78/2014/TT-BTC guiding the implementation of the Government's Decree No. 218/2013/ND-CP

78/2014/TT-BTC guiding the implementation of the Government's Decree No. 218/2013/ND-CP

CIRCULARS

GUIDELINES FOR IMPLEMENTATION OF DECREE No. 218/2013/ND-CP DATE 26/12/2013 of the GOVERNMENT PROVISIONS AND GUIDANCES IMPLEMENTATION OF CORPORATE INCOME TAX LAW

Pursuant to the Law on Corporate Income Tax No. 14/2008/QH12 dated June 3, 2008; Law amending and supplementing a number of articles of the Law on Corporate Income Tax No. 32/2013/QH13 dated June 19, 2013;

Pursuant to the Government 's Decree No. 218/2013/ND-CP dated December 26, 2013 detailing a number of articles of the Law on Corporate Income Tax and the Law amending and supplementing a number of articles of the Law on Income Tax enterprise;

Pursuant to Decree No. 118/2008/ND-CP dated November 27, 2008 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Director of the General Department of Taxation, the Minister of Finance shall guide the implementation of corporate income tax as follows:

Chapter I GENERAL RULES

Article 1. Scope

This Circular guides the implementation of the Government's Decree No. 218/2013/ND-CP dated December 26, 2013 detailing a number of articles of the Law on Corporate Income Tax and the Law amending and supplementing a number of articles. of the Law on Corporate Income Tax.

Article 2. Taxpayers

1. Corporate income tax payers are organizations engaged in production and trading of goods and services with taxable income (hereinafter referred to as enterprises), including:
2. a) The enterprise is established and operates under the provisions of the Law on Enterprises, the Law on Investment, the Law on Credit Institutions, the Law on Insurance Business, the Law on Securities , the Law on Petroleum, the Law on Commerce and other legal documents. other legal documents in the form of: Joint stock company; Limited liability company; Partnerships; Private enterprise; Attorney's Office, Private Notary Office; The parties to the business cooperation contract; The parties to the oil and gas product sharing contract, the oil and gas joint venture enterprise, the joint operating company.
3. b) Public and non-public non-business units that produce and trade in goods and services with taxable income in all fields.
4. c) Organizations established and operating under the Law on Cooperatives.
5. d) Enterprises established in accordance with foreign laws (hereinafter referred to as foreign enterprises) have a permanent establishment in Vietnam.

A permanent establishment of a foreign enterprise is a production and business establishment through which a foreign enterprise conducts part or all of its production and business activities in Vietnam, including:

- Branches, executive offices, factories, workshops, means of transport, mines, oil and gas fields or other locations for exploitation of natural resources in Vietnam;

- Construction sites, construction, installation and assembly works;

- Establishments providing services, including consulting services through employees or other organizations or individuals;

- Agent for foreign enterprises;

- Representative in Vietnam in the case of a representative competent to sign contracts in the name of a foreign enterprise or a representative who is not authorized to sign a contract in the name of a foreign enterprise but regularly delivers goods. goods or provide services in Vietnam.

In case the Agreement on avoidance of double taxation to which the Socialist Republic of Vietnam is a signatory contains different provisions on permanent establishments, the provisions of such Agreement shall apply.

1. e) Organizations other than those mentioned at Points a, b, c and d, Clause 1 of this Article, having activities of producing and trading in goods or services and earning taxable income.
2. Foreign organizations doing business in Vietnam that do not comply with the Law on Investment, the Law on Enterprises or earning income in Vietnam shall pay corporate income tax according to the separate guidance of the Ministry of Finance. If these organizations have capital transfer activities, they shall pay corporate income tax under the guidance in Article 14, Chapter IV of this Circular.

Chapter II TAX CALCULATION METHODS AND BASICS

Article 3. Tax calculation method

1. The payable enterprise income tax amount in the tax period is equal to the taxable income multiplied by the tax rate .

The payable corporate income tax is determined according to the following formula:

In case the enterprise has paid corporate income tax or a tax similar to corporate income tax outside Vietnam, the enterprise may deduct the amount of corporate income tax already paid but must not exceed the amount of corporate income tax payable. paid in the period in accordance with the Law on Corporate Income Tax.

2. The tax period is determined according to the calendar year. In case the enterprise applies a fiscal year different from the calendar year, the tax period shall be determined according to the applicable fiscal year. The first tax period for newly established enterprises and the last tax period for enterprises that change the form of enterprise, change the form of ownership, merge, split, separate, dissolve or go bankrupt are determined. accordance with the accounting period in accordance with the law on accounting.
3. In the case of the first tax period of a newly established enterprise from the date of issuance of the Certificate of Business Registration or the Certificate of Investment, and the tax period of the last year of the enterprise converting its form of enterprise, Enterprises, ownership transformation, consolidation, merger, division, separation, dissolution, bankruptcy for a period of less than 03 months, the tax period of the following year shall be added to the tax period of the following year (for newly established enterprises). or the tax period of the previous year (for an enterprise that converts its form of enterprise, transforms its ownership form, consolidates, merges, divides, separates, dissolves, goes bankrupt) to form a tax period. enter the business. The first year's corporate income tax period or the last year's corporate income tax period must not exceed 15 months.
4. In case the enterprise converts the corporate income tax period (including the conversion of the tax period from the calendar year to the fiscal year or vice versa), the corporate income tax period of the year of conversion not exceed 12 months. If an enterprise is in the period of enjoying corporate income tax incentives but converts the tax period, the enterprise may choose: Incentive in the year of the tax period conversion or pay tax at the non-entitled tax rate. incentives of the year in which the tax period is converted and enjoy tax incentives to the next year.

Example 1: Enterprise A (DN A) for the 2013 corporate income tax period applied according to the calendar year, at the beginning of 2014 chooses to convert to the fiscal year from April 1 of this year to March 31. next year, the corporate income tax period of the year of conversion (conversion year 2014) is calculated from January 1, 2014 to the end of March 31, 2014 (3 months), the corporate income tax period of the year (Fiscal year 2014) is calculated from April 1, 2014 to the end of March 31, 2015.

Example 2: In the same case as above, but enterprise A enjoys corporate income tax incentives (tax exemption for 2 years, 50% CIT reduction for the next 4 years), starting tax exemption in 2012, DN A will enjoy tax incentives as follows (tax exemption in 2012, 2013; 50% tax reduction in 2014, 2015, 2016, 2017).

In case an enterprise chooses to reduce 50% of tax according to the tax period of the 2014 conversion year, the enterprise will continue to reduce 50% of CIT for the next 3 tax years from the fiscal year 2014 (fiscal year 2014 from January 1/). April 2014 to March 31, 2015) to the end of fiscal year 2016.

In case an enterprise chooses not to enjoy the 50% CIT reduction incentive for the 2014 CIT tax period (conversion year 2014 when declaring and paying tax at the tax rate not entitled to the incentive), the enterprise shall: 50% reduction of CIT from fiscal year 2014 (from April 1, 2014 to March 31, 2015) to the end of fiscal year 2017.

5. Non-business units and organizations other than enterprises established and operating under Vietnamese law, enterprises paying value added tax by the direct method having goods trading activities , For services with income subject to corporate income tax, but these units can determine the revenue but cannot determine the costs and income of business activities, they shall declare and pay corporate income tax at the rate of %. on sales of goods and services, specifically as follows:

+ For services (including deposit interest, loan interest): 5%.

Particularly for educational, medical and performing arts activities: 2%.

+ For commodity trading : 1%.

+ For other activities: 2%.

Example 3: Non-business unit A has house rental activities, the revenue from one (01) year house rental is 100 million VND, the unit cannot determine the expenses and income of the house rental activities. above, the unit chooses to declare and pay corporate income tax as a percentage of revenue from selling goods and services as follows:

The payable CIT amount = 100,000,000 VND x 5% = 5,000,000 VND.

6. Enterprises with revenues, expenses and other incomes in foreign currencies must convert foreign currencies into Vietnam dong at the average exchange rate on the inter-bank foreign currency market announced by the State Bank of Vietnam. declared at the time of arising revenue, expenses and other income in foreign currency, unless otherwise provided for by law. For a foreign currency that does not have an exchange rate with Vietnam dong, it must be converted through a foreign currency having an exchange rate with Vietnam dong.

Article 4. Determination of taxable income

1. Taxable income in a tax period is determined by taxable income minus tax-exempt income and losses carried forward from previous years as prescribed.

Taxable income is determined according to the following formula:

2. Income taxes

Taxable income in a tax period includes income from production and trading of goods and services and other incomes.

Taxable income in the tax period is determined as follows:

Income from the production and trading of goods and services is equal to the turnover from the production and trading of goods and services minus deductible expenses of the production and trading of such goods and services. If an enterprise has many production and business activities that apply different tax rates, the enterprise must calculate the income of each activity separately multiplied by the corresponding tax rate.

Incomes from the transfer of real estate, transfer of investment projects, transfer of the right to participate in investment projects, transfer of the right to explore, exploit, and process real estate in accordance with law must be separate accounting to declare and pay corporate income tax at the tax rate of 22% (from January 1, 2016 to apply the tax rate of 20%), not enjoy corporate income tax incentives (except for income of enterprises implementing investment projects on social housing business for sale, lease, or lease-purchase, the CIT rate of 10% shall be applied according to the provisions of Point d, Clause 2, Article 20 of this Circular).

Enterprises in the tax period carry out activities of transferring real estate, transferring investment projects, transferring the right to participate in the implementation of investment projects (except for projects of prospecting and exploiting real estate). If there is a loss, this loss shall be offset against the profit of production and business activities (including other incomes specified in Article 7 of this Circular).

For the loss of real estate transfer, investment project transfer, right to participate in the implementation of investment projects (except for real estate exploration and exploitation projects ) of the years 2013 and above. In the past, within the loss transfer period, the enterprise must transfer into income from the transfer of real estate, transfer of investment projects, transfer of the right to participate in the implementation of investment projects. carry the loss into income of production and business activities (including other income) from 2014 onwards.

In case the enterprise carries out procedures for dissolution of the enterprise, after the dissolution decision is issued, if there is a transfer of real estate as a fixed asset of the enterprise, the income (interest) from the transfer of real estate (if any) shall be offset against losses from production and business activities (including losses of previous years carried forward as prescribed) in the tax period in which real estate transfer is incurred.

Article 5. Revenue

1. Turnover for calculating taxable income is determined as follows:

Turnover for calculating taxable income is the entire proceeds from the sale of goods , processing fees, and service provision fees, including price subsidies, surcharges and extras, which an enterprise is entitled to, regardless of whether money has been collected or paid. have not received the money.

1. a) For enterprises paying value-added tax by the tax credit method, the turnover is exclusive of value-added tax.

Example 4: Enterprise A is a value-added tax payer according to the tax credit method. Value -added invoices include the following items:

Selling price: 100,000 VND.

VAT (10%): 10,000 VND.

Payment price: 110,000 VND.

The turnover for calculating taxable income is 100,000 VND.

1. b) For enterprises paying value-added tax by the direct method on added value, it is the turnover including value-added tax.

Example 5: Enterprise B is a taxpayer of value-added tax under the direct-value-added method. The sales invoice only states the selling price is 110,000 VND (price includes VAT).

The turnover to calculate taxable income is 110,000 VND.

1. c) In case an enterprise has a service business that customers pay in advance for many years, the revenue used to calculate taxable income is allocated to the number of years of prepayment or determined according to the revenue paid in advance. time. In case an enterprise is in the period of enjoying tax incentives, the determination of the preferential tax amount must be based on the total payable corporate income tax of the number of years of pre-collection divided (:) by the number of years of pre-collection.
2. The time of determining turnover to calculate taxable income is determined as follows :
3. a) For the sale of goods, it is the time when the ownership and use rights of goods are transferred to the buyer.
4. b) For service provision, it is the time of completion of the service provision to the buyer or the time of issuing a service provision invoice .

In case the time of service provision invoices occurs before the time when the service is completed, the time of determining taxable revenue shall be calculated according to the time of making the service provision invoice .

1. c) For air transport activities, it is the time when the delivery of transportation services is completed for the buyer.
2. d) Other cases as prescribed by law.
3. Turnover for calculating taxable income in some cases is determined as follows:
4. a) For goods and services sold by the method of installment or deferred payment, it is the money from the sale of goods and services with one-time payment, excluding interest on installments and interest on deferred payment.
5. b) For goods and services used for exchange; internal consumption (excluding goods and services used to continue the production and business process of the enterprise) is determined according to the selling price of products, goods and services of the same or similar type on the Internet. market at the time of exchange; internal consumption.
6. c) For goods processing activities, the proceeds from processing activities include wages, costs of fuel, motivation, auxiliary materials and other costs in service of the processing of goods .
7. d) For goods of the units that assign, consign and receive agents, consign under agency contracts, consign goods for sale at the right price for commission, the price shall be determined as follows:

- Enterprises deliver goods to agents (including multi-level sales agents), consignment is the total amount of goods sold .

- The enterprise that accepts to act as an agent, consigns goods for sale at the correct price prescribed by the agent or consignee enterprise is the commission to be enjoyed under the agency contract or consignment goods .

1. e) For property leasing, it is the amount the lessee pays each period according to the lease contract. In case the lessee pays in advance for many years, the revenue for calculating taxable income is allocated to the number of years of advance payment or determined according to the revenue of one-time payment.

Enterprises, based on the conditions for implementing the accounting regime, actual invoices and documents and the determination of expenses, may choose one of two methods of determining revenue to calculate taxable income as follows:

- Is the rental amount for each year, which is determined by (=) the prepaid amount divided (:) by the number of years of prepayment.

- Is the entire rental amount of the property for the number of years of prepayment.

In case an enterprise is in the period of enjoying corporate income tax incentives and chooses the method of determining revenue to calculate taxable income which is the entire amount of rent paid in advance by the lessee for many years, the determination of the income tax amount shall be determined. Enterprise income tax incentives are based on the total corporate income tax of the number of years of prepayment divided by (:) the number of years of prepayment by the lessee.

1. g) For golf course business, the proceeds from the sale of membership cards, golf tickets and other revenues in a tax period are determined as follows:

- For the form of selling tickets and selling golf cards by day, the revenue from golf course business as the basis for determining the taxable income is the proceeds from ticket sales, card sales and other revenues. incurred during the tax period.

- For the form of ticket sales and membership card sales of prepaid cards for many years, the revenue used as the basis for determining the taxable income of each year is the amount from the sale of the card and other revenues actually collected. divided by the number of years of card use or determined by one-time payment revenue.

1. h) For credit activities of credit institutions, foreign bank branches is the income from deposit interest, from loan interest, revenue from financial leasing receivable arising in the tax period. accounting to revenue according to current regulations on financial mechanism of credit institutions, foreign bank branches.
2. i) For transportation activities, it is the total revenue from transporting passengers, goods and luggage arising in the tax period.
3. k) For electricity and clean water supply activities, it is the amount of electricity and clean water supply stated on the value-added invoice . The time of determining turnover for calculating taxable income is the date of confirmation of the electricity meter readings and written on the electricity and clean water bills .

Example 6: Electricity bill shows meter readings from December 5 to January 5. The revenue of this invoice is calculated in January.

1. l) For the insurance business, the revenue used to calculate taxable income is the total amount of money collected from the provision of insurance services and other goods and services, including surcharges and additional fees collected by the insurance company. Insurance enterprises are entitled to not have value added tax, including:

- Revenue from insurance business:

For insurance and reinsurance business activities, it is the amount receivable from the collection of original insurance premiums; collect reinsurance fees; collect reinsurance ceding commissions; collection of insurance policy management fees; collection of fees for agency services, including damage assessment, compensation consideration, requesting a third party to reimburse, handling 100% of compensation goods (excluding assessment on behalf of member enterprises for internal accounting). departments in the same independent insurance enterprise) after deducting payables to reduce revenue such as: refund of insurance premiums; reduce insurance premiums; Reimbursement of reinsurance fees; reduce reinsurance fees; reimbursement of reinsurance ceding commissions; reduce reinsurance ceded commissions.

In the case of insurance enterprises participating in co-insurance, the revenue used to calculate taxable income of each party is the original premium collected according to the co-insurance ratio to each party excluding value-added tax. get a raise.

For insurance contracts that agree to pay each period, the revenue used to calculate taxable income is the receivable amount arising in each period.

In case there is collection of transactions between affiliated enterprises or between the dependent accounting enterprise and the head office of the insurance enterprise, the revenue used to calculate taxable income does not include the turnover. collection.

- Revenue from insurance brokerage activities: Insurance brokerage commissions after deducting insurance brokerage commissions, reducing and refunding insurance brokerage commissions.

1. m) For construction and installation activities, it is the value of the work, the value of the work item or the value of the volume of the construction, installation and acceptance work.

- In the case of construction and installation, including raw materials, machinery and equipment, is the amount from construction and installation activities, including the value of raw materials, machinery and equipment.

- In case of construction and installation, excluding raw materials, machinery and equipment, is the amount from construction and installation activities excluding the value of raw materials, machinery and equipment.

1. n) For business activities in the form of a contract Business cooperation :

- In case the parties to a business cooperation contract divide their business results by the revenue from the sale of goods and services, the taxable revenue is the revenue of each party divided according to the contract.

- In case the parties to a business cooperation contract divide business results by products, the taxable revenue is the revenue from the product divided among each party according to the contract.

- In case the parties to a business cooperation contract divide business results by profit before corporate income tax, the revenue to determine pre-tax income is the amount from the sale of goods and services under the contract. . The parties to a business cooperation contract must appoint one party as a representative who is responsible for issuing invoices , recording revenue and expenses, and determining profit before corporate income tax to be divided among each party to the contract. business cooperation contract. Each party to a business cooperation contract shall perform its own corporate income tax obligations in accordance with current regulations.

- In case the parties to the business cooperation contract divide the business results by the profit after corporate income tax, the revenue used to determine taxable income is the amount of sales of goods and services under the contract. . The parties to a business cooperation contract must appoint one party as a representative who is responsible for issuing invoices , recording revenue and expenses and declaring and paying corporate income tax on behalf of the other parties to the contract. business cooperation contract.

1. o) For prize-winning game business (casino, prize-winning video game, betting business) is the amount collected from this activity including excise tax minus the amount already paid. for guests.
2. p) For securities trading activities, are revenues from brokerage services, securities trading, securities underwriting , portfolio management, financial advice and securities investment. securities exchange , investment fund management, fund certificate issuance, market organization services and other securities services as prescribed by law.
3. q) For derivative financial services is the amount collected from the provision of derivative financial services performed in the tax period.

