What are cases where the cooperatives are exempted from taxes, fees, and charges in Vietnam?
What are cases where the cooperatives are exempted from taxes, fees, and charges in Vietnam?
According to Article 22 of the Law on Cooperatives 2023, cooperatives are exempted from taxes, fees, and charges as follows:
- Cooperatives, cooperative alliances, and cooperative unions enjoy the highest level of tax incentives, fees, and charges applicable in the same field, industry, and location according to the law on taxes, fees, and charges.
- No charge is collected for registration fees for cooperatives, and no fee is collected for announcing registration informations on the electronic information system of the business registration authority.
- Exemption and reduction of corporate income tax in accordance with the law on corporate income tax applies to:
+ Income from internal transactions of cooperatives and cooperative unions;
+ Income of cooperatives, cooperative alliances, when linking with individuals or other organizations to form value chains, industry clusters, associated with green economy, circular economy, and knowledge economy for sustainable development goals;
+ Other cases as prescribed by the law on corporate income tax.
- Corporate income tax is exempted for income forming undivided common funds, income forming undivided common assets of cooperatives, and cooperative alliances as stipulated by the law on corporate income tax.
- Exemption and reduction of business license fees for cooperatives and cooperative unions as prescribed by the law on fees and charges.
- Exemption from registration fees for individuals and organizations when transferring land use rights or transferring ownership of assets contributed as capital into cooperatives or cooperative unions according to the law on fees and charges.
What are cases where the cooperatives are exempted from taxes, fees, and charges in Vietnam? (Image from the Internet)
Vietnam: Does the application for cooperative establishment registration include information about taxpayer registration?
Pursuant to Article 43 of the Law on Cooperatives 2023, the application for the establishment registration of a cooperative or cooperative union includes the following main contents:
- Name of the cooperative or cooperative union;
- Address of the head office and phone number of the cooperative or cooperative union;
- Business sector and industry;
- Charter capital;
- Number of official members and capital-contributing associate members, specifying if the official members and capital-contributing associate members are individuals who are foreign investors or economic organizations with foreign-invested capital;
- Full name, signature, contact address, nationality, personal identification number, or legal document number of the legal representative of the cooperative or cooperative union;
- Information on taxpayer registration.
Thus, according to the above regulations, the application for cooperative establishment registration will include information about taxpayer registration.
When changing registration information in a notice to the authorities in Vietnam, is taxpayer registration information required?
Based on Clause 1, Article 48 of the Law on Cooperatives 2023, it is stipulated as follows:
Notification of changes to registration information of cooperatives, cooperative union
1. Cooperatives and cooperative unions must notify the business registration authority when there is a change in any of the following content:
a) Registration on business sectors and industries;
b) Information on taxpayer registration;
c) Information on official members and capital-contributing associate members who are economic organizations with foreign-invested capital, individuals who are foreign investors.
2. The notification is carried out following this procedure:
a) Within 10 days from the date of change in the content stipulated in Clause 1 of this Article, the cooperative or cooperative union sends a notification dossier to the business registration authority;
b) Within 3 working days from the receipt of the notification dossier, the business registration authority is responsible for examining the validity of the dossier and making changes to the registration information; if the dossier is not valid, the business registration authority must notify in writing the content that needs amendment or supplementation; if refused, it must notify in writing and clearly state the reason.
3. Notification of changes to registration information of cooperatives, cooperative union, as per court or arbitration decision, follows this procedure:
a) Within 10 days from the date the court judgment or arbitral award takes effect, the person requesting change sends a notification dossier to change the registration information to the business registration authority;
b) Within 3 working days from the receipt of the notification dossier, the business registration authority is responsible for examining and making changes to the registration information according to the court judgment or arbitral award that has taken effect; if the dossier is not valid, the business registration authority must notify in writing the content that needs amendment or supplementation; if refused, it must notify in writing and clearly state the reason.
4. The Government of Vietnam stipulates the notification dossier on changes to registration information of cooperatives or cooperative union.
A cooperative must notify the business registration authority when there is a change in any of the following contents:
[1] Registration regarding business sectors and industries;
[2] Information on taxpayer registration;
[3] Information on official and capital-contributing associate members who are economic organizations with foreign-invested capital, individuals who are foreign investors.
Thus, information on taxpayer registration is one of the three contents that a cooperative must notify the business registration authority of when there are changes.
