Chapter VII
IMPLEMENTATION 40
Article 23. Effect
1. This Circular comes into force from August 02, 2014 and applies to the tax period of 2014 onwards.
2. An enterprise whose investment project is eligible for CIT incentives (whether applied or not) by the end of the tax period 2013 according to legislative documents on CIT shall be eligible for the remaining period specified in such documents; In the cases where the conditions specified in Decree No. 218/2013/ND-CP are satisfied, the enterprise may choose between keeping on applying the old incentives or applying those specified in Decree No. 218/2013/ND-CP (including preferential tax rates, tax exemption or reduction) for the remaining period if it is eligible for CIT incentives applied to enterprises derived from new investment projects or expansion projects. The expansion projects that may choose between the incentives specified in this Clause are those executed by December 31, 2008 and was put into operation in 2009 and earlier.
The remaining incentive period will be a continuous period which begins from the effective date of the regulations on tax incentives in the legislative documents on foreign investment in Vietnam, domestic investment promotions and CIT that were promulgated before the effective date of this Circular.
The remaining incentive period equals (=) the number of years over which the enterprise is still eligible for tax incentives (preferential tax rates, tax exemption or reduction) specified in the Circular minus (-) the number of years it has been applying tax incentives prescribed in the previous legislative documents on CITs. Rules for determination of remaining incentive period:
- At the end of the tax period 2013, if the preferential tax rate period has expired according to a previous legislative document on CIT, the enterprise must not apply tax incentives (preferential tax rates, tax exemption or reduction) for the remaining period specified in this Circular.
- At the end of the tax period, 2013, if the enterprise is still eligible for tax incentives (preferential tax rates, tax exemption or reduction) by according to a previous legislative document on CIT, the enterprise must not apply tax incentives (preferential tax rates, tax exemption or reduction) for the remaining period specified in this Circular.
- At the end of the tax period 2013, if the tax exemption period has expired but the enterprise is still eligible for preferential tax rates according to a previous legislative document on CIT, tax exemption will not apply but the enterprise will be eligible for tax reduction and preferential tax rates specified in this Circular for the remaining incentive period.
- At the end of the tax period 2013, if the enterprise is still eligible for preferential tax rates and the tax reduction period has not expired according to a previous legislative document on CIT, the remaining tax reduction period will equal (=) the tax reduction period (years) specified in this Circular minus (-) the period (years) over which the enterprise applied tax reduction by the end of the tax period 2013 and the enterprise may preferential tax rates for such remaining period.
- At the end of the tax period 2013, if the preferential tax exemption or reduction period has expired according to a previous legislative document on CIT, the enterprise will no longer be given tax incentives (preferential tax rates, tax exemption or reduction) specified in this Circular.
2a. 41 Enterprises that have expansion projects licensed by competent authorities, have made investment during 2009 – 2013 and satisfy conditions for tax incentives in the tax period 2014 (in eligible fields or eligible areas, including industrial parks, economic zones, hi-tech zones) according to the Law No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents shall be given tax incentives applied to expansion investment according to the Law No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents for the remaining period from the tax period 2015.
With regard to enterprises that have production expansion projects that are still incomplete by December 31, 2008, still under construction in 2009, finished and put into operation in 2010 or later, if they satisfy conditions for tax incentives (in eligible fields or eligible areas, including industrial parks, economic zones, hi-tech zones) according to regulations at the time expansion investment is decided, they may choose between incentives for increase in income from expansion investment according to legislative documents applicable at the time expansion investment is decided, or according to regulations of the Law No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents for the remaining period from the tax period 2015.
2b. 42 Enterprises that have projects of investment in industrial parks during 2009 – 2013 and satisfy conditions for tax incentives in the tax period 2014 (in eligible fields or eligible areas) according to the Law No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents shall be given tax incentives according to the Law No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents for the remaining period from the tax period 2015.
2c. 43 Enterprises that have projects of investment in areas that are not eligible for tax incentives before January 01, 2015 (including industrial parks, economic zones, hi-tech zones) and made eligible for tax incentives from January 01, 2015 onwards according to the Law No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents shall be given tax incentives according to the Law No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents for the remaining period from the tax period 2015.
In the cases where an enterprise that has a project of investment in an area given tax incentives but receives lower incentives, if its satisfies conditions for higher tax incentives according to the Law No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents, it will be given tax incentives according to the Law No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents for the remaining period from the tax period 2015.
