Corporate income tax ("CIT")

System of current legal documents

Luật

1. Law No. 14 / 2008 / QH12 of the XIIth National Assembly on enterprise income tax (effective from date of April, April, April, year and year);
2. Law No. 32 / 2013 / QH13 issued on 19 / 06 / 2013 by the XIII National Assembly on amending and supplementing a number of articles of the Law on Enterprise Income Tax (effective from April 30, 2012, 01 year of 01);
3. Law No. 71 / 2014 / QH13 issued on 26 / 11 / 2014 by the XIII National Assembly amending the Law on Taxes (effective from April 30, 2012, 2014 year).

Download File: https://goo.gl/LgNdDK Download Backup file:  http://bit.ly/2P6VHk4 Decree

1. Decree No. XNXX / 218 / ND-CP dated 2013 month 26XYYYYX of the Government detailing and guiding the implementation of the Law on Enterprise Income Tax (effective from April 30, 2012, 12 year, 2013);
2. Decree 91 / 2014 / ND-CP amending the Decrees stipulating tax (effective from date of April, April, April, year and year);
3. Decree 12 / 2015 / ND-CP instructs the Law on amending and supplementing a number of articles of tax laws and amending and supplementing a number of articles of tax decrees (effective from April 30, 2009, XNXX year) 01).

Circulars

1. Circular 78 / 2014 / TT-BTC, Guiding the implementation of the Decree No. XNXX / 218 / ND-CP dated April 30, 2013 of 2013 year of the Government, regulating and guiding the implementation of the Law on Enterprise Income Tax (effective from date of 26 month 12 year 2013);
2. Circular No. XNXX / 96 / TT-BTC issued on the date of April 30, 2012, year and year of the Ministry of Finance, guiding the guidance on corporate income tax in the Decree No. XNXX / 2015 / ND-CP dated April 30, 2013 of 22 year of the Government detailing the implementation of the Law amending and supplementing a number of articles of tax laws and amending and supplementing a number of articles of tax decrees and amending and supplementing a number of articles of the Circular No. XNXX / 06 / TT-BTC dated 2015 / 12 / 2015, Circular No. 12 / 02 / TT-BTC dated 2015 / 78 / 2014, Circular No. 18 / 06 / TT-BTC dated 2014 / 119 / 2014 of Ministry of Finance (effective force from 25 / 08 / 2014);
3. Circular No. 25 / 2018 / TT-BTC dated 16 month 3 year 2018 Guideline of Decree No. XNXX / 146 / ND-CP dated April 30, 2013, 2017 year of the year of the Government and amend and supplement some articles of Circular No. 15 / 12 / TT-BTC dated 2017XYYYXYYYYYYYYY OF THE MINISTRY OF FINANCE, Circular No. XNXX / 78 / TT-BTC dated 2014 / 18 / TT-BTC dated 6 month 2014 year 111 of Ministry of Finance

Summary of new text content

Circular 25 / 2018 / TT-BTC, Guidance on Decree No. XNXX / 146 / ND-CP amending Circular No. XNXX / 2017 / TT-BTC, Circular No. XNXX / 78 / TT-BTC

On 16 / 3 / 2018, the Ministry of Finance issued the Circular No. XNXX / 25 / TT-BTC guiding the Decree on import / export / import / export-revision of the Circular No. XNXX / 2018 / TT-BTC, Circular 146 / 2017 / TT-BTC. Accordingly, amending and supplementing a number of provisions on deductible expenses, not deductible when calculating CIT, specifically:

