Subtracting tax collection of units
At the end of 2024, the Dak Lak Provincial Tax Department (now the 14th Tax Department) issued Document No. 3977/CTDLA-TTHT to public service units in the field of education and training in the area; guiding the implementation of corporate income tax on tuition fees for university and postgraduate training.
According to the 14th Tax Department, based on the provisions of Circular No. 78/2014/TT-BTC of the Ministry of Finance, the amount of corporate income tax payable is determined by taxable income multiplied by tax rate.
Specific formula: Corporate income tax = (taxable income - the deduction for the science and technology fund, if any) x corporate income tax rate.
The Tax Department of Region XIV also compiles current regulations to support units in declaring and paying value added tax and corporate income tax, thereby clearly defining tax obligations for tuition fees and other revenues.
On that basis, the Tax Department of Region XIV has been collecting taxes from many public colleges and universities in Dak Lak province.
The time frame for declaring value-added tax and corporate income tax lasts from 2017 to 2024.
Financial pressure is heavy
One of the units most affected by this collection period is the Central Highlands University - where there are currently more than 9,000 students, 8 faculties and about 600 staff and lecturers.
Schools in the partially autonomous group for regular expenditures (70% - under 100%). Therefore, the tuition fee is still in compliance with Decree7/2023/ND-CP of the Government.
According to Dr. Le The Phiet, Vice Principal of Tay Nguyen University, in 2024, the school has fulfilled its tax obligations. However, tax collection on tuition fees for regular training is not appropriate.
Because the tuition fees collected from students are still not enough to cover the school's operating costs. The school also has to provide compensation for funding to support training activities, invest in facilities and support students.
The taxable income is only deducted from the science and technology fund, while other educational support funds have not been taken into account.
According to calculations, the tax collection from 2017 to 2023 of the Central Highlands University is up to more than 10 billion VND, creating great financial pressure for the school.
"If we are forced to pay this tax, we will ask for instructions from the Ministry of Education and Training. The school's wish is to be guided by the Provincial Tax Department to remove difficulties and obstacles to ensure educational activities are not affected," Dr. Phiet shared.
Mr. Pham Thanh Long, Deputy Head of the 14th Regional Tax Department, said: "In fact, some units have fulfilled their tax obligations in 2024. Not only the Central Highlands University, many other public universities and colleges in the province are also facing difficulties because the units have settled many years ago. The Provincial Tax Department will make recommendations to competent authorities to remove difficulties for units".
