the try entering production for products produced in accordance with test point 4 I-section circular No. 55/TT-LB of tax-free income for only a portion of the return do bring production products. The base is partial income accounting implementation of product production.
7-auxiliary craft activities, economic family must ensure the following conditions:-the people who do the household must be employees at the cooperative members township officials, overtime provisions of Agency, Enterprise, the collective unit;
-Those who do the same, to be her parents, husband and wife, in addition to working age, if the relatives must then also working age and named in the family's household;
-Production, production services of retirees if not in economics, individual investors also considered secondary economic family;
Case 1 persons in working age not employees servants or staff dedicated to cooperative Township in the economic family household already has three years to switch to households and business registration.
B-the TAX REDUCTION CASE 1-new manufacturing facility established after the 2 year tax exemption as defined in point 3-item A of part IV above, 50% reduction of the payable income within the next 2 years.
Private new production facilities in the region are difficult, the 50% reduction of the payable tax in the next four years.
2-personal organization, production and business in the regions in difficulty are considering reducing up to 50% of the tax payable, tax reduction period not exceeding 2 years.
3-production facilities and some other professions need to encourage investment if the investment has expanded production business or invest that bring higher efficiency than before then are reduced income taxes.
The review reduced income taxes for production and business establishments must ensure the conditions:-The facility has real expenses for investment;
-The investment must bring about greater efficiency in advance of the return to higher gain than before;
-Reduced level of income taxes by the amount of money actually spent on reinvestment, not counting additional auto IE capital with the difference between the total amount spent on reinvestment and capital investment XDCB, the Foundation encourages business development, funding additional self; but the reduced levels must not exceed 50% of the tax payable for a year and do not exceed the number of additional investment income yield;
-No tax reductions for investment to expand, invest for the subjects were free of tax reduction, as specified in point 3, section A, point 4, point 1, point 2 B section above, the audience is allowed to depreciate to a level higher than the LOAN rate quote.
To reduce the difficulties and encourage businesses to expand, invest bring high economic efficiency, in consideration for the investment business was temporarily withheld a portion of income taxes payable; temporary keep tax levels do not exceed 30% of the tax payable under the plan and not to exceed 50% of the tax increase by justifying the investment.
The reduced tax base for consideration when finalizing the year.
For example, in the 1993 base business investment spending was expanding production, business is 90 million: in that genus by the basic construction investment of business establishments is 20 million.
According to the conclusion of economic evidence, additional tax-efficient investment yield is 50 million/year.
Business establishments are delivered the planned income tax payable in the year 1993 is 120 million.
-Temporary tax reduction Level in 1993 is calculated as follows: + actual investment business expansion beyond the capital itself there is: 90 million-20 million = 70 million;
+ Temporary tax reduction Level in 1993 is 25 million (with 50% additional tax-efficient investment and economic justification is lower than 30% of the tax payable under the plan, 1993).
-In 1993 according to the actual settlement, interest increased by 56 million investment efficiency. The total tax payable in both 1993 's 130 million.
+ Income taxes be reduced reality for 1993 was 56 million.
4-enterprises produce items that need replacing imports by category by the State Planning Commission announced, was considering reducing the not so 50% of the tax payable by the replacement of imported goods brought in time of a year, since production began there the return.
The conditions for tax relief are:-items by production facilities are recorded in the "list of items that need replacing imported goods" by the State Planning Commission announced in each period and in time this category table also are effective.

-New facility began production of the item after the date of publication of the list of items that need replacing imports. Beginning of production including the former case has produced or transferred to the production of other goods in time from two years older, now started production again.
-Executive production strictly bookkeeping mode, full accounting, invoice, clearly, exactly the number of items that need to replace imports, to consider reducing the base tax.
Special cases must be proposed in writing by the provincial people's Committee, the central cities or of the Ministry and the Government's comments. The Finance Ministry can consider tax reduction for each specific case.
Production facilities must report in writing with the Agency directly tax management, clearly explain under what conditions the above reporting to tax authorities granted tax reduction on the return to base.
The difficulty is that the region has harsh natural conditions, the infrastructure is too weak, that directly impact business results and income of workers in the enterprise only to ensure minimum living standards for themselves, only the equivalent of the minimum wage in the salary mode of State regulation.