Article 6. Deductible and non-deductible expenses when determining taxable income

first. Except for non-deductible expenses mentioned in Clause 2 of this Article, enterprises may deduct all expenses if they fully satisfy the following conditions:

1. a) Actual expenses incurred in connection with production and business activities of the enterprise;
2. b) Expenses with sufficient legal invoices and documents as prescribed by law.
3. c) Expenses if there is an invoice for purchase of goods and services each time with a value of VND 20 million or more (price includes VAT) when paying, there must be a non-cash payment voucher.

Non-cash payment vouchers comply with the provisions of legal documents on value added tax.

In case of purchasing goods and services each time with a value of twenty million dong or more written on the invoice, but by the time of expense recognition, the enterprise has not yet paid and has no non-cash payment documents, enterprises are included in deductible expenses when determining taxable income. In case the enterprise does not have a non-cash payment document when making a payment, the enterprise must declare and reduce expenses for the value of goods and services without a non-cash payment document at the time of payment. the tax period in which the payment is made in cash (even in the case where the tax authority and the competent authority have decided to inspect and examine the period in which this expense is incurred).

For goods and service purchase invoices that have been paid in cash, arising before the effective date of this Circular, they are not required to be adjusted according to the provisions of this Point.

Example 7: In August 2014, enterprise A purchased goods with an invoice and the invoice value is VND 30 million but has not yet paid. In the 2014 tax period, enterprise A has included deductible expenses when determining taxable income for the purchase value of these goods. In 2015, enterprise A has made payment for the value of these goods in cash, so enterprise A must declare and reduce costs for the value of goods and services in the tax period. cash payment (tax period 2015).

2. Expenses that are not deductible when determining taxable income include:

2.1. Expenses that do not fully satisfy the conditions specified in Clause 1 of this Article.

In case an enterprise has expenses related to the value of losses due to natural disasters, epidemics, fires and other force majeure cases that are not compensated, this expense shall be included in deductible expenses when determining revenue. taxable income, specifically as follows:

Enterprises must clearly determine the total value of losses due to natural disasters, epidemics, fires and other force majeure cases according to the provisions of law.

The part of the value of loss due to natural disasters, epidemics, fires and other force majeure events that is not compensated is determined by the total loss value minus the value that the insurer or other organization or individual must pay. compensation in accordance with the law.

1. a) Dossiers for property and goods lost due to natural disasters, epidemics or fires are included in deductible expenses as follows:

- The enterprise's document sent to the tax agency directly managing the explanation of the property and goods lost due to natural disasters, epidemics or fires.

- A record of inventory of the value of damaged assets and goods made by the enterprise.

The record of inventory of the value of damaged property and goods must clearly identify the value of the damaged property or goods , the cause of the loss, and the responsibility of the organization or individual for the loss; type, quantity and value of recoverable assets and goods (if any); the list of import and export of damaged goods , certified by the legal representative of the enterprise, and taking responsibility before the law.

- Written certification of the People's Committee of the commune, ward or township, the Management Board of the Industrial Park, Export Processing Zone, Economic Zone where the disaster, epidemic or fire incident occurred during that time. there is a natural disaster, epidemic, fire.

- Dossier of compensation for damage accepted by the insurance agency (if any).

- Dossier specifying the responsibility of the organization or individual to be compensated (if any).

1. b) Goods damaged due to expiry date, damaged due to changes in natural biochemical process without compensation, shall be included in deductible expenses when determining taxable income.

Records for goods damaged due to expiry date, damaged due to changes in natural biochemical processes are included in the deductible expenses as follows:

- The enterprise's document sent to the tax agency directly managing the explanation about the goods damaged due to expiry date, damaged due to changes in the natural biochemical process .

- A record of inventory of the value of damaged goods made by the enterprise.

The record of inventory of the value of damaged goods must clearly identify the value of damaged goods and the cause of the damage; type, quantity and value of recoverable goods (if any) together with a list of imports and exports of damaged goods with certification signed by the legal representative of the enterprise and take responsibility before law. .

- Dossier of compensation for damage accepted by the insurance agency (if any).

- Dossier specifying the responsibility of the organization or individual to be compensated (if any).

1. c) The enterprise sends a written explanation to the tax authority directly managing the property and goods lost due to natural disasters, epidemics or fires; Goods damaged due to expiry date, damaged due to changes in natural biochemical processes shall not be compensated no later than when submitting the corporate income tax declaration and finalization documents according to the provisions of the year in which the financial year occurs. products or goods are lost or damaged. Other documents (including the Minutes of inventory of the value of lost or damaged properties and goods ; written certifications of the People's Committees of communes and wards, the Management Boards of the Industrial Parks, and the Export Processing Zones). , Economic zone; Dossier of compensation for damage accepted by the insurance agency (if any); Dossier specifying liability of organizations and individuals to be compensated (if any) and other documents) be kept at the enterprise and presented to the tax authority upon request by the tax authority.

2.2. Depreciation of fixed assets in one of the following cases:

1. a) Depreciation expenses for fixed assets not used for production and trading of goods and services.

Particularly, fixed assets serving employees working at enterprises such as motels in between shifts, cafeterias in between shifts, changing houses, toilets, rooms or medical stations for medical examination and treatment, training establishments construction, vocational training and equipment and furniture that are eligible to be fixed assets installed in mid-shift motels, mid-shift cafeterias, changing houses, toilets, rooms or medical stations for medical examination and treatment. , training and vocational institutions; clean water tanks, garages, employee shuttles, and houses directly for employees are depreciated and included in deductible expenses when determining taxable income.

1. b) Depreciation expenses for fixed assets which cannot be proved by documents of ownership of the enterprise (except for fixed assets under finance lease purchase).
2. c) Depreciation expenses for fixed assets are not managed, monitored and recorded in the accounting books of the enterprise according to the current regime of fixed asset management and accounting.
3. d) Depreciation in excess of current regulations of the Ministry of Finance on management, use and depreciation of fixed assets.

The enterprise shall notify the method of depreciation of fixed assets that it has chosen to apply to the tax authority directly managing it before depreciating it (for example, announcing the choice to implement the depreciation method). loss of straight lines...). Every year, enterprises depreciate fixed assets in accordance with current regulations of the Ministry of Finance on the regime of management, use and depreciation of fixed assets, including the case of rapid depreciation (if conditions are met). .

Enterprises operating with high economic efficiency may depreciate quickly but not exceeding 2 times the depreciation rate determined by the straight-line method to quickly renew technology for some fixed assets as prescribed. current regulations of the Ministry of Finance on the regime of management, use and depreciation of fixed assets. When implementing accelerated depreciation, enterprises must ensure profitable business.

Fixed assets contributed as capital, fixed assets transferred upon division, separation, consolidation, merger or transformation are re-evaluated according to regulations, the enterprise receiving these fixed assets shall be entitled to amortization in expenses. Fees are deducted from the original re-evaluated cost. For other types of assets that do not qualify as fixed assets with capital contribution or transfer upon division, separation, consolidation, merger, or transformation, and if this property is re-evaluated according to regulations, the enterprise shall Receiving this asset is charged to expense or amortized to deductible expense at revaluation price.

For self-made fixed assets, the original cost of fixed assets that is depreciated and included in deductible expenses is the total production costs to form that asset.

For assets being tools, instruments, rotating packaging, etc., which do not satisfy the conditions for determination as fixed assets as prescribed, the cost of purchasing the above-mentioned assets shall be gradually amortized into expenses. business activities in the period but not exceeding 3 years.

1. e) Depreciation is equivalent to the original cost in excess of 1.6 billion VND/vehicle for passenger cars with 9 seats or less (except for automobiles specializing in passenger transport, tourism and hotel business). ); depreciation for fixed assets being civil aircraft and yachts not used for business purposes of transporting goods, passengers and tourists.

Passenger cars with 9 seats or less, specializing in passenger transport, tourism and hotel business are automobiles registered with the business name of which this enterprise is in the Certificate of Business Registration or Certificate of Business Registration. registered business in one of the following lines: passenger transport, tourism, hotel business and licensed to do business as prescribed in legal documents on transport, passenger, tourism business, hotel.

Civil aircraft and yachts not used for business purposes of transporting goods , passengers and tourists are civil aircraft and yachts of enterprises registering and accounting for depreciation of fixed assets. but in the certificate of business registration or the certificate of enterprise registration of the enterprise, the profession of freight transport , passenger transport and tourism is not registered.

In case the enterprise transfers or liquidates passenger cars with 9 seats or less, the residual value of the vehicle is determined by the actual cost of the purchase of the fixed asset minus (-) the accumulated depreciation of the vehicle. fixed assets have been included in reasonable expenses according to accounting standards and accounting regime up to the time of vehicle transfer or liquidation.

Example 8: Enterprise A buys a car with less than 9 seats with the original price of VND 6 billion, the company depreciates it for 1 year and then liquidates it. Depreciation amount according to accounting standards and accounting regime is 1 billion VND (the depreciation period is 6 years according to the document on depreciation of fixed assets). The amount of depreciation according to tax policy included in deductible expenses is 1.6 billion dong/6 years = 267 million dong. Enterprise A liquidates and sells cars for 5 billion VND.

Income from vehicle liquidation = 5 billion - (6 billion - 1 billion) = 0

1. g) Depreciation for fixed assets that have been fully depreciated.
2. h) Depreciation for works on land used for production and business and for other purposes shall not be included in the deductible expenses for the value of the works on land corresponding to the non-depreciable area. used in business activities.

In case an enterprise has constructions on land such as offices, factories, and shops in service of its production and business activities, the enterprise may depreciate it and calculate it into deductible expenses when determining income. taxable according to the rate of depreciation and use time of fixed assets according to current regulations of the Ministry of Finance for these works if the following conditions are met:

- Having a land use right certificate bearing the enterprise's name (in case the land is owned by the enterprise) or having a land lease or land loan contract between the enterprise and the land-owning unit or individual and the enterprise's representative. Enterprises must be responsible before the law for the accuracy of the contract (in the case of leased or borrowed land).

- An invoice for payment of the volume of construction work handed over, enclosed with the contract for construction, liquidation of the contract , and the final settlement of the value of the construction work bearing the name, address and tax code of the enterprise.

- Works on land are managed, monitored and accounted for according to current regulations on fixed asset management.

1. i) In case the fixed assets owned by the enterprise are used for production and business but must be temporarily stopped due to seasonal production for less than 9 months; temporarily stop for repair, relocation, relocation, periodic maintenance, for less than 12 months, then fixed assets continue to be put into service for production and business activities. During the suspension period, the enterprise is entitled to amortization and the depreciation expense of fixed assets during the suspension period is included in the deductible expenses when determining taxable income.

Enterprises must keep and provide complete records and reasons for the suspension of fixed assets when required by tax authorities.

1. k) Long-term land use rights are not amortized and allocated to deductible expenses when determining taxable income; land use rights with a definite term, if they have sufficient invoices and vouchers and strictly follow the procedures as prescribed by law, participate in production and business activities, they shall be gradually allocated to deductible expenses according to the provisions of law. the land use permit period stated in the land use right certificate (including the case of stopping operation for repair, investment in new construction).

In case an enterprise purchases tangible fixed assets that are houses and structures attached to long-term land use rights, the value of land use rights must be determined separately and recorded as intangible fixed assets; Tangible fixed assets being buildings and structures, the historical cost is the actual purchase price payable plus (+) expenses directly related to putting the tangible fixed assets into use. The value of land use rights is determined according to the price stated in the real estate purchase contract (property) in accordance with the market price but must not be lower than the land price in the land price list issued by the People's Committee of the province or city directly under the supervision of the People's Committee of the province. centrally regulated at the time of asset purchase. In case an enterprise purchases tangible fixed assets such as houses and structures attached to long-term land use rights that cannot be separated from the value of land use rights, the value of the land use rights shall be determined according to the prices set by the Land Use Rights Commission . People's Committees of provinces and cities under central authority at the time of asset purchase.

2.3. Expenses for raw materials, materials, fuel, energy and goods in excess of the reasonable consumption level.

Enterprises build and manage consumption norms for raw materials, materials, fuel, energy and goods used in production and business by themselves. This norm is built at the beginning of the year or at the beginning of the product production period and kept at the enterprise.

In case a number of raw materials, materials, fuels and goods have been promulgated by the State, the consumption norms shall be applied according to the norms issued by the State.

2.4. Expenses of enterprises purchasing goods and services (without an invoice , it is allowed to make a list of purchased goods and services using the form No. 01/TNDN attached to this Circular) but the list is not attached. payment vouchers for sellers or service providers in the following cases:

- Purchase of agricultural , marine and aquatic products from producers or catchers for direct sale;

- Buy handicraft products made of jute, sedge, bamboo, leaves, rattan, straw, coconut shells, coconut skulls or raw materials from agricultural products of handicraft producers who do not trade directly. sold out;

- Buy land, stone, sand and gravel from households and individuals, which are exploited and sold by themselves;

- Buying scrap from people who directly collect it;

- Buying furniture, property and services from households and individuals that are not directly sold by non-businesses;

- Purchase of goods and services from business households and individuals (excluding the cases mentioned above) with a turnover below the threshold of value-added taxable revenue (VND 100 million/year).

The list of goods and services purchase and sale signed by the legal representative or authorized person of the enterprise and responsible before the law for the accuracy and truthfulness. Enterprises purchasing goods and services that are allowed to make a list of deductible expenses mentioned above are not required to have non-cash payment vouchers. In case the purchase price of goods or services on the list is higher than the market price at the time of purchase, the tax authority shall base it on the market price at the time of purchase of the same or similar goods or services on the market. price to recalculate deductible expenses when determining taxable income.

2.5. Paying salaries, wages and bonuses to employees in one of the following cases:

1. a) Paying salaries, wages and other payables to employees, the enterprise has accounted for production and business expenses in the period but actually does not pay or has no payment documents as prescribed by law. the law.
2. b) Wages and bonuses for employees are not specified in terms of eligibility and enjoyment level in one of the following documents: Labor contract; Collective labor agreement; Financial regulations of the Company, Corporation, Group; The bonus regulations are prescribed by the Chairman of the Board of Directors, the General Director, the Director according to the financial regulations of the Company and the Corporation.

- In case the labor contract of the enterprise signed with the foreign worker is recorded, the expenses for the education of foreigners' children studying in Vietnam from preschool to high school are paid by the enterprise. has the nature of salary, wages, this expenditure is not contrary to the provisions of the law on salary and wages and has sufficient invoices and documents as prescribed, it shall be included in deductible expenses when determining income subject to corporate income tax.

- In case the labor contract of the enterprise signed with the employee contains the payment of house rent paid by the enterprise to the employee, this payment shall be of the nature of salary and wages, not contrary to the provisions of law. of the law on wages and salaries and having sufficient invoices and documents as prescribed, they shall be included in deductible expenses when determining taxable income.

1. c) Paying salaries, wages and other allowances payable to employees but the time limit for submission of tax finalization dossiers has not yet been paid, except for cases where the enterprise has set up a reserve fund to add to the fund. salary of the following year. The annual provision level is decided by the enterprise but must not exceed 17% of the salary fund.

Realized salary fund is the total actually paid salary of that settlement year by the prescribed deadline for submitting the final settlement dossier (excluding the amount of money set aside for the salary provision fund of the previous year for expenses). in the tax year).

The setting up of salary provision must ensure that after making the deduction, the enterprise does not suffer a loss, if the enterprise suffers a loss, it is not allowed to fully deduct 17%.

In case the enterprise has made a deduction for the salary provision fund in the previous year, but after 6 months from the end of the fiscal year, the enterprise has not used it or has not used up the salary reserve fund, the enterprise must calculate the cost reduction. of the following year.

Example 9: When submitting the 2014 tax finalization dossier, enterprise A has deducted the salary reserve fund of 10 billion dong, up to June 30, 2015 (in case the enterprise applies the tax period according to the positive tax year). According to the schedule), enterprise A just spent the amount from the salary reserve fund in 2014 is 7 billion dong, then enterprise A has to calculate the reduction in salary expenses next year (2015) by 3 billion dong (10 billion - 7 billion dong). When preparing the 2015 finalization dossier, if enterprise A needs to make deductions, it shall continue to set up the salary reserve fund as prescribed.

1. d) Salaries and wages of owners of private enterprises, owners of single-member limited liability companies (owned by an individual); remuneration paid to the founders, members of the Members' Council, the Board of Directors who are not directly involved in production and business management.

2.6. Expenses for clothing in kind for employees without invoices and vouchers; the expenditure on clothing in cash and in kind for employees exceeds 05 (five) million VND/person/year.

In case an enterprise has to pay both cash and in-kind clothing for employees, the maximum amount of expenditure to include in deductible expenses when determining taxable income does not exceed 05 (years) million VND/person/year. .

For business lines with specific characteristics, these expenses shall be implemented in accordance with specific regulations of the Ministry of Finance.

2.7. Payment of rewards for initiatives and improvements that enterprises do not have specific regulations on the payment of rewards for initiatives and improvements, and without a council for acceptance of initiatives and improvements.

2.8. Expenses for vehicle allowances on vacation not in accordance with the provisions of the Labor Code; The allowance for employees going on domestic and foreign business trips exceeds 02 times the level prescribed by the Ministry of Finance's guidance for state officials and employees.

Travel expenses and accommodation rents for employees going on a business trip if they have all legal invoices and documents as prescribed are included in deductible expenses when determining taxable income. In case the enterprise has the money for travel and accommodation for employees, it will be included in the deductible expenses for the travel and accommodation expenses according to the regulations of the Ministry of Finance for officials and employees. State office.

In case an enterprise buys air tickets through an e-commerce website for employees to go on a business trip to serve its business and production activities, the voucher used as the basis for calculating deductible expenses is the air ticket. electronic flights, boarding passes and non-cash payment vouchers of businesses with individuals participating in the transportation journey. In case the enterprise fails to recover the employee's boarding pass, the documents used as the basis for calculating the deductible expenses are electronic air tickets, work dispatch papers and non-cash payment documents. the face of an enterprise with an individual participating in the transportation journey.

2.9. Expenditures are deducted as follows but if the expenditure is not for the right object, for the wrong purpose or the expenditure is in excess of regulations.

1. a) Additional expenses for female employees included in deductible expenses include:

- Expenses for vocational retraining for female employees in case the old occupation is no longer suitable and must be changed to another occupation according to the development planning of the enterprise.

This expense includes: tuition fee (if any) + salary difference between grades (100% salary guaranteed for learners).

- Cost of salaries and allowances (if any) for teachers who teach at kindergartens and kindergartens organized and managed by enterprises.

- Expenses for organizing additional health checks during the year such as occupational, chronic or gynecological examinations for female employees.

- Expenses for allowances for female employees after giving birth for the first or second time.

- Overtime allowance for female employees in case female employees do not take leave after giving birth or take maternity leave for objective reasons, but stay and work for the enterprise, which is paid according to the current regime; Even in the case of product -based wages, female employees still work during non-time off according to the regime.

