Proposed new regulations on corporate income tax

(Chinhphu.vn) - The Ministry of Finance is drafting a Decree detailing a number of articles of the Law on Corporate Income Tax.

Ministry of Finance proposes new regulations on corporate income tax

The Ministry of Finance said that on June 14, 2025, the National Assembly passed the Law on Corporate Income Tax (CIT) No. 67/2025/QH15, effective from October 1, 2025 and applicable from the 2025 corporate income tax period. In the CIT Law, the National Assembly assigned the Government to detail a number of clauses, articles and contents of the Law, specifically: on taxpayers (Article 2); taxable income (Article 3); tax-exempt income (Article 4); revenue (Article 8); deductible and non-deductible expenses when determining taxable income, including additional expenses, conditions, time and scope of application for expenses for research and development activities of enterprises (Article 9); determining the criteria for total revenue as the basis for determining subjects subject to the tax rate of 17% and 15% in Clauses 2 and 3, Article 10; Corporate income tax payable calculated as a percentage of revenue (Article 11); industries, occupations, and areas eligible for corporate income tax incentives and the application of corporate income tax incentives in certain cases (Clause 2, Clause 3 and Clause 4, Article 12); preferential tax rates, tax exemption and reduction periods for new investment projects, expanded investment projects, other cases of tax exemption and reduction, loss carryover and conditions for applying tax incentives (Clause 1, Article 13; Clause 6, Article 14; Article 15; Article 16; Clause 1, Clause 3 and Clause 5, Article 18; Clause 3, Article 19).

In addition, implementing the Party and State's policy on the arrangement of local administrative units, on decentralization and delegation of power, it is necessary to review the regulations under the authority of the Government and the Ministries on corporate income tax to ensure smooth implementation without any problems.

Taxpayer

According to the Ministry of Finance, Article 2 of the Law on Corporate Income Tax assigns the Government to detail this Article. To be consistent with the law on tax administration, the Law on Credit Institutions, the Law on Securities and on the basis of inheriting the regulations that are being implemented stably, the Ministry of Finance proposes to detail the taxpayers in Article 2 of the draft Decree as follows:

Taxpayers as prescribed in Clause 1, Article 2 of the Law on Corporate Income Tax include:

a) Enterprises are established and operate in accordance with the provisions of the Enterprise Law, Investment Law, Insurance Business Law, Securities Law, Petroleum Law, Commercial Law and provisions of other legal documents in the following forms: Joint stock company; limited liability company; partnership; fund management company; private enterprise; parties to a business cooperation contract; parties to a petroleum product sharing contract, petroleum joint venture enterprise, joint operating company.

b) Enterprises established under the provisions of Vietnamese law pay tax on taxable income arising in Vietnam and taxable income arising outside of Vietnam.

c) Enterprises established under the provisions of foreign law (hereinafter referred to as foreign enterprises) with or without a permanent establishment in Vietnam

Foreign enterprises with permanent establishments in Vietnam pay tax on taxable income arising in Vietnam and taxable income arising outside Vietnam related to the activities of such permanent establishments.

Foreign enterprises with permanent establishments in Vietnam pay tax on taxable income arising in Vietnam that is not related to the activities of the permanent establishment.

Foreign enterprises without a permanent establishment in Vietnam, including enterprises engaged in e-commerce and digital technology-based businesses, pay tax on taxable income arising in Vietnam.

A permanent establishment of a foreign enterprise is a production and business establishment through which the foreign enterprise conducts part or all of its production and business activities in Vietnam, including:

- Branches, executive offices, factories, workshops, means of transport, oil fields, gas fields, mines or other natural resource exploitation sites in Vietnam.

- Construction site, construction works, installation, assembly.

- Service providers, including consulting services through employees or other organizations or individuals.

- Agent for foreign enterprises.

- Representative in Vietnam in case of being a representative authorized to sign contracts in the name of a foreign enterprise or a representative not authorized to sign contracts in the name of a foreign enterprise but regularly delivering goods or providing services in Vietnam.

- E-commerce platform, digital platform through which foreign enterprises provide goods and services in Vietnam.

d) Economic organizations are established and operate in accordance with the provisions of the Law on Credit Institutions.

d) Public and non-public service units producing and trading goods and services with taxable income as prescribed in Article 3 of this Decree.

e) Cooperatives and cooperative unions established under the provisions of the Law on Cooperatives;

g) Organizations other than those specified in points a, b, c, d and dd of this clause that have production and business activities with taxable income as prescribed in Article 3 of this Decree.

In addition, the Ministry of Finance proposes that organizations established and operating (or registered to operate) in accordance with the provisions of Vietnamese law (including organizations managing trading floors, organizations managing digital platforms) are taxpayers using the deduction method at source in the case of purchasing goods and services (including purchasing services attached to goods, purchasing goods supplied and distributed in the form of on-site export and import, e-commerce business, business based on digital platforms or under international trade terms) on the basis of contracts signed with foreign enterprises specified in Points c and d, Clause 2, Article 2 of the Law on Corporate Income Tax (amended). The Ministry of Finance shall specify the tax obligations specified in this Clause.

Please read the full draft and give your comments here.

Wisdom

 

Source: https://baochinhphu.vn/de-xuat-quy-dinh-moi-ve-thue-thu-nhap-doanh-nghiep-102250710155213036.htm