Chapter II
TAX CALCULATION BASES AND TAX RATES
Article 3.- Tax calculation bases are taxable income in the taxation period and tax rate.
Enterprise income taxation period is determined according to the calendar year or fiscal year.
Article 4.- Turnover for calculation of taxable income is determined as follows:
1. Turnover for calculation of taxable income is the total goods sales or service charge, including price subsidies, surcharges and additional amounts, earned by business establishments, regardless of whether or not such amounts have been collected.
For business establishments that pay value added tax (VAT) by the tax credit method, turnover for calculation of taxable income is VAT-exclusive turnover. For business establishments that pay VAT directly on added value, turnover for calculation of taxable income is VAT-inclusive turnover.
2. For goods sale and service provision activities, the time for determining turnover for calculation of taxable income is the time of transferring the ownership of goods, completing services or making out invoices on goods sale or service provision.
3. Turnover for calculation of taxable income in some cases is specified as follows:
a/ For goods sold on installment payment, turnover for calculation of taxable income is determined based on the sale price paid in lump sum, excluding interest on deferred payment;
b/ For goods or services used for barter, donation or internal consumption, turnover for calculation of taxable income is determined based on the sale price of goods or services of the same or similar category at the time of barter, donation or internal consumption;
c/ For goods-processing activities, turnover for calculation of taxable income is proceeds from the processing, including remuneration, costs of fuels, power, auxiliary materials and other costs in service of goods processing;
d/ For property leasing activities, turnover for calculation of taxable income is rent paid by the lessee for each term under the leasing contract. If the lessee pays rent in advance for several years, turnover for calculation of taxable income is divided by the number of years for which the rent has been paid in advance or determined based on the rent payable in lump sum.
The Ministry of Finance shall specifically guide the methods of determining turnover from the advance payment of rent for several years in order to determine taxable income suitable to each type of business establishment defined at this Point;
e/ For credit activities, turnover for calculation of taxable income is receivable loan interest arising in the taxation period;
f/ In other cases, turnover for calculation of taxable income is specified by the Ministry of Finance.
Article 5.- Reasonable expenses to be subtracted for calculation of taxable income include:
1. Depreciations of fixed assets used for goods production and trading or service provision activities. Fixed asset depreciation rate is determined based on the value of fixed assets and depreciation duration. Establishments producing and trading in goods or providing services with high economic efficiency may apply a higher depreciation rate which, however, must not exceed two times the prescribed depreciation rate, in order to quickly renew their technologies.
The Ministry of Finance shall specify fixed asset standards, depreciation duration and rate and quick depreciation specified in this Clause.
2. Costs of raw materials, materials, fuel, energy and goods volume actually used for goods production and trading or service provision related to turnover and taxable income in a period, which are calculated according to a reasonable consumption norm and actual ex-warehousing prices, that enterprises shall determine by themselves and take responsibility therefor before law.
Business establishments that purchase products made of rattan, bamboo, rush, coconut fibers or palm leaves directly from their makers, handicraft and fine-art articles from non-business artisans; earth, stone, sand and gravel exploited by people themselves; scraps from scrap collectors and some services from non-business individuals without invoices and vouchers may make lists thereof according to the Finance Ministry's regulations on the basis of written payment requests of goods sellers or service providers. Directors of business establishments who approve payments according to those lists shall bear responsibility before law for the accuracy and truthfulness of the lists.
3. Wages, remuneration and allowances paid to laborers according to the Labor Code, expenses for mid-shift meals and food rations:
a/ Wages, remuneration and allowances paid to laborers in State enterprises which are accounted as reasonable expenses according to current regulations;
b/ Wages, remuneration and allowances paid to laborers in other business establishments which are accounted as reasonable expenses under labor contracts;
c/ Expenses for mid-shift meals for laborers which are accounted as reasonable expenses and may not exceed the minimum wage set by the State for state employees;
d/ Food rations for laborers working in some special sectors and doing some special jobs as prescribed by the State.
4. Expenses for scientific and technological research; innovations and modifications, healthcare; and training of laborers according to regulations; financial supports for education.
5. Charges 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 documents; invention patents; technological licenses not pertaining to fixed assets, technical services and other services purchased from outside.
