Corporate income tax

1. The method of calculating corporate income tax is provided as follows:

Number of corporate income tax payable for the tax period is calculated by multiplying the taxable income tax rate in case of corporate income tax paid outside of Vietnam shall be deducted from the amount of tax paid but not the corporate income tax payable under the provisions of the Law on enterprise Income tax.

2 . Based on enterprise income tax : As taxable income and tax rates.

3 . Determining income tax business income

- Income tax in the tax period is determined by taxable income excluding tax-exempt income and tax losses carried forward from the previous year .

- The taxable income by deducting revenue expenditure excluding the production , trading plus other income , including income received outside of Vietnam .

- Income from the transfer of the property to determine to declare and pay tax separately .

4 . revenue

Revenue is the total amount of sales, cash processing , money supply services , subsidies , surcharges , additional enterprises enjoy . Revenue is denominated Vietnam ; case of revenue in foreign currencies, foreign currency must be converted into Vietnam dong at the exchange rates on the market , the average inter-bank exchange by the State Bank of Vietnam at the time of revenue generated in foreign currencies .

5 . The expenses are deducted and not deducted in determining taxable income

a. Less business expenses are deducted if you meet all the following conditions :

- Actual expenses incurred related to manufacturing activities , business enterprises ;

- Expenses, invoices and documents as prescribed by law .

b . The expenses are not deducted in determining taxable income include:

- Expenses not meet the conditions specified in paragraph 1 of this Article , unless the value of losses due to natural disasters , epidemics and other unforeseen circumstances no compensation ;

- The amount of fines for administrative violations ;

- These expenses are offset by other funding sources ;

- The cost management business by foreign enterprises attributable to a permanent establishment in Vietnam exceeded the allocation method based on the law of Vietnam by the regulations;

- Expenditures exceeded prescribed by law for the provision ;

- The cost of raw materials , materials , fuel , energy , excess goods consumed by construction companies , inform the tax authorities and the actual cost of inventory ;

- The interest paid on loans for production , business objects are not credit institutions or economic organization in excess of 150 % of the base rate by the State Bank of Vietnam announced at the time of the loan ;

- Depreciation of fixed assets not in accordance with law ;

- Accruals on expenses not prescribed by law ;

- Salaries, wages of private business owners ; remuneration for business founders not directly involved in production management , business , salary , wages , other accounting items to pay for the actual labor but not pay no bills or vouchers in accordance with law ;

- Payments of interest on loans corresponding to the missing charter capital ;

- Value-added tax has been deducted input , value added tax paid under deduction method , the enterprise income tax ;

- Share of advertising , marketing , promotion , brokerage commissions , expenses reception, reception , conference , detailed marketing assistance , support expenditure costs , discount payment indicator donations , or gifts of press agencies directly related to production activities , trading in excess of 10 % of the total deductible expenses , for the establishment of new enterprises are majority in excess of 15 % in the first three years after the established . Total deductible expenses , including expenses specified in this point for commercial activity , total deductible expenses include the purchase price of the goods sold ;

- Grants , except grants for education , health , disaster recovery and charity houses for the poor under the provisions of law .

c . Foreign currency expenditures are deducted in determining taxable income must be converted into Vietnam dong at the average exchange rate on the foreign currency market interbank State Bank of Vietnam announced at the time of cost in a foreign currency .

6 . Tax rate of corporate income tax

a. Income tax rate is now 25 % , unless otherwise specified in point b and Article 13 of the Law on Personal Income Tax .

b . Income tax rates for businesses seeking activities , exploration and exploitation of oil and gas and other precious resources from 32 % to 50 % to suit each project , each business establishment .


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