Latest Integrated document of Law on Corporate Income Tax available in Vietnam

Latest Integrated document of Law on Corporate Income Tax available in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Latest Integrated document of Law on Corporate Income Tax available in Vietnam

The latest Integrated document of the Law on Corporate Income Tax is the Integrated document 22/VBHN-VBHN dated December 29, 2022, merging the following documents:

- Law on Enterprise Income Tax 2008, effective from January 1, 2009

- Law No. 32/2013/QH13 on the amendments to the Law on Corporate Income tax , effective from January 1, 2014;

- Law No. 71/2014/QH13 on the amendments to the tax laws, effective from January 1, 2015;

- Law on Investment 2020, effective from January 1, 2021;

- Petroleum Law 2022, effective from July 1, 2023.

2. Types of income exempt from corporate income tax in Vietnam

Types of income that are exempt from corporate income tax in Vietnam include:

(1)  Income from farming, breeding, cultivation and processing of agriculture and aquaculture products, salt production of cooperatives; income of cooperatives engaged in agriculture, forestry, aquaculture, or salt production in disadvantaged areas or extremely disadvantaged areas;

Income of companies from farming, breeding, cultivation and processing of agriculture and aquaculture products in disadvantaged areas; income from marine fisheries..

(2) Income from the application of technical services directly for agriculture.

(3) Income from the performance of contracts on scientific research and technological development, trial products and products turned out with technologies applied for the first time in Vietnam.

(4) Incomes from production and sale of goods and services of enterprises that have at least 30% of the employees are disabled people, detoxified people, suffers of HIV/AIDS, and have at least 20 employees, except for enterprises engaged in finance and real estate business.

(5)  Income from job-training activities exclusively reserved for ethnic minority people, the disabled, children in extremely disadvantaged circumstances and persons involved in social evils.

(6) Incomes divided for capital contribution, joint venture or association with domestic enterprises, after Corporate Income tax has been paid under the provisions of the Law on Corporate Income Tax.

(7) Received financial supports used for educational, scientific research, cultural, artistic, charitable, humanitarian and other social activities in Vietnam.

(8) Incomes from the transfer of Certified Emissions Reductions (CERs) of enterprises issued with CERs

(9) Incomes from the performance of tasks of the Vietnam Development Bank, which are assigned by the State, in credit for development and export; incomes from granting credit to the poor and beneficiaries of policies of Vietnam Bank for Social Policies;

Incomes of state financial funds and other state funds serving non-profit purpose incomes of organizations, of which 100% charter capital is possessed by the State, that are established by the Government to settle bad debts of Vietnamese credit institutions.

(10) Undistributed incomes of private organizations, which make investment in education, health, and other fields, that are kept to serve their development in accordance with the laws on education, health, and other fields; the incomes that form the undistributed assets of cooperatives established and operating in accordance with the Law on Cooperatives 2012.

(11) Incomes from transfer of technologies that are prioritized to be to organizations and individuals in localities facing extreme socio-economic difficulties.

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