Uni 16-08-2013 - Guidance on amendments and additions to Law on CIT and VAT

According to Decree No.92/2013/NĐ-CP:

For corporate income tax (CIT):

• Enterprises have total revenue of less than or equal to 20 billion VND applied to 20% tax rate from 01 July 2013.

Total revenue of a fiscal year is the total revenue of goods sold and service supplied of the enterprise of the adjacent previous year.

In case, the enterprise is newly established in 2012 which leads to a tax period less or more 12 months or newly-established within first 6 months of 2013, the determination level of being applied to 20% tax rate is the monthly average revenue of 2012 or of months of 2013 until 30 June 2013 less than 1,67 billion VND.

• 10% tax rate is applied to the income from sale, leasing, leasing-purchase of social housing from 01 July 2013, not depending on the time of contract sign for sale, leasing, leasing-purchase of social housing.

For value added tax (VAT):

• 5% tax rate is applied to the contract of sale, leasing, leasing-purchase of social housing from 01 July 2013 signed from 01 July 2013 and applied to the payments from 01 July 2013 of the contract signed before 01 July 2013.
• 5% tax rate is applied to leasing of social housing, basing on the time of money receipts in the contract (including the receipts for many periods) from 01 July 2013. If the enterprise has not yet received the leasing of social housing from 01 July 2013, the time of invoice issuance will be applied.
• 50% VAT tax rate reduction from 01 July 2013 to 30 June 2014 for sale, leasing, leasing-purchase of commercial housing includes the completed apartments  with floor area of less than 70 m² and with price of less than 15 million VND/m².