1. b) Additional expenses for ethnic minorities included in deductible expenses include: school fees (if any) plus the difference in salary and grade level (100% salary guaranteed for learners); support money for housing, social insurance and health insurance for ethnic minorities in case they have not been supported by the State according to the prescribed regime.

2.10. The deduction for payment of compulsory insurance funds for employees in excess of the prescribed limit; the deduction and payment of union dues for employees in excess of the prescribed limit.

2.11. Spending in excess of 1 million VND/month/person for: Deduction for voluntary retirement fund, social security fund, purchase of voluntary retirement insurance, life insurance for employees.

Expenses for payment to the voluntary retirement fund, social security fund, voluntary retirement insurance, and life insurance for employees are included in deductible expenses, except not exceeding the limit specified in Clause 1 of this Article. This point must also specify the conditions for enjoyment and the level of enjoyment in one of the following documents: Labor contract ; Collective labor agreement; Financial regulations of the Company, Corporation, Group; The bonus regulations are prescribed by the Chairman of the Board of Directors, the General Director, the Director according to the financial regulations of the Company and the Corporation.

Enterprises must fulfill their obligations for compulsory insurances for employees in accordance with the law first, and then be included in the deductible expenses for voluntary insurance if they meet all the requirements. prescribed conditions. Enterprises are not allowed to include expenses for expenses for the above voluntary program if the enterprises fail to fulfill the obligations of compulsory insurance for employees (including the case of debt of compulsory insurance premiums). tie).

2.12. The payment of unemployment benefits to employees is not in accordance with current regulations.

2.13. Contribution expenses form a source of management expenses for superiors.

2.14. The expenditure contributed to the Association's funds (these Associations are established in accordance with the law) exceeds the limit prescribed by the Association.

2.15. Payment of electricity and water bills for electricity and water contracts signed by the owner being a household or individual leasing a production or business location directly with the electricity and water supply unit without sufficient documents in one of the following cases :

1. a) In case an enterprise rents a business location and directly pays electricity and water bills to the electricity and water supplier without a list (made according to form No. 02/TNDN issued together with this Circular) enclosed with the following documents: electricity and water bills and lease contracts for production and business locations.
2. b) In case an enterprise leases a business location and pays electricity and water bills to the owner of the business location without a list (made according to form No. 02/TNDN issued together with this Circular) attached vouchers for payment of electricity and water bills to the lessor of the production and business location in accordance with the actual amount of electricity and water consumed and the contract for the lease of the production and business location.

2.16. The portion of fixed asset lease expenses that exceed the amortization rate for the number of years that the lessee pays in advance.

Example 10: Enterprise A leases fixed assets for 4 years with the rental amount: 400 million VND and makes a one-time payment. The cost of renting fixed assets is recorded as an annual expense of VND 100 million. If the annual cost of renting fixed assets exceeds VND 100 million, the excess of VND 100 million shall not be included in reasonable expenses when determining taxable income.

For expenses for repair of leased fixed assets, which in the lease contract stipulates that the lessee is responsible for repairing the property during the lease period, the cost of repairing the leased fixed asset may be accounted for. into expenses or gradually allocated to expenses, but the maximum time is not more than 03 years.

In case an enterprise has expenses to acquire assets that are not fixed assets: expenditures on purchasing and using technical documents, patents, technology transfer licenses, trade marks, etc. business advantages, brand use rights, etc., these expenses shall be gradually amortized into business expenses but not exceeding 03 years.

In case the enterprise contributes capital equal to the value of business advantage or the value of the right to use the brand, the value of the business advantage and the value of the right to use the brand contributed as capital shall not be allocated to the expenses. income taxes.

2.17. The portion of interest payments on loans for production and business loans of subjects who are not credit institutions or economic organizations exceeds 150% of the basic interest rate announced by the State Bank of Vietnam at the time of borrowing.

2.18. Payment of interest on loan in proportion to the missing registered charter capital (in the case of a private enterprise as investment capital) according to the capital contribution schedule stated in the enterprise's charter, even if the enterprise has gone into production and business. Interest payments on loans have been recognized in the value of assets and investment works.

2.19. Deducting, making and using provisions not in accordance with the guidance of the Ministry of Finance on setting up provisions: provision for devaluation of inventories, provision for loss of financial investments, provision for doubtful debts Claims, provision for warranties of products , goods , construction works and provision for professional risks of valuation enterprises and independent audit service providers.

2.20. Expenses that are accrued by term, by cycle, but by the end of the term, by the end of the cycle, have not been spent or are not fully paid.

Advances include: deductions for major repair of fixed assets on a periodic basis, deductions for activities for which revenue has been calculated but still having to perform contractual obligations (even in case of the enterprise has engaged in asset leasing and service business activities for many years but has collected money in advance from customers and has included all in the revenue of the year of collection) and other advance deductions.

In case an enterprise has production and business activities that have recognized revenue for calculation of corporate income tax but have not yet incurred all expenses, it is entitled to deduct the prescribed expenses from the deductible expenses corresponding to the business income tax. recognized income when determining income subject to corporate income tax. At the end of the contract, the enterprise must calculate and determine the exact amount of actual expenses based on the actual arising legal invoices and documents in order to adjust the increase in costs (in case the actual expenses are incurred) . greater than the amount already deducted) or reduce costs (in case the actual costs incurred are smaller than the amount deducted) in the tax period ending the contract.

For fixed assets whose repair is cyclical, the enterprise may deduct repair costs according to the estimate into annual expenses. If the actual number of repair expenses is greater than the estimated product, the enterprise may add to the deductible expenses this difference.

2.21. Expenses exceeding 15% of total deductible expenses, including: advertising, marketing, promotion, brokerage commissions; expenses for receptions, celebrations, conferences; marketing support expenses, expense support expenses; paying for, giving or giving away goods and services to customers.

Total deductible expenses do not include control expenses specified at this point; for commercial activities, the total deductible expenses do not include the purchase price of sold goods . For imported goods, the purchase price of sold goods includes import tax, excise tax, and environmental protection tax (if any). For specific business activities such as lottery, prize-winning electronic games, bets, casino, the total deductible expenses do not include prize payment expenses.

The above controlled advertising, marketing, promotion and brokerage commissions do not include:

- Insurance commission in accordance with the law on insurance business; Commissions paid to agents selling goods and services at the right price.

- Commissions paid to distributors of multi-level selling enterprises. For organizations that receive commissions, they must declare and calculate them into taxable income, for individuals who receive commissions, they must withhold personal income tax before paying income.

- Expenses incurred in the country or abroad (if any) such as: Market research expenses: exploration, survey, interview, collection, analysis and evaluation of information; development costs and market research support; expenses for hiring consultants to conduct research, development and market research support; Expenses for displaying and introducing products and organizing trade fairs and exhibitions: expenses for opening rooms or booths to display and introduce products; the cost of renting space to display and introduce products; cost of materials, tools to support the display and introduction of products; Shipping costs for products displayed and introduced.

2.22. Loss on exchange rate differences due to revaluation of monetary items denominated in foreign currencies at the end of the tax period, including exchange rate differences due to revaluation of year-end balance, are: cash, deposits, cash in progress. transfers, receivables denominated in foreign currencies (except for losses on exchange rate differences due to revaluation of foreign currency liabilities at the end of the tax period).

During the stage of construction investment to form fixed assets of newly established enterprises that have not yet come into operation, exchange rate differences arise when paying monetary items denominated in foreign currencies for implementation. construction investment and exchange rate differences arising when re-evaluating foreign currency liabilities at the end of the financial year are recorded cumulatively and separately in the Balance Sheet. When the fixed assets are completed and put into use, the exchange rate difference arising during the construction investment period (after clearing the difference between the increase and the decrease) is gradually amortized. revenue from financial activities or financial expenses, the amortization period shall not exceed 5 years from the time the works are put into operation.

During the stage of production and business, including construction investment to form fixed assets of operating enterprises, exchange rate differences arising from transactions in foreign currencies of cash items Currencies denominated in foreign currencies will be charged to financial income or financial expenses in the fiscal year.

For receivables and loans denominated in foreign currencies arising during the period, the exchange rate difference included in deductible expenses is the difference between the exchange rate at the time of debt collection or recovery. loan at the exchange rate at the date of recognition of the receivable or the initial loan.

2.23. Expenditures on funding for education that are not for the subjects specified in Item a of this Point or have no documents to identify the funding mentioned in Item b below:

1. a) Funding for education includes: funding for public, people-founded and private schools in the national education system in accordance with the law on education, which is not a capital contribution. , buy shares in schools; Funding facilities for teaching, learning and school activities; Sponsor regular school activities; Sponsor scholarships for pupils and students of general education institutions, vocational education institutions and higher education institutions as prescribed in the Law on Education (direct funding for pupils and students). or through educational institutions, through agencies and organizations that have the function of mobilizing funding as prescribed by law); Sponsoring contests on subjects taught in schools where the participants are learners; funding to establish education promotion funds in accordance with the law on education and training.
2. b) Dossier to determine the funding for education includes: A written certification of the grant signed by the representative of the business establishment being the sponsor, the representative of the legal educational institution being the receiving sponsors, students, students (or agencies and organizations with the function of mobilizing funding) receive grants (using form No. 03/TNDN issued together with this Circular); accompanied by invoices , proof of purchase (if sponsored in kind) or vouchers for payment (if sponsored in cash).

2.24. Expenditures on health care funding are not for the subjects specified in Item a of this point or there is no record to identify the funding mentioned in Item b below:

1. a) Funding for health includes: funding for medical facilities established in accordance with the law on health but this funding is not for capital contribution, purchase of shares in hospitals, medical centers, etc. that medical; sponsoring medical equipment, medical instruments and medicines; funding regular activities of hospitals and health centers; financial aid for sick people through an agency or organization that has the function of mobilizing funding in accordance with law.
2. b) Dossier to determine the funding for health includes: A written confirmation of the sponsorship signed by the representative of the business being the sponsor, the representative of the sponsoring unit (or the agency, organization or organization). has the function of mobilizing funding) according to form No. 04/TNDN issued together with this Circular, together with invoices , proof of purchase (in case of in-kind funding) or payment vouchers (in case of financial sponsorship). ).

2.25. Expenses for funding for disaster recovery not to the subjects specified in Item a of this Point or without documents to identify the funding mentioned in Item b below:

1. a) Funding for disaster recovery includes: funding in cash or in kind for direct disaster recovery for organizations established and operating in accordance with law; individuals damaged by natural disasters through an agency or organization that has the function of mobilizing funding in accordance with law.
2. b) Dossier to determine the funding for the recovery of natural disaster consequences, including: A written certification of the grant signed by the representative of the business being the donor, the representative of the organization affected by the natural disaster, tai (or agency or organization with the function of mobilizing funding) is the sponsor (under form No. 05/TNDN issued together with this Circular) enclosed with invoices and vouchers for purchase of goods (if finance is available). support in kind) or payment vouchers (if the funding is in cash).

2.26. Expenditure to finance the construction of houses of gratitude for the poor not to the subjects specified in Item a of this Point; funding for the construction of houses of gratitude for the poor, expenditures for building houses of great solidarity according to the provisions of law, there are no records to identify the funding mentioned in Item b below:

1. a) The beneficiaries are poor households according to the Prime Minister's regulations. Forms of funding: financial or in-kind funding to build houses of gratitude for poor households by directly or through an agency or organization that has the function of mobilizing funding in accordance with the law.
2. b) Dossier to determine the grant to build houses of gratitude for the poor and to build houses of great solidarity, including: A written certification of the sponsorship signed by the representative of the business being the sponsor, the beneficiary of the grant. (or the agency or organization with the function of mobilizing funding) is the recipient of the grant (using form No. 06/TNDN issued together with this Circular); a document certifying the poor household by the local government (for funding to build houses of gratitude for the poor); invoices , proof of purchase (if sponsored in kind) or vouchers for payment (if sponsored in cash).

2.27. Spending on funding scientific research not in accordance with regulations ; funding not according to the State's program for localities in areas with extremely difficult socio-economic conditions.

Sponsorship expenditures under the State's program are programs regulated by the Government to be implemented in localities in areas with extremely difficult socio-economic conditions.

Dossier to determine the grant under the State program for localities in areas with extremely difficult socio-economic conditions include: A written confirmation of the grant signed by the business representative. the business is the donor, the beneficiary (or the agency or organization with the function of mobilizing funding) is the recipient of the grant (made according to form No. 07/TNDN issued together with this Circular); invoices , proof of purchase (if sponsored in kind) or vouchers for payment (if sponsored in cash).

Regulations on scientific research and procedures and documents for funding scientific research comply with the provisions of the Law on Science and Technology and relevant guiding legal documents.

2.28. The portion of business administration expenses allocated by the overseas company to the permanent establishment in Vietnam in excess of the expenses calculated according to the following formula:

Business administration expenses of foreign companies allocated to permanent establishments in Vietnam shall be calculated only from the time the permanent establishment in Vietnam is established.

The basis for determining the expenses and revenue of the overseas company is the financial statement of the overseas company which has been audited by an independent auditing firm, which clearly shows the revenue of the company in the foreign country. overseas, the management expenses of the overseas company, the part of the management expenses of the overseas company to be allocated to the permanent establishment in Vietnam.

The permanent establishment of the company in a foreign country in Vietnam has not yet implemented the accounting, invoice and voucher regime; If tax has not yet been paid according to the declaration method, it is not included in the reasonable expenses of the business administration expenses allocated by the overseas company.

2.29. Expenses to be covered by other funding sources; Expenditures already spent from the enterprise's science and technology development fund; The cost of buying golf membership cards, golfing expenses.

2.30. The part of expenses related to hiring managers for prize-winning video games and casino business exceeds 4% of revenue from prize-winning video games and casino business.

2.31. Expenses that do not correspond to taxable revenue, except for the following expenses:

- Actual expenditures for HIV/AIDS prevention and control activities at the enterprise's workplace, including: Expenses for training staff on HIV/AIDS prevention and control of the enterprise, expenses for organizing communication on prevention and control. HIV/AIDS for employees of enterprises, fees for HIV counseling, examination and testing, expenses for supporting HIV-infected people who are employees of enterprises.

- Actual expenditures for performing the tasks of national defense and security education, training and activities of militia and self-defense forces and serving other defense and security tasks as prescribed by law.

- Amounts actually spent to support Party organizations, socio-political organizations in enterprises.

- Other expenditures of specific nature, suitable for each industry and field according to the guiding documents of the Ministry of Finance.

2.32. Spending on capital construction investment during the investment period to form fixed assets.

When starting production and business activities, the enterprise has not generated revenue but has incurred recurrent expenses to maintain its production and business activities (not construction investment expenses to formation of fixed assets) if these expenses meet the prescribed conditions, these expenses shall be included in deductible expenses when determining taxable income.

In case during the investment stage, the enterprise incurs loan payments, these expenses shall be included in the investment value. In the event that during the investment period, the enterprise incurs both loan interest payment and deposit interest payment, it shall be offset between loan interest payment and deposit interest payment, after clearing the difference. The rest is recorded as a decrease in investment value.

2.33. Spending on local support; spending on support for mass organizations and social organizations; charity expenditures (except for funding for education, health care, disaster recovery, building houses of gratitude for the poor, building houses of great solidarity; funding scientific research, sponsoring programs under the program). of the State for localities in areas with extremely difficult socio-economic conditions mentioned at Points 2.23, 2.24, 2.25, 2.26, 2.27, Clause 2 of this Article).

2.34. Expenses directly related to the issuance of shares (except for shares of the type of liability) and dividends of shares (except for dividends of shares of the type of liability), purchase and sale of treasury shares and other cash payments. Other expenses directly related to the increase or decrease in the owner's equity of the enterprise.

2.35. Expenses for insurance business, lottery business, securities business and a number of other specific business activities do not comply with separate guidance documents of the Ministry of Finance.

2.36. Fines for administrative violations include: violations of traffic laws, violations of business registration regimes, violations of statistical accounting regimes, violations of tax laws, including interest on late tax payment according to regulations. provisions of the Law on Tax Administration and fines for other administrative violations as prescribed by law.

2.37. Input VAT has been deducted or refunded; input value-added tax of fixed assets being automobiles with 9 seats or less in excess of the deductible prescribed in legal documents on value-added tax; corporate income tax, except for cases where enterprises pay corporate income tax on behalf of foreign contractors, which according to agreements in contracts of foreign contractors and sub-contractors, revenue from foreign contractors and sub-contractors receive excluding corporate income tax; personal income tax unless the enterprise signs a labor contract stipulating that the salary and remuneration paid to the employee does not include personal income tax.

Article 7. Other income

Other incomes are taxable incomes in a tax period that do not belong to the business lines and fields stated in the enterprise's business registration. Other income includes the following income:

1. Income from capital transfer, securities transfer under the guidance in Chapter IV of this Circular.
2. Income from real estate transfer as guided in Chapter V of this Circular.
3. Income from transfer of investment projects; transfer the right to participate in investment projects; transfer the right to explore, exploit and process mt .
4. Income from property ownership and right to use, including royalties in any form, paid for the right to own or use the property; income on intellectual property rights; income from technology transfer as prescribed by law.

Income from intellectual property and technology transfer royalties is determined by the total proceeds minus (-) the cost price or the cost of creating the transferred intellectual property right or technology, minus (-) ) costs of maintaining, upgrading and developing intellectual property rights, transferred technology and other deductible expenses.

5. Income from property rental in any form.

Income from asset leasing is determined by revenue from asset leasing activities minus (-) expenses: expenses for depreciation, maintenance, repair and maintenance of assets, expenses for renting assets to sublease (if any) and other deductible expenses related to the lease of the property.

6. Income from property transfer, asset liquidation (except real estate), other valuable papers.

This income is determined by (=) the revenue earned from the transfer or liquidation of assets minus (-) the residual value of the transferred or liquidated assets at the time of transfer or liquidation. and deductible expenses related to the transfer and liquidation of assets.

7. Income from deposit and loan interest, including interest on deferred payment, installment interest, credit guarantee fee and other fees in the loan contract .

- In case the income from interest on deposits, interest on capital loans is higher than the payment of loan interest as prescribed, after clearing, the remaining difference shall be included in other income when determining the payable income. tax.

- In case the income from deposit interest and capital loan interest is lower than the prescribed loan interest payment, after clearing, the remaining difference will be deducted from the main production and business income when determine taxable income.

8. Income from the sale of foreign currencies: equal to the total proceeds from the sale of foreign currencies minus (-) the total purchase price of the quantity of foreign currencies sold.
9. Income from exchange rate difference is determined as follows :

In the tax year, enterprises have exchange rate differences arising in the period and exchange rate differences due to re-evaluation of payables denominated in foreign currencies at the end of the fiscal year, then:

- The exchange rate difference arising in the period directly related to the revenue and expenses of the enterprise's main production and business activities shall be included in the expenses or income of the enterprise's main production and business activities. . The exchange rate difference arising in the period is not directly related to the revenue and expenses of the enterprise's main production and business activities. if there is interest on exchange rate difference, it shall be included in other income.

