Adding tax exemption conditions in the draft revised Law on Corporate Income Tax

VCN - Practice has raised the need to amend and supplement the Law on Corporate Income Tax (CIT) to suit the development of the domestic and foreign economy and society. According to the assessment, the completion of the draft Law on Corporate Income Tax will move towards a more favorable business environment, encourage investment and sustainable development as well as meet the goals set for CIT reform.
Removing difficulties in tax exemption and refund policies for export processing enterprises Removing difficulties in tax exemption and refund policies for export processing enterprises
Does goods imported for investment incentives project subjected to tax exemption? Does goods imported for investment incentives project subjected to tax exemption?
State revenue in 8 months increased by about 18% State revenue in 8 months increased by about 18%
Supplementing the method of calculating corporate income tax to facilitate micro-enterprises, encouraging individual businesses and business households to convert into enterprises. Illustration: H.Anh
Supplementing the method of calculating corporate income tax to facilitate micro-enterprises, encouraging individual businesses and business households to convert into enterprises. Illustration: H.Anh

In line with the development of the socio-economy

On June 8, 2024, the National Assembly passed Resolution No. 129/2024/QH15 on the Law and Ordinance Development Program for 2025, adjusting the Law and Ordinance Development Program for 2024. Accordingly, the revised Law on Corporate Income Tax will be commented on by the National Assembly at the 8th session (October 2024) and approved at the 9th session (May 2025). According to Mr. Truong Ba Tuan, Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision (Ministry of Finance), after more than 15 years of implementation, the Law on Corporate Income Tax has come into effect, positively impacted many economic and social aspects of the country and achieved important results. The Law has been completed in accordance with the direction of reforming the tax, fee and charge system as defined in the documents and resolutions of the Party and the State, at the same time, closely following the goals and directions defined in the Strategy for reforming the tax policy system for the period 2011-2020, thereby contributing significantly to creating a favorable investment and business environment, ensuring fairness and equality in competition among enterprises... However, Mr. Truong Ba Tuan said that according to the development of the economy and society, the Law on Corporate Income Tax has revealed some limitations such as not meeting the requirements from practice and the new development requirements of the economy, as well as ensuring the consistency of the legal system... Practice has raised the need to amend and supplement the Law on Corporate Income Tax to suit the development of the economy and society at home and abroad.

Clarifying the key contents of the draft Law, Mr. Le Minh Khiem, Head of the Corporate Income Tax Department, Department of Tax, Fee and Charge Policy Management and Supervision (Ministry of Finance) said that the Draft Law has detailed regulations on taxpayers who are enterprises and public service units on the basis of legalizing the regulations that are being stably implemented in sub-law documents; clearly stipulating taxable income arising in Vietnam for foreign enterprises without a permanent establishment in Vietnam, including income from the provision of goods and services in the form of e-commerce business, business on digital platforms, regardless of the location of business. At the same time, supplement the provisions on compliance with international treaties in cases where international treaties to which Vietnam is a party have different provisions on permanent establishments in order to comply with the Law on International Treaties as well as the implementation of Vietnam's commitments when participating in relevant international treaties...

Regarding the method of calculating taxes, the draft Law has supplemented the provisions on applying the simple method of calculating taxes according to the percentage of revenue for enterprises with total annual revenue of no more than 3 billion VND in cases where revenue can be determined but expenses and income cannot be determined in order to facilitate micro-sized enterprises, encourage individual businesses and business households to convert into enterprises, thereby contributing to the implementation of the Party and State's policies on private economic development and regulating specific collection levels.

Tax exemption conditions in many fields

Regarding tax-exempt income, Mr. Le Minh Khiem said that the draft Law has amended and supplemented the content, criteria and specific conditions for a number of tax-exempt income items on the basis of legalizing the regulations that have been stably implemented in sub-law documents; supplementing regulations related to the undivided income of socialized establishments that are exempt from tax to stipulate that in cases where specialized laws do not specifically stipulate, the ratio of undivided income to taxable income of socialized establishments, the minimum ratio is 25% of taxable income; at the same time, adding the subject of cooperative unions to comply with the provisions of the Law on Cooperatives 2023.

In addition, the draft Law also adds a number of tax-exempt income items including: income from the first transfer of carbon credits after issuance, income from interest and from the first transfer of green bonds after issuance; direct support from the state budget and from the Investment Support Fund established by the Government; compensation from the State according to the provisions of law; the difference due to revaluation of assets according to the provisions of law for equitization and restructuring of enterprises in which the State holds 100% of charter capital; income of public service units from providing public service; income from revenue-generating activities of the National Defense and Security Industry Fund, and the Investment Support Fund.

Regarding the determination of taxable income, the draft Law also adds specific provisions on the determination of taxable income and taxable income to legalize the provisions that are being stably implemented in sub-Law documents. At the same time, amend and supplement the regulations on taxable income to allow enterprises to offset profits from real estate transfers, investment project transfers, and transfers of investment project participation rights against losses from production and business activities, except for production and business activities that are enjoying tax incentives.

Reviewing the amendment of the Law on Corporate Income Tax, Mr. Nguyen Trinh, representative of the Project on Strengthening Public Finance Management in Vietnam (Germany International Cooperation Organization - GIZ) said that it is necessary to amend the Law, and emphasized that the completion of the draft Law on Corporate Income Tax will aim for a more favorable business environment, encourage investment and sustainable development as well as meet the objectives set for corporate income tax reform as stated in the Tax Reform Strategy for the period 2021-2030. According to Mr. Nguyen Trinh, these changes in the revised Law on Corporate Income Tax will help ensure that the tax system is consistent with modern economic practices and meets the requirements of the global market economy.

