THE GOVERNMENT
Decree No. 92/2013/ND-CP of August 13, 2013, detailing a number of articles, which take effect on July 1, 2013, of the Law Amending and Supplementing a Number of Articles of the Law on Enterprise Income Tax and the Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 29, 2006 Law on Tax Administration, and the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Law on Tax Administration;
Pursuant to the June 3, 2008 Law on Value-Added Tax, and the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax;
Pursuant to the June 3, 2008 Law on Enterprise Income Tax, and the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Enterprise Income Tax;
At the proposal of the Minister of Finance,
The Government promulgates the Decree to detail a number of articles, which take effect on July 1, 2013, of the Law Amending and Supplementing a Number of Articles of the Law on Enterprise Income Tax, and the Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax.
Article 1. Scope of regulation
This Decree details Clause 3, Article 1, and Clauses 2 and 3, Article 2 of the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Enterprise Income Tax, and Point 2, Clause 6, and Point 2b, Clause 7, Article 1 of the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Enterprise Income Tax.
Article 2. To apply the enterprise income tax rate of 20% for enterprises that have an annual total turnover not exceeding VND 20 billion as prescribed at Point 2, Clause 6, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Enterprise Income Tax
1. To apply the income tax rate of 20% from July 1, 2013, for enterprises established under Vietnamese law, including cooperatives and income-generating non-business units that have an annual total turnover not exceeding VND 20 billion.
Annual total turnover serving as a basis for identifying an enterprise subject to the tax rate of 20% prescribed in this Clause is the enterprise’s total turnover from goods sale or service provision in the preceding year.
In case the total period of production or business operation of an enterprise since its establishment to the end of 2012 enterprise income tax period is less than 12 months, or its tax period exceeds 12 months under regulations, or it was newly established in the first six months of 2013, the turnover to serve as a basis for determining that it is subject to the tax rate of 20% as prescribed in this Clause is its monthly average turnover in 2012, or in the first six months of 2013, which must not exceed VND 1.67 billion.
2. The tax rate of 20% prescribed in Clause 1 of this Article is not applicable to the following incomes:
a/ Incomes from capital transfer, transfer of the capital contribution right; incomes from transfer of real estate (except incomes from social housing investment and trading under Article 3 of this Decree), incomes from transfer of investment projects, transfer of the right to participate in investment projects, transfer of the right to explore and exploit minerals; and incomes from production and business activities outside Vietnam;
b/ Incomes from prospecting, exploration and exploitation of oil and gas and other precious and rare natural resources and incomes from mineral mining;
c/ Incomes from provision of services liable to excise tax in accordance with the Law on Excise Tax.