- Exchange rate difference gain due to revaluation of foreign currency liabilities at the end of the financial year is offset against exchange rate difference loss due to revaluation of foreign currency liabilities at the end of the fiscal year. After clearing the profit or loss from the exchange rate difference directly related to the revenue, the expenses of the enterprise's main production and business activities shall be included in the income or expenses of the main production and business activities of the enterprise. Karma. Gains or losses on exchange rate differences that are not directly related to the revenue and expenses of the enterprise's main production and business activities shall be included in other incomes or main production and business expenses when determining taxable income. .

For receivables and loans denominated in foreign currencies arising in the period, the exchange rate difference is included in deductible expenses or income as the difference between the exchange rate at the time of debt collection. or recover the loan at the rate at which the receivable or initial loan was recognized.

The above-mentioned exchange rate differences do not include exchange rate differences due to revaluation of year-end balances: cash, deposits, money in transit, and receivables of foreign currency origin.

10. Bad debts that have been written off are now recoverable.
11. Debts whose creditor cannot be identified.
12. Income from production and business activities of previous years was omitted and discovered.
13. In case the enterprise has a receipt of fines or compensation due to the other party's breach of the contract or bonuses due to the good performance of commitments under the contract, arising higher than the payment of fines or compensation due to breach of contract (these fines are not included in the fines for administrative violations in accordance with the law on handling of administrative violations), after clearing, the remaining difference shall be included in other incomes. .

In case the enterprise has a receipt of fines and compensation due to the partner's breach of the contract or bonuses for good performance of commitments under the contract, which are lower than the payment of fines and compensation due to violations. contract (these fines are not included in the fines for administrative violations according to the provisions of the law on handling of administrative violations), after clearing, the remaining difference shall be deducted from other incomes. . In case the unit does not generate other income in the year, it shall be deducted from the income from production and business activities.

The above-mentioned fines and compensations do not include fines and compensations recorded as a decrease in the value of the works during the investment period.

14. The difference due to the revaluation of assets in accordance with the law for capital contribution, for asset transfer upon division, separation, consolidation, merger or transformation of the enterprise type, shall be determined specifically as follows:
15. a) The increase or decrease difference due to revaluation of assets is the difference between the revaluation value and the residual value of the assets recorded in the accounting books and calculated once in other income (for the difference increase) or deduct other incomes (for reduced differences) in the tax period when determining corporate income taxable income at enterprises having revalued assets.
16. b) The difference increases or decreases due to revaluation of land use right value for: contribution, capital (for which the enterprise receiving the land use right value is gradually allocated the land value to deductible expenses), transfer when division, separation, consolidation, merger, transformation of enterprises, capital contribution to investment projects to build houses and infrastructure for sale, one-time calculation of other income (for the difference increase) or deduction other income (for the difference in reduction) in the tax period when determining the taxable income at the enterprise having the land use right re-evaluated.

Particularly, the increased difference due to revaluation of the value of land use rights contributed as capital to the enterprise to form fixed assets for production and business, but the enterprise receiving the land use right value is not allowed to depreciate it and is not allowed to depreciate it. If the land value is gradually allocated to deductible expenses, this difference shall be gradually calculated into other incomes of the enterprise having the land use right re-evaluated for a maximum period of not more than 10 years, starting from the year of land use right value. land use is contributed capital. Enterprises must notify the number of years they allocate to other incomes when submitting their corporate income tax finalization declarations of the year they start declaring this income (the year in which the value of land use rights is re-evaluated). capital contribution).

If, after capital contribution, the enterprise continues to transfer the contributed capital equal to the value of land use rights (including the case of transfer of contributed capital 10 years ahead of time), the income from the transfer of contributed capital equal to the value of land use rights which must be calculated and declared and paid according to income from real estate transfer.

Differences due to revaluation of land use right value include: For long-term land use rights, it is the difference between the revaluation value and the value of land use rights recorded in the accounting books; For land use rights with a term, it is the difference between the revaluation value and the unallocated residual value of the land use right.

1. c) Enterprises receiving assets for capital contribution, receiving transferred assets upon division, separation, consolidation, merger, or transformation of enterprise types may depreciate or gradually allocate them to expenses at the re-evaluated price (except for enterprises that receive capital contribution or transfer assets). in case the land use right value is not depreciated or allocated to expenses as prescribed).
2. Gifts and gifts in cash or in kind; income received in cash or in kind from funding sources; income received from marketing support, expense support, payment discount, promotional bonus and other support. For incomes received in kind, the value of the in-kind is determined by the value of equivalent goods or services at the time of receipt.
3. Money, property and other material benefits received by the enterprise from organizations and individuals under agreements or contracts in accordance with civil law, since the enterprise hands over the old land location for relocation. relocation of production and business establishments after deducting related expenses such as relocation costs (transportation and installation costs), residual value of fixed assets and other costs (if any).

Particularly for money, assets and material benefits that enterprises receive according to State policies and are approved by competent State agencies for relocation of production facilities, they shall be managed and used according to regulations. provisions of relevant law.

17. Deductions in advance for expenses but not used or not used up according to the set-up period but the enterprise does not account for the adjustment of expenses; provision for refund of construction warranty provision.
18. Incomes related to the consumption of goods and provision of services that are not included in the revenue such as: bonus for fast ship clearance, bonus for serving in the food and beverage industry, hotel after deducting expenses costs to generate that income.
19. Income from consumption of scraps and discarded products, after deducting recovery costs and consumption costs, is determined as follows:

- In case an enterprise generates income from the sale of scraps and discarded products generated in the production process of products eligible for corporate income tax incentives, this income is entitled to income tax incentives. enter the business.

- In case an enterprise generates income from the sale of scraps and discarded products generated in the production process of products that are not eligible for corporate income tax incentives, this income shall be included in other incomes. .

20. The refund of export tax and import tax on goods actually exported or imported, arising right in the year of settlement of corporate income tax, shall be deducted from expenses in that settlement year. In case the import and export tax refund of goods actually exported or imported is incurred in the previous years of corporate income tax finalization, it shall be included in other incomes of the year in which the income is settled. If this income is directly related to the production and business sectors that are enjoying corporate income tax incentives, this income will be eligible for corporate income tax incentives. If this income is not directly related to the production and business sectors eligible for corporate income tax incentives, this income shall be included in other incomes.
21. Incomes from activities of capital contribution to shares, joint ventures and domestic economic links shall be divided from income before corporate income tax is paid.
22. Income received from production and trading of goods and services abroad .

- Vietnamese enterprises investing abroad that earn income from production and business activities abroad, declare and pay corporate income tax in accordance with the provisions of the current Law on Corporate Income Tax of Vietnam. South, even if the enterprise is enjoying income tax exemption or reduction in accordance with the regulations of the country where the enterprise invests. The corporate income tax rate for calculating and declaring tax on incomes from abroad is 22% (from January 1, 2016 is 20%), the preferential tax rate does not apply ( if any) that Vietnamese enterprises investing abroad are enjoying under the current Law on Corporate Income Tax.

Tax authorities have the right to determine taxable income from overseas production and business activities of Vietnamese enterprises investing abroad in cases of violations against regulations on tax declaration and payment.

- In case the income from an investment project in a foreign country has been subject to corporate income tax (or a tax of a similar nature to corporate income tax) abroad, when calculating corporate income tax, filed in Vietnam, Vietnamese enterprises investing abroad are entitled to deduct the amount of tax already paid abroad or paid on behalf of the partner of the host country (including tax on dividends), but the tax deductible does not exceed the amount of income tax calculated in accordance with the provisions of the Law on corporate income tax of Vietnam. The amount of corporate income tax Vietnam invests abroad which is exempted or reduced on the profits enjoyed from the overseas investment project according to the laws of the country where the investment enterprise is located is also deductible when determining the income tax amount. import enterprises must pay in Vietnam.

Dossiers attached when declaring and paying tax of Vietnamese enterprises investing abroad for incomes from overseas investment projects include:

+ The enterprise's document on the distribution of profits of the overseas investment project.

+ The enterprise's financial statements have been certified by an independent auditing organization.

+ The income tax declaration of the enterprise under the investment project abroad (a copy certified by the authorized representative of the overseas investment project);

+ Minutes of tax finalization for enterprises (if any);

+ Confirmation of tax paid abroad or documents proving the tax paid abroad.

- In case the overseas investment project has not generated taxable income (or is generating losses), when declaring and finalizing corporate income tax annually, Vietnamese enterprises investing abroad only have to pay Financial statements certified by an independent audit agency or a competent authority of the country where the enterprise invests and the income tax return of the overseas investment project (submit 1 certified copy of the foreign investment project). authorized representative of the overseas investment project and stamped by the enterprise). Loss arising from overseas investment projects shall not be deducted from the income generated by domestic enterprises when calculating corporate income tax.

- Income from overseas investment projects shall be declared in the corporate income tax finalization of the year following the fiscal year in which the overseas income is generated or declared in the corporate income tax finalization of the enterprise. the fiscal year together with the year in which the overseas income is generated, if the enterprise has sufficient grounds and documents to determine the paid income and income tax amount of the overseas investment project.

For incomes from production and business activities of investment projects in countries that have signed an Agreement on avoidance of double taxation with Vietnam, Vietnamese enterprises investing abroad shall declare and pay tax according to regulations. in the Agreement.

23. Other incomes as prescribed by law.

Article 8. Tax-exempt income

first. Incomes from farming, animal husbandry, aquaculture and salt production of cooperatives; Incomes of cooperatives operating in the fields of agriculture, forestry, fishery and salt production in areas with difficult socio-economic conditions or areas with special socio-economic conditions difficult; Incomes of enterprises from cultivation, husbandry and aquaculture in extremely difficult socio-economic areas; Income from fishing activities.

1. a) Incomes from cultivation (including planted forest products), animal husbandry and aquaculture of cooperatives and tax-exempt enterprises specified in this Clause are incomes from products produced by enterprises. , cooperatives self-cultivation, livestock, rearing, fishing, not yet processed into other products or only preliminarily processed (excluding the case of cooperatives, enterprises that buy back crop products, livestock, aquaculture). Preliminary products are guided in legal documents on value added tax.

Enterprises and cooperatives must separately account incomes eligible for tax exemption specified in this Clause. In case it is not possible to do separate accounting, tax-free income from cultivation, husbandry and aquaculture activities shall be allocated according to the ratio of production costs of the stages of cultivation, exploitation and preliminary processing of ordinary products. in the total expenses of the whole cooperative or enterprise (including administrative expenses and selling expenses) in the tax period.

For businesses and cooperatives that grow rubber, they are exempt from tax on income from cultivation and exploitation of fresh latex. In case it is not possible to separately account income from the cultivation and exploitation of fresh latex, the tax-free income shall be allocated according to the proportion of expenses for cultivation and exploitation of fresh latex in the total expenses of the whole enterprise, cooperation and cooperation. commune.

Tax-free income in this Clause includes income from liquidation of products of cultivation, husbandry and aquaculture (except for liquidation of rubber plantations), income from the sale of scrap and related products. agricultural, livestock and aquaculture products.

Crop, livestock and aquaculture products of cooperatives and enterprises are determined according to the economic sector code level 1 of the agriculture, forestry and fishery industry specified in the System of Economic Sectors. Vietnam.

1. b) Incomes of cooperatives operating in the fields of agriculture, forestry, fishery and salt production in areas with difficult socio-economic conditions or areas with socio-economic conditions. especially difficult to be exempted from tax is the whole income arising from production and business activities in the preferential areas, except for the incomes mentioned at Points a, b and c, Clause 3, Article 18 of this Circular.

Cooperatives operating in the fields of agriculture, forestry, fishery and salt production as prescribed in this Clause and at point f, Clause 3, Article 19 of this Circular are cooperatives that satisfy the ratio of product supply, services for members who are individuals, households and legal entities engaged in agricultural, forestry, fishery and salt production activities in accordance with the Law on Cooperatives and Decree No. 193/2013/ND -CP dated November 21, 2013 of the Government detailing a number of articles of the Law on Cooperatives.

2. Incomes from the performance of technical services directly serving agriculture include: income from irrigation and drainage services; plow and harrow the land; dredging canals and ditches in the field; pest and disease control services for plants and animals; agricultural product harvesting services.
3. Incomes from the performance of contracts for scientific research and technological development; Income from sales of products during the trial production period and income from sales of products made from new technologies applied for the first time in Vietnam. The maximum period of tax exemption shall not exceed one (01) year, from the date of starting to have revenue from selling products under contracts for scientific research and technology application, trial production or production according to new technologies for the first time. first applied in Vietnam.
4. a) Incomes from the performance of a contract for scientific research and technological development that are exempt from tax must satisfy the following conditions:

- Having a certificate of registration of scientific research activities;

- To be certified by a competent State management agency in charge of science as a contract for scientific research and technological development.

1. b) Incomes from sales of products made from new technologies applied for the first time in Vietnam and exempted from tax must ensure that new technologies applied for the first time in Vietnam are approved by the State management agency in charge of tax. authoritative scientific confirmation.
2. Income from goods and service production and trading activities of enterprises with disabled employees, drug addicts, HIV-infected people on average in the year accounted for 30% or more in the year. the average total number of employees in the year of the enterprise.

Tax-exempt incomes specified in this Clause do not include other incomes specified in Article 7 of this Circular.

Enterprises eligible for tax exemption specified in this Clause are enterprises with an average number of employees in a year of at least 20 people and excluding enterprises operating in the fields of finance and real estate business. .

Enterprises with tax-exempt income as prescribed in this Clause must fully satisfy the following conditions:

1. a) For enterprises employing disabled people (including invalids and sick soldiers), there must be a certification from a competent health agency about the number of disabled employees.
2. b) For enterprises employing drug addicts, there must be a certificate of completion of detoxification from detoxification establishments or certification from relevant competent authorities .
3. c) Enterprises employing HIV-infected employees must have a certification from a competent health authority on the number of employees who are HIV-infected.
4. Incomes from vocational training activities exclusively for ethnic minorities, people with disabilities, children in extremely difficult circumstances, subjects of social evils, people undergoing detoxification, people after detoxification, people HIV/AIDS infection. If the vocational training institution includes other subjects, the tax-exempt income is determined in proportion to the percentage of students who are ethnic minorities, people with disabilities, children in extremely difficult circumstances. subjects of social evils, people undergoing detoxification, people after detoxification, people living with HIV/AIDS among the total number of students.

Incomes from vocational training activities eligible for tax exemption in this Clause must fully satisfy the following conditions:

- Vocational training institutions are established and operate according to the provisions of the guiding documents on vocational training .

- There is a list of trainees who are ethnic minorities, people with disabilities, children with extremely difficult circumstances, subjects of social evils, people undergoing detoxification, people after detoxification, people living with HIV/AIDS .

6. Dividend income from capital contribution, share purchase, joint venture, economic association with domestic enterprises, after the party receiving capital contribution, issuing shares, joint venture or association has paid income tax corporate income tax under the provisions of the Law on Corporate Income Tax, including the case where the party receiving capital contribution, issuing shares, and the joint venture or associate party is entitled to corporate income tax incentives.

Example 11: Enterprise B receives capital contribution from enterprise A. The pre-tax income corresponding to enterprise A's capital contribution in enterprise B is VND 100 million.

- Case 1: Enterprise B is not entitled to corporate income tax incentives and enterprise B has fully paid corporate income tax, including the income received by enterprise A, then the income received by enterprise A from capital contribution of VND 78 million [(100 million - (100 million x 22%)], enterprise A is exempt from corporate income tax on this VND 78 million.

- Case 2: Enterprise B is entitled to a 50% reduction of payable corporate income tax and enterprise B has fully paid corporate income tax, including the income received by enterprise A according to the amount of income tax received. reduced, the income that enterprise A receives from capital contribution is 89 million dong [100 million - (100 million x 22% x 50%)], enterprise A is exempt from corporate income tax for 89 million dong this.

- Case 3: Enterprise B is exempt from corporate income tax, the income that enterprise A receives from capital contribution is VND 100 million, enterprise A is exempt from corporate income tax on this VND 100 million. .

7. The grant received is used for educational activities, scientific research, culture , art, charity, humanitarian and other social activities in Vietnam.

In case the grant recipient uses the above grants for improper purposes, the sponsoring organization must calculate and pay corporate income tax on the misused portion in the tax period where the misuse arises. purpose.

The organization receiving the funding specified in this Clause must be established and operate in accordance with the law and strictly comply with the provisions of the law on accounting and statistics.

8. Income from the transfer of emission reduction certificates (CERs) for the first time of enterprises that are granted emission reduction certificates; subsequent transfers pay corporate income tax as prescribed.

Income from the transfer of tax-exempt certificates of emission reduction (CERs) must be guaranteed when selling or transferring emission reduction certificates (CERs) which must be certified by the competent environmental authority in accordance with regulations.

9. Incomes related to the performance of tasks assigned by the State by the Vietnam Development Bank from development investment credit activities, export credits; Income from credit activities for the poor and other policy beneficiaries of the Bank for Social Policies; Income of a one-member limited liability company managing assets of Vietnamese credit institutions; Incomes from activities with revenues from performing State-assigned tasks of State financial funds: Vietnam Social Insurance Fund, Deposit Insurance Fund, Health Insurance Fund, Vocational Training Support Fund, Overseas Employment Support Fund under the Ministry of Labour, Invalids and Social Affairs, Vietnam Legal Aid Fund, Public Utility Telecommunication Fund, Local Development Investment Fund, Vietnam Environmental Protection Fund, and Fund for Protection credit guarantee for small and medium enterprises, Cooperative Development Support Fund, Poor Women Support Fund, Fund to protect citizens and legal entities in foreign countries, Housing Development Fund, Small and Medium Enterprise Development Fund, Land Development Fund, Farmers Support Fund, Capital Support Fund for self-made poor workers and laborers Employment and other State funds operate for non-profit purposes in accordance with the law. These funds are established and have operating mechanisms and policies in accordance with regulations of the Government or the Prime Minister.

In case the units generate incomes other than income from activities with revenues from performing tasks assigned by the State, they must calculate and pay tax according to regulations.

10. Undivided income:
11. a) The undivided income of socialized establishments in the fields of education - training, healthcare and other socialized fields (including the Office of Judicial Assessment) left for development investment. such establishments according to the provisions of specialized laws on education - training, healthcare and other socialization fields. The tax-exempt undivided income of the socialization establishments specified in this Clause does not include the case where the unit is left to invest in expanding other business lines and activities not in the field of education - training, health and other socialization fields.

