Vietnam: What are the regulations on tax payment by television stations that self-cover whole operational expenses?

Vietnam: What are the regulations on tax payment by television stations that self-cover whole operational expenses? (Illustrative photo)

Article 3 of Circular 55/2010/TT-BTC stipulates the declaration, deduction, and payment of VAT and CIT for television stations that self-cover whole operational expenses in Vietnam as follows:

- Declaration, Deduction, and Payment of VAT:

+ The television stations that self-cover whole operational expenses determine the VAT payable according to the credit-invoice method stipulated in the Law on VAT and guiding documents.

+ The television stations that self-cover whole operational expenses may deduct all input VAT of fixed assets formed from the Development Investment Fund of the Station and fixed assets used simultaneously for the production and business of VAT-liable goods and services and non-VAT-liable goods and services. If fixed assets are partly obtained by the state budget, input VAT will not be deducted according to the proportion (%) of state budget funds over the total capital forming the fixed assets.

+ VAT is not deductible and is included in the original cost of the fixed assets for fixed assets formed from state budget funds.

- Declaration and Payment of CIT:

- Television stations that self-cover whole operational expenses and are engaged in the production and business of goods and services subject to CIT must account for revenues and expenses to determine taxable income according to regulations.

- Television stations that self-cover whole operational expenses must not include expenses funded by state budget allocations in deductible expenses when calculating taxable income.

- Television stations that self-cover whole operational expenses shall declare quarterly provisional CIT and finalize CIT annually as per regulations.

More details can be found in Circular 55/2010/TT-BTC effective from May 31, 2010.

Nguyen Phu

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