What is the list of 19 state-owned enterprises under management of ministries in Vietnam according to Plan 141? Which entities are corporate income taxpayers?

What is the list of 19 state-owned enterprises under management of ministries in Vietnam according to Plan 141?

On December 6, 2024, the Steering Committee for the Review of the Implementation of Resolution 18-NQ/TW issued Plan 141/KH-BCDTKNQ18...Download to replace the Plan for Streamlining the Government of Vietnam's apparatus under Plan 140/KH-BCDTKNQ18...Download.

The direction for agencies under the Government of Vietnam and other agencies to implement the plan to organize and streamline the Government of Vietnam's apparatus under Plan 141/KH-BCDTKNQ18 is as follows:

- Terminate the activities of the Committee for State Capital Management at Enterprises and transfer the rights and responsibilities of the state owner's representative for 19 state groups and corporations currently managed by the Committee for State Capital Management at Enterprises to the Ministries managing sectors and study the organizational model under the Government of Vietnam.

- For the Communist Party divisions of some large groups like Vietnam Oil and Gas Group (PVN), Vietnam Electricity Group (EVN), Vietnam Posts and Telecommunications Group, Vietnam National Coal and Mineral Industries Group, Vietnam Railways Corporation, Vietnam Expressway Corporation,... transfer the party organization to the direct supervision of the Communist Party Commission of the Government of Vietnam.

The list of 19 enterprises managed directly by the Committee for State Capital Management that will revert to the Ministries managing sectors is as follows:

(1) State Capital Investment and Trading Corporation

(2) Vietnam Oil and Gas Group

(3) Vietnam Electricity Group

(4) Vietnam National Petroleum Group

(5) Vietnam National Chemical Group

(6) Vietnam Rubber Industry Group

(7) Vietnam National Coal and Mineral Industries Group

(8) Vietnam Posts and Telecommunications Group

(9) MobiFone Telecommunications Corporation

(10) Vietnam Tobacco Corporation

(11) Vietnam Airlines Corporation

(12) Vietnam Maritime Corporation

(13) Vietnam Railways Corporation

(14) Vietnam Expressway Corporation

(15) Airports Corporation of Vietnam

(16) Vietnam Coffee Corporation

(17) Southern Food Corporation

(18) Northern Food Corporation

(19) Vietnam Forestry Corporation

See more in Plan 141/KH-BCDTKNQ18...Download

What is the list of 19 state-owned enterprises under management of ministries in Vietnam according to Plan 141? (Image from the Internet)

Which entities are corporate income taxpayers in Vietnam?

According to Article 2 of the Law on corporate income tax 2008 (amended and supplemented by Clause 1, Article 1 of the Law on Amendments to Law on corporate income tax 2013), corporate income taxpayers include:

- Organizations engaged in production and business activities of goods and services with taxable income according to the provisions of the Law on corporate income tax 2008 (hereinafter referred to as enterprises), including:

+ Enterprises established under the law of Vietnam;

+ Enterprises established under foreign law (hereinafter referred to as foreign enterprises) with a permanent establishment or without a permanent establishment in Vietnam;

+ Organizations established under the Cooperative Law 2023;

+ Non-business units established under the law of Vietnam;

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

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

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

+ Foreign enterprises with a permanent establishment in Vietnam must pay tax on taxable income generated in Vietnam and taxable income generated outside Vietnam related to the activities of the permanent establishment;

+ Foreign enterprises without a permanent establishment in Vietnam must pay tax on taxable income generated in Vietnam.

- A permanent establishment of a foreign enterprise is a production or business facility through which the foreign enterprise conducts a portion or the entire production or business activities in Vietnam, including:

+ Branches, representative offices, factories, workshops, transport means, oil fields, gas fields, mines, or other places of natural resource extraction in Vietnam;

+ Construction sites, construction works, installation, assembly;

+ Service facilities, including consultancy services provided through employees or other organizations and individuals;

+ Agents for foreign enterprises;

+ Representatives in Vietnam who have the authority to sign contracts on behalf of the foreign enterprise or representatives without the authority to sign contracts on behalf of the foreign enterprise but regularly deliver goods or provide services in Vietnam.

What income is exempt from CIT in Vietnam?

According to Article 4 of the Law on corporate income tax 2008 (amended by Clause 2, Article 1 of the Law Amending Tax Laws 2014 and supplemented by Clause 3, Article 1 of the Law on Amendments to Law on corporate income tax 2013), the types of income exempt from CIT include:

- Income from planting, husbandry, aquaculture, processing agricultural products, seafood, salt production of cooperatives; income of cooperatives engaged in agriculture, forestry, fishery, and salt production in economically and socially disadvantaged areas or in particularly difficult regions; income of enterprises from planting, husbandry, aquaculture, processing agricultural products, seafood in especially difficult areas; income from fishing activities.

- Income from performing technical services directly serving agriculture.

- Income from implementing scientific research and technology development contracts, products during the trial production period, products from new technology first applied in Vietnam.

- Income from production, business, and service activities of enterprises with at least 30% of average annual employees being disabled people, recovered drug addicts, HIV/AIDS-infected, and with an average annual workforce of at least twenty people, excluding enterprises in the finance and real estate business sectors.

- Income from vocational training directed at ethnic minorities, disabled people, children with special circumstances, and subjects of social evils.

- Income sharing from capital contributions, joint ventures, or associations with domestic enterprises, post-CIT according to the provisions of this Law.

- Sponsorships used for education, scientific research, culture, arts, charitable, humanitarian, and other social activities in Vietnam.

- Income from the transfer of emission reduction certificates (CERs) of an enterprise granted such certificates.

- Income from tasks assigned by the State to the Vietnam Development Bank in investment development credit activities, export credit, credit for the poor, and other policy objects of the Vietnam Social Policy Bank; income of state financial funds and non-profit state-managed funds according to the law; income of organizations wholly owned by the State capital established by the Government of Vietnam to handle bad debts of Vietnamese credit institutions.

- Non-distributable income of socialized entities in education, training, health, and other socialized fields left for reinvestment in such entities according to the specialized laws on education, training, health, and other socialized fields; non-distributable income for the formation of the asset of cooperatives established and operating under the Cooperative Law.

- Income from technology transfer in prioritized fields for organizations and individuals in particularly difficult socioeconomic areas.