The basis of socialization are:

- Non-public establishments that are established and fully meet the operating conditions as prescribed by competent state agencies in the fields of socialization.

- Enterprises established to operate in the fields of socialization and meet all operating conditions as prescribed by competent state agencies.

- Public non-business establishments that contribute capital, mobilize capital, enter into joint ventures and associations in accordance with law to establish independent accounting establishments or enterprises operating in the fields of socialization according to the provisions of law. decisions of competent state agencies.

Socialization establishments must satisfy the list of types, scale criteria and standards according to the list prescribed by the Prime Minister.

1. b) The undivided income of the cooperative is left to form the property of the cooperative.
2. c) In case the undivided income is left under the provisions of this Clause, which the units divide or spend for wrong purposes, they will be arrears with corporate income tax at the tax rate at the time of distribution or spending for the wrong purpose. and sanction violations of the tax law according to regulations.
3. Incomes from technology transfer in the fields of priority transfer to organizations and individuals in areas with extremely difficult socio-economic conditions.

Technology transfer procedures shall comply with the provisions of the Law on Technology Transfer, Decree No. 133/2008/ND-CP dated December 31, 2008 of the Government detailing the implementation and guiding the implementation of a Articles of the Law on Technology Transfer and legal documents guiding the implementation of the Law on Technology Transfer.

Priority fields for technology transfer are those on the list of technologies encouraged to be transferred (issued together with Decree No. 133/2008/ND-CP) and documents amending and supplementing this Decree. if).

Article 9. Loss determination and loss transfer

1. Loss incurred in a tax period is the negative difference in taxable income excluding losses carried forward from previous years.
2. If an enterprise suffers a loss after tax finalization, it shall transfer all and continuously the loss into income (taxable income minus tax-free income) of subsequent years. The period of loss transfer shall not exceed 5 years, counting from the year following the year in which the loss is incurred.

The enterprise temporarily transfers the loss into the income of the quarters of the year after making the quarterly provisional declaration and officially transfers it to the year after making the annual tax finalization declaration .

Example 12: In 2013, enterprise A has a loss of 10 billion dong, in 2014 enterprise A has an income of 12 billion dong, the entire loss incurred in 2013 is 10 billion dong, enterprise A must transfer all in 2014 earnings.

Example 13: In 2013, enterprise B incurred a loss of 20 billion dong, in 2014 enterprise B generated an income of 15 billion dong, then:

+ Enterprise B must transfer all losses of VND 15 billion into 2014 income;

+ The remaining loss of 5 billion dong, enterprise B must monitor and transfer the entire amount continuously according to the principle of carrying forward the loss of 2013 above to the following years, but not more than 5 years from the year following the year loss occurs.

- Enterprises with losses between quarters in the same fiscal year shall be entitled to offset the losses of the previous quarter in the following quarters of that fiscal year. When finalizing corporate income tax, the enterprise determines the loss for the whole year and transfers all and continuously the loss into the taxable income of the years following the year where the loss is incurred according to the above provisions.

- Enterprises determine by themselves the number of losses to be deducted from income according to the above principles. In case during the loss transfer period, there is a further loss, this incurred loss (excluding the loss of the previous period carried forward) will be carried forward the entire loss and continuously for not more than 5 years, from the next year. year of loss.

In case the agency competent to examine and inspect the finalization of corporate income tax determines that the number of losses the enterprise is transferred is different from the number of losses determined by the enterprise itself, the number of losses to be transferred shall be determined according to the conclusions of the competent authority. inspect and inspect, but ensure that the loss is fully and continuously carried forward for no more than 5 years, from the year following the year in which the loss is incurred as prescribed.

Past the time limit of 5 years from the year following the year of loss, if the loss has not been fully transferred, it will not be transferred to the income of the following years.

3. Enterprises that transform, merge, merge, divide, separate, dissolve or go bankrupt must make tax finalization with the tax authorities up to the time there is a decision on business transformation, merger, consolidation, division, separation, dissolution, bankruptcy of a competent authority, the number of losses incurred by the enterprise before the transformation, merger or consolidation must be tracked in detail by the year of arising and offset in the balance sheet date. the enterprise's income in the same year after the transformation, merger, consolidation or continued to be transferred into the income of the following years of the enterprise after the transformation, merger or consolidation to ensure the principle of loss transfer continuously for not more than 5 years, counting from the year following the year of loss .

Article 10. Deduction for setting up the enterprise's science and technology development fund

1. Enterprises established and operating in accordance with Vietnamese law may deduct up to 10% of their annual taxable income before calculating corporate income tax to set up their science and technology development fund. Karma. Enterprises shall determine by themselves the level of deduction for setting up the Science and Technology Development Fund according to regulations before calculating corporate income tax. Annually, if an enterprise makes a deduction for setting up a science and technology development fund, it must make a report on deduction and use of the science and technology development fund and declare the level of deduction and the amount set aside in the tax finalization declaration. enterprise income. The report on the use of the Science and Technology Development Fund shall be submitted together with the corporate income tax finalization declaration.

For enterprises in which more than 50% of charter capital is held by the State, in addition to making deductions for the science and technology development fund according to the provisions of this Article, they must also ensure the minimum rate of fund deduction specified in the Law on Science and Technology. and technology.

2. Within 5 years from the time of setting aside, if the Science and Technology Development Fund is not used or is not used up to 70% or is used for improper purposes, the enterprise must pay it to the state budget. the corporate income tax on the income already set up for the fund which is not used or used for improper purposes and the profit arising from that corporate income tax amount.

Money used for improper purposes will not be included in the total amount used for scientific and technological development.

- The corporate income tax rate used to calculate the recovered tax is the tax rate applicable to the enterprise during the time of setting up the fund.

- The interest rate for calculating interest on the recovered tax calculated on the unused portion of the fund is the one-year term Treasury bond interest rate (or one-year Treasury bill interest rate) applied at the time of payment. withdrawal and interest period is two years.

3. The enterprise's science and technology development fund may only be used for the enterprise's investment in scientific research and technological development in Vietnam. Expenditures from the Science and Technology Development Fund must have full legal invoices and documents as prescribed by law.
4. An enterprise may not include the amounts already spent from the enterprise's science and technology development fund into its production and business operation expenses when determining taxable income in the tax period. In case an enterprise has insufficient expenditures on scientific research and technological development from the science and technology development fund, the remaining difference between the actual expenditure and the amount deducted from the fund will be included in the calculation. costs of production and business activities when determining taxable income.
5. If an enterprise is operating but there is a change in the form of ownership, consolidation or merger, the new enterprise established from the change of form of ownership, consolidation or merger shall inherit and take responsibility. on the management and use of the enterprise's science and technology development fund before conversion, consolidation or merger.

If an enterprise has an unused scientific and technological development fund upon division or separation, the enterprise newly established from the division or separation shall inherit and be responsible for the management and use of the scientific development fund. and technology of the enterprise before the division or separation. The division of the Science and Technology Development Fund shall be decided by the enterprise and registered with the tax authority.

6. If the Government's Decree on investment and financial mechanism for science and technology activities contains other provisions on setting up the enterprise's science and technology development fund, The Ministry of Finance and the Ministry of Science and Technology will issue an Inter-ministerial Circular guiding this supplement to ensure compliance with the provisions of legal documents on corporate income tax and the Decree on regulations on corporate income tax. investment and financial mechanism for scientific and technological activities.

Article 11. Corporate income tax rate

1. From January 1, 2014, the corporate income tax rate is 22%, except for the cases specified in Clauses 2 and 3 of this Article and the cases where preferential tax rates are applied.

Example: Enterprise applies the fiscal year from April 1, 2013 to March 31, 2014. In case an enterprise is applying the common tax rate and is not entitled to the preferential tax rate, when finalizing CIT, the enterprise shall calculate and allocate the payable enterprise income tax amount as follows:

From January 1, 2016, cases subject to the tax rate of 22% will change to apply the tax rate of 20%.

2. Enterprises established in accordance with Vietnamese law (including cooperatives and non-business units) engaged in production and trading of goods and services with a total annual turnover of not more than 20 billion dong may be entitled to: 20% tax rate applies.

The total annual revenue as a basis for determining the enterprise eligible to apply the tax rate of 20% specified in this Clause is the total revenue from selling goods and providing services of the preceding year, which is determined based on the tax rate of 20% specified in this Clause. header code [01] and target code [08] on the Appendix to production and business results of the tax period of the preceding year according to Form No. 03-1A/TNDN enclosed with the CIT finalization declaration No. 03/TNDN issued together with Circular No. 156/2013/TT-BTC dated 6/11/2013 of the Ministry of Finance on tax administration.

Example 14: Company A applies a tax period according to the fiscal year from April 1 of this year to the end of March 31 of the following year. The financial activity code [08] on Appendix 03-1A/TNDN attached to the CIT finalization declaration No. 03/TNDN for the fiscal year 2013 (from April 1, 2013 to the end of March 31, 2014) must not exceed 20 billion, from the financial year 2014 (from April 1, 2014 to the end of March 31, 2015), Company A is entitled to the CIT rate of 20% for the fiscal year 2014 if the total revenue of the fiscal year is 20%. According to the above guidance, if over 20 billion VND, in fiscal year 2015 (from April 1, 2015 to the end of March 31, 2016) Company A applies the corporate income tax rate of 22%.

For enterprises with less than 12 months in the preceding year, the total annual turnover used as a basis for determining the enterprise eligible for the tax rate of 20% specified in this Clause is the total revenue from selling goods, providing services of the preceding year are determined based on the indicator code [01] and the index code [08] on the Appendix to the results of production and business activities of the tax period of the preceding year according to Form No. 03-1A/TNDN enclosed with the CIT finalization declaration No. 03/TNDN divided by the actual number of months of production and business activities in the year, if the average revenue of the months in the year does not exceed VND 1.67 billion the following year, the enterprise may apply the corporate income tax rate of 20%.

Example 15: Company A applies a tax period according to the calendar year, calendar year 2014 applies for a break from business for 3 months, starts business from April 1, 2014 to the end of December 31, 2014, has revenue from selling goods and providing services with code [01] and revenue from financial activities with code [08] on Appendix 03-1A/TNDN attached to the 2014 CIT finalization declaration No. 03/TNDN is 18 billion VND 18 billion, average monthly revenue in 2014 is VND 18 billion divided (:) 9 months is equal to (=) VND 2 billion, in 2015 Company A is not entitled to 20% CIT rate, must apply CIT rate. 22%, if the average monthly revenue in 2014 is not more than 1.67 billion VND, in 2015 Company A applies the corporate income tax rate of 20%.

If the enterprise is newly established within 12 months of the year, in that year the enterprise shall make a provisional declaration for the calculation of the quarter at the tax rate of 22% (except for cases eligible for tax incentives). At the end of the fiscal year, if the average revenue of the months of the year does not exceed VND 1.67 billion, the enterprise shall finalize the payable corporate income tax of the fiscal year at the tax rate of 20% (except for prescribed in Clause 3, Article 18 of this Circular). Revenue is determined based on the enterprise's target of total revenue from selling goods and providing services, code number [01] and target code [08] on the Appendix to production and business results. according to Form No. 03-1A/TNDN attached to the CIT finalization declaration No. 03/TNDN issued together with Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance on tax administration. If the average monthly revenue in the first year does not exceed 1.67 billion VND, the following year the enterprise is entitled to the CIT rate of 20%.

3. The corporate income tax rate applicable to oil and gas prospecting, exploration and exploitation activities in Vietnam is from 32% to 50%. Based on the exploitation location, mining conditions and mine reserves, enterprises having investment projects in oil and gas prospection, exploration and exploitation shall send investment project dossiers to the Ministry of Finance for submission to the Prime Minister. decide on specific tax rates for each project and each business establishment.

The corporate income tax rate applicable to the search, exploration and exploitation of precious and rare natural resources (including: platinum, gold, silver, tin, wonfram, antimony, precious stones, rare earths excluding petroleum) ) apply a tax rate of 50%; In case rare and precious natural resource mines with 70% of the assigned area or more are located in areas with extremely difficult socio-economic conditions on the list of areas eligible for corporate income tax incentives promulgated together with the Decree No. No. 218/2013/ND-CP of the Government applies the corporate income tax rate of 40%.

Chapter III WHERE TO PAY TAX

Article 12. Principle of determination

Enterprises pay tax at the place where the head office is located. In case an enterprise has a production facility (including a processing and assembling facility) operating dependent accounting in a province or centrally run city other than the area where the enterprise's head office is located, The tax amount is calculated and paid at the place where the head office is located and the place where the production establishment is located.

The allocation of payable tax amounts specified in this Clause does not apply to the case where the enterprise has dependent accounting works, work items or construction establishments.

Article 13. Determination of payable tax amount

The amount of corporate income tax payable in the province or centrally run city where the dependent cost-accounting production establishment is located is determined by the payable enterprise income tax amount in the period multiplied by (x) the expense ratio of the enterprise. production facilities make dependent accounting with the total costs of the enterprise.

The expense ratio is determined by the cost ratio between the total cost of the dependent cost-accounting production establishment and the total cost of the enterprise. The cost ratio is determined as follows:

The data to determine the expense ratio is based on the enterprise's income tax finalization data of the year preceding the tax year determined by the enterprise to serve as a basis for determining the payable tax amount and is used. to declare and pay corporate income tax for the following years.

In case an operating enterprise has dependent cost-accounting production facilities in localities, the data to determine the ratio of expenses of the head office and dependent-accounting production facilities shall be determined by the enterprise itself. determined based on the 2008 corporate income tax finalization data and this ratio has been used stably from 2009 onwards.

In case a newly established enterprise or an operating enterprise establishes or shrinks dependent cost-accounting production establishments in the localities, the enterprise must determine the expense ratio for the first tax period by itself. for cases of this change. From the next tax period, the proportion of expenses used will be stable according to the above-mentioned principles.

Dependent cost-accounting units of industry-wide accounting enterprises that have incomes outside of their main business activities shall pay tax in the provinces or centrally-run cities where such production and business activities arise.

Chapter IV INCOME FROM CAPITAL TRANSFER, SECURITIES TRANSFER

Article 14. Income from capital transfer

1. Scope of application:

Income from capital transfer of an enterprise is income obtained from the transfer of part or all of the enterprise's invested capital to one or more other organizations and individuals (including the sale of an enterprise). . The time of determining income from capital transfer is the time of transferring capital ownership.

In case the enterprise sells the entire one-member limited liability company owned by the organization in the form of capital transfer attached to real estate, it shall declare and pay corporate income tax according to the transfer. real estate and declared according to the corporate income tax return ( form No. 08 ) issued together with this Circular.

In case an enterprise that transfers capital does not receive money but receives other material benefits (stocks, fund certificates...) and generates income, it must pay corporate income tax. The value of assets, shares, fund certificates... is determined according to the selling price of the product on the market at the time of receiving the asset.

2. Tax bases:
3. a) Taxable income from capital transfer is determined:

In there:

- The transfer price is determined as the total actual value received by the transferor under the transfer contract.

In case the capital transfer contract stipulates the payment in the form of installments or deferred payment, the revenue of the transfer contract does not include installment interest or late payment interest according to the time limit specified in the contract.

Where the transfer contract does not specify the payment price or the tax authority has a basis for determining the payment price is not suitable according to the market price, the tax authority has the right to inspect and fix the transfer price. If an enterprise transfers a portion of its capital contribution in an enterprise but the transfer price for this capital contribution is not consistent with the market price, the tax authority may re-assess the entire value of the enterprise at the time of transfer to re-determine the transfer price in proportion to the percentage of capital contributed to the transfer.

The basis for fixing the transfer price is based on the investigation documents of the tax authority or the capital transfer price of other cases at the same time , the same economic organization or similar transfer contracts at the same time. transfer. In case the tax authority's determination of the transfer price is not appropriate, it shall be based on the appraisal price of the competent professional valuation organizations to determine the transfer price at the time of transfer in accordance with regulations.

If an enterprise transfers capital to an organization or individual, the value of capital transferred under the transfer contract valued at twenty million dong or more must have a non-cash payment voucher. In case the capital transfer does not have non-cash payment documents, the tax authority has the right to fix the transfer price.

- The purchase price of the transferred capital is determined for each case as follows :

+ If it is transfer of contributed capital to establish an enterprise, it is the value of contributed capital on the basis of books, records and accounting documents at the time of capital transfer and is invested by the parties or entered into a contract. business cooperation certification, or audit results of an independent auditing company for enterprises with 100% foreign capital.

+ If it is the capital part due to repurchase, the purchase price is the capital value at the time of purchase. The purchase price is determined on the basis of the capital contribution redemption contract and payment documents.

In case the capital contributed or acquired by the enterprise is partly derived from a loan, the purchase price of the transferred capital includes the expenses for paying interest on the loan for capital investment.

In case the foreign currency accounting enterprise (which has been approved by the Ministry of Finance) transfers its contributed capital in foreign currency, the transfer price and purchase price of the transferred capital shall be determined in foreign currency; In case an enterprise accounting in Vietnam dong transfers capital contribution in a foreign currency, the transfer price must be determined in Vietnam dong according to the average exchange rate on the inter-bank foreign currency market set by the Bank. State of Vietnam announced at the time of transfer.

- Transfer expenses are actual expenses directly related to the transfer, with legal documents and invoices . In case the transfer costs are incurred abroad, those original documents must be certified by an independent notary or audit agency of the country where the expenses are incurred and the documents must be translated into Vietnamese (with confirmation of the original documents). authorized representative).

Transfer costs include: expenses for carrying out necessary legal procedures for the transfer; fees and charges payable when carrying out transfer procedures; expenses for transaction, negotiation, signing of transfer contract and other expenses with supporting documents.

Example 16: Enterprise A contributes VND 400 billion, including VND 320 billion as the value of the factory and VND 80 billion in cash to establish a joint venture to produce toilet paper, then enterprise A transfers the above-mentioned contributed capital. for enterprise B at the price of 550 billion dong, the contributed capital of enterprise A at the time of transfer on the accounting books is 400 billion dong, the cost related to the capital transfer is 70 billion dong. The income to calculate income tax from capital transfer in this case is VND 80 billion (550 - 400 - 70).

1. b) If an enterprise earns income from capital transfer, this income shall be determined as another income and declared in taxable income when calculating corporate income tax.
2. c) For a foreign organization doing business in Vietnam or earning income in Vietnam but this organization does not operate under the Law on Investment, the Law on Enterprises (collectively referred to as foreign contractors) that conducts capital transfer activities; Tax declaration and payment shall be made as follows:

Organizations and individuals receiving capital transfer are responsible for determining, declaring, withholding and remitting on behalf of foreign organizations the payable corporate income tax amount. In case the capital transferee is also a foreign organization that does not operate under the Investment Law or the Enterprise Law, the enterprise established under the law of Vietnam where the foreign organization invests its capital shall declare and pay instead of corporate income tax payable from capital transfer activities of foreign organizations.

