Law No. 32/2013/QH13 in guidance of amendment and addition to some provisions of Law on CIT
The national assembly has just issued Law No. 32/2013/QH13 adding and revising some provisions of Law on CIT of which several spotlights should be noted follows:
· Add the regulations of deductible expenses for the assessable income : the invoices of buying goods, services in amount of more than 20 million VND/time must have the non-cash payment documents, except the non-obligatory cases without the non-cash payment documents.
· Non-adding to deductible expenses for advertisement, promotion, brokerage commission, reception, conference… directly related to production & business activities in excessive of 15% of total deductible expenses.
· Common CIT rate is 22%. The cases subject to 22% rate will be applied to 20% rate take effects from 01 January 2016.
· Enterprises who have annual total revenue of less than or equal to 20 billion VND will be applied to CIT rate of 20% (non-applicable to some income such as: capital transfer, real estate transfer…). The total revenue is the adjacent previous year’s total revenue.
· This Law takes effects from 01 January 2014. But regulations of 20% CIT application to enterprises’ annual total revenue of less than or equal to 20 billion VND and 10% CIT application to the investment & business of social housing are effective from 01 July 2013.
