Vietnam: Regulations on CIT for press agencies that partially self-cover their operating costs

Vietnam: Regulations on CIT for press agencies that partially self-cover their operating costs (Illustrative image)

Under Clause 2 Article 3 of Circular 150/2010/TT-BTC, the payment of CIT by press agencies that partially self-cover their operating costs in Vietnam is specified as follows:

- In cases where press agencies that partially self-cover their operating costs engage in commercial activities, providing services such as advertising, publishing information, and other services subject to CIT, and can account for revenue and expenses, they shall declare and pay CIT as press agencies that self-cover their whole operating costs as guided in Clause 2, Article 2 of this Circular. Specifically, regarding salary expenses, if the press agency cannot separately account for them, it is allowed to include them in reasonable expenses when determining the taxable income from the production and business activities of goods and services (including advertising activities on the newspaper) up to an additional 01 time of the rank or position salary stipulated by the State.

- In cases where press agencies that partially self-cover their operating costs engage in trading goods and services subject to CIT and can account for revenue but cannot account for and determine the cost and income from the business activities, they shall declare and pay CIT based on a percentage of the revenue from goods and services sales. To be specific:

- For services: 5%;

- For trading goods: 1%;

- For other activities: 2%.

More details may be found in Circular 150/2010/TT-BTC effective from November 11, 2010.

Nguyen Phu

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