6. Payments:
a/ Expenses for female laborers, including:
- Expenses for job re-training of female workers and employees whose current jobs are no longer appropriate in order to shift them to other jobs under business establishments' development plans.
These extra expenses cover training fees (if any) + wage level and grade-based difference (ensuring 100% of wages for trainees);
- Payment of wages and allowances (if any) to teachers in nurseries and kindergartens organized and managed by enterprises. The number of these teachers shall be determined according to the norm prescribed by education and training authorities;
- Expenses for organizing an additional health check in a year such as examination of occupational, chronic or gynecological diseases for female workers and employees;
- Payment of allowances for female laborers after childbirth. Pursuant to the provisions of labor law and based on actual price fluctuations in each period, the Ministry of Finance shall coordinate with the Ministry of Labor, War Invalids and Social Affairs in specifying the maximum allowance level for female laborers after childbirth;
- During the period of breast-feeding, if, for objective reasons, female laborers do not take breast-feeding breaks according to regulations but stay on to work for business establishments, they are entitled to overtime allowances according to regulations.
For business establishments employing large numbers of female laborers in production, construction or transportation activities, if they can separately account and keep track of actual payments for female laborers, they are entitled to enterprise income tax reduction according to Article 41 of this Decree.
b/ Expenses for labor safety protection according to the Labor Code;
In business establishments where laborers are required to wear uniforms at workplaces, expenses for uniforms shall be accounted as reasonable expenses.
c/ Expenses for protection of business establishments; working mission allowances;
d/ Appropriations for social insurance and heath insurance funds under the responsibility of employing business establishments; trade union funding; support of Party cells' and mass organizations' activities at business establishments; contributions to cover managerial costs at higher levels and associations' funds according to regulations.
7. Payment of interests on loans for production, business and services to credit institutions, financial institutions and other economic organizations at actual interest rates; payment of interests on loans borrowed from other entities at actual interest rates which, however, must not exceed 1.2 times the lending interest rate applied by commercial banks at the time of borrowing.
8. Appropriations for use as provisions according to regulations.
9. Severance allowances for laborers according to regulations.
10. Expenses for goods sale or service provision, including: expenses for preservation, packing, transportation, loading and unloading, renting of warehouses and storing yards and product warranty for goods or services.
11. Expenses for advertisement, marketing, sales promotion, reception, public relation expenses, payment of brokerage commissions, conference expenses and other expenses directly related to goods production and trading or service provision, which must not exceed 10% of the total of expenses listed in Clauses 1 thru 10 of this Article. For trading activities, total reasonable expenses used for determining the controlled level are exclusive of costs of goods sold.
12. Payable taxes, charges, fees and land rents related to goods production and trading or service provision (except enterprise income tax), including:
a/ Export duty, import duty;
b/ Special consumption tax;
c/ VAT, for business establishments paying VAT directly on added value; VAT, for business establishments paying VAT by the tax credit method in case of purchase or import of goods or services for the production of goods or provision of services which are not liable to VAT; input VAT, in case of export of goods or services but the conditions for VAT credit and refund according to the provisions of VAT law are not satisfied; input VAT not credited due to late declaration as compared with the set time limit;
d/ Excise tax;
e/ Royalty;
f/ Agricultural land use tax;
g/ Housing and land tax;
h/ Charges and fees specified by law;
i/ Land rents.
13. Business administration expenses allocated by foreign companies to their permanent establishments in Vietnam based on the proportion of such permanent establishments' turnover to total turnover of such foreign companies, including turnover of permanent establishments in other countries.
Vietnam-based permanent establishments of foreign companies that have not yet implemented the provisions on accounting, tax payment invoices and vouchers by mode of tax declaration are not allowed to account as reasonable expenses business administration expenses allocated by foreign companies according to this Clause.
Article 6.- The following expenses are not accounted as reasonable expenses:
1. Wages and remunerations paid by business establishments due to their failure to strictly observe the provisions of labor law on labor contracts, except when they employ laborers for piece work.
Wages and remunerations of owners of private enterprises, partners of partnerships, heads of individual business households and business individuals, remuneration paid to founding members and members of boards of directors of limited liability companies or joint-stock companies who do not directly participate in the administration of goods production and trading or service provision.
