This morning (November 22), continuing the 8th Session, Deputy Prime Minister Le Thanh Long, authorized by the Prime Minister, presented the Report on the draft Law on Corporate Income Tax (amended).
Regarding taxpayers and taxable income, the Deputy Prime Minister said that additional regulations are being added requiring foreign enterprises providing goods and services in the form of e-commerce and digital platform businesses to pay tax on taxable income arising in Vietnam.
In addition, permanent establishments of foreign enterprises providing goods and services in Vietnam are also subject to tax.
Supplementing regulations on other income (other than income from main production and business activities) of enterprises in general, taxable income arising in Vietnam of foreign enterprises (with or without permanent establishments in Vietnam) and income abroad of Vietnamese enterprises.
In particular, foreign income must pay additional corporate income tax according to the regulations on minimum taxable income (IIR) in Resolution No. 107/2023/QH15.
Regarding tax-exempt income, amend and supplement the subjects, criteria and conditions for some tax-exempt incomes and assign the Government to prescribe specific levels and criteria for some tax-exempt incomes such as: income from processing agricultural and aquatic products; undivided income of socialized establishments left for investment and development.
Amending and supplementing regulations on choosing the tax calculation period according to the calendar year or fiscal year; for foreign enterprises generating income in Vietnam from e-commerce business activities and business on digital platforms, the tax calculation period shall be implemented according to the law on tax administration.
Amend and supplement regulations to allow enterprises to offset profits from real estate transfers, investment project transfers, and transfers of rights to participate in investment projects against losses from production and business activities, except for production and business activities that are enjoying tax incentives.
Supplement detailed regulations on principles for determining revenue and time for determining revenue for calculating corporate income tax.
Specific regulations on the method of calculating tax based on a percentage of revenue for the following subjects: foreign enterprises without permanent establishments generating income in Vietnam.
In addition, the draft law removes the regulation on where to pay corporate income tax to implement uniformly and synchronously according to the provisions of the Law on Tax Administration.
Regarding corporate income tax rates, additional tax rates (15% and 17%) apply specifically to enterprises with revenue under 3 billion VND and enterprises with revenue from 3 billion VND to 50 billion VND.
Amending and supplementing regulations on tax rate frameworks for oil and gas exploration, prospecting and exploitation activities, and tax rates for exploration, exploitation and processing of rare resources.
Supplementing regulations on preferential corporate income tax policies for projects subject to special investment incentives and support as prescribed in the Investment Law 2020; investing in technical facilities supporting small and medium-sized enterprises and incubators for small and medium-sized enterprises.
Income tax incentives for investment in co-working spaces supporting small and medium-sized enterprises to start up and innovate according to the Law on Support for Small and Medium Enterprises; investment projects in the field of information technology and digital technology to promote the development of this field; other press activities (other than print newspapers).
