Uni 10-01-2014 - Guidance on CIT

Government has just issued Decree No.218/2013/NĐ-CP guiding implementation of CIT, replacing Decree No.214/2008/NĐ-CP. There are some notable points as follows:

• Adding the tax exempted incomes (including 11 amounts)
• Adding the non-deductible expenses (including 17 amounts). Especially, for purchase invoices of goods, services with amount of more than 20 million VND, must pay by bank transfer, not allowed to use cash on hand.
• CIT tax rate is 22%, except the cases that enterprises are applied tax rates of 20%, 32% and 50% and entitled to tax preference. Since 01 Jan 2016, the enterprises applied to tax rates of 22%will be reduced to 20. Enterprises having annual total revenue of less than 20 million VND will be applied to tax rate of 20%.
• Preferential, exemption and reduction tax rates will applied to the income of enterprises from the new projects that meet conditions about tax preference and exemption, reduction