Tax declaration and payment shall comply with the provisions of legal documents on tax administration.

securities transfer

1. Scope of application:

securities transfer of an enterprise is income obtained from the transfer of stocks, bonds, fund certificates and other securities according to regulations.

In case the enterprise issues additional shares to raise capital, the difference between the issue price and par value is not included in taxable income for corporate income tax calculation.

In case an enterprise conducts division, split, consolidation or merger, but swaps shares at the time of division, separation, consolidation or merger, if it generates income, this income shall be subject to corporate income tax. Karma.

In case an enterprise that transfers securities does not receive cash but receives other material benefits (stocks, fund certificates, etc.), it must pay corporate income tax. The value of assets, shares, fund certificates, etc. is determined according to the selling price of the product on the market at the time of receiving the asset.

2. Tax bases:

Taxable income from securities transfer in a period is determined by the securities selling price minus (-) the purchase price of the transferable securities , minus (-) expenses related to the transfer.

- The selling price of securities is determined as follows:

+ For listed securities and securities of unlisted public companies that are registered for trading at a securities trading center, the securities selling price is the actual selling price of the securities . is the order-matching price or the agreed-upon price ) according to the notice of the Stock Exchange , the securities trading center .

+ For securities of companies not falling into the above cases, the selling price of securities is the transfer price stated in the transfer contract .

- The purchase price of securities is determined as follows:

+ For listed securities and securities of unlisted public companies that are registered for trading at a securities trading center, the securities purchase price is the actual securities purchase price ( which is the actual purchase price of the securities). order-matching price or agreed-upon price ) according to the notice of the Stock Exchange , the securities trading center .

+ For securities purchased through auction, the securities purchase price is the price stated on the notice of winning share auction of the organization conducting the share auction and the payment slip.

+ For securities not falling into the above cases : the securities purchase price is the transfer price stated in the transfer contract.

- Transfer expenses are actual expenses directly related to the transfer, with legal documents and invoices .

Transfer costs include: expenses for carrying out necessary legal procedures for the transfer; Charges and fees payable when carrying out transfer procedures; Securities depository fees as prescribed by the State Securities Commission and receipts of securities companies ; Securities entrustment fee is based on receipts of the entrusting unit ; The costs of transaction, negotiation, signing of transfer contract and other expenses are proved by documents.

securities transfer , this income shall be determined as other income and declared in taxable income when calculating corporate income tax.

Chapter V INCOME FROM REAL ESTATE TRANSFER

Article 16. Taxable objects

1. Enterprises subject to income tax from real estate transfer include: Enterprises of all economic sectors and all lines of business earning income from real estate transfer; Real estate enterprises have income from sub-leasing land.
2. Incomes from real estate transfer include: income from transfer of land use rights, transfer of land lease rights (including transfer of projects associated with the transfer of land use rights and land lease rights under provisions of law); Incomes from the sub-leasing of land by real estate enterprises in accordance with the law on land, regardless of whether or not there are infrastructures or architectural works attached to the land; Incomes from the transfer of houses and construction works attached to land, including assets attached to such houses and constructions, if the value of the property is not separated upon the transfer, regardless of whether or not the property is transferred. transfer of land use rights, transfer of land lease rights; Income from the transfer of assets attached to land; Income from transfer of ownership or right to use housing.

Income from subleasing land of a real estate enterprise does not include the case where the enterprise only leases out houses, infrastructure and architectural works on the land.

Article 17. Tax bases

The basis for calculating income tax from real estate transfer is the taxable income and tax rate.

Taxable income is equal to (=) taxable income minus (-) losses from real estate transfer of previous years (if any).

1. Taxable income.

Taxable income from real estate transfer is determined by revenue from real estate transfer minus cost of real estate and deductible expenses related to real estate transfer. .

1. a) Revenue from real estate transfer.

a.1) Revenue from real estate transfer is determined according to the actual price of real estate transfer under the real estate transfer and sale contract in accordance with the provisions of law (including surcharges and additional fees, if any).

In case the land use right transfer price under the real estate transfer or sale contract is lower than the land price in the land price list set by the People's Committee of the province or centrally run city at the time of signing the transfer contract. Real estate property shall be calculated according to the land price set by the People's Committee of the province or centrally run city at the time of signing the real estate transfer contract.

- The time of determining taxable revenue is the time when the seller hands over the real estate to the buyer, regardless of whether the buyer has registered property ownership, land use rights and established land use rights at competent state agency.

- In case an enterprise implements an investment project on infrastructure, houses for transfer or lease, and collects advance payments from customers according to the progress in any form, the time of determining revenue shall be subject to income tax. Temporary payment is the time when customers collect money, specifically:

+ In case the enterprise collects money from customers, it is possible to determine the cost corresponding to the recognized revenue (including the accrued expense of the unfinished work item estimate corresponding to the revenue already recorded). recognized), the enterprise declares and pays corporate income tax according to revenue minus expenses.

+ In case the enterprise collects money from customers but has not yet determined the expenses corresponding to the revenue, the enterprise shall temporarily declare and pay corporate income tax at the rate of 1% on the revenue earned and this revenue. not included in the taxable turnover of the year.

When handing over real estate, the enterprise must finalize corporate income tax and re-settle the payable corporate income tax amount. In case the temporarily paid corporate income tax amount is lower than the payable enterprise income tax amount, the enterprise must fully pay the outstanding tax amount into the State budget. In case the temporarily paid corporate income tax amount is larger than the payable tax amount, the enterprise may have the overpaid tax amount deducted from the payable corporate income tax amount of the next period or be refunded the overpaid tax amount.

For real estate businesses that collect advances from customers according to the schedule and declare and temporarily pay tax at a percentage of the revenue earned, this revenue is not yet included in the revenue subject to income tax. If the enterprise during the year also incurs advertising, marketing, promotion, and brokerage commissions when starting the offering in the year of generating revenue and collecting progress, these expenses have not been included in the year. incurred expenses. These costs of advertising, marketing, promotion, brokerage commissions are included in the deductible expenses according to the prescribed control rate in the first year of real estate handover, generating income taxable revenue. enterprise.

a.2) Turnover for calculating taxable income in some cases is determined as follows:

- In case the enterprise sub-leases the land, the revenue for calculating taxable income is the amount the lessee pays each period according to the lease contract. In case the lessee pays the rent in advance for many years, the revenue for calculating taxable income is allocated to the number of years of advance payment or determined according to the one-time payment revenue. The choice of the one-time payment form of revenue is determined only when the enterprise has ensured the fulfillment of its financial responsibilities to the State and its obligations to the lessee for the end of the lease term. land again.

In case an enterprise is in the period of enjoying corporate income tax incentives and chooses the method of determining revenue to calculate taxable income which is the entire amount of rent paid in advance by the lessee for many years, the determination of the income tax amount shall be determined. Tax exemption or reduction is based on the total corporate income tax of the number of years of prepayment divided by (:) the number of years of prepayment by the lessee.

- In case a credit institution receives the value of the land use right as security for the loan to replace the performance of the secured obligation, if there is a transfer of the land use right as collateral for the loan, the revenue to The taxable income is the land use right transfer price as agreed by the parties .

- In case the land use right is transferred as a distrained property as security for judgment enforcement, the revenue for calculating taxable income is the land use right transfer price agreed by the involved parties or the price determined by the Valuation Council. determined.

The determination of revenue for the cases mentioned in Item a2 must ensure the principles mentioned in Item a1 of this point.

1. b) Real estate transfer costs:

b.1) Principles of cost determination:

- Expenses that are deducted to determine taxable income of real estate transfer in the tax period must correspond to the revenue to calculate taxable income and must satisfy the conditions prescribed for the expenses to be paid. deducted and not included in the non-deductible expenses specified in Article 6 of this Circular.

- In case the investment project is partially completed and transferred gradually according to the completion schedule, the general expenses used for the project, direct expenses used for the completed project part shall be amortized according to the m. ² land transfer rights to determine the taxable income of the land area transferred; including: Cost of internal roads; green campus; investment costs for construction of water supply and drainage systems; electricity transformer station; compensation costs for assets on land; The remaining expenses for compensation, support, resettlement and funds for organization of compensation and ground clearance approved by competent authorities have not yet been deducted from land use levy and land rent in accordance with regulations of the Government. policies on collection of land use levy, collection of land rent, land use levy, and land rent payable to the State Budget, and other expenses for investment in land related to the transfer of land use rights or land lease rights.

The allocation of the above costs is made according to the following formula:

In case a part of the project area that is not transferred is used for other business activities, the above-mentioned general expenses are also allocated to this area for monitoring, accounting, declaration and payment of income tax. enter the enterprise for other business activities.

In case an enterprise has investment in infrastructure construction lasting for many years and only settles the value of infrastructure when the whole work is completed, when summing up the cost of real estate transfer for the If the land area has been transferred, the enterprise may temporarily allocate the actual incurred infrastructure investment expenses according to the ratio of the transferred land area according to the above formula and deduct the construction investment expenses in advance. infrastructure construction corresponding to the revenue recognized when determining taxable income. After completing the construction investment process, the enterprise shall calculate and adjust the infrastructure investment costs that have been temporarily allocated and deducted in advance for the transferred area to match the total value of the project. infrastructure. In case when the adjustment arises, the overpaid tax amount compared to the payable income tax amount from real estate transfer, the enterprise may deduct the overpaid tax amount from the payable tax amount of the next tax period or be refunded. under the current regulations; if the paid tax amount is not enough, the enterprise shall have to fully pay the insufficient tax amount as prescribed.

b.2) Deductible real estate transfer expenses include:

- The cost price of the land transferred right is determined in accordance with the origin of the land use right, specifically as follows:

+ For land allocated by the State with the collection of land use levy or land rental, the cost price is the land use levy or land lease amount actually remitted to the State budget;

+ For land receiving the use right from other organizations or individuals, based on the contract and lawful payment documents upon receipt of the land use right or the right to lease land ; in the absence of a contract and lawful payment documents, the cost price shall be calculated according to the price set by the People's Committee of the province or city under central authority at the time the enterprise receives the real estate transfer.

+ For land derived from capital contribution, the cost price is the value of land use rights or land lease rights according to the asset valuation minutes upon capital contribution;

+ In case the enterprise exchanges the works for the State's land, the cost price shall be determined according to the value of the exchanged works, except for cases where it is implemented according to separate regulations of the competent state agencies.

+ The auction winning price in case of auction of land use rights or land lease rights;

+ For the enterprise's land originating from inheritance according to the civil law; Due to being given, donated or donated but the cost price cannot be determined, the price of all types of land shall be decided by the People's Committee of the province or city directly under the Central Government based on the price bracket table of all types of land prescribed by the Government. determined at the time of inheritance, donation, donation or donation.

In case the enterprise's land is inherited, given, donated or donated before 1994, the cost price shall be determined according to the prices of all types of land decided by the People's Committees of the provinces and centrally run cities in 1994 based on the Table below. The price brackets for different types of land are specified in the Government's Decree No. 87/CP of August 17, 1994.

+ For land mortgaged as security for loans, land being distrained assets to secure judgment enforcement, the land cost price is determined on a case-by-case basis according to the guidance at the points mentioned above.

- Cost of compensation for land damage.

- Cost of compensation for damage to crops.

- Expenses for compensation, support and resettlement and expenses for organizing compensation, support and resettlement in accordance with law.

The above compensation, compensation, support and resettlement expenses and expenses for organizing the compensation, support and resettlement mentioned above, if there is no invoice , shall be made a list clearly stating: name; address of the recipient; amount of compensation and support; signature of the recipient and certified by the ward or commune authority where the land is compensated and supported in accordance with the provisions of the law on compensation, support and resettlement when the State recovers the land.

- Fees and charges as prescribed by law related to the grant of land use rights.

- Expenses for land improvement and leveling.

- Expenses for construction of infrastructure such as roads, electricity, water supply, drainage , post and telecommunications...

- Value of infrastructure and architectural works on land.

- Other expenses related to the transferred real estate.

In case the enterprise has business activities in many different lines, the expenses must be separately accounted for. In case it is not possible to separately account the costs of each activity, the general expenses shall be allocated according to the ratio between the revenue from the transfer of real estate to the total revenue of the enterprise.

included in expenses that have been paid by the State or paid with other capital sources.

2. The corporate income tax rate for real estate transfer is 22% (from January 1, 2016 is 20%).
3. Determine the amount of corporate income tax payable :

The corporate income tax amount in the tax period for real estate transfer is equal to taxable income from real estate transfer multiplied (x) by the tax rate of 22%.

Income from real estate transfer must be determined separately for tax declaration and payment. No preferential tax rates apply; tax exemption and reduction period as guided in Chapter VI of this Circular for income from real estate transfer.

In case real estate transfer suffers a loss, this loss shall be carried out according to the guidance in Clause 3, Article 9 of this Circular.

Tax return, tax payment documents, income tax payment receipts from real estate transfer arising in the locality where the transferred real estate is located is the basis for tax finalization procedures where the head office is located.

4. Where a credit institution receives the value of real estate as loan security to replace the performance of the secured obligation, the credit institution shall when permitted to transfer real estate in accordance with the provisions of law. The law must declare and pay income tax from real estate transfer into the State budget. In case of real estate auction as loan security, the proceeds will be paid according to the Government's regulations on loan security of credit institutions and declared and paid tax as prescribed. After paying the above amounts, the remaining amount is paid to business organizations that have mortgaged real estate to secure loans.

In case a credit institution is allowed to transfer the mortgaged real estate in accordance with the law to recover its capital, if the cost price of the real estate cannot be determined, the cost price shall be determined by (=) the loan capital. payable under the real estate mortgage contract plus (+) unpaid interest expenses up to the time of sale of the mortgaged property under the credit contract plus (+) expenses incurred when transferring the real estate property if there are legal invoices and documents.

5. In case the judgment enforcement agency auctions real estate as collateral for judgment enforcement, the proceeds shall comply with the Government's Decree on distraint and auction of land use rights to guarantee execution. Organizations authorized to auction real estate shall declare and withhold income tax from real estate transfer and remit to the State budget. On the vouchers, clearly stating the declaration and payment of tax on behalf of the sale of assets to secure judgment enforcement.

In case the judgment enforcement agency transfers real estate as collateral for judgment enforcement, if the cost price of the immovable property cannot be determined, the cost price shall be determined by (=) the amount of debt payable under the decision. of the Court for judgment enforcement plus (+) expenses incurred when transferring real estate if there are legal invoices and documents.

Chapter VI BUSINESS INCOME TAX INCOME

Article 18. Conditions for application of corporate income tax incentives

1. Corporate income tax incentives are only applied to enterprises that implement the accounting, invoice and voucher regime and pay corporate income tax according to the declaration.
2. During the period of enjoying corporate income tax incentives, if an enterprise conducts many production and business activities, the enterprise must separately calculate income from production and business activities entitled to income tax incentives. Income from business activities (including preferential tax rates, tax exemption and reduction) and income from business activities not entitled to tax incentives to declare and pay tax separately.

In case in the tax period, the enterprise does not separately calculate income from production and business activities entitled to tax incentives and income from production and business activities which are not entitled to tax incentives, the income from production and business activities entitled to tax incentives will not be eligible for tax incentives. Tax incentive business production is determined by (=) total taxable income multiplied (x) by a percentage (%) of revenue or deductible expenses of tax incentive production and business activities compared to total turnover. revenue or total deductible expenses of the enterprise in the tax period.

In case there is a deductible revenue or expense that cannot be accounted for separately, such deductible revenue or expense shall be determined according to the ratio between the deductible revenue or expenses of the preferential production and business activities. tax incentives on the total revenue or deductible expenses of the business.

3. Corporate income tax incentives are not applied and the 20% tax rate applies (including enterprises subject to the 20% tax rate as prescribed in Clause 2, Article 11 of this Circular) for the following incomes: :
4. a) Incomes from transfer of capital, transfer of the right to contribute capital; income from real estate transfer (except income from investment in social housing business specified at Point d, Clause 3, Article 19 of this Circular); incomes from the transfer of investment projects, the transfer of the right to participate in investment projects, the transfer of the right to explore and exploit real estate; income received from production and business activities outside Vietnam.
5. b) Incomes from activities of prospecting, exploration and exploitation of oil, gas, and other rare and precious natural resources and income from mining of natural gas .
6. c) Income from service business subject to excise tax under the provisions of the Law on Special Consumption Tax.
7. Enterprises with investment projects that are entitled to corporate income tax incentives because they meet the conditions in the fields of investment incentives, the incomes from the fields of investment incentives and incomes such as scrap liquidation , waste products of products in the field of investment incentives, the exchange rate difference directly related to the revenue and expenses of the preferential sector, interest on demand deposits at banks, other income other directly related are also entitled to corporate income tax incentives.

Enterprises having investment projects are entitled to corporate income tax incentives because they satisfy the conditions for geographical incentives (including industrial parks, economic zones, and high-tech zones), their incomes are entitled to such incentives. Corporate income tax is the entire income arising from business activities in the preferential areas, except for the incomes mentioned at Points a, b and c, Clause 3 of this Article.

Enterprises subject to the tax rate of 20% may apply the tax rate of 20% on the entire income of the enterprise, except for the incomes mentioned at Points a, b and c, Clause 3 of this Article.

5. New investment projects:
6. a) New investment projects entitled to corporate income tax incentives specified in Articles 15 and 16 of Decree No. 218/2013/ND-CP are:

- The project is granted the first investment certificate from January 1, 2014 and generates revenue from that project from the date of issuance of the investment certificate.

- Domestic investment projects associated with the establishment of new enterprises with an investment capital of less than 15 billion Vietnam dong and not on the list of conditional investment fields shall be granted an enterprise registration certificate from January 1. 01/2014.

- An investment project that has been granted an investment license or an investment certificate before January 1, 2014 but is in the investment process, has not been put into operation, has not generated revenue and is granted a certificate Adjustment of Investment License or Investment Certificate adjusted from January 1, 2014 of that project.

- Investment projects that are independent of the projects the enterprise is currently operating (even if the project has an investment capital of less than 15 billion Vietnam dong and is not on the list of conditional investment fields) with an Investment Certificate. from January 1, 2014 to implement this independent investment project.

1. b) In case the enterprise has adjusted or supplemented the investment license or investment certificate of the project that has been put into operation without changing the conditions for enjoying the incentives, the income from the adjusted operation, Supplements continue to enjoy the project's incentives before adjusting or supplementing for the remaining time or incentives under the expanded investment category if they meet the preferential conditions as prescribed.
2. c) New investment projects entitled to corporate income tax incentives under the new investment category do not include the following cases:

- Investment projects formed from: division, separation, merger, consolidation or transformation of enterprise form according to the provisions of law;

- Investment project formed from the change of owner (including the case of implementing a new investment project but still inheriting the assets, business location , business lines of the old enterprise to continue production and business activities, acquisition of active investment projects).

