1. Taxpayers are goods and service production and business organizations which have taxable incomes under the provisions of this Law (below referred to as enterprises), including:

a/ Enterprises established under Vietnamese law;

b/ Enterprises established under foreign laws (below referred to as foreign enterprises) with or without Vietnam-based permanent establishments;

c/ Organizations established under the Law on Cooperatives;

d/ Non-business units established under Vietnamese law;

e/ Other organizations engaged in income-generating production and business activities.

2. Enterprises having taxable incomes under Article 3 of this Law shall pay enterprise income tax as follows:

a/ Enterprises established under Vietnamese law shall pay tax on taxable incomes generated in and outside Vietnam;

b/ Foreign enterprises with Vietnam-based permanent establishments shall pay tax on taxable incomes generated in Vietnam and taxable incomes generated outside Vietnam which are related to the operation of such establishments;

c/ Foreign enterprises with Vietnam-based permanent establishments shall pay tax on taxable incomes generated in Vietnam which are not related to the operation of such permanent establishments.

d/ Foreign enterprises without Vietnam-based permanent establishments shall pay tax on taxable incomes generated in Vietnam.

3. Foreign enterprises permanent establishments are production and business establishment through which foreign enterprises conduct some or all income-generating production and business activities in Vietnam, including:

a/ Branches, executive offices, factories, workshops, means of transport, mines, oil and gas fields, or other places of extraction of natural resources in Vietnam;

b/ Construction sites, construction works, installation and assembly projects;

c/ Establishments providing services, including consultancy services through employees or other organizations or individuals;

d/ Agents for foreign enterprises;

e/ Vietnam-based representatives, in case of representatives which are competent to conclude contracts in the name of foreign enterprises or representatives which are incompetent to conclude contracts in the name of foreign enterprises but regularly deliver goods or provide services in Vietnam.

Article 3. Taxable incomes

1. Taxable incomes include income from goods and service production and business activities and other incomes specified in Clause 2 of this Article.

2. Other incomes cover income from the transfer of capital or real estate; income from the right to own or use assets; income from the transfer, lease or liquidation of assets; income from interests, loans or foreign currency sales; refund of provisions; recovery of bad debts already written off; collection of payable debts of unidentifiable creditors; omitted income from previous years business activities, and other incomes, including income generated from production and business activities outside Vietnam.

Article 4. Tax-exempt incomes

1. Income from cultivation, husbandry and aquaculture of organizations established under the Law on Cooperatives.

2. Income from the application of technical services directly for agriculture.

3. Income from the performance of contracts on scientific research and technological development, trial products and products turned out with technologies applied for the first time in Vietnam.

4. Income from enterprises goods and service production and business activities exclusively reserved for disabled, detoxified and HIV-infected laborers. The Government shall specify criteria and conditions for the determination of enterprises exclusively reserved for disabled, detoxified and HIV-infected laborers.

5. Income from job-training activities exclusively reserved for ethnic minority people, the disabled, children in extremely disadvantaged circumstances and persons involved in social evils.

6. Incomes divided for capital contribution, joint venture or association with domestic enterprises, after enterprise income tax has been paid under the provisions of this Law.

7. Received financial supports used for educational, scientific research, cultural, artistic, charitable, humanitarian and other social activities in Vietnam.

Article 5. Tax period

1. An enterprise income tax period is the calendar year or fiscal year, except the cases defined in Clause 2 of this Article.

2. The enterprise income tax period upon each time of income generation applies to foreign enterprises specified at Points c and d, Clause 2, Article 2 of this Law.

Chapter II. TAX BASES AND TAX CALCULATION METHODS

Article 6. Tax bases

Tax bases include taxed income and tax rate.

Article 7. Determination of taxed income

1. Taxed income in a tax period is the taxable income minus tax-exempt incomes and losses carried forward from previous years.

2. Taxable income is turnover minus deductible expenses for production and business activities plus other incomes, including income received outside Vietnam.

3. Income from real estate transfer must be separately determined for tax declaration and payment.

The Government shall detail and guide the implementation of this Article.

Article 8. Turnover

Turnover is the total sales, processing remuneration, service provision charges, subsidies and surcharges enjoyed by enterprises. Turnover is calculated in Vietnam dong; foreign currency turnover, if any, must be converted into Vietnam dong at the average exchange rate on the inter-bank foreign currency market announced by the State Bank of Vietnam at the time foreign-currency turnover is generated.

