Uni 24-10-2013 – Guidance on implementation of some articles of CIT Law, VAT Law effective from 01 July 2013

Circular No.141/2013/TT-BTC in guidance of some articles effective from 01 July 2013 about CIT and VAT as follows:

1. Applying to 20% CIT tax rate from 01 July 2013 for enterprises having total revenue of less than or equal to 20 billion VND.

• Total revenue of a year is total revenue of the adjacent previous year, which is determined by the item [01] and [08] in the Appendix of business performance with form No.03-1A/TNDN enclosed with CIT finalization form No.03/TNDN of the adjacent previous year.
• For the newly-established enterprises from 01 January 2013 to 30 June 2013, the revenue is determined on basis of the item [21] (not including other income) in the estimation CIT declaration of quarter I and quarter II of 2013 in accordance with for No.01A/TNDN. Enterprises are applied to 20% tax rate if the average revenue of the first months of 2013 until 30 June 2013 does not exceed 1,67 billion VND.
• For enterprises having tax period in 2012 (first tax period) is not enough 12 months or more than 12 months, the revenue to determine is the monthly average revenue of tax period in 2012 is not over 1,67 billion VND.
• For the newly-established enterprises from 01 July 2013, quarterly estimation declaration of 25% tax rate (except the case of being enjoyed tax preference). At the end of a fiscal year, if the monthly average revenue of a year is not over 1,67 billion VND, enterprises will finalize payable CIT of the fiscal year with 20% tax rate.
• 20% tax rate specified in clause 1 of this article is not applied to the income such as capital transfer, estate transfer, business activities out of Vietnam; the income from exploration of petroleum, precious metals and the income from exploration of minerals, from business activities imposed by special consumption …
• Enterprises must separately recognize the income with 20% tax rate application and the income without 20% tax rate application from 01 July 2013.
• Applying to 5% VAT for sale, hire, hire-purchase of social housing from 01 July 2013.
• 50% VAT reduction for commercial housing from 01 July 2013 to the end of 30 June 2014 sale, hire, hire-purchase of commercial housing which is the completed apartments with area of less than 70 m2 and has a price of 15 million VND/m2