Enterprises established or enterprises having investment projects from transformation of enterprise type, ownership transformation, division, separation, merger or consolidation shall inherit the enterprise's corporate income tax incentives. or investment projects before conversion, division, separation, merger or consolidation for the remaining time if they continue to satisfy the conditions for corporate income tax incentives.

1. d) For enterprises currently enjoying enterprise income tax incentives under the category of newly established enterprises from investment projects, only applicable to incomes from production and business activities that satisfy the conditions for investment incentives. recorded in the enterprise's first business registration certificate. For enterprises currently operating in production and business, if there is a change in the business registration certificate but such change does not change the satisfaction of the conditions for tax incentives as prescribed, the enterprise will continue to be eligible for tax incentives. enjoy tax incentives for the remaining time.
2. Regarding incentives for expansion investment
3. a) Enterprises with investment projects to develop investment projects that are operating such as expansion of production scale, increase of capacity, renovation of production technology (collectively referred to as expansion investment projects) in the field of investment and development. Areas and areas eligible for corporate income tax incentives under the provisions of Decree No. 218/2013/ND-CP (including economic zones, hi-tech parks, industrial parks, except for industrial parks located in the urban districts of special-class cities, grade-I cities directly under the central government, and industrial zones located in urban areas of grade-I cities directly under the province) if one of the three criteria specified at this point is met, choose to enjoy corporate income tax incentives according to active projects for the remaining time (if any) or apply tax exemption or reduction periods for the additional income brought about by expansion investment. (not entitled to the preferential tax rate) equal to the tax exemption or reduction period applicable to new investment projects in the same area or field of corporate income tax incentives. In case an enterprise chooses to enjoy enterprise income tax incentives under an operating project for the remaining time, such expansion investment project must be in the field or geographical area eligible for corporate income tax incentives under the provisions of law. Decree No. 218/2013/ND-CP also belongs to the field and area with the active project .

The expansion investment project specified at this point must satisfy one of the following criteria:

- The additional historical cost of fixed assets when the investment project is completed and put into operation reaches a minimum of 20 billion VND, for an expansion investment project in the field eligible for corporate income tax incentives under the provisions of law. Decree No. 218/2013/ND-CP or from VND 10 billion for expansion investment projects implemented in areas with difficult or extremely difficult socio-economic conditions under the provisions of Decree No. Decree No. 218/2013/ND-CP.

- The proportion of the cost of fixed assets increased by at least 20% compared to the total cost of fixed assets before investment.

- The design capacity when investing in expansion increases by at least 20% compared to the designed capacity according to the technical and economic justification before the initial investment.

In case an enterprise chooses to enjoy incentives under the expanded investment category, the additional income resulting from the expansion investment shall be accounted separately. In case the enterprise cannot separately account the additional income brought by the expansion investment, the income from the expansion investment is determined according to the ratio between the historical cost of the newly invested fixed assets and put into use. for production and business on the total cost of fixed assets of the enterprise.

The tax exemption and reduction period specified in this Clause is counted from the year the expansion investment project is completed and put into production and business with income; In case there is no taxable income in the first three years, from the first year of revenue from the expansion investment project, the tax exemption or reduction period is counted from the fourth year the investment project generates revenue. .

In case an operating enterprise invests in upgrading, replacing or renovating the technology of an operating project in the fields or geographical areas eligible for tax incentives under the provisions of Decree No. 218/2013/ND-CP If one of the three criteria specified at this point is not met, the tax incentives shall be applied to the project in operation for the remaining time (if any).

Tax incentives specified in this Clause do not apply to cases of investment expansion due to division, separation, merger, or change of ownership (including the case of implementing a new investment project but still inheriting the existing assets). assets, business locations, business lines of the old enterprise to continue production and business activities), acquisition of enterprises or acquisition of investment projects in operation.

Enterprises with investment projects from ownership conversion, division, separation, merger or consolidation may inherit the enterprise income tax incentives of the enterprise or investment project before converting, dividing, separation, merger, consolidation for the remaining time if the conditions for corporate income tax incentives continue to be satisfied.

1. b) Operating enterprises entitled to tax incentives have invested in building new production lines, expanding production scale, supplementing production and business lines, increasing capacity (collectively referred to as open investment). wide) that are not in the areas or areas eligible for tax incentives under the provisions of Decree No. 218/2013/ND-CP on corporate income tax, they are not entitled to CIT incentives for the additional income. from investment expansion brings.

If in the tax period, the enterprise cannot separately calculate the additional income due to the expansion investment, the additional income due to the expansion investment not applying the corporate income tax incentives shall be selected and determined according to one of the following criteria: 2 ways:

Method 1:

The total cost of fixed assets actually used for production and business includes: value of fixed assets, completed and completed, handed over and put into use, and the cost of existing fixed assets currently in use. business output according to period-end data on the annual balance sheet.

Method 2:

Total actual investment capital used for production and business is the total capital of the enterprise's own capital and borrowed capital used for production and business according to period-end data on the annual balance sheet.

Enterprises may only apply an allocation to the income arising from an expansion investment activity.

Example 16: Company A is a plastic manufacturing enterprise in an industrial park in Ho Chi Minh City. Ho Chi Minh City (Industrial park not in the incentive area) and is enjoying CIT incentives: apply tax rate of 15% for 12 years from the date of revenue, exempt from CIT for 3 years from the date of receipt of revenue. taxable income, 50% CIT reduction in the next 7 years, in 2014 Company A has an expansion investment, the total value of newly invested machinery and equipment in the year is VND 5 billion. Knowing that the total value of fixed assets at the end of 2014 is VND 20 billion, the total taxable income of 2014 is VND 1.2 billion, of which other incomes not eligible for incentives are VND 200 million, then:

Income from expansion investment that is not eligible for incentives is:

Taxable income not entitled to CIT incentives in 2014 is: VND 200 million + VND 250 million = VND 450 million

Taxable incomes eligible for CIT incentives in 2014 are:

1.2 billion dong - 450 million dong = 750 million dong

7. In the same tax period, if there is an income subject to the preferential corporate income tax rate and the tax exemption or reduction period in many different cases, the enterprise may choose one of the following: the most favorable case of corporate income tax incentives.
8. During the period of corporate income tax incentives, if in a tax year, an enterprise fails to fully satisfy one of the conditions for tax incentives specified in Clauses 7, 8 and 12, Article 1 of the Amending Law. , supplementing a number of articles of the Law on corporate income tax and the provisions in Article 19 of Decree No. 218/2013/ND-CP , enterprises are not entitled to incentives in that tax year but must pay corporate income tax. enterprise at the common tax rate and that year will be deducted from the tax incentive period of the enterprise.
9. In the same tax period, an enterprise incurs a loss in business activities entitled to tax incentives, business activities not entitled to tax incentives, and other incomes from business activities (excluding tax incentives). including income from the transfer of real estate, the transfer of investment projects; income from the transfer of the right to participate in an investment project, the transfer of the right to explore, exploit and process real estate in accordance with regulations of the law) has income (or vice versa), the enterprise offsets against the taxable income of income-earning activities selected by the enterprise. The remaining income after clearing shall apply the corporate income tax rate according to the tax rate of the remaining income activities.

In case in previous tax periods, the enterprise is suffering a loss (if it is still within the loss transfer period), the enterprise must carry forward the loss corresponding to income-earning activities. If the enterprise cannot separate the loss of each activity, the enterprise shall transfer the loss into the income of the activity entitled to CIT incentives first, and then still have a loss, then transfer the loss to the income of the non-preferred activity. corporate income tax incentives (excluding income from real estate transfer, investment project transfer; income from transfer of the right to participate in investment projects, transfer of the right to explore and exploit the exchange of property as prescribed by law).

Example 17: In the 2014 tax period, DN A has:

- Loss from software production activities eligible for tax incentives is VND 1 billion.

- Profit from computer business not subject to tax incentives is VND 1 billion.

securities transfer (other income from business activities) is 2 billion dong.

In this case, DN A may choose to offset between losses from software production activities and profits from computer trading activities or profits from securities transfer activities ; the rest of the income will pay CIT at the tax rate of the income.

Specifically: Offsetting a loss of 1 billion dong in software production with a profit of 1 billion dong from computer trading or securities trading .

=> Enterprises have an income of 2 billion dong and must pay corporate income tax at the tax rate of 22% (2 billion dong x 22%).

Example 18: In the 2014 tax period, DN B has:

- Profit from software production is eligible for tax incentives of VND 2 billion (this activity is applying the CIT rate of 10%).

- Profit from computer business that is not eligible for tax incentives is VND 2 billion.

securities trading (other income from business activities) is 1 billion dong.

In the tax year 2013, enterprise B has a loss from computer business of 1 billion dong, when determining the taxable income of 2014, enterprise B must carry forward the loss as follows:

Specifically:

Offsetting between profit and loss arising in 2014: the enterprise chooses to offset the loss of securities trading activities with income from computer business, and the profit from computer business is (2 billion - 1 billion) = 1 billion VND.

- Carrying forward the loss of the computer business in 2013 to offset with the profit of the computer business in 2014: (1 billion - 1 billion = 0 billion)

Declare, calculate and pay CIT of activities eligible for tax incentives:

2 billion dong x 10% = 200 million dong

=> CIT payable is: 200 million VND

Example 19: In the 2014 tax period, DN C has:

- Profit from software production is eligible for tax incentives of 2 billion VND (this activity is applying the CIT rate of 10%).

- Profit from computer business that is not eligible for tax incentives is VND 2 billion.

securities trading (other income from business activities) is 1 billion dong.

In the tax year 2013, enterprise C has a loss of 2 billion dong, but the enterprise cannot separate this loss from which activity, so enterprise C has to offset the loss against the income of the activities being favored. prior (software production).

Offsetting between profit and loss arising in 2014: the enterprise chooses to offset the loss of securities trading activities in computer business, computer business, and still has a profit of 2 billion - 1 billion) = 1 billion dong

- Carrying forward the loss of 2013 to offset the profit of software production in 2014: 2 billion - 2 billion = 0 billion

Declare and pay CIT at the tax rate of 22% of business activities not entitled to tax incentives, specifically: 1 billion x 22% = 220 million dong.

10. Enterprises, while enjoying corporate income tax incentives as prescribed, the competent inspection and inspection agencies detect:

- Increasing the amount of corporate income tax eligible for tax incentives compared to the self-declared unit (even if the enterprise has not yet declared to enjoy tax incentives), the enterprise is entitled to corporate income tax incentives according to the provisions of this Decree. regulations for the amount of corporate income tax discovered by the inspection and inspection (including the amount of corporate income tax increased and the amount of corporate income tax that is eligible for tax incentives according to the declared regulations but tax incentives have not been determined).

- If the enterprise income tax amount is reduced to enjoy tax incentives compared to the self-declared unit, the enterprise is only entitled to the corporate income tax incentive according to regulations for the corporate income tax amount due to inspection and payment. detection check.

- Depending on the severity of the enterprise's violations, the competent inspection and inspection agencies shall apply fines for violations of the tax law as prescribed.

Article 19. Preferential tax rates

first. The preferential tax rate of 10% for a period of fifteen (15 years) applies to:

1. a) Incomes of enterprises from implementing new investment projects in: areas with extremely difficult socio-economic conditions specified in the Appendix issued together with Decree No. 218/2013/ND-CP Economic zones, high-tech zones including concentrated information technology zones were established under the Prime Minister's Decision.
2. b) Incomes of enterprises from implementing new investment projects in the following fields: scientific research and technological development; high-tech applications on the list of high technologies prioritized for development investment in accordance with the Law on High Technology; high-tech incubation, high-tech enterprise incubation; venture capital investment in the development of high technologies on the list of high technologies prioritized for development in accordance with the law on high technology; investment in construction - business of high-tech incubators, high-tech enterprise incubation; invest in the development of water plants, power plants, water supply and drainage systems; bridge, road, railway; airport, seaport, river port; airports, railway stations and other particularly important infrastructure works decided by the Prime Minister; software product production; production of composite materials, all kinds of light construction materials, rare and precious materials; produce renewable energy, clean energy, energy from waste destruction; biotechnology development.
3. c) Incomes of enterprises from implementing new investment projects in the field of environmental protection, including: production of environmental pollution treatment equipment, environmental monitoring and analysis equipment; pollution treatment and environmental protection; collection and treatment of wastewater, exhaust gas and solid waste; recycling and reuse of waste.
4. d) Hi-tech enterprises and hi-tech agricultural enterprises according to the provisions of the Law on High Technology.

Hi-tech enterprises and hi-tech agricultural enterprises under the provisions of the Law on High Technology are entitled to tax incentives from the year of being granted the Certificate of hi-tech enterprise or applied agricultural enterprise. high technology.

Hi-tech enterprises and hi-tech agricultural enterprises are entitled to corporate income tax incentives calculated on the entire income of the enterprise, except for the incomes mentioned at Points a, b and c, Clause 3, Article 18. This circular.

In case an enterprise is enjoying corporate income tax incentives or has fully enjoyed corporate income tax incentives under the provisions of legal documents on corporate income tax and is granted a certificate of public enterprise If the level of incentives for hi-tech enterprises or agricultural enterprises applying high technology is equal to the level of incentives applied to hi-tech enterprises, high-tech agricultural enterprises or hi-tech agricultural enterprises, the preferential levels for hi-tech enterprises and hi-tech agricultural enterprises shall be determined. high-tech agricultural agriculture specified in Clause 1, Article 15 and Clause 1, Article 16 of Decree No. 218/2013/ND-CP minus the preferential period enjoyed for newly established enterprises, investment projects newly established (both in terms of tax rate and time of exemption and reduction, if any).

1. dd) Income of the enterprise from the implementation of new investment projects in the field of production (except projects for the production of goods subject to excise tax, mining projects) that satisfy either of the following two criteria: :

- Projects with a minimum first-time registered investment capital of at least 6 (six) trillion dong, disbursed within 3 years from the date of issuance of the Investment Certificate, and with a total turnover of at least 10 (ten) trillion dong/year at the latest after 3 years from the year of revenue (4th year at the latest from the year of revenue), the enterprise must achieve a total revenue of at least 10 (ten) trillion dong/year ).

- The project has a scale of investment capital registered for the first time at least 6 (six) trillion VND, disbursed within 3 years from the date of issuance of the Investment Certificate and employs more than 3,000 employees at the latest. after 3 years from the year of revenue (the 4th year at the latest from the year of turnover, the enterprise must meet the conditions to employ an average annual number of regular employees of over 3,000).

The number of employees specified at this point is the number of employees with full-time labor contracts, excluding part-time employees and short-term contract employees of less than 1 year.

The average annual number of regular employees is determined according to the guidance in Circular No. 40/2009/TT-BLDTBXH dated December 3, 2009 of the Ministry of Labor, War Invalids and Social Affairs.

In case the investment project does not meet the criteria specified at this point (excluding the delay due to objective reasons in the ground clearance stage, handling administrative procedures of state agencies or natural natural disaster, enemy sabotage, fire and is approved by the investment certificate -issuing agency and reported to the Prime Minister for approval), the enterprise is not entitled to corporate income tax incentives, and at the same time, the enterprise must declare , pay the amount of corporate income tax declared and enjoy the incentives of the previous years (if any) and pay the late payment interest as prescribed, but the enterprise is not sanctioned for making false declarations under the provisions of law. tax administration law .

2. For investment projects specified at Points b and c, Clause 1 of this Article with large scale, high or new technology that need special investment attraction, the time for applying the 10% preferential tax rate may be extended longer. but the total period of application of the 10% tax rate shall not exceed 30 years according to the Prime Minister's Decision and the proposal of the Minister of Finance .
3. The preferential tax rate of 10% during the operation period applies to :
4. a) Income of the enterprise from socialization activities in the fields of education - training, vocational training, health care, culture, sports and environment (hereinafter referred to as the field of socialization).

The list of types, criteria for scale and standards of enterprises implementing socialization shall be made according to the list prescribed by the Prime Minister .

1. b) Income from publishing activities of the Publisher in accordance with the Law on Publication.

Publishing activities include the fields of publishing, printing and distribution of publications according to the provisions of the Law on Publication.

Publications comply with the provisions of Article 4 of the Law on Publishing and Article 2 of Decree No. 111/2005/ND-CP dated August 26, 2005 of the Government. In case the provisions of the Law on Publishing, Decree No. 111/2005/ND-CP and other legal documents related to the field of publishing change, the corresponding new regulations shall apply. , consistent with these texts.

1. c) Income from printing press activities (including advertising on printed newspapers) of press agencies according to the provisions of the Press Law.
2. d) Income of enterprises from implementing investment projects - social housing business for sale, lease, lease-purchase, for the subjects specified in Article 53 of the Law on Housing .

Social housing specified at this point is a house invested by the State or an organization or individual of all economic sectors and meets the criteria for housing, house selling price and rental price. , on the rental-purchase price, on the subjects and conditions for buying, renting, and being hired to buy social housing in accordance with the law on housing and the determination of income, the tax rate of 10% is applicable. at this point regardless of the time of signing the contract for sale, lease or lease-purchase of social housing.

In case an enterprise conducting investment and trading in social housing signs a house transfer contract with advance payment from customers before January 1, 2014 and continues to collect money from January 1, 2014. 01/2014 (enterprises have declared temporary payment of corporate income tax on income or according to the ratio on revenue earned) and when handing over the house from 01/01/2014, income from operations This house transfer is subject to a tax rate of 10%.

Income from investment - business in social housing, subject to the tax rate of 10% in this Clause, is income from the sale, lease, or lease purchase arising from January 1, 2014. In case the enterprise does not If the income from the sale, lease, or lease-purchase of social housing can be separately accounted for, arising from January 1, 2014, the income is subject to the tax rate of 10%, which is determined according to the ratio between the revenue from activities sale, lease, lease purchase of social housing on the total revenue in the respective period of the enterprise.

1. e) Income of the enterprise from: planting, tending and protecting forests; to cultivate agriculture, forestry and fishery in socio-economic difficult areas; production, multiplication and crossbreeding of plant and animal varieties; production, extraction and refining of salt, other than the production of salt specified in Clause 1, Article 4 of Decree No. 218/2013/ND-CP , investing in post-harvest preservation of agricultural products, preservation of agricultural, aquatic products and food.
2. f) The income of cooperatives operating in the fields of agriculture, forestry, fishery and salt production, which are not located in socio-economically difficult areas and in extremely difficult socio-economic areas.
3. Preferential tax rate of 20% for ten years (10 years) applies to:
4. a) Incomes of enterprises from implementing new investment projects in areas with difficult socio-economic conditions specified in the Appendix issued together with the Government's Decree No. 218/2013/ND-CP .
5. b) Income of enterprises from implementation of new investment projects: production of high-grade steel; produce energy-saving products; manufacturing machinery and equipment for agriculture, forestry, fishery and salt production; production of irrigation equipment; production and refining of animal and poultry feeds, estates ; develop traditional industries (including building and developing traditional trades in the production of handicrafts, processing agricultural and food products , cultural products) .

