What are guidance documents on the latest Law on Corporate Income Tax of Vietnam?

Which is the Law on Corporate Income Tax applicable in 2024?

The most recent Law on Corporate Income Tax is the Law on Corporate Income Tax 2008, amended by the following documents:

- Amended Law on Corporate Income Tax 2013.

- Law on Amendments to Tax Laws 2014.

- Investment Law 2020.

- Petroleum Law 2022.

- Healthcare Examination and Treatment Law 2023.

The scope of Law on Corporate Income Tax 2008 is as follows: This law stipulates tax payers, taxable income, tax-exempt income, tax bases, tax calculation methods, and corporate income tax incentives.

What are guidance documents on the latest Law on Corporate Income Tax of Vietnam? (Image from the Internet)

What are the guidance documents on the latest Law on Corporate Income Tax of Vietnam?

The list of guidance documents for Law on Corporate Income Tax 2008 includes:

- Decree 218/2013/ND-CP guiding the implementation of the Law on Corporate Income Tax.

- Decree 91/2014/ND-CP amending and supplementing a number of articles in the decrees prescribing taxes.

- Decree 12/2015/ND-CP prescribing in detail the implementation of the Law amending and supplementing a number of articles of the tax laws and amending and supplementing a number of articles in the tax decrees.

- Decree 146/2017/ND-CP amending and supplementing a number of articles of Decree 100/2016/ND-CP and Decree 12/2015/ND-CP.

- Decree 57/2021/ND-CP supplementing point g, clause 2, Article 20 of Decree 218/2013/ND-CP (amended and supplemented by Decree 12/2015/ND-CP) on corporate income tax incentives for supporting industry product production projects.

- Circular 78/2014/TT-BTC guiding the implementation of Decree 218/2013/ND-CP and the implementation of the Law on Corporate Income Tax.

- Circular 119/2014/TT-BTC amending and supplementing several articles of Circular 156/2013/TT-BTC, Circular 111/2013/TT-BTC, Circular 219/2013/TT-BTC, Circular 08/2013/TT-BTC, Circular 85/2011/TT-BTC, Circular 39/2014/TT-BTC, and Circular 78/2014/TT-BTC to reform and simplify administrative procedures on tax.

- Circular 151/2014/TT-BTC guiding the implementation of Decree 91/2014/ND-CP on amending and supplementing several articles in the decrees regulating taxes.

- Circular 96/2015/TT-BTC guiding corporate income tax at Decree 12/2015/ND-CP and amending, supplementing several articles of Circular 78/2014/TT-BTC, Circular 119/2014/TT-BTC, and Circular 151/2014/TT-BTC.

- Circular 130/2016/TT-BTC guiding Decree 100/2016/ND-CP and amending some articles in the tax circulars.

- Circular 25/2018/TT-BTC guiding Decree 146/2017/ND-CP and amending, supplementing some articles of Circular 78/2014/TT-BTC and Circular 111/2013/TT-BTC.

Which entities must pay corporate income tax in Vietnam?

The entities required to pay corporate income tax are prescribed in Article 2 of the Law on Corporate Income Tax 2008, amended and supplemented by the Amended Law on Corporate Income Tax 2013. Specifically:

- Corporate income tax payers are organizations engaged in production, trading goods, and services with taxable income as prescribed by this law (hereinafter referred to as enterprises), including:

+ Enterprises established under the laws of Vietnam;

+ Enterprises established under the laws of foreign countries (hereinafter referred to as foreign enterprises) with or without permanent establishments in Vietnam;

+ Cooperatives established under the Cooperative Law;

+ Public service units established under the laws of Vietnam;

+ Other organizations engaged in production, business activities with income.

- Enterprises with taxable income specified in Article 3 of the Law on Corporate Income Tax 2008 must pay corporate income tax as follows:

+ Enterprises established under the laws of Vietnam must pay tax on taxable income arising in Vietnam and taxable income arising outside of Vietnam;

+ Foreign enterprises with permanent establishments in Vietnam must pay tax on taxable income arising in Vietnam and taxable income arising outside Vietnam related to the activities of such permanent establishments;

+ Foreign enterprises with permanent establishments in Vietnam must pay tax on taxable income arising in Vietnam even if such income is not related to the activities of the permanent establishments;

+ Foreign enterprises without permanent establishments in Vietnam must pay tax on taxable income arising in Vietnam.

- The permanent establishment of a foreign enterprise is a production, business establishment through which the foreign enterprise conducts part or all of its production, business activities in Vietnam, including:

+ Branches, executive offices, factories, workshops, transport means, oil fields, gas fields, or other places of exploitation of natural resources in Vietnam;

+ Construction sites, construction or installation projects;

+ The establishments providing services, including consulting services through employees or other organizations or individuals;

+ Agents for the foreign enterprises;

+ Representatives in Vietnam authorized to sign contracts in the name of the foreign enterprise or representatives without such authority but frequently perform goods delivery or service supply at the representative office in Vietnam.