Decree No.218/2013/ND-CP Detailing & Guiding Implementation of Law on Corporate Income Tax

DECREE

DETAILING AND GUIDING THE IMPLEMENTATION OF LAW ON CORPORATE INCOME TAX

Pursuant to the Law on organization of Government dated December 25, 2001;

Pursuant to the Law on corporate income tax dated June 3, 2008 and the Law amending and supplementing a number of articles of the Law on corporate income tax dated June 19, 2013;

At the proposal of the Minister of Finance;

The Government issues the Decree detailing and guiding the implementation of the Law on corporate income tax;

Chapter 1.

GENERAL REGULATION

Article 1. Scope of adjustment

This Decree regulates in detail and guides the implementation of a number of articles of the Law on corporate income tax and the Law on amending and supplementing a number of articles of the Law on corporate income tax including: taxpayer, taxable income, Exempt income, determination of taxable income, loss and loss carrying; revenues, deducted or undeducted expenses when determing the taxable income, tax rate, method of tax calculation, tax incentives and conditions for application of tax incentives;

Article 2. Taxpayer

The taxpayers shall comply with the provisions in Article 2 of the Law on corporate income tax and Clause 1, Article 1 of the Law amending and supplementing a number of articles of the Law on corporate income tax;

1. The taxpayers as prescribed in Clause 1, Article 2 of the Law on corporate income tax include:

a) Enterprises established and operating under regulations of Enterprise Law, Investment Law, the Law on Credit Institutions, Insurance Business Law, Securities Law, Petroleum Law, Commercial Law and the provisions of other legal documents in the forms: Joint stock companies, limited liability companies, partnerships, private enterprises, the parties in a business cooperation contract, the parties in petroleum product sharing contract, petroleum joint venture enterprises and joint operating companies;

b) Enterprise established under the regulations of foreign law (hereinafter referred to as foreign enterprises) with or without a permanent establishment in Vietnam;

c) Public and business enterprises or non-public and non-business enterprises producing and trading goods have their taxable income as prescribed in Article 3 of this Decree;

d) Organizations established and operating under the Law on Cooperatives;

dd) Other organizations other than the ones specified at Points a, b, c, d of this Clause with the business and production activities have their taxable income as prescribed in Article 3 of this Decree;

2. Organizations established and operating (or registering operation) under regulations of Vietnamese law, the business individuals as taxpayers by the method of deduction at source in case of purchase of services (including purchase of services associated with goods or purchase of goods provided or distributed in the form of on-the-spot import export or under international commercial terms) based on contract signed with foreign enterprises specified at Point c and d, Clause 2, Article 2 of the Law on corporate income tax

The Ministry of Finance specifically guides the tax deduction in this Clause;

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Chapter 5.

IMPLEMENTATION PROVISION

Article 20. Effect

1. This Decree takes effect on February 15, 2014 and applies to the tax period from 2014 onwards.

Invalidating Decree No. 124/2008/ND-CP dated December 11, 2008, No. 122/2011/ND-CP dated December 27, 2011 of the Government detailing and guiding the implementation of a number of articles of the Law on corporate income tax and Article 2 and 3 of Decree No. 92/2013/ND-CP dated August 13, 2013 of the Government detailing and guiding the implementation of a number of articles effective on July 01, 2013 of the Law amending and supplementing a number of articles of the Law on corporate income tax and the Law amending and supplementing a number of articles of the Law on value-added tax;

2. Enterprises having investment projects and by the end of tax period of 2013 still in the time of being entitled to the incentives of corporate income tax, including the case where the investment projects are issued with the Investment License or Investment Certificate or enterprise registration Certificate (for domestic investment project associated with the establishment of new enterprises having investment capital of less than 15 billion dong and not in the list of fields of conditional investment) but not having enjoyed the incentives as prescribed by the legal normative documents on corporate income tax before the effective date of this Decree, they shall continue to be entitled to the incentives for the remaining time as prescribed by these documents. Where these enterprises have met the conditions for tax incentives under the provisions of this Decree (including the incentive tax rate and the time for tax exemption or reduction) under the incentive status for new investment for the remaining time if being entitled under the status of newly-established enterprises from the investment projects or under the status of incentives for expansion investment for the remaing time if being entitled under the status of expansion investment;

By the end of tax period of 2015, where enterprises having investment projects subject to the incentive tax rate of 20% specified in Clause 3, Article 15 of this Decree, they shall be entitled to the tax rate of 17% for the remaining time from January 01, 2016;

The determination of remaining time for enjoyment of tax incentives is continuously calculated since the compliance with provisions on tax incentives in legal documents on foreign investment in Vietnam, on encouragement of domestic investment and on corporate income tax issued before the effective date of this Decree;

3. Enterprises established or having investment projects from the conversion of type of enterprise, conversion of owner, separation, splitting, merger or consolidation are responsible for paying the corporate income tax (including penalty if any) while inheriting the incentives of corporate income tax (including enterprises’ losses not yet carried forward) or investment projects prior to separation, splitting, merger or consolidation if they continue to meet the conditions for incentives of corporate income tax and conditions for transfer of loss as prescribed by law;

4. The settlement of tax problems, tax settlement, tax exemption or reduction before the effective date of this Decree shall comply with the provisions of the legal laws on corporate income tax, the law on foreign investment in Vietnam, the law on encouragement of domestic investment and other legal normative documents issued before the effective date of this Decree;

Article 21. Responsibility for implementation

1. The Ministry of Finance shall guide the implementation of this Decree;

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, Chairman of People's Committees of provinces and centrally-run cities, organizations and individuals are liable to execute this Decree ./.