Chapter II
TAX CALCULATION BASES AND TAX RATES
Article 3.- The turnover for calculating taxable income under Article 8 of the Law on Enterprise Income Tax are specified as follows:
1. For goods or services which are sold or provided by production and/or business establishments, it shall be the total sum earned from the goods sale and/or service provision, including price subsidies, surcharges and extra amounts earned by such production and/or business establishments. If the production and/or business establishments pay value-added tax directly on the added value, the turnover for calculating incomes shall also include the value-added tax.
2. For goods sold by installment payment, it shall be the turnover of the sold goods calculated according to the selling price paid in lump sum, excluding interests on deferred payment.
3. For goods and services used for exchange, as gifts or donations, it shall be calculated according to the selling prices of products, goods and services of the same or similar kinds at the time of the exchange, gift giving or donation.
4. For products for self-usage, it shall be the production costs of such products.
5. For goods processing, it shall be the earnings from the processing, including labor wages, costs of fuel, power, auxiliary materials and other costs in service of the goods processing.
6. For property leasing activities, it shall be the rentals collected in each period according to the leasing contracts. In cases where the lessees pay rentals in advance for several months or several years, the turnover shall be the total sum of money collected.
7. For credit activities, it shall be the interests on loans actually collected in the tax calculation period.
8. For other activities, it shall be stipulated by the Ministry of Finance.
Article 4.- The reasonable expenses that are allowed to be subtracted so as to calculate taxable incomes from production, business and/or service activities shall include:
1. Depreciation of immovable property used in production and business activities. The immovable property depreciation levels shall be prescribed by the Ministry of Finance.
2. Costs of raw materials, materials, fuel, energy and goods actually used in production, business and/or services related to the turnover and taxable incomes in a given period, which shall be calculated according to the reasonable waste norms and the actual ex-warehouse prices.
3. Salaries, wages, and other payments of the salary or wage nature to be paid to laborers, mid-shift meal allowances:
a/ Salaries, wages and other payments of the salary or wage nature to be paid to laborers in State enterprises in accordance with current regulations.
b/ Salaries, wages and other payments of the salary or wage nature to be paid to laborers in other business establishments according to labor contracts. For business establishments which have not yet applied the labor contract regime, salaries, wages and other payments of the salary or wage nature to be paid to laborers shall be accounted into the costs for calculating taxable income on the basis of the business line's average salary and wage levels in the localities.
The following expenses shall not be accounted into the expenses for salaries and wages:
- Salaries and wages of private enterprise owners or heads of production, business and/or service households.
- Salaries and wages of founding members of companies who do not directly run production, business or service activities.
c/ Expenses for laborers' mid-shift meals.
4. Expenses for scientific and technological research; innovations and technical improvements; financial support for education, health, labor training according to the prescribed regime.
5. Expenses for services purchased from outside: electricity, water, telephone, repair of immovable property, rentals of immovable property, auditing, property insurance, expenses for use of technical documents, patents, technology permits which are not regarded as immovable property, technical services.
6. Payments for women laborers as prescribed by law; labor protection expenses, security expenses; deductions for the social insurance and contributions to health insurance funds falling under the responsibility of labor-employing business establishments; trade union's budgets; deductions for forming the financial source to cover the high-level managerial costs as prescribed.
7. Payments of interests on the capital borrowed for production, business and service provision from banks, credit institutions at the actual interest rates; payments of interests on loans borrowed from other objects at the actual interest rates which, however, must not exceed the ceiling interest rate set by the State Bank of Vietnam applicable to credit institutions.
8. Deductions for setting up the reserves for the price decrease of unsold goods, for the price decrease of securities in financial activities and for bad debts.
9. Severance allowances for laborers as prescribed by law.
10. Expenses for the sale of goods and/or provisions of services including: expenses for packaging, transport, portage, warehouse, storing yard, product warranty.
11. Expenses for advertisements, marketing and sales promotion directly related to the production, business and service activities as well as other expenses which must not exceed the maximum level of seven per cent of the total expenses. For commercial activities, the total expenses used for determining such maximum level shall exclude the purchasing prices of sold goods.
The Ministry of Finance shall guide the maximum level for this expense appropriate to each business line.
