Many new regulations in the amended and supplemented Corporate Income Tax Law

Workshop "Gathering opinions on the revised Law on Corporate Income Tax". Photo: Ministry of Finance.

On September 6, the Ministry of Finance coordinated with the German International Cooperation Agency (GIZ) to co-organize the Workshop "Gathering opinions on the revised Law on Corporate Income Tax" to collect opinions from central and local agencies before finalizing it for submission to the National Assembly for discussion at the October 2024 session.

At the Workshop, Mr. Le Minh Khiem - Head of Corporate Income Tax Department, Department of Tax, Fee and Charge Policy Management and Supervision said that through research and review, it was shown that although Resolution No. 107/2023/QH15 takes effect from the 2024 tax period, the declaration and payment of additional corporate income tax is due 12 - 18 months after the end of the 2024 fiscal year.

Accordingly, in reality, it will not be until 2026 that enterprises reach the deadline for applying the provisions of Resolution No. 107/2023/QH15 and it is not yet possible to evaluate the effectiveness and issues arising in practical implementation.

Therefore, the draft Law has not yet added the content of legalizing the provisions in Resolution No. 107/2023/QH15 mentioned above to ensure the principle and viewpoint of building the Law is "Legalizing clear issues that have been tested in practice to be appropriate, including the contents that have been implemented stably in sub-law documents" - Mr. Khiem shared.

Accordingly, the Draft Law has detailed regulations on taxpayers who are enterprises and public service units on the basis of legalizing the regulations that are being stably implemented in sub-law documents; Clearly stipulates taxable income arising in Vietnam for foreign enterprises without permanent establishments in Vietnam, including income from the provision of goods and services in the forms of e-commerce business, business on digital platforms, regardless of the location of business...

Regarding tax-exempt income, the draft Law has amended and supplemented the content, criteria and specific conditions for a number of tax-exempt income items on the basis of legalizing the regulations that have been stably implemented in sub-law documents;

Supplementing regulations related to the undistributed income of socialized establishments that are exempt from tax to stipulate that in cases where specialized laws do not specifically stipulate the ratio of undistributed income to taxable income of socialized establishments, the minimum ratio is 25% of taxable income; at the same time, supplementing the subject of cooperative unions to comply with the provisions of the Law on Cooperatives 2023;

Adding some tax-exempt incomes including: Income from the first transfer of carbon credits after issuance, income from interest and from the first transfer of green bonds after issuance; Direct support from the state budget and from the Investment Support Fund established by the Government; State compensation according to the provisions of law; Difference from revaluation of assets according to the provisions of law for equitization and restructuring of enterprises in which the State holds 100% of charter capital; Income of public service units from providing public service services; Income from revenue-generating activities of the National Defense and Security Industry Fund, Investment Support Fund, etc.

Regarding revenue subject to corporate income tax, detailed regulations have been added on the principles for determining revenue and the time for determining revenue subject to corporate income tax on the basis of legalizing the regulations in sub-law documents that have been implemented stably in the past. And specific regulations on special cases currently being guided in sub-law documents to assign the Government to specify the determination of revenue subject to corporate income tax.

Regarding the tax calculation method, a provision has been added to apply a simple tax calculation method based on a percentage of revenue for enterprises with a total annual revenue of no more than VND 3 billion in cases where revenue can be determined but expenses and income cannot be determined, in order to facilitate micro-sized enterprises, encourage individual businesses and business households to convert into enterprises, thereby contributing to the implementation of the Party and State's policies on private economic development and stipulating specific collection levels.

Source: https://laodong.vn/kinh-doanh/nhieu-quy-dinh-moi-trong-luat-thue-tndn-sua-doi-bo-sung-1390230.ldo