SUBJECTS TO PAY CIT AND CIT LATEST RATE 2020

Create at: 03/11/2020 15:47

I) CIT payers:

On June 18, 2014, the Minister of Finance issued Circular 78/2014 / TT-BTC guiding the implementation of Decree 218/2013 / ND-CP guiding the Law on Corporate Income Tax.

Accordingly, the taxpayer of CIT is one of the key contents and is specified in Article 2 of Circular 78/2014 / TT-BTC. As follows:

1. CIT payer means an organization engaged in production and trading of goods and services with taxable income (hereinafter referred to as an enterprise), comprising:

a) Enterprises established and operating under the provisions of the Enterprise Law, the Investment Law, the Law on Credit Institutions, the Law on Insurance Business, the Securities Law, the Petroleum Law, the Commercial Law and other documents Other legal regulations in the forms: Joint Stock Company; Co., Ltd; Partnerships; Private enterprise; Law Offices, Private Notary Offices; The parties to the business cooperation contract; The parties to the petroleum product distribution contract, the petroleum joint venture enterprise, the joint operating company.

b) Public and non-public non-business units producing and trading goods and services with taxable income in all fields.

c) Organizations established and operating under the Cooperative Law.

d) Enterprises established under the provisions of foreign laws (hereinafter referred to as foreign enterprises) with permanent establishments in Vietnam.

Permanent establishment of a foreign enterprise is a production or business establishment through which a foreign enterprise carries out part or all of the production and business activities in Vietnam, including:

Branches, operating offices, factories, factories, means of transport, mines, oil and gas fields or other natural resource exploitation sites in Vietnam.
Construction sites, construction works, installation and assembly works;
Service providers, including consulting services through employees or other organizations or individuals;
Agent for foreign businesses;
Representative in Vietnam in the case of the representative authorized to sign the contract in the name of a foreign enterprise or the representative not authorized to sign the contract in the name of the foreign enterprise but regularly delivers goods or provide services in Vietnam.

In case an Agreement on double taxation avoidance which the Socialist Republic of Vietnam has signed contains different provisions on permanent establishments, the provisions of such Agreement shall prevail.

e) Other organizations other than the organizations specified at Points a, b, c and d, Clause 1 of this Article that are engaged in the production and trading of goods or services, and have taxable income.

2) Foreign organizations that do production and business in Vietnam that are not under the Investment Law, the Enterprise Law or have income arising in Vietnam shall pay corporate income tax under the Finance Ministry's separate guidance. These organizations, if having capital transfer activities, shall pay enterprise income tax under the guidance in Article 14, Chapter IV of this Circular.

II) CIT rate:

The corporate income tax rate in 2020 is 20% specified in Article 11 of Circular 78/2014 / TT-BTC, specifically as follows:

Before January 1, 2016:

Enterprises engaged in the production and trading of goods and services with a total annual turnover of not more than VND 20 billion shall apply the tax rate of 20%.
Enterprises with a total annual turnover of over VND 20 billion apply the tax rate of 22%.
New enterprises established in the year less than 12 months:

In the quarterly year, the tax rate is 22% (except for cases eligible for tax incentives);

At the end of a fiscal year, if the average revenue of months in the year does not exceed VND 1.67 billion, the enterprise shall settle the payable corporate income tax of the fiscal year at the rate of 20%;

The average revenue of the first year does not exceed 1.67 billion VND, the next year, the enterprise is applied CIT rate of 20%.

From 01/01/2016 up to now, all businesses are applying the tax rate of 20% and 22% have switched to applying the tax rate of 20%.

Special cases:

The corporate income tax rate applicable to petroleum prospecting, exploration and extraction in Vietnam ranges from 32% to 50%. Based on the exploitation location, exploitation conditions and field reserve, the enterprise having an investment project to search, explore and exploit oil and gas shall send the investment project dossier to the Ministry of Finance for submission to the Prime Minister. decide specific tax rates for each project, each business establishment.

Corporate income tax rate for the search, exploration and exploitation of rare natural resources (including: platinum, gold, silver, tin, wonfram, antimony, gemstones, rare earths except petroleum ) the tax rate of 50% applies; For rare and precious natural resources mines with at least 70% of the assigned area in geographical areas with extremely difficult socio-economic conditions on the list of geographical areas eligible for enterprise income tax, promulgated together with the Decree No. 218/2013 / ND-CP of the Government applies the corporate income tax rate of 40%.

Above is the most current information on taxpayers and corporate income tax rates according to current regulations. If you still have questions about CIT and other taxes (VAT, PIT, ...), please contact TASCO Tax Agent in the ways below for a free consultation.

TASCO TAX AGENCY - THE HIGHEST RESPONSIBILITY FOR ALL SERVICES

Hotline: 0854862446 - 0975480868 (zalo)

Website: dailythuetasco.com or dichvutuvandoanhnghiep.vn

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