The 7-chapter and 47-article Decree, issued by the Government on February 14, details the implementation of the Law on Corporate Income Tax (CIT) regarding CIT bases and rates; CIT registration, declaration, payment and settlement; CIT exemption and reduction.
The 7-chapter and 47-article Decree, issued by the Government on February 14, details the implementation of the Law on Corporate Income Tax (CIT) regarding CIT bases and rates; CIT registration, declaration, payment and settlement; CIT exemption and reduction.
Specifically, the CIT rate of 20% now applies for 10 years to cooperatives set up in geographical areas not on the lists of areas meeting with socio-economic difficulties or exceptional socio-economic difficulties; business establishments set up under investment projects eligible for investment preferences or projects executed in geographical areas listed as socio-economic difficulty-hit areas.
The CIT rate of 15% applies for 12 years to cooperatives set up in geographical areas on the list of those meeting with socio-economic difficulties and business establishments set up under investment projects eligible for investment preferences or projects executed in geographical areas listed as socio-economic difficulty-hit areas.
The CIT rate of 10% applies for 15 years to cooperatives and business establishments set up under investment projects executed in geographical areas listed as exceptional socio-economic difficulty-hit areas and business establishments set up under investment projects eligible for special investment preferences.
After the above period, cooperatives and business establishments shall pay CIT at the rate of 28%.
Business establishments will enjoy CIT exemption for incomes from the performance of scientific research and technological development contracts or the provision of scientific and technological information services; from the sale turnover in the trial-production period (for 6 months at most); from the sale turnover of products turned out by new technologies applied for the first time in Vietnam (for one year at most); from the performance of technical service contracts in agriculture; from job-training for ethnic minority people, disabled people, children in special circumstances, etc.; from production, business or service activities of business establishments employing only disabled laborers.
This Decree replaces Decree No. 164/2003/ND-CP of
(Source: VietnamLaw)