The Government shall detail and guide the implementation of this Article.

Article 9. Deductible and non-deductible expenses upon determination of taxable incomes

1. Except the expenses specified in Clause 2 of this Article, enterprises are entitled to deduction of all expenses which fully meet the following conditions:

a/ They are actually paid expenses related to production and business activities;

b/ They are accompanied with adequate invoices and documents as prescribed by law.

2. Non-deductible expenses upon determination of taxable incomes include:

a/ Expense not fully satisfying the conditions specified in Clause 1 of this Article, except the uncompensated value of losses caused by natural disasters, epidemics or other force majeure circumstances;

b/ Fine for administrative violations;

c/ Expense already covered by other funding sources;

d/ Business administration expense allocated by foreign enterprises to their Vietnam-based permanent establishments in excess of the level calculated according to the allocation method prescribed by Vietnamese law;

e/ Expense in excess of the law-prescribed norm for the deduction and setting up of provisions;

f/ Expense for raw materials, materials, fuel, energy or goods in excess of the wastage rate set by enterprises and notified to tax offices and the actual ex-warehousing price;

g/ Payment for interests on loans for production and business activities of entities other than credit institutions or economic organizations in excess of 150% of the basic interest rate announced by the State Bank of Vietnam at the time of loaning;

h/ Fixed asset depreciation made in contravention of law;

i/ Expenses advanced in contravention of law;

j/ Salaries and wages of owners of private enterprises; remuneration paid to enterprise founders who do not personally administer production and business activities; salaries, wages and other accounted amounts payable to laborers which have actually not been paid to them or paid without invoices or documents as prescribed by law;

k/ Loan interests paid corresponding to the insufficient amount of the charter capital;

l/ Credited input value-added tax, value-added tax to be paid according to the credit method, and enterprise income tax;

m/ Expense for advertisement, marketing, sales promotion and brokerage commissions; expense for reception, protocol and conferences; expense in support of marketing and payment discount; expense for press agencies newspapers given as presents or gifts directly related to production and business activities in excess of 10% of total deductible expenses; for newly set up enterprises, such expense in excess of 15% of total deductible expenses for the first 3 years from the date of setting up. Total deductible expenses exclude the expenses specified at this Point; for trade activities, total deductible expenses exclude purchasing prices of sold goods;

n/ Financial supports, excluding those for educational and healthcare activities and for mitigating natural disaster consequences and building houses of gratitude for the poor as prescribed by law.

3. Deductible foreign currency expenses upon the determination of taxable incomes must be converted into Vietnam dong at the average exchange rate on the inter-bank foreign currency market announced by the State Bank of Vietnam at the time foreign currency expenses arise.

The Government shall detail and guide the implementation of this Article.

Article 10. Tax rates

1. The enterprise income tax rate is 25%, except the cases specified in Clause 2, this Article, and Article 13, of this Law.

2. The enterprise income tax rate applicable to activities of prospecting, exploring and exploiting oil and gas and other precious and rare natural resources is between 32% and 50%, depending on each project or business establishment.

The Government shall detail and guide the implementation of this Article.

Article 11. Tax calculation method

1. An enterprise income tax amount payable in a tax period is the taxed income multiplied by the tax rate; in case an enterprise has paid income tax outside Vietnam, the paid tax amount may be subtracted but must not exceed the enterprise income tax amount payable under the provisions of this Law.

2. The tax calculation method applicable to enterprises listed at Points c and d, Clause 2, Article 2 of this Law complies with the Governments regulations.

Article 12. Places for tax payment

Enterprises shall pay tax at places where they are headquartered. In case an enterprise has a dependent cost-accounting production establishment operating in a province or centrally run city other than the place of its headquarters, the payable tax amount shall be calculated based on the ratio of expenses between the place where the production establishment is located and the place where the enterprise is headquartered. The decentralization, management and use of tax revenues comply with the State Budget Law.

The Government shall detail and guide the implementation of this Article.

Chapter III. ENTERPRISE INCOME TAX INCENTIVES

Article 13. Tax rate incentives

2. Enterprises operating in education-training, vocational training, healthcare, cultural, sports and environmental domains are entitled to the tax rate of 10%.

3. Newly set up enterprises under investment projects in geographical areas with socio-economic difficulties are entitled to the tax rate of 20% for ten years.