2. Amounts appropriated in advance as expenses but not actually spent, including: advance appropriations for overhaul of fixed assets, charges for warranty of goods and construction works or other advance appropriations.
3. Expenses without invoices or vouchers or with invalid invoices or vouchers.
4. Fines for administrative violations, such as violations of traffic law, violations of business registration regulations, violations of accounting and statistic regulations, violations of tax law, and other administrative violations.
5. Expenses not related to turnover and taxable income, such as expenses for capital construction investment; financial supports for localities, mass organizations and social organizations outside business establishments; expenses for charity purposes and other expenses not related to turnover and taxable income.
6. Expenses covered by other funding sources, such as non-business expenses, allowances for regular and unexpected difficulties.
Article 7.- Turnover, reasonable expenses and taxable income shall be determined in Vietnam dong. In case business establishments have turnover, reasonable expenses and taxable income in foreign currencies, they shall convert these foreign currency amounts into Vietnam dong at the exchange rates announced by Vietnam State Bank at the time the foreign currency turnover and expenses arise, unless otherwise provided for by law. For a foreign currency without any exchange rate with Vietnam dong, the conversion shall be effected through another foreign currency with an exchange rate with Vietnam dong.
Article 8.- Taxable incomes include income from goods production and trading or service provision activities and other incomes in the taxation period, including those generated from goods production and trading or service provision activities overseas.
1. Taxable income from goods production and trading or service provision activities is turnover for calculation of taxable income minus (-) reasonable expenses related goods production and trading or service provision activities in the taxation period.
In case a business establishment earns its income from its contributed share capital or joint-venture capital for which enterprise income tax has been paid by the business establishment receiving such contributed share capital or joint-venture capital, that income is not liable to enterprise income tax.
2. Other taxable incomes in the taxation period include:
a/ Securities purchase and sale margin;
b/ Income from activities related to industrial property rights and copyright;
c/ Other incomes from property ownership and use rights;
d/ Income from land use right or land rent right transfer;
e/ Gain from property transfer or liquidation;
f/ Interest on deposits, loans and goods sold on deferred payment;
g/ Margin from sale of foreign currencies or foreign exchange rate difference;
h/ Year-end balance of provisions according to regulations;
i/ Recovered bad debts which were written off from accounting books;
j/ Payable debts of unidentifiable creditors;
k/ Income amounts from goods production and trading or service provision activities in previous years which had been omitted but later discovered;
l/ Income amounts from goods production and trading or service provision activities overseas.
For an income for which income tax has been paid overseas, the business establishment shall determine the income amount prior to payment of income tax abroad so as to calculate enterprise income tax. When determining income tax payable for the whole year, the income tax amount already paid overseas by the business establishment will be subtracted, provided such subtracted amount does not exceed the income tax on the received income calculated under the Law on Enterprise income tax.
m/ Income amounts related to the sale of goods or provision of services which are not yet included into turnover, after subtracting expenses for the generation of these income amounts under the Finance Ministry's regulations;
n/ Gain from capital transfer;
o/ Other income amounts not yet specified in this Article.
3. In case a double taxation agreement which the Socialist Republic of Vietnam has signed provides a method of determining taxable income for permanent establishments different from that provided in Clauses 1 and 2 of this Article, the provisions of that agreement prevail.
Article 9.- Enterprise income tax rates applicable to business establishments are as follows:
1. The enterprise income tax rate applicable to business establishments is 28%.
2. The enterprise income tax rate applicable to business establishments conducting prospection, exploration and exploitation of oil and gas or other precious and rare natural resources is between 28% and 50%.
The Prime Minister shall decide, at the proposal of the Minister of Finance, on specific tax rates suitable to the production and business situation of each business establishment conducting prospection, exploration and exploitation of oil and gas or other precious and rare natural resources.
3. The enterprise income tax rate applicable to lottery activities is 28%. The Ministry of Finance shall specify the financial mechanism applicable to after-tax income from lottery activities.
Tìm kiếm
Nghị định 24/2007/NĐ-CP (Bản Word)