• In addition, if an enterprise transfers a part of its capital or transfers another enterprise in accordance with the law, if there is a transfer of assets, the assignee may only deduct depreciation of fixed assets into deductible expenses for transferred assets eligible for depreciation according to the remaining value on the accounting books at the transfer enterprise;
• The cost of purchasing life insurance for employees who exceed the prescribed limit or not specifically recording the eligibility for the application will not be deducted when calculating CIT. Previously, this expense was not controlled;
• Increase deductible expenses when calculating CIT for deductions for voluntary pension fund, voluntary retirement insurance, life insurance for employees, ... up to VND 130 million / month / person; If the following requirements are ensured:
• Specified conditions of eligibility and benefit level at one of the following documents: Labor contract; Collective labor agreement; Financial regulations of the Company, Corporation, Group; The bonus regulation is stipulated by the Chairman of the Board of Directors and the Director according to the financial regulations of the Company and the Corporation.
• Enterprises must fulfill obligations on compulsory obligations for employees (including cases of compulsory insurance debt);

Previously, the control level was VND 200 million / month / person and did not include life insurance.    

Some contents of official dispatches should be noted

Payment expenses for overseas companies (Official Letter No. 231 / TCT-CS dated 15 / 01 / 2018 of General Department of Taxation)

Where the Company in Vietnam cannot provide documents, documents and papers proving that the company abroad has industrial property and intellectual property rights for detailed instruction documents (detailed information). techniques, methods of manufacturing products ...) to manufacture products in Vietnam issued by foreign competent authorities, companies in Vietnam are not allowed to charge fees for overseas companies to pay expenses. deductible when determining taxable income.

CIT incentives (Official Letter No. 754 / TCT-DNL dated 06 / 03 / 2018 of General Department of Taxation)

Enterprises having investment projects are entitled to corporate income tax incentives because they satisfy the conditions on the geographical areas where income is generated outside the area where the investment project is implemented, then: (i) If this income arises in an area that is not in an area of ​​investment incentives, they are not entitled to enterprise income tax incentives according to the local conditions. (ii) If this income arises in an area within an investment incentive area, it is entitled to corporate income tax incentives according to the local conditions. The determination of corporate income tax incentives for this income is determined for each location based on the time and level of enterprise income tax incentives in the area where the investment project is implemented.

Tax policy for advertising activities on facebook and google (Official Letter No. 1550 / TCT-CS dated 24 / 04 / 2018 of General Department of Taxation)

In case an enterprise in Vietnam hires another unit in Vietnam to advertise on Facebook, Google, the input value-added tax of advertising expenses for production and business activities subject to VAT is fully deductible. Ministry of Finance if it meets the conditions for deduction of input VAT as guided in Article 15 of Circular No. 219/2013/TT-BTC dated December 31, 12 of the Ministry of Finance. In case the enterprise incurs the cost of posting ads on Facebook or Google, if this expenditure fully meets the actual conditions related to the enterprise's production and business activities, there are sufficient legal invoices and documents. bearing the name, address, tax identification number of the enterprise and non-cash payment documents as prescribed, for a payment value of over VND 2013 million, it shall be included in deductible expenses when determining taxable income. . Regarding bank payment documents, the Company complies with the provisions of Clause 20, Article 3 of Circular No. 15/219/TT-BTC dated December 2013, 31 of the Ministry of Finance mentioned above. In case Google, Facebook (foreign contractor) signs a contract with the Company in Vietnam to provide advertising services on Google and Facebook applications and generate income in Vietnam, Google and Facebook are subject to tax. contractors (VAT, CIT) in Vietnam. The company in Vietnam is responsible for declaring, withholding and paying tax on behalf of the foreign contractor according to regulations.

Loan interest expense of a loan in cash (Official Letter No. 2023 / TCT-CS dated 25 / 5 / 2018 of General Department of Taxation)

In Clause 2, Article 6 and Clause 1, Article 13 of Decree No. 222/2013 / ND-CP stipulates that enterprises other than credit institutions do not use cash when borrowing and lending each other. Therefore, if the enterprise is not a credit institution, when performing loan transactions and repaying loans without using the forms of payment as prescribed above, the enterprise's interest expense will not be included in expenses. deductible when determining taxable income. INSURANCE - WAGES