Clearing queries about tax, custom policies

16:20 | 20/05/2014 Economy

(VEN) - Recommendations to impose Corporate Income Tax rate at 20 percent, abrogate the ceiling level to constrain advertisement and marketing costs or at least increase this ceiling level to 15-20 percent of the revenue instead of the costs and take different measures to lower the Value- Added Tax to spur the market.

Answer: The Law No. 32/2013/QH13 dated June 19, 2013 on amending and supplementing some articles of the Law on Corporate Income Tax (CIT) regulated that the CIT rate will decrease from 25 percent to 22 percent from January 01, 2014 and will go down to the level of 20 percent from  January 01, 2016.

The Clause 5, Article 1 of the Law No. 32/2013/QH13 made some amendments and supplementation of the Law on CIT, of those the ceiling level to constrain expenditure on advertising, marketing, promotion, commissions, receptions, conferences, support for marketing and expenditures directly related to production and business activities was raised from 10 to 15 percent of the total deductible amount.

Regarding Decree 92/2013/ND-CP issued on August 13, 2013, enterprises proposed that the State should applies preferential tax rates on those enterprises with total annual revenue not exceeding VND20 billion instead of on small enterprises because enterprises need assistance are those in financial difficulties but not those having small number of laborers.

Answer: The Clause 6, Article 1 of the Law No. 32/2013/QH13 on amending and supplementing some articles of the Law on CIT regulated that “2. Any enterprise of which the total revenue does not exceed VND20 billion per year is eligible for the tax rate of 20 percent. The revenue used as the basis for identifying enterprises eligible for the tax rate of 20 percent in this Clause is the revenue of the previous year.

Item 2, Article 10 of the Decree 218/2013/ND-CP regulated that “Enterprises established and operate under Vietnamese Law are eligible for the CIT rate of 20 percent if their revenue of the preceding the year does not exceed VND 20 billion.”

Thus, enterprises with total annual revenue not exceeding VND20 billion are eligible for the preferential CIT rate as regulated.


The government should apply policies on extending the period during which taxes could be collected for enterprises in financial difficulties due to high inventories, fines for late payment or their money have not been disbursed from state agencies.

Answer: Clause c and d, Item 1, Article 1 of Circular 156/2013/TT-BTC dated November 6, 2013 regulated on tax payment extension, including “c. enterprises have not been paid for their basic construction capital noted in the state budget estimates. d. not capable to pay taxes on time due to other critical difficulties”.

As for late payment, under the amended Law on Tax Management, a tax payers who pays tax later than the set time limit must pay fines equal to: 0.05 percent of the tax amount for each day of late payment for days which are not longer than 90 days and 0.07 percent of the tax amount for each day of late payment for days which over 90 days.

Piloting tax preferential mechanism for small and medium-sized enterprises through a special declaration to encourage SMEs that apply professional accounting regime. However, this work needs support services for tax declarations.

Answer: Based on Decision 48/2006/QD-BTC dated September 14, 2006 on accounting regime for the SMEs and Circular 219/2013/TT-BTC of the Ministry of Finance dated December 31, 2013 (articles 12 and 13), operational enterprises which have annual revenue from supplying goods and services from VND1 billion and more or less than VND1 billion but voluntarily register tax deduction and fully observe regulations on accounting records and invoices following Decision 48/2006/QD-BTC are entities eligible for tax deduction application. Those businesses that do not meet the above regulations will be applied with direct method basing on Value-Added Tax./.              

Trung Kien