CIRCULAR NO. 6/TC-CTN on 16/3/1989 to GUIDE the CURRENCY LODGING TAX for the ENTERPRISES of FOREIGN INVESTMENT and FOREIGN PARTIES to COOPERATE on the BASIS of the CONTRACT.
Pursuant to Decree No. 139-dated 5/9/1988 of the Council of Ministers detailing the implementation of the law on foreign investment in Vietnam, the Ministry of Finance shall guide the procedure of currency lodging taxes for enterprises with foreign investment and foreign Parties to cooperate on the basis of the contract are as follows : i. INCOME TAXES 1. Taxable object and tax: a) The profits of enterprises of foreign investment and foreign Parties to cooperate on the basis of the contract obtained by the operation of the manufacturing sector, business is regulated in the law on foreign investment in Vietnam, are subject to income tax.
b) the enterprises and foreign Parties to cooperate as tax payers.
The case of the enterprises have the extra business establishments, the tax is calculated for the enterprises, and enterprises are responsible for filing the income taxes of the extra business.
2. taxable income taxable income:-of enterprises of foreign investment is the difference between total revenues with total expenses of primary and secondary base base (if any) in the tax year.
-The taxable income of foreign Parties to cooperate on a contract basis is the difference between the revenues of the foreign Party with expenses of foreign Parties do make business cooperation contracts were signed with Vietnam.
a) revenues: revenues of enterprises and foreign Parties to cooperate include the revenues due to the consumption of products produced or provided services for the foreign Party and the extra benefit earnings due to any activity of the enterprises in the tax year.
The case of the enterprises and foreign Parties to cooperate applied forms of production, the product division revenues on product consumption is calculated as follows:-Vietnam-party revenue is the amount of the product divided by the Vietnam Workers Party (x) with commercial business sales unit price minus the discount.
-The revenues of the foreign Party is the number of products divided by foreign workers Party (x) with single price of the international market, in the time of the sale.
b) expenses: expenses of the enterprises and foreign Parties to cooperate include the expenses set forth in paragraph b, article 79, Chapter VII No. 139-dated 5/9/1988 of the Council of Ministers Law detailed rules on foreign investment in Vietnam.
-Don't count on the other costs of the payment of interest on the loan, paid cash rewards, filed income taxes, fines, accounts of assets depreciation the property has the value depreciation of enterprises.
3. income tax collection regime: a): income tax Calculator-tax to be paid is taxable income in the tax year the implementation of multiplier (x) with income tax rates are specified for the enterprises or foreign Parties to cooperate in the investment license or business permit by the State Committee for cooperation and investment.
-Tax Year is the financial year of companies that allowed companies to apply.
b) tax collection methods:-annual income tax of enterprises and foreign Parties to cooperate was a temporary currency January 3, tax year runs out or contract shall collect taxes according to the actual settlement. Tax number is missing, then filed the next filing period; surplus shall be deducted from the tax of the next period.
-Particularly for the business cooperation contract has a duration of under one year, then income taxes filed in two States, States temporarily in the mid of the first term of the contract, the contract will be according to the actual settlement.
c) the currency lodging tax: enterprises and foreign Parties to cooperate to consume the product, service or collect money in the currency of any country then filed income taxes in the currency of that country.
d) time limit, where lodging and tax procedure: slowest is after 5 days of the tax period, the enterprises or foreign Parties do business must declare and submit the Declaration (model No. 1) to the tax authority where the Head Office of the enterprise.
-Tax authorities check the tax declaration and release announcements for tax payers. The case too the time limit filed declarations, tax authorities have the right to assign tax numbers temporarily and release announcements.
-At the latest after 5 days from the date of the notice of tax authorities, enterprises and foreign Parties to cooperate to pay enough tax on banks by the tax authorities.
-The latest is after 3 months from the date of the Windows key enterprise in financial, industrial and business cooperation foreign Parties must submit reports accounting for the tax authorities. Based on the accounting report was the accounting agency confirms, tax authorities identify and inform enterprises and foreign parties to cooperate on tax in the tax year, have temporarily, missing tax amount, the surplus.
-The case of accounting reports of enterprises have the unknown, the Agency has the right to request the foreign Party and factory cooperate to check; redefine the accounting reports prior to the tax settlement.
DD) Filed taxes into the budget: tax return filed in chapter 96, section 19, categories, terms, the appropriate class of current budget contents.
4. Tax Reimbursement for reinvestment: a) The economic organizations or foreign individuals used the profit to be divided to reinvest from 3 years upwards are the tax authorities refund the amount already paid income tax of reinvested profits.
The case of economic organization or individual not enough foreign capital recorded in the licenses of the enterprises, if the profit is split to contribute more for enough capital shall not be considered to be reinvested and not refundable income taxes already paid.
b) tax refund to reinvest profits determined as follows: the number Of income tax the profits tax rate is used to re = x complete income tax investment tax enterprise companies in the currency of any country, shall be refunded by the currency of that country.
c) tax refund procedure:-when the tax refund proposal for profits reinvested, economic organizations and individuals abroad must present sufficient evidence from here with the tax authorities of the province, city, municipal district where the headquarters of the enterprises : the decision to allow reinvestment of the State Committee for cooperation and investment.
Declaration about profits reinvested (according to the instructions of tax authorities).
-When getting full of vouchers, tax authorities calculated the number of tax-refundable and flight procedures for the rollover.
To the rollover to a depression is convenient, quickly, the Ministry of finance temporarily authorize the Director of the financial Department of the province, the city, the municipal district has used foreign investment account 640 "Currency of the central budget" in the area to regress to a rollover at the same time are responsible for timely reporting to the Ministry of Finance (State budget) for the tax paid on the said flight. Separately in Hanoi, the Ministry of Finance (State budget) direct rollover to a depression.
 
