On August 17, 2021, the Ministry of Finance of Vietnam issued Circular 71/2021/TT-BTC providing guidance on corporate income tax arrears not yet retrospectively collected from socialized entities according to Resolution 63/NQ-CP dated 25/8/2014.
Societalized entities established before dated July 22, 2016, earning income from societalization activities shall be entitled to corporate income tax incentives under laws and the Prime Minister’s decisions over periods of time:
- In case the establishment satisfies the conditions in the detailed list of types, scale criteria and standards, promulgated together with one of Vietnam's Decision 1466/QD-TTg or Decision 693/QD-TTg or Decision 1470/QD-TTg, they shall be entitled to CIT incentives for the remaining time from the time of response.
- In case the conditions are met before the time when the above 03 Decisions take effect, they shall be entitled to CIT incentives for the remaining time from the effective date of the Decisions.
- In case the above conditions are not satisfied, they must additionally declare the missing CIT amount (if any), they shall calculate the payable CIT amount by themselves or the tax authority shall collect the CIT amount up to the time of meeting conditions specified in the Prime Minister of Vietnam's Decisions.
Vietnam's Circular 71/2021/TT-BTC takes effect from November 1, 2021 and annuls Article 24 of Vietnam's Circular 151/2014/TT-BTC.
Address: | 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City |
Phone: | (028) 7302 2286 |
E-mail: | info@lawnet.vn |