Recently, the Law on Value Added Tax (VAT) (amended) and the Law on Corporate Income Tax (CIT) (amended) were passed by the XII National Assembly during its 3rd session on June 3, 2008, and have been applied since January 1, 2009.
Article table of contents
This amendment aims to address the limitations of the current Law regarding: Taxable objects, tax rates, tax refund conditions, tax deduction, and to meet the requirements of developing a market economy during the integration period and contribute to promoting healthy and sustainable domestic production and business activities.
The amended Tax Law has several notable changes such as:
Regarding VAT Law
- Narrowing the scope of non-VAT objects: Amend Article 4 of the current law from 28 groups of goods and services not subject to VAT down to 25 groups of goods and services not subject to VAT.- Clearly providing additional groups of goods subject to VAT rates: 0%; 5% and 10%.- New regulations on conditions for deducting input VAT: There must be bank payment documents for purchased goods and services, except for purchases made on separate instances with a value less than 20 million VND.- In cases of omission of input VAT declaration, it is allowed to supplement the declaration but within a maximum of 06 months from the time the error occurred.
Regarding the CIT Law
The CIT rate is reduced from 28% to 25% effective from January 1, 2009, and clearly defines the tax rates and the entities eligible for CIT incentives.
Corporate Income Tax - Content amending 8 issues as follows:
- Taxpayers- Taxable income- Income exempt from tax- Deductible expenses to determine income- Tax rates- Place of tax submission- Tax incentives- Transition to new policy application
Source: misa.com.vn
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