Is income from job-training activities exclusively reserved for ethnic minority people eligible for corporate income tax reduction in Vietnam?

Is income from job-training activities exclusively reserved for ethnic minority people eligible for corporate income tax reduction in Vietnam?

Pursuant to Clause 5, Article 4 of the Law on Corporate Income Tax 2008, as supplemented by Clause 3, Article 1 of the Law on Amendments to the Law on Corporate Income Tax 2013, specifies the tax-exempt income as follows:

Tax-exempt income

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5. Income from job-training activities exclusively reserved for ethnic minority people, people with disabilities, children in especially difficult circumstances, and social evils subjects.

6. Income distributed from activities of capital contribution, joint ventures, or associations with domestic enterprises after paying corporate income tax as prescribed by this Law.

7. Donations received for use in activities of education, scientific research, culture, arts, charity, humanitarian and other social activities in Vietnam.

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Thus, according to the above regulations, income from job-training activities exclusively reserved for ethnic minority people is exempt from corporate income tax.

Is income from job-training activities exclusively reserved for ethnic minority people eligible for corporate income tax reduction in Vietnam? (Image from the Internet)

What is the penalty for late submission of corporate income tax declaration dossiers in Vietnam?

According to the provisions of Article 13 of Decree 125/2020/ND-CP which stipulates the penalties for violations related to the deadline for submission of tax declaration dossiers as follows:

- Warning for submitting a tax declaration dossier late from 01 to 05 days with extenuating circumstances.

- Fine from 2,000,000 VND to 5,000,000 VND for submitting a tax declaration dossier late from 01 to 30 days, except for the case specified in Clause 1 of this Article.

- Fine from 5,000,000 VND to 8,000,000 VND for submitting a tax declaration dossier late from 31 to 60 days beyond the prescribed deadline.

- Fine from 8,000,000 VND to 15,000,000 VND for one of the following acts:- Submitting a tax declaration dossier more than 61 to 90 days late;- Submitting a tax declaration dossier more than 91 days late without incurring any tax payable;- Not submitting a tax declaration dossier without incurring any tax payable;- Not submitting appendices as prescribed for tax management concerning enterprises with related-party transactions along with the corporate income tax finalization dossier.

- Fine from 15,000,000 VND to 25,000,000 VND for submitting a tax declaration dossier more than 90 days late from the deadline, with tax payable incurred and the taxpayer having fully paid the tax amount, late payment into the state budget before the tax authority announces the decision to inspect or audit the tax, or before the tax authority makes a record on the late submission of the tax declaration dossier as stipulated in Clause 11, Article 143 of the Tax Administration Law.

Note: For the same administrative tax violation involving invoices, the fine for organizations amounts to twice the fine for individuals.

How to determine taxable corporate income in Vietnam?

Pursuant to Article 7 of the Law on Corporate Income Tax 2008, as amended and supplemented by Clause 2, Article 1 of the Law on Amendments to the Law on Corporate Income Tax 2013 and Clause 1, Article 1 of Law No. 71/2014/QH13 on Amending Tax Laws 2014, it specifies taxable income as follows:

Taxable income

1. Taxable income includes income from production, business activities of goods, services, and other income specified in Clause 2, Article 7 of the Law on Corporate Income Tax 2008.

2. Other income includes: income from the transfer of capital, transfer of rights to contribute capital; income from the transfer of real estate, transfer of investment projects, transfer of rights to participate in investment projects, transfer of rights to explore, extract, process minerals; income from property use rights, property ownership rights, including income from intellectual property rights as prescribed by law; income from transferring, leasing, liquidating assets, including papers of value; income from deposit interest, lending, selling foreign currency; amounts obtained from recovering bad debts previously written off; amounts obtained from liabilities whose creditors cannot be identified; income from business operations of previous years overlooked, and other incomes.

Vietnamese enterprises that have invested abroad transfer their post-tax corporate income back to Vietnam after having paid corporate income tax abroad. For countries with which Vietnam has signed an Agreement to Avoid Double Taxation, the provisions of said Agreement shall apply; for countries not having signed such an Agreement with Vietnam, if the foreign corporate income tax rate is lower, the difference shall be collected according to the Law on Corporate Income Tax of Vietnam.

Thus, according to the above regulations, taxable income of enterprises includes income from activities including from production, business goods, and other income as prescribed.