On the morning of May 12, discussing the draft Law on Corporate Income Tax (amended), delegate Pham Van Hoa (Dong Thap Delegation) was interested in the regulation allowing enterprises to offset interest from real estate business activities, transfer investment projects with losses from other business activities when determining taxable income.
Current regulations do not allow this offset to ensure contributions to the budget for large profits from real estate business activities and investment project transfers of enterprises.
Expressing agreement with this regulation, the delegate emphasized that real estate business activities and project transfers are currently a "prey", a fertile land of many businesses. In the past, many businesses have taken advantage of real estate business activities, so precautions are needed.
According to the delegate, for strategic-level enterprises and enterprises with high capital, they not only do real estate business but also do many other types of business. Thus, taking advantage of real estate business, project transfers with high profits but other sectors are at a loss without allowing deductions in their business activities will not be reasonable.
The delegate suggested a "closure" because businesses will have good tricks to evade taxes. Therefore, it is necessary to have the drastic and objective participation of tax authorities so that businesses do not dare to evade taxes and be fair to each other.
Also talking about this issue, delegate Mai Van Hai (Thanh Hoa Delegation) suggested considering and carefully evaluating the regulations on compensation and loss deduction to create conditions for production and business enterprises, especially multi-industry production and business enterprises, including real estate business.
However, it is also impossible for businesses to take advantage of the problem of compensation and loss deduction to profit from the state's policies. The delegate suggested that conditions should be created for businesses, allowing businesses to offset interest on real estate transfers and investment project transfers with losses from other business activities when determining taxable income.
At the same time, there should be strict regulations to prevent businesses from intentionally generating losses in order to reduce taxes from real estate production and business activities. In particular, it is necessary to have regulations to strictly handle fraudulent acts against businesses that offset losses in violation of regulations.
Article 7 of the draft law stipulates that enterprises with many production and business activities during the tax calculation period will have taxable income from production and business activities as the total income of all production and business activities.
In case there are losses in production and business activities, the losses will be offset to the taxable income of production and business activities with income chosen by the enterprise.
The remaining income after offset will apply the corporate income tax rate for production and business activities with remaining income.
Taxable income from transferring investment projects in mineral exploration, exploitation and processing; transferring rights to participate in mineral exploration, exploitation and processing investment projects; transferring rights to explore, exploit and process minerals must be determined separately to declare and pay taxes, and no loss or profit must be offset for production and business activities in the tax calculation period.