By Hoai Anh/ Huu Tuc

Related News

Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

VCN - The Ministry of Finance said that the abolition of regulations on tax exemption for imported goods valued at less than VND1 million must comply with international practices in the context of the growing trend of cross-border e-commerce activities.
Are belongings of foreigners on business trip to Vietnam exempt from tax?

Are belongings of foreigners on business trip to Vietnam exempt from tax?

VCN - That is the question of Nhat Viet Relocation Company Limited, which has just been answered by the Customs Department and given specific instructions on providing a confirmation of residence of foreigners on business trip to Vietnam to follow tax exemption procedures for movable assets.
Perfecting the law on import and export tax towards exemption and reduction for the right subjects

Perfecting the law on import and export tax towards exemption and reduction for the right subjects

VCN - According to Deputy Director General of Vietnam Customs Luu Manh Tuong, there are still many issues to take full advantage of Free Trade Agreements (FTAs), including the need to perfect legal policies on import and export taxes in the direction of strict management and exemption for the right subjects.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...

Latest News

Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax procedures and policies for the business community.
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

VCN - Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes. These include updates on authority, methods of asset exploitation in agencies and units, plans for leasing, joint ventures, and partnerships in public service units, as well as centralized procurement procedures.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

VCN - Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year. These efforts aim to promptly address challenges, resolve obstacles, and facilitate import-export activities. Such meetings offer an opportunity for the Customs authority and the business community to exchange, share insights, and find solutions to enhance operational quality and efficiency.
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - Promoting negotiations on customs commitments within the framework of free trade agreements (FTAs) plays an important role in facilitating import and export activities. These commitments not only help optimize the customs clearance process but also minimize costs and risks for businesses, opening up great opportunities for Vietnamese goods to access deeper into the international market.

More News

Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - To perfect the policy on customs procedures, inspection and supervision, enterprises and associations have contributed many ideas from practical activities. Thereby, the Drafting Committee (General Department of Customs) has more perspectives to build policies to meet the goal of facilitating trade and ensuring state management of customs.
Review of VAT exemptions for imported machinery and equipment

Review of VAT exemptions for imported machinery and equipment

VCN - The General Department of Vietnam Customs has directed provincial and municipal customs departments to review, inspect, and address issues related to the implementation of VAT exemption policies for specialized machinery and equipment used in agricultural production.
Customs tightens oversight on e-commerce imports

Customs tightens oversight on e-commerce imports

VCN - The General Department of Vietnam Customs has issued new directives to enhance the management of imported goods transacted through e-commerce platforms, addressing ambiguities and ensuring consistent enforcement across provincial and municipal customs departments.
Bringing practical experience into customs management policy

Bringing practical experience into customs management policy

VCN - At the workshop to collect opinions from Southern Customs units on the draft Decree amending and supplementing Decree 08/2015/ND-CP dated January 21, 2015 of the Government; the draft Circular amending and supplementing Circular 38/2015/TT-BTC dated March 25, 2015 and Circular 39/2018/TT-BTC dated April 20, 2018 of the Minister of Finance, organized by the General Department of Customs last weekend, many Southern Customs units contributed specific contents from practical operations in the locality.
Businesses anticipate new policies on customs procedures and supervision

Businesses anticipate new policies on customs procedures and supervision

VCN - With this year’s import-export turnover estimated at nearly US$800 billion and forecasting to surpass this milestone next year, the business community holds high expectations for upcoming amendments and supplements to customs management, procedures, and supervision policies. These changes are expected not only to facilitate trade but also to enhance state management efficiency and support economic development.
Do exported foods need iodine supplementation?

Do exported foods need iodine supplementation?

VCN - Currently, Vietnamese processed food products, including seafood products, have been exported to more than 160 countries, and no country has yet required that "salt used in food processing must be salt with added iodine".
Amendments to the Value-Added Tax Law passed: Fertilizers to be taxed at 5%

Amendments to the Value-Added Tax Law passed: Fertilizers to be taxed at 5%

VCN - With the majority of National Assembly deputies voting in favor, the National Assembly officially approved the revised Value-Added Tax (VAT) Law during its afternoon session on November 26, 2024, as part of the 8th session's agenda.
Proposal to change the application time of new regulations on construction materials import

Proposal to change the application time of new regulations on construction materials import

VCN - To comply with the circular on quality management of construction materials, many businesses importing this item are complaining about difficulties and asking for an extension of the implementation time.
Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

VCN - In order to promote the early recovery and development of production and business activities, contributing back to the State budget, the Ministry of Finance proposed to continue reducing 2% of VAT on groups of goods and services currently subject to a tax rate of 10% in the first 6 months of 2025.
Read More

Your care

Latest Most read
Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax pr
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - In addition to promoting negotiations on customs commitments within the framework of FTAs ​​under negotiation, the General Department of Customs actively supports businesses to effectively utilize commitments in signed FTAs, especially CPTPP, EVFTA,
Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - The Vietnam Association of Maritime Agents, Brokers and Services has proposes to amend and supplement regulations related to the transport of goods subject to customs supervision.
Mobile Version