4. Agricultural service cooperatives and peoples credit funds are entitled to the tax rate of 20%.

5. For large-scale and hi-tech projects in which investment should be particularly attracted, the duration for application of tax rate incentives may be extended but must not exceed the duration specified in Clause 1 of this Article.

6. The duration for application of tax rate incentives specified in this Article is counted from the first year an enterprise has turnover.

The Government shall detail and guide the implementation of this Article.

Article 14. Tax exemption and reduction duration incentives

1. Newly set up enterprises under investment projects in geographical areas with extreme socio-economic difficulties, economic zones or hi-tech parks; newly set up enterprises under investment projects in the domains of high technology, scientific research and technological development, development of the States infrastructure works of special importance or manufacture of software products; newly set up enterprises operating in education-training, vocational training, healthcare, cultural, sports and environmental domains are entitled to tax exemption for no more than four years and a 50% reduction of payable tax amounts for no more than nine subsequent years.

2. Newly set up enterprises newly set up under investment projects in geographical areas with socio-economic difficulties are entitled to tax exemption for no more than two years and a 50% reduction of payable tax amounts for no more than four subsequent years.

3. The tax exemption or reduction duration specified in this Article is counted from the first year an enterprise has taxable income; in case an enterprise has no taxable income for the first three years from the first year it has turnover, the tax exemption or reduction duration is counted from the fourth year.

The Government shall detail and guide the implementation of this Article.

Article 15. Other cases eligible for tax reduction

1. Production, construction or transport enterprises which employ many female laborers are entitled to reduction of enterprise income tax amounts equal to additional expenses for female laborers.

2. Enterprises which employ many ethnic minority laborers are entitled to reduction of enterprise income tax amounts equal to additional expenses for ethnic minority laborers.

The Government shall detail and guide the implementation of this Article.

Article 16. Carrying forward of losses

1. Loss-suffering enterprises may carry forward their losses to the subsequent year; those losses may be included in taxed income. The time limit for carrying forward losses is five years, counting from the year following the year the losses arise.

2. Enterprises suffering losses from real estate transfer activities may only carry forward losses into those activities taxed income.

Article 17. Deduction for setting up of enterprises scientific and technological development funds

1. Enterprises established and operating under Vietnamese law may deduct up to 10% of taxed income for setting up their scientific and technological development funds.

2. Within five years after being set up, if a scientific and technological development fund is not used, has been used below 70% or used for improper purposes, the enterprise shall remit into the state budget the enterprise income tax amount calculated on the income already deducted for setting up the fund but not used or used for improper purposes and the interest on that enterprise income tax amount.

The enterprise income tax rate used for calculating the to-be-recovered tax amount is the tax rate applicable to the enterprise during the time of operating the fund.

The interest rate for calculating the interest on the to-be- recovered tax amount calculated on the unused fund amount is the interest rate for one-year term treasury bonds applicable at the time of recovery, and the interest payment period is two years.

The interest rate for calculating the interest on the to-be- recovered tax amount calculated on the fund amount used for improper purposes is the interest used for late payment fines under the provisions of the Tax Administration Law, and the interest payment period is counted from the time a fund is set up to the time of recovery.

3. Enterprises may not account expenses covered by their scientific and technological development funds as deductible ones upon the determination of taxable incomes in a tax period.

4. Enterprises scientific and technological development funds may be used only for scientific and technological investment in Vietnam.

Article 18. Conditions for application of tax incentives

1. Enterprise income tax incentives specified in Articles 13, 14, 15, 16 and 17 of this Law apply only to enterprises which implement regulations on accounting, invoices and documents and pay tax according to declaration.

2. Enterprises shall account separately income from production and business activities eligible for tax incentives specified in Articles 13 and 14 of this Law from income from production and business activities ineligible for tax incentives; if those incomes cannot be separately accounted, income from production and business activities eligible for tax incentives shall be determined based on the ratio between turnover from production and business activities eligible for tax incentives and total turnover.

3. Enterprise income tax incentives specified in Articles 13 and 14 of this Law do not apply to:

a/ Incomes specified in Clause 2, Article 3 of this Law;

b/ Income from activities of prospecting, exploring and mining oil, gas and other precious and rare natural resources;

c/ Income from prize-winning game or betting business as prescribed by law;

d/ Other cases specified by the Government.