II. TAX on OFFSHORE PROFITS TRIP 1. Taxable object and tax payers: a) the profits that the economic organization or foreign individuals divided by the investment involved in any way in the regulations to the law on foreign investment in Vietnam, when transferring profits out of the territory of the Socialist Republic of Vietnam are taxable subject to transfer profits abroad.

b) organizations or individuals have the responsibility to pay taxes overseas transfer of profits abroad.
2. tax collection regime: a) tax: the tax on the transfer of profits abroad must submit, by the profit transfer abroad (x) with the tax rate specified in the foreign investment license by the State Committee for cooperation and investment.
b) the currency lodging tax: profits transferred abroad by country coins would then pay taxes in the currency of that country.
c) tax revenue procedure:-transfer of profits Tax to a foreign currency for each transfer of profits abroad.
-Every time the transfer of profits abroad, economic organizations or foreign individuals must declare to tax authorities directly managed currency income tax for enterprises of economic organizations or foreign individuals.
-Receive declarations, within 1 working day the tax authorities tax calculation released the notice of tax for foreign individuals or organizations.
-Receive a tax notice, foreign organization or individual to pay tax when the bank transfer the money abroad.
d) paid in to the budget: tax shifting profits foreign currency into 96 chapters, section 19, categories, terms, the appropriate class of contents in the current state budget.
 
III. CORPORATE TAXES, TAX GOODS.
1. The enterprises and foreign Parties to cooperate, if Vietnam money services activities have to file corporate taxes under the Charter and the Ordinances of tax the current business.
2. The enterprises and foreign Parties to cooperate if product consumption in Vietnam market then customize each item to file corporate taxes or tax the goods as follows: a) for items not in the catalogue goods tax, the corporate tax. Tax sales revenue by multiplying (X) with corporate tax in current business tariffs.
b) with respect to the items in the list must be goods taxable goods tax. Tax by the amount of goods for human consumption (X) with tax rates, the tax rate (X) for each of the items in the current goods tariff.
3. income tax paid mode:-revenue product consumption in Vietnam in the currency market that water would then pay tax or business tax on the goods in the currency of that country.
-Monthly, at the latest within 5 days after the beginning of the month is the factory must declare and submit declarations to the tax authority (form 3). Tax and tax agencies issuing tax notices for the enterprises. The latest is 5 days from the date of the notice, the enterprises to pay enough tax on banks by the tax authorities.
-Business tax Number filed in chapter 96, item 18, the type, the appropriate class and tax account, the goods filed into chapter 96, section 17, paragraph, the appropriate class of current budget contents.
 