Enterprises implementing new investment projects in the fields and areas eligible for tax incentives specified in this Clause from January 1, 2016 shall apply the tax rate of 17%.

5. The preferential tax rate of 20% during the operation period (from January 1, 2016 to apply the tax rate of 17%) is applied to People's Credit Funds, Cooperative Banks and Organizations Microfinance.

For People's Credit Funds, Cooperative Banks and Microfinance Institutions newly established in areas with extremely difficult socio-economic conditions specified in the Appendix issued together with Decree No. 218/2013/ND-CP of the Government, after the expiration of the time limit for applying the 10% tax rate specified at Point a, Clause 1 of this Article, the tax rate of 20% shall be changed; From January 1, 2016, the tax rate will be changed to 17%.

Microfinance institutions specified in this Clause are organizations established and operating under the provisions of the Law on Credit Institutions.

6. The period of application of the preferential tax rate specified in this Article shall be counted from the first year the enterprise has revenue from the new investment project entitled to tax incentives. For hi-tech enterprises, hi-tech agricultural enterprises shall be counted from the year they are recognized as hi-tech enterprises or hi-tech agricultural enterprises; for hi-tech application projects, counting from the year of being granted the certificate of high-tech application project.

Article 20. Incentives on tax exemption and reduction time

1. Tax exemption for four years, reduction of 50% of payable tax amount for the next nine years for:
2. a) Incomes of enterprises from the implementation of new investment projects specified in Clause 1, Article 19 of this Circular .
3. b) Incomes of enterprises from implementing new investment projects in the field of socialization implemented in geographical areas with difficult or extremely difficult socio-economic conditions specified in the attached Appendix. Decree No. 218/2013/ND-CP.
4. Tax exemption for four years, reduction of 50% of payable tax for the next five years for enterprises' incomes from the implementation of new investment projects in the field of socialization implemented in localities not on the list of localities. with difficult or extremely difficult socio-economic conditions specified in the Appendix issued together with the Government's Decree No. 218/2013/ND-CP.
5. Tax exemption for two years and reduction of 50% of tax payable for the next four years for incomes from the implementation of new investment projects specified in Clause 4, Article 19 of this Circular and incomes of enterprises from project implementation new investment in industrial parks (except for industrial parks located in urban districts of special-class cities, grade-I cities directly under the central government, and industrial parks located in urban areas of grade-I cities directly under the central government). conscious). In case the Industrial Park is located in both favorable and unfavorable areas, the determination of tax incentives for the Industrial Park shall be based on the area with a larger area of the Industrial Park.

The determination of special-class and grade-I cities specified in this Clause must comply with the Government's Decree 42/2009/ND-CP dated May 7, 2009 on urban classification and documents. amend this Decree (if any).

4. The tax exemption and reduction period specified in this Article shall be calculated continuously from the first year the enterprise has taxable income from the new investment project entitled to tax incentives; In case an enterprise has no taxable income for the first three years from the first year of revenue from a new investment project, the tax exemption or reduction period is counted from the fourth year the new investment project arises. turnover.

Example 20: In 2014, enterprise A has a new investment project to produce software products, if in 2014 enterprise A has earned taxable income from the software product production project, the tax exemption period will be is calculated continuously since 2014. In case enterprise A's new investment project to produce software products generates revenue from 2014, to 2016 enterprise A's new investment project still has not had any revenue. If the taxable income is taxable, the tax exemption and reduction period is calculated continuously from 2017.

5. The year of tax exemption or reduction is determined in accordance with the tax period. The time to start calculating the period of tax exemption and reduction is calculated continuously from the first tax period when the enterprise starts to have taxable income (not yet deducted from the loss of previous tax periods).

In case , in the first tax period with taxable income, the enterprise's new investment project with a period of production and business activities entitled to tax incentives of less than 12 (twelve) months, the enterprise is selected. choose to enjoy tax incentives for new investment projects right in that first tax period or register with tax authorities for the time to start enjoying tax incentives from the next tax period. In case an enterprise registers for a tax incentive period in the next tax period , it must determine the payable tax amount of the first tax period to pay into the State budget according to regulations.

Article 21. Other tax reduction cases

1. Enterprises operating in the fields of production, construction and transportation employ from 10 to 100 female employees, of which female employees account for more than 50% of the total number of employees who are present or employed on a regular basis . regularly over 100 female employees whose female employees account for more than 30% of the total number of employees regularly present of the enterprise are entitled to a reduction in corporate income tax payable in proportion to the actual extra money spent on female employees in the direction of: referred to in Item a, Point 2.9, Clause 2, Article 6 of this Circular if separate accounting is possible.

Non-business units and offices of corporations that are not directly engaged in production and business are not entitled to tax reduction under this Clause.

2. Enterprises employing ethnic minority employees are entitled to a reduction in corporate income tax payable in proportion to the actual extra money spent on ethnic minority employees as guided in Item b, point 2.9, Clause 2 of this Article. 6 This Circular if separate accounting is possible.
3. Enterprises that transfer technology in the fields of priority transfer to organizations and individuals in geographical areas with difficult socio-economic conditions are entitled to a 50% reduction in payable corporate income tax for calculation. on the income from technology transfer.

Article 22. Procedures for enterprise income tax incentives

Enterprises self-determine tax incentives, preferential tax rates, tax exemption and reduction periods, and deductible losses (-) from taxable income for self-declaration and tax finalization with agencies. tax.

When examining and inspecting enterprises, they must check the conditions for enjoying tax incentives, the amount of corporate income tax eligible for tax exemption or reduction, the number of losses deductible from taxable income in accordance with the provisions of this Law. actual conditions that the business can meet. In case an enterprise fails to satisfy the conditions for applying the preferential tax rate and tax exemption and reduction period, the tax authority shall handle tax arrears and impose penalties for tax-related administrative violations according to regulations.

Chapter VII

ORGANIZATION OF IMPLEMENTATION

Article 23. Effect

1. This Circular takes effect from August 2, 2014 and applies to the corporate income tax period from 2014 onwards.
2. Enterprises with investment projects that, by the end of the 2013 tax period, are still eligible for corporate income tax incentives (including cases where they are currently enjoying incentives or not yet enjoying these incentives). incentives) according to the provisions of legal documents on corporate income tax, they will continue to be entitled for the remaining time according to the provisions of those documents; if the conditions for tax incentives are satisfied under the provisions of Decree No. 218/2013/ND-CP on corporate income tax, they may choose the incentives they are currently enjoying or the incentives under the provisions of Decree No. 218/2013/ND-CP on corporate income tax under incentives for new investment projects (including tax rates, tax exemption period, tax reduction) for the remaining time if they are currently entitled to preferences CIT incentives for newly established enterprises from investment projects or incentives for expansion investments for the remaining time if they are eligible for incentives under the expanded investment category. Expansion investment projects selected for preferential conversion according to the provisions of this Clause are expansion investment projects implemented from December 31, 2008 or earlier and these projects are put into production and business operations. business from 2009 and earlier.

The determination of the remaining time to enjoy tax incentives is calculated continuously since the implementation of regulations on tax incentives in legal documents on foreign investment in Vietnam, on domestic investment promotion and on corporate income tax issued before the effective date of this Circular.

The remaining period is equal to the number of years the enterprise still enjoys tax incentives (preferential tax rate, tax exemption period, and tax reduction) according to the guidance in the Circular minus the number of years the enterprise has enjoyed the incentives (tax rate). incentives, tax exemption and reduction period) according to the provisions of previous legal documents on corporate income tax. The determination of the remaining incentive period mentioned above must ensure the following principles:

- By the end of the 2013 tax period, enterprises that have expired the time to enjoy tax incentives according to previous legal documents on corporate income tax are not allowed to switch to applying tax incentives. preferential tax rates, duration of tax exemption and reduction) for the remaining period as guided in this Circular.

- By the end of the tax period 2013, enterprises are in the period of enjoying tax incentives (preferential tax rates, tax exemption and reduction periods) according to previous legal documents on corporate income tax. then continue to enjoy the number of years subject to the tax rate and preferential tax rate, the tax exemption and reduction period for the remaining period as guided in this Circular.

- By the end of the 2013 tax period, enterprises are enjoying preferential tax rates, but the tax exemption period has just expired according to the previous legal documents on corporate income tax. but only enjoy the entire number of years of tax reduction as guided in this Circular, continue to enjoy the number of years of applying the tax rate and the preferential tax rate for the remaining period as guided in this Circular.

- By the end of the 2013 tax period, if an enterprise is enjoying a preferential tax rate and is in the period of tax reduction according to previous legal documents on corporate income tax, the remaining number of years of tax reduction is equal to the number of years of tax reduction. years of tax reduction as guided in this Circular minus (-) the number of years the enterprise has reduced tax by the end of the tax period of 2013, continuing to enjoy the number of years of applying the tax rate and the preferential tax rate for the remaining time according to the provisions of this Circular. instructions in this Circular.

- By the end of the 2013 tax period, enterprises that have expired the tax exemption or reduction period according to previous legal documents on corporate income tax will not be eligible for tax incentives (preferential tax rates, tax incentives, etc.). tax exemption or reduction period) as guided in this Circular.

3. Enterprises carry out expansion investment projects before January 1, 2014 and put the expansion investment projects into production and business activities, generating revenue from January 1, 2014 if the project This expansion investment belongs to the areas and areas eligible for corporate income tax incentives under the provisions of Decree No. 218/2013/ND-CP (including economic zones, high-tech parks, and industrial parks, except for economic zones). industrial parks located in urban districts of special-class cities, grade-I cities directly under the central government, and industrial parks located in urban areas of grade-I cities directly under the province) are entitled to income tax incentives. enterprises for the additional income brought by the expansion investment according to the guidance in this Circular .
4. This Circular replaces Circular No. 123/2012/TT-BTC dated July 27, 2012 of the Ministry of Finance.
5. To annul the contents of guidance on corporate income tax promulgated by the Ministry of Finance and branches which are inconsistent with the guidance in this Circular.
6. The settlement of tax problems, tax finalization, tax exemption and reduction, and handling of violations of the law on corporate income tax before the 2014 tax period shall comply with the corresponding regulations guiding on tax law. corporate income tax issued before the tax period 2014.
7. In case the Socialist Republic of Vietnam is a signatory to an international agreement or treaty that contains provisions on the payment of corporate income tax that are different from the contents of such agreement or treaty. instructions in this Circular shall comply with the provisions of that international treaty.

Article 24. Implementation responsibilities

1. Tax authorities at all levels are responsible for disseminating and guiding enterprises to comply with this Circular.
2. Enterprises regulated by this Circular shall comply with the instructions in this Circular.

In the course of implementation, if any problems arise, organizations and individuals are requested to promptly report them to the Ministry of Finance for study and settlement.

LIST OF LIST OF SAMPLES
issued together with the CIRCUIT OF CORPORATE INCOME TAX

1. List of goods and services purchased without invoices (Form No. 01).
2. List of payments for electricity and water (Form No. 02).
3. Minutes of certification of funding for education (Form 03).
4. Minutes of certification of medical funding (Form 04).
5. Minutes of certification of funding for disaster recovery (Form 05).
6. Minutes of confirmation of funding to build houses of gratitude and solidarity (Form 06).
7. Minutes of certification of funding under the State's program for localities in areas with extremely difficult socio-economic conditions (Form 07).
8. CIT declaration for the whole sale of a single-member limited liability company owned by an organization (Form No. 08)

BUYING STATEMENT OF GOODS AND SERVICES
BUYED WITHOUT INVOICE

(Day month Year ……………)

- Address: .............................................. ................................. .................

- Address of the purchasing organization: ..................................................................... ..............................

- Person in charge of purchasing: ……………………. ..............................

- Total value of purchased goods : …………………………………………………….

Note:

- Based on the actual number of the above items that the seller's purchasing unit does not have an invoice , a declaration shall be made in the order of purchase time, the enterprise shall fully record the criteria on the list, summarize the table monthly statement. Purchased goods made according to this list are based on the purchase and sale documents made between the seller and the buyer, clearly stating the quantity and value of purchased items, the date and month of purchase, the address and the ID number of the buyer. sold and signed by the seller and the buyer.

- For enterprises that organize purchasing stations in many places, each purchasing station must make a separate list. The enterprise shall make a general list of stations.

ELECTRICITY AND WATER PAYMENT LIST

(Day month Year ……………)

- Address: .............................................. ................................. .................

- Name of the owner leasing the place of production and business: ................................................................. ..

................................. ................................. ................................

- Renting address: ……………………. ................................. .............

- Total payment price (including VAT): …………………….

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness----------------

MINUTES OF CONFIRMATION OF SPONSOR FOR EDUCATION

We include:

Business name [sponsor]:

Address: Phone number:

Tax code:

Name of educational institution/student/student/agency, organization (grant recipient):

Address: Phone number:

Tax code (if any):

Together confirm [name of business] has sponsored [educational institution, student, student] for the purpose of:

- Funding for schools

- Funding equipment for teaching, learning and school activities

- Sponsor scholarships

- Organize a contest.... □

With the total value of the grant being ………….

By money: ……………..

Artifacts: ………….

Valuable papers …………………… converted into VND ……………………..

(enclosed with other relevant documents of the grant).

[Name of educational institution; names of students, students; agencies and organizations with the function of mobilizing funding] commit to use the funds for the right purposes. In case of misuse, the undersigned sponsor will be responsible before the law.

This Minutes is made on... at ………….. day ... month... year .... and is made into ……. identical copy, each party keeps 01 copy.

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness----------------

MINUTES OF CONFIRMATION OF SPONSOR FOR HEALTH

We include:

Enterprise (sponsor):

Address: Phone number:

Tax code:

Name of medical facility / sponsor:

Address: Phone number:

Tax code (if any):

Please confirm that [business name] has sponsored [medical facility/sponsor]:

- Funding for medical facilities □

- Sponsoring medical equipment, medical instruments, drugs

- Funding in cash

With the total value of the grant being ……………………

By money: ………………….

In kind: …………………… converted into VND value: ……………………..

Valuable papers ………….. the value of VND ……………………..

(attach other relevant supporting documents).

[Name of medical facility/grant recipient] commits to using the grant for the right purpose. In case of misuse, the undersigned sponsor will be responsible before the law.

This Minutes is made on ... at ..... day ... month... year .... and is made in ..... the same copy, each party keeps 01 copy.

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness----------------

MINUTES OF CONFIRMATION OF SPONSOR FOR DISASTER EFFECTS

We include:

Enterprise (sponsor):

Address: Phone number:

Tax code:

Sponsor [Name of sponsor or agency or organization with the function of mobilizing funding]:

Address: Phone number:

Tax code (if any):

Co-confirm [name of business] has sponsored [fund-receiving entity] for disaster recovery: ………….

With the total value of the grant being ………….

By money: ………………

Artifacts: ……………… converted into VND value: ……………………..

Valuable papers ………… converted to the value of VND …………..

(attach other relevant supporting documents).

[Sponsor name] commits to using the grant for the right purpose. In case of misuse, the undersigned sponsor will be responsible before the law.

This Minutes is made on... at ………… day ... month... year .... and is made in ….. the same copy, each party keeps 01 copy.

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness----------------

MINUTES OF CONFIRMATION OF SPONSOR TO CONSTRUCTION HOUSE OF LOVE, HOUSE OF UNION

We include:

Enterprise (sponsor):

Address: Phone number:

Tax code:

Sponsor: [Name of individual or agency or organization with the function of mobilizing funding]

Address: Phone number:

Let's confirm that [name of business] has sponsored [individuals, organizations] to build houses of gratitude/house of great solidarity.

With the total value of the grant being …………………….

By money: …………………

Artifacts: …………………… converted into VND value: ……………………

Valuable papers ………….. the value of VND ……………………

(enclosed with other relevant documents of the grant).

[Name of the individual receiving the sponsorship or the organization with the function of raising funding] commits to using the grant for the right purpose. In case of misuse, the undersigned sponsor will be responsible before the law.

This Minutes was made on ... at ……………………. day ... month... year .... and was made into ……. identical copy, each party keeps 01 copy.

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness----------------

MINUTES OF CONFIRMATION OF SPONSORING BY STATE PROGRAM FOR LOCALS WITH SPECIAL DIFFICULTY SOCIAL ECONOMIC CONDITIONS.

We include:

Enterprise (sponsor):

Address: Phone number:

Tax code:

Sponsor: [Name of individual or agency or organization with the function of mobilizing funding]

Address: Phone number:

Jointly certify that [name of enterprise] has sponsored [individuals, organizations] under the State program for localities in areas with extremely difficult socio-economic conditions.

With the total value of the grant being …………………….

By money: ……………………..

In kind: ………….. in VND value: ……………………

Valuable papers ……………….. in VND …………..

(enclosed with other relevant documents of the grant).

[Name of the individual receiving the sponsorship or the organization with the function of raising funding] commits to using the grant for the right purpose. In case of misuse, the undersigned sponsor will be responsible before the law.

This Minutes is made on the day of... at the date of ........ month... year .... and is made in ………… copies as each other, each party keeps 01 copy.

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness----------------

CORPORATE INCOME TAX DECLARATION

(Used for enterprises declaring corporate income tax from the sale of the entire one-member limited liability company owned by the organization in the form of capital transfer attached to real estate)

[01] Tax period: □ Each time: Date ………… month ………… year ……

[02] First time □ [03] Second addition:

1. Transferor:

[04] Taxpayer's name.......................................................................... ..............................

[06] Head office address: ..................... ................................. .......

[07] District: ……………… [08] Province/ City : ............. .......

[09] Phone: …………… [10] Fax: …………………… [11] Email: .....

2. Transferee:

[12] Name of the organization/individual receiving the transfer: ................................................................. ..........

[13] Tax identification number (for businesses ) or identity card number (for individuals):

[14] Address: ............................ ................................. ..........

[15] Transfer contract: No.: .... date .... month .... year notarized or authenticated at the People's Committee of the ward (commune) confirming the date ... month ...... .. (if any).

[16] Tax agent's name (if any): ................................................................. ..............................

[18] Address: ……………………. ................................. .................

[19] District: ……………… [20] Province/ City : ............. ........

[21] Phone: ……………… [22] Fax: …………… [23] Email: .............

[24] Agency contract: No. …………………….. date …………………….. ..........................

Currency: Vietnam Dong

I certify that the above declared data is correct and take responsibility before the law for the declared data.