12. Payable taxes, fees, charges and land rentals related to the production, business and service activities (except for the enterprise income tax), including:
- Export tax, special consumption tax, value-added tax (for business establishments which pay value-added tax directly on the added value); license tax; natural resource tax; agricultural land use levy; house and land tax;
- Road fees, bridge tolls and ferry tickets, airport charges, title-deed fees;
- Land rentals.
13. Business management costs allocated by foreign companies to their permanent establishments in Vietnam according to the proportion of the turnover of the permanent establishments to the total overseas turnover of their respective companies.
Article 5.- Turnovers and reasonable expenses shall be recorded in Vietnam dong in the accounting books of business establishments. In cases where a turnover or expenditure is made 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 of the foreign currency collection or spending.
Article 6.- The following expenditures shall not be accounted into the reasonable expenses:
1. Advance deductions to cover expenses but actually not spent, such as advance deductions to pay fees of overhaul, commercial goods or construction work warranty, and other advance deductions;
2. Expenditures without vouchers or with unlawful vouchers;
3. Fines such as fines on breaches of contracts, fines on violations of traffic rules, fines on violations of the business registration regulations, fines on violations of accounting and statistic regulations, fines on tax-related administrative violations and other fines;
4. Expenditures not related to turnovers and taxable income such as expenditures on capital construction investment, financial support for localities, mass organizations, social organizations, expenditures for charity purpose and others not related to turnovers and taxable income;
5. Expenditures covered by other funding sources such as non-business expenses, regular difficulty allowances, unexpected difficulty allowances.
Article 7.- Other taxable incomes include:
1. Differences between the purchase and sale of securities;
2. Income from the rights to property ownership or use;
a/ Income from the lease of property;
b/ Income from the intellectual property rights;
c/ Other income from the rights to property ownership or use.
3. Profits from the transfer or liquidation of property.
4. Interests on deposits or loans.
5. Differences earned from the sale of foreign currency(ies).
6. The year-end balances of the reserve for the price decrease of unsold goods, the reserve for the price decrease of securities and the reserve for bad debts.
7. Bad debts already written off from the accounting books but now recovered.
8. Amounts payable to unidentified creditors.
9. Previous years' omitted income from production, business and service but now discovered.
10. Incomes earned from overseas production, business and service activities.
For incomes for which income tax has been paid abroad, the business establishments shall have to determine the amounts of pre-tax overseas incomes so as to calculate the enterprise income tax.. When determining the income tax for the whole year, the income tax already paid abroad shall be subtracted. However, the subtracted tax amount must not exceed the income tax on income received from abroad, calculated according to the Law on Enterprise Income Tax.
11. Income related to the sale of goods and provisions of services not yet included in the turnovers, after subtracting expenses for the generation of such income as prescribed by the Ministry of Finance.
12. Other incomes.
Article 8.- For incomes earned from shares or capital contributions to joint ventures or economic cooperation (after tax), business establishments shall not have to pay enterprise income tax on such income but they must be included into the after-tax income for determining the income surtax.
Income from oil and gas business activities shall comply with the Government's stipulations.
Article 9.- The enterprise income tax rates applicable to domestic business establishments and foreign organizations and individuals doing business in Vietnam but not under the Law on Foreign Investment in Vietnam shall be as follows:
1. The universal tax rate is 32%.
2. The tax rate of 25% shall apply to the following business establishments for a period of three years from the effective date of the Law on Enterprise Income Tax:
- Mining, exploitation, minerals, forest products and aquatic products;
- Metallurgy and the manufacture of mechanical products;
- Manufacture of basic chemicals, fertilizers and insecticides;
- Production of construction materials (except for cement);
- Construction (except survey, designing, consultancy and supervision activities);
- Transport (except for air transport, taxi transport).
3. For business establishments that have convenient business locations, less competitive but highly profitable business lines, they shall have to pay both enterprise income tax at the rate of 32% and the surtax at the rate of 25% on their remaining incomes, which account for more than 12% of the existing capital (except for borrowed capital).
Income surtax shall not be collected temporarily for the following cases:
- Business establishments which enjoy the enterprise income tax rate of 25% for a period of three years from the effective date of the Law on Enterprise Income Tax as prescribed in Clause 2 of this Article;
- Investment projects in the fields, business lines and geographic areas where investment is encouraged and which enjoy enterprise income tax rates of 25%, 20% and 15% as prescribed in Clauses 4 and 5 of this Article;
- Production establishments which export more than 50% of their products or have an export turnover accounting for more than 50% of their total turnover.
