Chương 2 Luật Thuế Thu nhập doanh nghiệp 2003: Căn cứ tính thuế và thuế suất

Chapter II

TAX CALCULATION BASES AND TAX RATES

Article 5.- Tax calculation bases

Tax calculation bases are taxable incomes and tax rates.

Article 6.- Taxable incomes

Taxable incomes include incomes from goods production and trading and/or service provision activities and other incomes, including those generated from goods production and trading and/or service provision activities overseas.

Article 7.- Determination of taxable incomes

1. Taxable incomes from goods production and trading and/or service provision activities equal the turnovers therefrom minus the reasonable expenses related to taxable incomes.

2. Other taxable incomes include incomes earned from securities trading margin, property ownership and use rights; incomes from the transfer of land use right or land rent right; profits from the transfer, lease or liquidation of property or deposits, lending of capital, sale of foreign currencies; year-end balance of reserves; recovered bad debts which had been written off from accounting records; payable debts with creditors being unidentifiable; incomes from business activities in the previous years which had been omitted but later discovered, and other incomes.

The Government shall specify methods of determining taxable incomes for income amounts from the transfer of land use right and land rent right as well as tax rates according to the partially progressive tax table, which must not exceed 30% of remaining income from the transfer of land use right and land rent right after the enterprise income tax is paid.

In cases where a double taxation avoidance agreement which the Socialist Republic of Vietnam has signed otherwise provides for methods of determining taxable incomes for resident establishments, the provisions of such agreement shall apply.

Article 8.- Turnover

Turnover used for the calculation of taxable income is the total of money proceeds from the sale of goods, processing remuneration and/or service provision charges, including price subsidies, surcharges or extra-sums enjoyed by business establishments. In cases where a turnover arises in a foreign currency, it must be converted into Vietnam dong at the exchange rate announced by the State Bank of Vietnam at the time when such foreign-currency turnover arises.

Article 9.- Expenses

1. Reasonable expenses to be subtracted for the calculation of taxable income include:

a/ Depreciation of fixed assets used for production and/or business activities. The depreciation rate shall be based on the value of fixed assets and depreciation duration. Establishments producing and/or dealing in goods and services with high economic efficiency may apply quicker depreciation rates which, however, must not exceed two times the prescribed depreciation rate, in order to quickly renew their technologies.

The Finance Ministry shall specify fixed asset standards and depreciation rates prescribed at this Point;

b/ Costs of raw materials, materials, fuel, energy and goods volume actually used in goods production and trading and/or services related to turnover and taxable income in a period, which are calculated according to a reasonable wastage rate and actual ex-warehouse prices;

c/ Salaries, wages, allowances provided for by the Labor Code, mid-shift meal allowance, except for salaries or wages of owners of private enterprises, heads of individual business households and incomes of the founding members of companies who do not directly take part in production and business management;

d/ Expenses for scientific and technological researches; innovations and improvements; health care; training of laborers according to the prescribed regime; financial donations for education;

e/ Expenses for services purchased from outside: electricity, water, telephone; repair of fixed assets; rent of fixed assets; audit; legal services; designing, establishment and protection of trademarks; property insurance; payments for use of technical materials, patents, technological licenses not belonging to fixed assets; technical services and other services purchased from outside;

f/ Payments for female laborers as provided for by law; expenses for labor protection devices or outfits; expenses for protection of business establishments; working mission allowances; deductions for payment of social insurance and medical insurance premiums under the liability of employing business establishments; trade union funding; support of the Partys and mass organizations activities at business establishments; deductions for setting up the superior levels management funds and associations funds according to the prescribed regime;

g/ Payment of interests on loans for goods production and trading and/or service provision to banks and other credit institutions as well as economic organizations at the actual interest rates; payment of interests on borrowings from other subjects at the actual interest rates at the time of signing borrowing contracts, which must not exceed 1.2 times the lending interest rate of commercial banks at the time of borrowing;

h/ Deductions for reserves according to the prescribed regime;

i/ Severance allowances for laborers;

j/ Expenses for the sale of goods and/or services;

k/ Expenses for advertisement, marketing and trade promotion directly related to goods production and trading and service provision activities and other expenses, which are controlled at no more than 10% of the total expenditure. For trading activities, the total expense for determining the controlled level shall not include purchasing prices of goods sold;

l/ Payable taxes, charges, fees and land rents, which are related to goods production and trading and/or service provision activities, and accounted into reasonable expenses;

m/ Business administration expenses allocated by foreign companies to their resident establishments in Vietnam as prescribed by the Government;

n/ Expenses for purchase of goods and/or services of non-business organizations and/or individuals without invoices and vouchers prescribed by the Government.

2. The following expenses shall not be accounted into reasonable expenses:

a/ Deductions advanced as expenses but actually not spent;

b/ Expenses without vouchers or with invalid vouchers;

c/ Fines and expenses not related to tax-calculation turnover and taxable income;

d/ Expenses covered by other capital sources.

3. The reasonable expenses prescribed in Clause 1 of this Article shall all be recorded in accounting books in Vietnam dong; for expenses in foreign currency(ies), they must be converted into Vietnam dong at the exchange rate(s) announced by the State Bank of Vietnam at the time when such foreign-currency expenses are effected.

Article 10.- Tax rates

1. The enterprise income tax rate applicable to business establishments is 28%.

2. The enterprise income tax rate applicable to business establishments conducting activities of prospection, exploration and exploitation of oil and gas and other precious and rare natural resources is between 28% and 50%, depending on each project or business establishment.

The Government shall specify this Article.