Chapter IV. IMPLEMENTATION PROVISIONS

Article 19. Implementation effect

1. This Law takes effect on January 1, 2009.

2. This Law replaces Enterprise Income Tax Law No. 09/2003/QH11.

3. Enterprises which enjoy enterprise income tax incentives under Enterprise Income Tax Law No. 09/2003/QH11 may continue enjoying those incentives for the remaining duration under Enterprise Income Tax Law No. 09/2003/QH11; in case enterprise income tax incentives, including tax rate incentives and tax exemption and reduction duration, are lower than the tax incentives specified in this Law, the tax incentives under this Law apply for the remaining duration.

4. Enterprises which are entitled to tax exemption or reduction duration under Enterprise Income Tax Law No. 09/2003/QH11 but have no taxable income yet, the tax exemption or reduction duration will be counted under this Law and from the date this Law takes effect.

Article 20. Implementation guidance

The Government shall detail and guide the implementation of Articles 4, 7, 8, 9, 10, 11, 12, 13, 14, 15 and 18 and other necessary contents of this Law to meet management requirements.

This Law was passed on June 3, 2008, by the XIIth National Assembly of the Socialist Republic of Vietnam at its third session.

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2. Law 71/2014/QH13 (Amending Law 14/2008/QH12)

November 26, 2014

AMENDMENTS TO TAX LAWS

Pursuant to Constitution of Socialist Republic of Vietnam;

The National Assembly promulgates the Law on amendments to The Law on Corporate income tax No. 14/2008/QH12, some Articles of which are amended in Law No. 32/2013/QH13; the Law on Personal income tax No. 04/2007/QH12, some Articles of which are emended in Law No. 26/2012/QH13; the Law on value-added tax No. 13/2008/QH12, some Articles of which are amended in Law No. 31/2013/QH13; the Law on special excise duty No. 27/2008/QH12; the Law on Severance tax No. 45/2009/QH12; the Law on Tax administration No. 78/2006/QH11, some Articles of which are amended in Law No. 21/2012/QH13; the Law on Export and import tax No. 45/2005/QH11; and the Law on Customs No. 54/2013/QH13.

Article 1. Amendments on some Articles of the Law on Corporate income tax No. 14/2008/QH12, some Articles of which are amended in Law No. 32/2013/QH13.

1. Clause 2 Article 3 is amended as follows:

“2. Other incomes include: income from transfer of capital, transfer of the right to capital contribution; income from real estate transfer, transfer of construction projects, transfer of the right to participate in construction projects, transfer of the right to mineral exploration, mineral extraction, and mineral processing; income from the right to enjoyment of property, right to ownership of property, including income from intellectual property rights defined by law; income from transfer, lease, liquidation of assets, including valuable papers; income from deposit interest, loan interest, sale of foreign exchange; collection of debts that were cancelled; receipts from debts without creditors; incomes from business operation in previous years that were committed, and other incomes.

With regard to Vietnamese companies making investments in the countries with which Vietnam have Double Taxation Agreement and transfer incomes exclusive of corporate income tax paid overseas to Vietnam, regulations of such Double Taxation Agreements shall apply. If investments are made in countries with which Vietnam has not had Double Taxation Agreements, and if corporate income tax incurred in such countries is lower than that imposed by the Law on Corporate income tax of Vietnam, the tax difference shall be paid.

2. Clause 1 Article 4 is amended as follows:

“1. Income from farming, breeding, cultivation and processing of agriculture and aquaculture products, salt production of cooperatives; income of cooperatives engaged in agriculture, forestry, aquaculture, or salt production in disadvantaged areas or extremely disadvantaged areas; income of companies from farming, breeding, cultivation and processing of agriculture and aquaculture products in disadvantaged areas; income from marine fisheries.”

3. Point a Clause 1 Article 9 is amended as follows:

“a) Actual expenditures on business operation of the company; expenditures on vocational education; expenditures on the company’s national defense and security duties as prescribed by law;”.

4. Point m Clause 2 Article 9 is annulled.

5. Point dd and Point e are added to Clause 1 Article 13 as follows:

“dd) Income of a company from execution of a project of investment in manufacturing of products on the List of ancillary products given priority and satisfying one of the following conditions:

– Ancillary products supporting high-technology defined in the Law on High-technology;

– Ancillary products serving the manufacturing of the following industries: textile – garment; leather – footwear; electronic – IT; automobile manufacturing & assembling; mechanical engineering, provided they cannot be manufactured in Vietnam up to January 01, 2015, or can be manufactured in Vietnam and satisfy technical standards established by EU or the equivalent.

