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L/O/G/O
CORPORATE INCOMETAX
LAW ON FINANCE AND BANKING
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Introduction
Group member!
"o#n$ N$#n Gi#n$P%#m T%u& "on$P%#m K%#n% Lin%N$u&en P%uon$ T%#oDo T%u& Tien
'tructure!
I( De)inition #nd Ob*ecti+eII( T#, Dec-#r#tion #nd P#&mentRe$imeIII( Ground )or T#, C#-cu-#tionI.( T#, E,emption.( Re/#rdin$ #nd Puni%ment.I( Imp-ement#tion
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De)inition #ndOb*ecti+e
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1. Definition
- CIT is a direct tax levied on the profits earned
by companies or organizations in one fiscal year.
- CIT applies to all domestic and foreign entities
that invest in Vietnam
- Taxable income includes income from
production and/or trading of goods and
provision of services, as ell as other incomes
(Ariticle 3, Law on enterprise income tax 1999)
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2. Objectives
• !nsure stable contribution to "tate budget
• #a$e certain of social fairness
• !valuate the performance of taxpayers
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TAX DECLARATION
#nd
PA0MENT REGIME
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PA0MENT REGIME
Tax Period
• Follow the calendar year or fiscal year.
•Upon each time of income generationapplies to foreign enterprises specified.
• Accepted to change its tax period but not
exceed 12 months.
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Place of TaxPayment
Main headoffice place
!therpro"ince or
city
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TAX CALC1LATION
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TA#$A%&%
TA#&'()*!M&
TA#
+AT&
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TAXED INCOME
TU+)!,&+
'&'U*T($-&
P&)%&
!T&+ ()*!M&%
TA#A$-& ()*!M&
TA#A$-& ()*!M&
TA#&MPT
()*!M&%
-!%%&% F+!M
P+&,(!U% /&A+%
TA#&' ()*!M& ()
A TA# P&+(!'
P +
! ' U * T ( !
)
A ) '
$ U % ( ) & % %
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• TU+)!,&+
• '&'U*T($-& P&)%&% 0 conditions
T!TA- %A-&% P+!*&%%()+&MU)&+AT(!)
%&+,(*&
P+!,(%(!)*A+&%
%U$%('(&% %U+*A+&%
1 • Actually paid
2 • +elated to production and business acti"ities
• Ade3uate in"oices and documents
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TAX RATE
• -aw on &nterprise (ncome Tax
415627786912:
• *ircular ;8627156TT$T*
• *ircular 6TT$T*
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TAX CALC1LATION
&xample0
Taxed income 42712: ? 12.>25.
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TAX EXEMPTION
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TAX EXEMPTION
• %a on !nterprise Income Tax
&'(/)**+/')
• %a o.0)/)*'0/'0• %a o.1'/)*'(/'0
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TAX EXEMPTION
• 2ecree o.)'3/)*'0/4-C5
• 2ecree o.)'+/)*'0/2-C5
• 2ecree o.')/)*'3/2-C5
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TAX EXEMPTION
• Circular o.1+/)*'(/TT-6TC
• Circular o.''7/)*'(/TT-6TC
• Circular o.'3'/)*'(/TT-6TC
• Circular o.78/)*'3/TT-6TC
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TAX EXEMPTION
• 5ursuant to %a on !nterprise
Income Tax )**+ and Circular o.
1+/)*'(/TT-6TC9 Circular o.78/)*'3/TT-6TC, tax-exempt
incomes included:
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TAX2EXEMPT INCOME'
Cooperatives ;
difficult socio-economic areas
Cultivation
usbandry
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TAX-EXEMPT INCOMES
>ood production/"ervices
2isabled
2rug-detoxified
IV-infected
?ob-trainingactivities
!thnicminority
2isabled
Children inextremely
disadvantagedcircumstances
5ersonsinvolved insocial evils
2omesticenterprises
Capitalcontribution
?oint venture
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TAX-EXEMPT INCOMES
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TAX2EXEMPT INCOME'
Undi"idedincomes
&stablishmentsengaged insocialiedacti"ities
*ooperati"es
Technologytransfer
Prioritiedfields
'ifficult socioeconomicconditions
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TAX-EXEMPT INCOMES
• !xample of capital contribution ith
domestic enterprise:
!nterprise 6 receives contributedcapital from enterprise
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TAX2EXEMPT INCOME'
• Case ': !nterprise 6 is ineligible for enterprise
income tax incentives and has fully paid
enterprise income tax, including enterprise
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TAX2EXEMPT INCOME'
• Case ): !nterprise 6 is eligible for 3* reduction
of the payable enterprise income tax amount and
has fully paid enterprise income tax, including
enterprise
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TAX2EXEMPT INCOME'
• Case 0: !nterprise 6 is eligible for
enterprise income tax exemption, then the
income enterprise < receives from capitalcontribution is V2 '** million, and
enterprise < ill be exempt from
enterprise income tax on this amount.
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TAX EXEMPTION D1RATION
• Tax exemption for ( years and 3*
reduction of payable tax amounts for
7 subse=uent years
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TAX EXEMPTION D1RATION
• Tax exemption for ( years and
3* reduction of payable tax
amounts for 3 subse=uent years
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TAX EXEMPTION D1RATION
• Tax exemption for ) years and
3* reduction of payable tax
amounts for ( subse=uent years
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Re/#rdin$ #nd
Puni%ment
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.( Re/#rdin$ #nd Puni%ment
*(T -aw ,iolation0 4-aw on &nterprise (ncome Tax 1
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.( Re/#rdin$ #nd Puni%ment
%pecific punishment cases can be found in
-aw on *(T 1
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.( Re/#rdin$ #nd Puni%ment
The eads of tax agenciesB the 'irectors of
the tax departments and the eads of the
tax subdepartments are competences in
handling of tax "iolation.
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.( Re/#rdin$ #nd Puni%ment
&xample0
(n May 271>B Metro *ash C *arry ,ietnam
has been detected tax e"asion and transfer
pricing. They had to pay >7; billion ,)'B
fines included.
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.( Re/#rdin$ #nd Puni%ment
Tax officials and other indi"iduals who abuse
their positions and powers to misappropriate
taxB co"er "iolators or out of irresponsibility
that caused damaged to tax payers or %tate$udget shall be punishment.
%pecific cases can be found on -aw on *(T1
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.( Re/#rdin$ #nd Puni%ment
o"ernment shall stipulate reward in detail
to0
• tax agencies and tax officials that fulfill
well their assigned tasDs
• organiations and indi"iduals that well
perform the tax payment obligations.
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.I(Imp-ement#tion
The -aw on &nterprise (ncome Tax 2778
taDes effect on Eanuary 1B 277< and specify
the changes for enterprises which enoy tax
incenti"es and tax exemption or reductionfor remaining duration.
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T"ANK 0O1 FOR
LI'TENING