4. For new investment projects in the fields and business lines eligible for investment preferences as stipulated by the Government, the tax rate of 25% shall apply.
5. For projects in the fields and business lines eligible for investment preferences, if they are located in the districts of ethnic minority people or mountainous, island or difficult areas as stipulated by the Government, the tax rate of 20%; shall apply and if they are located in high-mountain districts of ethnic minority people as stipulated by the Government, the tax rate of 15% shall apply.
Article 10.- Enterprise income tax rates applicable to foreign-invested enterprise and foreign parties to business cooperation contracts under the Law on Foreign Investment in Vietnam shall be as follows:
1. The universal tax rate is 25%.
2. The tax rate of 20% shall apply for a period of 10 years from the commencement of production and business activities to investment projects which satisfy one of the following criteria:
a/ Exporting at least 50% of their products;
b/ Employing 500 or more laborers;
c/ Raising or cultivating and processing agricultural products, forest products or aquatic products;
d/ Using advanced technologies, investing in research and development;
e/ Using large quantities of raw materials and materials available in Vietnam; effectively processing and exploiting natural resources in Vietnam; manufacturing products of highly localized contents.
3. The tax rate of 15% shall apply for a period of 12 years from the commencement of production and business activities to investment projects which satisfy one of the following criteria:
a/ Exporting at least 80% of their products;
b/ Investing in the fields of metallurgy, basic chemicals, mechanical engineering, petrochemicals, fertilizers and the manufacture of electronic components, automobile and motorcycle components;
c/ Building and commercially operating infrastructure projects (bridges, roads, water supply and drainage, electricity, ports);
d/ Growing perennial industrial plants;
e/ Investing in difficult areas (including hotel projects);
f/ Transferring property to the State of Vietnam without indemnity at the end of the operation duration (including hotel projects);
g/ Projects that satisfy two criteria in Clause 2 of this Article.
4. The tax rate of 10% shall apply for a period of 15 years from the commencement of production and business activities to the projects for:
a/ Building infrastructure in difficult areas;
b/ Investing in mountainous, island, remote or deep-lying areas;
c/ Afforestation;
d/ Other projects on the list of projects where investment is specially encouraged.
5. For investment projects under BOT, BTO and BT contracts, projects for building infrastructure of industrial parks or export processing zones, the preferential tax rates of 20%, 15% and 10% shall apply throughout the whole project implementation period.
6. The tax rates mentioned in Clauses 2, 3, 4 and 5 of this Article shall not apply to hotel projects (except for the cases of investment in difficult, mountainous or island areas, or transfer of property to the State of Vietnam without indemnity), financial, banking, insurance, service provision and commercial projects.
Article 11.- The enterprise income tax rate of 50% shall apply to Vietnamese and foreign individuals and organizations conducting oil and gas prospection, exploration and exploitation. Tax rates of 32% to 50% shall apply accordingly to projects and business establishments that exploit other rare and precious natural resources, depending on each project and each business establishment. The Ministry of Finance shall decide a specific rate for each of investment projects of Vietnamese organizations and individuals; the agencies competent to grant investment licenses shall decide a specific rate for each of foreign-invested projects, after obtaining the approval of the Ministry of Finance.
Article 12.- All incomes earned by foreign investors from their investment in Vietnam (including reimbursed income tax amounts and incomes from the capital transfers) which are either remitted abroad or kept outside Vietnam shall be liable to tax on income remittance abroad.
The abroad- income remittance tax rates shall apply as follows:
a/ The tax rate of 5% shall apply to foreign investors who make legal capital contributions or business cooperation capital contributions of 10 million USD or more and to overseas Vietnamese who invest in the country;
b/ The tax rate of 7% shall apply to foreign investors who make legal capital contributions or business cooperation capital contributions of from five to less than 10 million USD;
c/ The tax rate of 10% shall apply to foreign investors who make legal capital contributions or business cooperation capital contributions of less than five million USD.
Tìm kiếm
Nghị định 30/1998/NĐ-CP (Bản Word)