The government shall compile the List of ancillary products given priority mentioned in this Point.

e) Income of a company from execution of a project of investment in manufacturing, except for manufacturing of products subject to special excise tax and mineral extraction, the capital investment in which is not smaller than VND 12,000 billion, the technologies applied are assessed in accordance with the Law on High-technology, the Law on Science and Technology, and the registered capital is disbursed within 05 years from the day on which the investment is permitted as prescribed by regulations of law on investment.”

6. Point d Clause 2 Article 13 is amended as follows:

“d) Income from a company from: planting, cultivating, protecting forests; cultivating, processing agriculture and aquaculture products in a disadvantaged area; producing forestry products in a disadvantaged area; producing, propagating, cross-breeding plants and animals; producing and refining salt, except for the types of salt defined in Clause 1 Article 4 of this Law; investment in preservation of harvested farm produce, preservation of agriculture products, aquaculture products, and foods;”

7. Clause 3a is added to Clause 1 Article 13 as follows:

“3a. 15% tax is applied to: income of the company from farming, breeding, processing of agriculture and aquaculture products in an area other than disadvantaged areas or particularly disadvantaged areas.”

8. Clause 5 Article 13 is amended as follows:

“5. Extension of preferential tax period:

a) With regard to any special project that needs to attract substantial investment and requires high technologies, the preferential tax period may be extended for up to 15 years.

b) If a project mentioned in Point e Clause 1 of this Article satisfy one of the following conditions:

– The products are able to go into global competition and generate a revenue of more than VND 20,000 billion per year after not more than five years from the first year in which revenue is earned from the project;

– More than 6,000 employees are hired;

– The project of investment involves economic – technical infrastructure, including: investment in water plants, power plants, water supply and drainage systems, bridges, roads, railroad, airports, seaports, river ports, train stations, new energies, clean energies, energy-saving industry, oil refinery.

The Prime Minister shall decide the extension of preferential tax period mentioned in this Point, provided the extension is not longer than 15 years.”.

9. Clause 3 Article 2 of the Law No. 32/2013/QH13 is amended as follows:

“3. Any company having a project of investment eligible for enterprise income tax incentives according to regulations of law on corporate income tax at the time when the license for investment or certificate of investment is granted. If regulations of law on corporate income tax are changed and the company still satisfies the conditions for concessional tax according to new regulations, it may choose between preferential tax rates and duration of tax exemption/reduction prescribed by the old or new regulations for the remaining period.

At the end of the tax year 2015, if the project of the company is applying the preferential tax rate of 20% prescribed in Clause 3 Article 13 of the Law on Corporate income tax No. 14/2008/QH12, which is amended in Law No. 32/2013/QH13, the company may apply 17% tax for the remaining period from January 01, 2016.”.

Article 2 Amendments to some Articles of the Law on Corporate income tax, some Articles of which are amended in Law No. 26/2012/QH13.

1. Clause 1 Article 3 is amended as follows:

“1. Incomes from business include:

a) Incomes from manufacturing, sale of goods or services;

b) Income from freelance works of individuals having licenses or practicing certificates as prescribed by law.

A sole trader’s income of VND 100 million per year or less is not considered income from business prescribed in this Clause.”.

2. Point c Clause 6 Article 3 is amended as follows:

“c) Prizes won from betting;”

3. Clause 15 and Clause 16 are added to Article 4 as follows:

“15. Income from salaries, remunerations of Vietnamese crewmembers working for foreign shipping companies or Vietnamese shipping companies that provide international transport services.

16. Incomes from provision of goods/services directly serving offshore fishing earned by individuals being ship owners, individuals having the right to use ships, and incomes of crewmembers on ships.”.

4. Article 10 is amended as follows:

“Article 10. Tax incurred by sole traders

1. Sole traders shall pay personal income tax directly on their incomes; tax rates vary depending on the fields, works of the individuals.

2. Revenue means the amounts earned from goods sale, goods processing, commission, payments for service provision during the tax period from manufacturing, sale of goods/services.