Business establishments newly set up new investment facility is built according to the decision of the authority, be the business registration license. The facilities have established before this present arrangement, business reorganization, merger or split the former base into the new base, the old manufacturing base was renamed or have invested to renovate expand, change the product, not the new facility established and not subject to review tax reductions under this regulation.
C-the CASE is TRANSFERRED to the FOLLOWING YEAR'S LOSSES of production and business establishments have difficulties due to natural disasters, accidents, risk of drawing enemy surprise or objective reasons which result in unforeseen loss business capital, was the direct management agency collects check verification, shall be transmitted by the business year to next year to taxable income deducted before calculate income taxes. The time was transmitted to calculate income tax not to exceed 2 years.
* For example:-business establishments in 1993 loss of 90 million.
-The taxable income: + in 1994 was 30 million.
+ 1995 is 50 million.
-Business establishments will be transmitted to the taxable income for the next two years.
+ In 1994 was 30 million.
+ 1995 is 50 million.
-The number of the hole rest of 1993 is 10 million business establishments are not transmitted to the taxable income the next year (1996).
D-JURISDICTION EXEMPTION, TAX REDUCTION AND TRANSMITTED TO THE FOLLOWING YEAR.
1-the tax authorities directly managed manufacturing and business establishments are responsible to check closely under the conditions specified in this circular to tax exemptions, moved the hole for the cases specified in point 3-Item A-part IV; Point 1-Item B-part IV; Item C-part IV. The exemption, the tax reduction for the cases provided for in this point and move the hole then is not a decision and were done when the tax return.
2-The case of the tax exemptions provided for in Points 1, 2, 4, 5, 6, 7 A, point 2 of section B, Section IV of this circular by the Chief of the tax review, decided against exemption level drops below 50 million.
3-The tax reduction cases specified in point 3, section B, part IV of this circular and the case of tax exemptions specified in point 2 of section D, part IV of this circular by the General Director of taxation review to decide the level of exemptions from 50 million to 100 million, also above level 100 million over, by the Minister of finance decides.
4-the decision by the authorized tax exemptions, as well as the level decided to temporarily withhold income taxes under the provisions of point 3 of section B of part IV.
E-RECORDS SUGGEST the LONG, STEADY and LONG PROCEDURES, REDUCE INCOME TAXES 1-taxes with respect to the provisions in point 1, point 2 of section A, part IV of this circular are available: the base of production, business tax exemptions apply (2) stating the cause, reason please have tax exemptions certified by local authorities (ward , local tax authority) against the conditions specified, confirmation, (name, stamp) to the end of the form, then send it to the basis 1, the tax authorities 1.
2-for the tax exemption under the provisions of point 3 of section A of part IV of this circular must contain:-the decision to establish a new business.
-Business registration, registration for tax declaration (article subject tax, revenue);
-The complete record, handing a new production facility in use;
-Report of the year, tax year.
3-for tax breaks as specified in point 1 of part B IV of this circular must contain:-the certificate from the declarations to be tax free for 2 years;
-Report of the year relating to tax relief;
-The text identified as the region difficult.
4-the case of tax breaks as specified in point 4 of section A, part IV of this circular must contain:-the application for exemption, remission;
-The decision to allow the headquarters of local government where moved to;
-Business registration;
-Free decision, reduce the income taxes of the previous year (if available);
-The official settlement;
-The minutes of settlement and check the Agency's proposal to tax the direct management.

5-the case of tax breaks as specified in point 4, section B, part IV of this circular must have:-application for tax exemption;
-The official year of settlement, has details of calculate the replacement of imported products;
-The minutes of settlement and check the Agency's proposed direct tax management.
6-the case of tax breaks as specified in point 5 of section A of part IV of this circular must contain:-the application for exemption, remission;
-The decision of the competent authority. If is the collective organization, the individual must have the certificate of registration of scientific research activity of the scientific administration of the province, the city as stipulated in article 15-Decree No. 35-dated January 25, 1992;
-Business license (business establishments);
-Contract research scientist, scientific services contract. The contract guarantees enough current rules on management topics, scientific research projects (decision of the competent authority). Private contracts between the organizations, individuals with each other (even abroad) must be certified by the State administration of science management: + contract value from 100 million over by the Ministry of science, technology and the environment;
+ Contract under 100 million due to the science agency, the city confirmed;
-The official settlement of base year data are details about the results of research activities, scientific services;
-The minutes of settlement in inspection and proposal of direct tax administration.
