Corporate deposits at banks taxed

On 27/12/2011, the Government issued Decree No. 122/2011/ND-CP amending and supplementing a number of articles of Decree No. 124/2008/ND-CP detailing and guiding the implementation of some the Law on enterprise Income tax.

Accordingly, the provisions "Taxable income" is amended and supplemented some kind of income. Notably, in which additional types of income from interest on deposits.

Specifically, interest income from deposits, loan interest, including interest on deposits at credit institutions, interest on loans in any form as prescribed by law, free credit guarantees and cash other fees in the loan contract are subject to income tax.


Income from interest on deposits , loan interest , including interest on deposits at credit institutions , interest on loans in any form as prescribed by law, be subject to tax .

Income from sales of foreign currency , foreign exchange differences from revaluation of liabilities denominated in foreign currencies fiscal year ( excluding exchange rate differences arising during the construction process to form basic financial immovable fixed assets that have not yet put into production business ) .

In addition to the income , the Decree also regulates other types of taxable income from the reversal of provisions ( excluding reversal of provision for impairment of inventory , provision for loss of financial investments , a provision for doubtful debts and provision for product warranties and goods in the enterprise of the reversal of a reserve fund set aside salary ) . Accruals on expenses but not used or not used in accordance with all terms and subject to tax deduction .

Same is the income from the transfer or liquidation of assets ( excluding real estate ) , and other valuable papers ; income from copyrights in all forms , collecting intellectual property rights ; income from technology transfer under the provisions of law or rental property in all its forms ; income from capital transfers include transferring part or whole , including the sale of businesses , securities transfer and the other forms of capital transfer under the provisions of law to transfer income from the project , transfer of exploration rights , mining , mineral processing as prescribed by law ...

Even the proceeds from the debt written off now recovered and are subject to corporate income tax .

This Decree details and guides the determination of earnings above and shall be effective from the date of 1/3/2012 , applies to tax periods from 2012 onwards .

Source : Bloomberg

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