IV. LIABILITY Of ENTERPRISES Of FOREIGN INVESTMENT And FOREIGN PARTIES To COOPERATE On The BASIS Of The CONTRACT.
1. Declare to tax authorities about the situation and business results under the form and time limits prescribed by the tax authorities.
2. Present the full range of books, documents, papers and answers to a full range of issues related to tax calculation and tax authorities when requested.
3. Submission of full, timely tax by the tax authorities to announce.
 
V. THE RESPONSIBILITY AND AUTHORITY OF THE TAX COLLECTION AGENCY.
1. Guide the tax payers made declare every type under the regime.
2. Check the tax declarations, books, vouchers, documents required and ask tax payers to answer the problems are related to the currency lodging tax.
3. Tax calculation and notification of tax for the tax payers.
4. Set the minutes and treated for tax violations under the authority vested by the State tax authorities.
 
VI. PROCESSING of the COMPLAINTS and INFRINGEMENT 1. The tax violations will be sanctioned as follows:-do not do it right the rules on declarations shall be fined up to 0.5% (five per thousand) tax of States arising errors.
-Man, smuggled the tax fine of up to 5 times the tax man smuggled.
-Not filed on time, every day, filed slowly additional 0.5% (five per thousand) of tax filing slow.
2. Authority to handle complaints and violations:-The tax violations by the Agency directly manage tax collection process.
-The service complaining about the taxes due to the direct tax authorities consider and resolve, if litigants do not agree, then complain to the taxes and up the Finance Ministry. In the meantime resolve complaints, taxpayers still have to submit sufficient and timely tax by the tax authorities have announced.
 
VII. IMPLEMENTATION responsibility the Finance Ministry for tax the commercial tax organization and management as specified in this circular.
In the process if there are difficulties and obstacles, and the local industries reflect timely to the Ministry of finance said and resolution.
Model No. 1 of the Socialist Republic of Vietnam Independence-freedom-Happiness------------------------------------------------TAX RETURN DECLARATION States.................-the name Enterprise (company)-head office address of the enterprises (company)-the fiscal year began..................-end accounting money-income tax (recorded in the investment license)-the number of member enterprises of............... in the name Of the target Bank the money foreign Money Rules the order in Vietnam Hong Kong dollars United States dollars Japanese yen ... ... money 1 2 3 4 5 6 7 8 1 accounting Of revenues in the period in which:-product consumption-labour supply service-.....-Other Income 2 total expenses in the period in which:-Just about raw materials and energy to the production of primary products extra products, or the provision of services.

-Pay and allowances...-the depreciation of fixed assets ...-... ...-The other 3 cost disparity between revenues and expenses on Chief Accountant Director of transport enterprises (companies) (signature) (name, stamp) model No. 2 of the Socialist Republic of Vietnam Independence-freedom-Happiness------------------------------------------------TAX DECLARATION to TRANSFER PROFITS ABROAD-organization name Economics or foreign individuals....................................................................................................................................... nationality..........................-participation in Enterprise capital contribution..........................................................................-location of headquarters enterprise...................................................................
Please transfer profit numbers abroad............................................................... drawn in account no....................................................................-for money transferred abroad..........................................................................-transfer tax offshore profits..................................................
(recorded in the investment license)................................................
On the Bank's confirmation of The 198 Declaration signed and stamped where the transfer of money (if any) model No. 3 of the Socialist Republic of Vietnam Independence-freedom-Happiness------------------------------------------------CORPORATE TAX DECLARATIONS and TAX the GOODS

Months........................-the name Enterprise (company)-head office-address Of member enterprises (company).................. in the Bank-revenue service by cash and revenue product consumption in Vietnam market the number Of the sales order in the name of the target Vietnam foreign Money Money us dollars Hong Kong dollars Japanese yen ... ...



A



B



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On ....,........
Chief Accountant Director of transport enterprises (company) (signature) (name, stamp)