THE MINISTRY OF FINANCE

Circular No. 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance guiding the Enterprise Income Tax in the Decree No. 12/2015/ND-CP dated February 12, 2015 of the Government detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws and amending and supplementing a number of articles of the decrees on taxes; amending a number of articles of the Circular No. 78/2014/TT-BTC  dated June 18, 2014; Circular No. 119/2014/TT-BTC dated August 25, 2014 and the Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance
Pursuant to the Law on Enterprise Income Tax No. 14/2008/QH12 and Law No. 32/2013/QH13 on amendments to the Law on Enterprise Income Tax;
Pursuant to the Law No. 71/2014/QH13 on amendments to some Articles of Laws on taxation;
Pursuant to the Government's Decree No. 218/2013/ND-CP dated December 26, 2013 on guidelines for the Law on Enterprise Income Tax;
Pursuant to the Government's Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for the Law on amendments to Laws on taxation and amendments to Degrees on taxation;
Pursuant to the Government's Decree No. 215/2013/ND-CP dated December 23, 2013 defining the functions, tasks, entitlements and organizational structure of the Ministry of Finance;
At the request of the Director of the General Department of Taxation,
The Minister of Finance hereby provides guidelines for Enterprise Income Tax as follows:
Article 1. To amend Clause 1 Article 3 of Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance guiding the implementation of the Government’s Decree No. 218/2013/ND-CP of December 26, 2013, detailing and guiding the implementation of the Law on Enterprise Income Tax (hereinafter referred to as Circular No. 78/2014/TT-BTC) as follows:

>> Xem thêm:  Inherite land from parents, does the heir have to pay personal income tax?

“1. Enterprise Income Tax (EIT) payable in the period equals (=) assessable income minus (-) the amount transferred to science and technology fund (if any) and multiplied by (x) Enterprise Income Tax rate.
EIT payable is calculated as follows:
EIT payable
=
(
Assessable income
-
Amount transferred to science and technology  fund (if any)
)
x
Tax rate
- In case of a Vietnamese enterprise who makes investment in a foreign country that has signed a Double Taxation Agreement and transfers income to Vietnam after paying EIT overseas, regulations of such Agreement shall apply. If the foreign country has not signed a Double Taxation Agreement with Vietnam and the rate of EIT incurred in the foreign country is lower, the difference in Enterprise Income Tax shall be collected in accordance with the EIT Law of Vietnam.
- Every Vietnamese enterprise that makes outward direct investment (hereinafter referred to as Vietnamese ODI enterprise) and earns incomes from overseas business shall declare and pay EIT in accordance with EIT Law of Vietnam, including those given exemption or reduction of EIT under the Law of the host country. The rate of EIT for calculating and declaring tax on incomes earned overseas is 22% (20% from January 01, 2016). Preferential rates for which Vietnamese enterprises making outward investments are eligible under current EIT Law shall not apply.

 

>> Xem thêm:  Tax accounting for newly established enterprises