7-tax rebate case as defined in point 6 of section A, part IV of this circular must contain:-the technical-economic justification by the governing body, management-level browser identified as products manufactured try;
-The official year of settlement, has detailed the effectiveness of production and try new products;
-The minutes of settlement and recommended testing of direct tax administration.
8-where tax relief under the provisions of point 2 of this circular section IV B must contain:-the official settlement;
-The minutes of settlement and check the Agency's proposal to tax the direct management;
-Reported income of workers;
The certificate is the region difficult.
9-where tax relief under the provisions of point 3 of this circular section IV B must contain:-the official settlement of the year (fiscal year plan for temporarily withholding income tax);
-Economic justification of investment projects in depth; expansion and investment plans in the year (for the case of temporarily withholding income tax);
-Report on the test results, production, business tax, the documents related to the Prize amount has been spent: invoices, vouchers, payment and dispatch of investments suggested by the local tax authorities, which clearly define the actual amount spent on reinvestment in capital settlement yet in capital investment needs (according to the plans for the school Merge to temporarily withhold income taxes), capital investment had in years (basic construction investment fund, the Fund business development ...).
10-cases are transmitted as specified in section C of part IV of this circular must contain:-the minutes of the Council identified damage value (represented by the Agency direct tax management), for the case of disasters, accidents, enemy;
-The official settlement reports in have the detailed explanation of the value of the damage caused by natural disasters, accidents ...;
-A check in settlement and the tax agency's proposal of direct management;
-Direct tax administration is responsible for checking the data and review the situation relating to the exemption, tax reduction, for the resolution of cases under the control handle. The case is not in the jurisdiction must have comments and proposals in writing accompanied by free application, reduction of the business submitted to the tax authorities on the level considering the decision. The records document the exemption, is reduced to the original, if the copy is certified.
The processing review tax exemptions are made when there are five official settlement reports.
V-the MISSION of the BUSINESS ESTABLISHMENTS 1-When the tax authorities have asked about documents related to tax inspection, business establishments, have the task: a) provide sufficient, timely material;
b) explain, prove the account unknown in declarations, bookkeeping, accounting;
c) inventory inventory of materials, storage of goods in order to contrast with the books, accounting documents.
Business establishments are not secret reasons Institute career to refuse to produce, provide or explain the above required documents at the request of tax authorities.
2-base business is entitled to require the tax authorities are not allowed to reveal to other individuals or organizations that do not have responsibility for the documents by business establishments to present or offer in secret careers of business establishments.
MICRO-process VIOLATION, violation processing REWARD, reward under article 27, 29, 30 of the income tax Act made under the provisions of circular No. 11 TC/TCT on 24 February 1993 of the Ministry of finance guidelines; Decree No. 01 CP on October 18, 1992 by the Government on the regulations sanctioning administrative violations in the field of taxation. Late tax fines or own fines shall in addition pay enough tax, amount of money lodged a penalty prescribed by law, every slow 0.2% penalty filing date (two per thousand) tax amount paid.
VII-THE DUTIES AND POWERS OF TAX AUTHORITIES

1-task management system-tax income tax levels in the Ministry of finance charge.
2-the competent tax authorities of each level with regard to the review of the regulatory complaint as follows:-the tax authorities issued on complaint review by the tax authorities under the handle.
If there is a complaint, the Minister of finance review the decision.
While the complaint, organizations or individuals still have to fully pay the tax or the amount of the fine was announced.
VIII-EFFECT-this circular have effect from 1 September 1993.
-The 1993 income tax is computed on average, in the first 8 months of the year: follow the tax rate stipulated in the law on income tax, 4 months last year following the Tax Law's additional amendment.
-The exemption, the tax reduction is done for the 1993 settlement level.
This circular replaces circular No. 47/TC TCT on October 4, 1990 and the other rules about income taxes contrary to this circular.
In the process if there are problems and obstacles, business establishments, local departments reflect timely the Finance Ministry (General Directorate of taxes) to resolve.