Exemption from enterprise income tax in 2012 for households, individuals leasing houses or rooms in Vietnam

Exemption from enterprise income tax in 2012  for households, individuals leasing houses or rooms in Vietnam (Internet image)

Article 3 of Decree 60/2012/ND-CP stipulates exemption of presumptive tax (value added tax, personal income tax) and enterprise income tax in 2012 for households, individuals, organizations in Vietnam specified in Clause 2, Article 1 of the Resolution 29/2012/QH13 as follows:

* Exemption of presumptive tax (value added tax, personal income tax) in 2012 for households, individuals leasing houses or rooms to workers, laborers, students or pupils; households, individuals supplying service for care of children, households, individuals supplying shift meals to workers.

The rate of presumptive tax of value added tax, personal income tax specified in this Clause is defined as prescribed by law on tax administration.

* Exemption of value added tax and enterprise income tax payable arising in 2012 for supplying shift meals to workers (excluding supplying shift meals to enterprises of transportation, air – communication, other business operations) of enterprises.

In case a enterprise has many business operations:

• The amount of enterprise income tax being exempted only calculates on income from supplying shift meals. If it cannot determine the income of operation being eligible for tax exemption, income to calculate amount of exempted tax shall be determined under percentage (%) between turnover of operation supplying shift meals with total turnover of enterprise in 2012.

• The amount of VAT being exempted is determined basing on the rate between turnover subject to VAT of supplying shift meals of each month over total turnover of goods, services subject to VAT in month.

• Enterprises are eligible for tax exemption specified in this clause must satisfy provisions in Clause 4, Article 2 and Clause 3, Article 3 of Decree 60/2012/ND-CP and implement pay VAT under deduction method.

* Business households, individuals and enterprises in Vietnam being eligible for tax exemption specified in this Article must commit to keep price of leasing houses, rooms, children care services, price of supplying shift meals in 2012 not higher than price in December 2011.

Price of leasing houses, rooms, children care services and price of supplying shift meals must be publicized, listed at business establishment and informed to commune authorities where perform business and tax agency directly managing. When inspecting, checking, if detecting households, individuals, business organizations not performing right their commitment on price specified in this Clause, they shall not be exempted as prescribed in this Article.  If households, individuals, business organizations not being enjoyed tax exemption have declared for tax exemption, thus they shall be collected tax arrears and fined for delayed payment as prescribed by law on tax administration.  

More details can be found in Decree 60/2012/ND-CP, which comes into force from September 20, 2012.

Le Vy

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