If a sole trader fails to determine his/her income, the competent tax authority shall calculate the income in accordance with regulations of law on tax administration.

3. Tax rates:

a) Distribution, supply of goods: 0.5%;

b) Service provision, construction exclusive of building materials: 2%.

Asset lease, insurance brokerage, lottery brokerage, multi-level marketing brokerage: 5%;

c) Manufacturing, transport, services associated with goods, construction inclusive of building materials: 1.5%.

d) Other business activities: 1%.”

5. Article 13 is amended as follows:

“Article 13. Taxable income from capital transfer

1. Taxable income from capital transfer equals (=) selling price minus (-) buying price and other reasonable costs related to the generation of income from capital transfer.

Taxable income from securities transfer is the price of each transfer.

2. Taxable income from capital transfer shall be determined when the transfer is completed as prescribed by law.

The government shall elaborate this Article.”.

6. Article 14 is amended as follows:

“Article 14. Taxable income from real estate transfer

1. Taxable income from real estate transfer is the price of each transfer.

2. The government shall decide the principles and methods for determination of real estate transfer prices.

3. Taxable income from real estate transfer shall be determined when the transfer contract takes effect as prescribed by law.

7. Clause 2 Article 23 is amended as follows:

“2. Tax schedule:

Assessable income	Tax rate (%)
a) Income from capital investment	5
b) Income from royalties, franchise	5
c) Income from prize winning	10
d) Income from inheritance, gifts	10
dd) Income from capital transfer prescribed in Clause 1 of this Law Income from securities transfer prescribed in Clause 1 Article 13 of this Law	20 0.1
e) Income from real estate transfer	2

Article 3. Amendments to some Articles of the Law on Value-added tax No. 13/2008/QH12, some Articles of which are amended in Law No. 31/2013/QH13.

1. Clause 3a is added to Clause 3 Article 5 as follows:

“3a. Fertilizers, specialized machinery and equipment serving agricultural production; offshore fishing vessels; feed for cattle, poultry, and other animals;”.

2. Point b Clause 2 Article 8 is amended as follows:

“b) Ores for production of fertilizers; pesticides, and growth stimulants for animals, plants;”.

3. Point c and Point k Clause 2 Article 8 is annulled.

Article 4. Amendments to the Law on Severance tax No. 45/2009/QH12

1. Clause 7 Article 2 is amended as follows:

“7. Natural water, including surface water and underground water, except for natural water used for agriculture, forestry, aquaculture, and salt production.”.

2. Clause 5 Article 9 is amended as follows:

“5. Tax on natural water used by households and individuals for their everyday life is exempt.”.

Article 5. Amendments to some Articles of the Law on Tax administration No. 78/2006/QH11, some Articles of which are amended in Law No. 21/2012/QH13.

1. Clause 1, Clause 1a, and Clause 6 Article 31 is amended as follows:

“1. Taxes that must be declared and paid monthly shall be declared using monthly tax declarations;

1a. Taxes that must be declared and paid quarterly shall be declared using quarterly tax declarations;

“6. The Government shall specify taxes that must be declared monthly, quarterly, annually, and whenever tax is incurred; criteria for determination of taxpayers eligible to declare tax monthly, and tax declarations in each case.”.

2. Article 43 is amended as follows:

“Article 43. Currencies of revenues, expenditures, taxable prices, and taxes

Taxpayers shall determine their revenues, expenditure, taxable prices, and taxes in Vietnam dong, except for the cases in which such amounts may be paid in foreign currencies as prescribed by the Government. If there are revenues, expenditure, taxable prices in foreign currencies, or amounts payable by the taxpayer in foreign currencies, but a competent authority permits payment in VND, foreign currencies shall be exchanged into VND according to the exchange rate at that time.

The Government shall elaborate this Article .”.

3. Clause 11 is added to Article 7 as follows:

“11. Depending on the actual conditions and availability of IT equipment, the Government shall decide whether or not taxpayers have to submit documents attached to the tax declaration, tax payment documents, application for tax refund, and other tax documents that regulatory already have.”.

4. Clause 1 Article 106 is amended as follows:

“1. If a taxpayer pays tax after the deadline, extended deadline, or the deadline written in the notification or tax decision issued by a tax authority, such taxpayer shall pay tax in full and a late payment interest at 0.05% per day on the tax paid behind schedule.