2d. 44 After January 01, 2015, if the area where an enterprise’s project is located is made eligible for tax incentives, it will be eligible for tax incentives for the remaining period which begins from the tax period in which such change is made.
2d. 45 In the cases mentioned in Clauses 2a, 2b, 2c of this Article, if revenue is yet to be generated by the project in the tax period 2015, the continuous period of application of preferential tax rate will begins in the first year in which revenue is generated by the project given tax incentives. In the cases mentioned in Clauses 2a, 2b, 2c of this Article, if income is yet to be generated by the project, the continuous period of tax exemption/reduction will begins in the first year in which taxable income is generated by the project given tax incentives (if the enterprise does not have taxable income in the first 03 years, the period of tax exemption/reduction will begin from the 4th year from the first year in which revenue is generated by the project).
3. 46 With regard to a new enterprise derived from a project of investment that is granted the investment license or certificate of investment before January 01, 2014 but still incomplete, yet to be put into operation and thus has not generated revenues, the enterprise will be given CIT incentives applied to new investment projects according to the Law No. 32/2013/QH13, the Law No. 71/2014/QH13 and their guiding documents.
With regard to an enterprise that executes its expansion project before January 01, 2014, put it into operation and earn revenues from January 01, 2014, if the field or area such expansion project is eligible for CIT incentives according to Decree No. 218/2013/ND-CP (including economic zones, hi-tech zones, industrial parks other than those located in urban districts of special-grade cities, centrally run grade-I cities and grade-I provincial cities), the enterprise will be given CIT incentives for the increase in income due to expansion as instructed in Circular No. 78/2014/TT-BTC.
4. This Circular supersedes Circular No. 123/2012/TT-BTC dated July 27, 2012 of the Ministry of Finance of Vietnam.
5. Regulations on CIT promulgated by the Ministry of Finance and other agencies that contravene this Circular are abolished.
6. Unresolved issues about CIT, annual CIT declarations, CIT exemption, tax reduction, and imposition of penalties for tax offences that arise before the tax period 2014 shall be dealt with in accordance with CIT provisions promulgated therebefore.
7. In the cases where Socialist Republic of Vietnam enters into an international treaty or agreement in which CIT provisions contravene those in this Circular, such international treaty or agreement shall prevail.
8. 47 If the period of tax incentives is still unexpired due to the export ratio but the enterprise is no longer eligible for tax incentives for textile and garment products from January 11, 2007 and other products from January 01, 2012 because of commitments to WTO, it may decide whether to apply preferential tax rates and tax exemption period successively or concurrently for the remaining time to textile and garment products from 2007 and to other products from 2012 depending on the business’ fulfillment of requirements (apart from export ratio and use of domestic raw materials) in accordance with the legislative documents on corporate income tax which is effective from the day on which the business is issued with the establishment license to the effective date of the Decree No. 24/2007/ND-CP dated February 14, 2007 of the Government providing guidance on implementation of Law on corporate income tax, or in accordance with regulations of legislative documents on corporate income tax at the time in which tax incentives are adjusted due to the commitments to WTO.
If the adjustments specified in this Circular are more advantageous than the adjustments specified in the previous legislative documents although the enterprise chose the plan prescribed in the latter (whether the businesses has undergone inspection or not). The enterprise shall submit a revised declaration as prescribed in the Law on Tax administration and guiding documents on implementation of tax administration, and their wrong declaration due to revisions will not face penalties for violations against the laws on taxation. In case the CIT paid by the enterprise is greater than the amount payable according to the revised declaration, the taxpayer may decide whether to offset it against the CIT payable of next tax period or claim a refund as prescribed. In the cases where the enterprise has made adjustments in accordance with WTO commitment for textile or garment products as prescribed in the previous legislative documents, has incurred penalties for tax offences and has paid the fines and late payment interest, it is not required to make any adjustments.
Article 24. Responsibility for implementation
1. Tax authorities are responsible for disseminating this Circular and instructing enterprises to implement this Circular.
2. Enterprises regulated by this Circular shall follow the instructions specified in this Circular.
Difficulties that arise during the implementation of this Circular should be promptly reported to the Ministry of Finance of Vietnam for consideration.
Tìm kiếm
Văn bản hợp nhất 66/VBHN-BTC (Bản Word)
Văn bản hợp nhất 66/VBHN-BTC (Bản Pdf)