With regard to any taxpayer that provides products or services and gets paid by government budget, if such taxpayer fails to pay tax on schedule because no payments are made by government budget, the taxpayer shall not pay late payment interest on the outstanding tax, which is incurred before payments are made by government budget, provided such outstanding tax does not exceed the amount that is yet to be paid by government budget.”.

Article 6. Implementation

1. This Law takes effect on January 01, 2015.

2. Regulations on exchange rates when determining revenues, expenditure, taxable prices, and taxes in the documents below are annulled:

a) Article 8 and Clause 3 Article 9 of the Law on Corporate income tax No. 14/2008/QH12, some Article of which are amended in Law No. 32/2013/QH13;

b) Clause 1 Article 6 of the Law on Personal income tax No. 04/2007/QH11, some Articles of which are amended in Law No. 26/2012/QH13;

c) Clause 3 Article 7 of the Law on Value-added tax No. 13/2008/QH12, some Articles of which are amended in Law No. 31/2013/QH13;

d) Article 6 of the Law on special excise duty No. 27/2008/QH12;

dd) Clause 3 Article 9 and Article 14 of the Law on Export and import tax No. 45/2005/QH11;

e) Clause 4 Article 86 of the Law on Customs No. 54/2013/QH13.

3. Point c Clause 1 Article 49 of the Law on Tax administration No. 78/2006/QH11, some Articles of which are amended in Law No. 21/2012/QH13 is annulled.

4. Regulations on determination of tax incurred by sole traders in Clause 1 Article 19, Clause 1 Article 20, and Clause 1 Article 21 of the Law on Personal income tax No. 04/2007/QH12, some Article of which are amended in Law No. 26/2012/QH13, are annulled.

5. The Government shall elaborate Clauses and Articles mentioned above.

This Law is passed by the 13^th National Assembly of Socialist Republic of Vietnam on November 26, 2014 during the 8^th session.

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3. Law 61/2020/QH14 (Amending Law 14/2008/QH12)

June 17, 2020

ON INVESTMENT

4. The Law on Corporate Income Tax No. 14/2008/QH12 amended by the Law No. 32/2013/QH13 and the Law No. 71/2014/QH13 is amended as follows:

a) Clause 5a is added after Clause 5 of Article 13 as follows:

“5a. With respect to the investment projects specified in Clause 2 Article 20 of the Law on Investment, the Prime Minister shall decide to apply a preferential tax rate reducing by no more than 50% the preferential tax rate specified in Clause 1 of this Article. The duration of application of the preferential tax rate shall not exceed 1.5 times the duration of application of the preferential tax rate specified in Clause 1 and may be extended for no more than 15 years and must not exceed the duration of the investment project.”;

b) Clause 1a is added after Clause 1 of Article 14 as follows:

“1a. With respect to the investment projects specified in Clause 2 Article 20 of the Law on Investment, the Prime Minister shall decide to apply tax exemption for no more than 6 years and reduce 50% of the maximum tax payable for no more than the 13 subsequent years.”;

Article 76. Implementation clause

1. This Law comes into force from January 01, 2021, except for the regulations set out in Clause 2 of this Article. 2. This regulations set out in Clause 3 Article 75 of this Law come into force from September 01, 2020.

Law 14/2008/Vietnam on Corporate income Tax

1. Law 14/2008/QH12,

2. Law 71/2014/QH13 (Amending Law 14/2008/QH12),

3. Law 61/2020/QH14 (Amending Law 14/2008/QH12).

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1. Law 14/2008/QH12

Chapter I. GENERAL PROVISIONS

Chapter II. TAX BASES AND TAX CALCULATION METHODS

Chapter III. ENTERPRISE INCOME TAX INCENTIVES

Chapter IV. IMPLEMENTATION PROVISIONS

Article 19. Implementation effect

—

2. Law 71/2014/QH13 (Amending Law 14/2008/QH12)

3. Clause 15 and Clause 16 are added to Article 4 as follows:

1. Clause 3a is added to Clause 3 Article 5 as follows:

1. Clause 1, Clause 1a, and Clause 6 Article 31 is amended as follows:

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3. Law 61/2020/QH14 (Amending Law 14/2008/QH12)

4. The Law on Corporate Income Tax No. 14/2008/QH12 amended by the Law No. 32/2013/QH13 and the Law No. 71/2014/QH13 is amended as follows:

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