Decree No. 114/1997/ND-CP amends Decree No. 57/CP dated August 28, 1993 of the Government detailing the implementation of the Law on Corporate Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Corporate Income Tax.

DECREE

Amending Decree No. 57/CP dated August 28, 1993 of the Government detailing the implementation of the Income Tax Law and the Law amending and supplementing certain articles of the Income Tax Law detailing the implementation of the Income Tax Law and the Law amending and supplementing certain articles of the Income Tax Law

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THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Income Tax Law adopted by the National Assembly of the Socialist Republic of Vietnam at its Eighth Session on June 30, 1990; the Law amending and supplementing certain articles of the Income Tax Law adopted by the National Assembly of the Socialist Republic of Vietnam at its Ninth Session on July 6, 1993;

 DECREE:

Article 1. Amending some Articles of Decree No. 57/CP dated August 28, 1993 of the Government detailing the implementation of the Income Tax Law and the Law amending and supplementing certain articles of the Income Tax Law as follows:

"The Ministry of Education and Training is the state management agency and has overall and comprehensive authority over universities, colleges, and secondary vocational schools nationwide regarding admissions work.

"Article 2 - Gross income for calculating taxable income includes all proceeds from sales, processing fees, commissions, service charges, and other revenues not yet reduced by any cost of the business during the tax period".

2. Point g, Clause 5, Article 4 is amended as follows:

"g) Deductible taxes include export duties, import duties, turnover taxes, special consumption taxes, and other taxes or fees directly related to business activities such as land taxes, natural resource taxes, stamp duty, traffic fees, etc..."

3. Point a, Article 5 is amended as follows:

"a) Business entities (excluding small individual traders and itinerant traders) pay income tax at a fixed rate on annual taxable income for each industry group as follows:

A tax rate of 25% applies to industries producing electricity; mining industries: mines, minerals, forestry, fisheries, water for production and daily use; metallurgy; machinery manufacturing: machines, equipment, transportation vehicles, and transmission materials; basic chemical production; fertilizer production, pesticide production; construction material production; transportation including loading and unloading at ports; waste transportation; construction including surveying and design; irrigation; newspaper publishing; agricultural product production of state farms and stations including rubber tapping and processing; educational and vocational training activities; treasury bond interest; infrastructure construction for lease in industrial zones, export processing zones, and high-tech zones.

A tax rate of 35% applies to consumer goods manufacturing industries; food processing industries; grain processing and other productions.

A tax rate of 45% applies to trade, catering, and various services.

Business entities operating in multiple industries with different tax rates must separately account for taxable income by industry and pay income tax according to the tax rate applicable to each industry. If a business entity cannot separately account for taxable income by industry, the highest income tax rate applicable to the industries in which it operates shall be applied to the total taxable income of the entire business entity."

4. Point b, Article 6 is amended as follows:

"b) Non-state economic organizations such as Joint Stock Companies, Limited Liability Companies, and collective enterprises that raise capital contributions from individuals or organizations must pay income tax and additional income tax (if applicable). Additional income tax is determined based on the tax rate and additional taxable income. Additional taxable income is the remaining income after paying income tax at the fixed rate minus (-) investment reserve fund."

Article 2. This Decree takes effect for income tax settlement from 1997 onwards. All previous regulations contrary to this Decree are abolished.

Article 3. The Ministry of Finance shall provide guidance for the implementation of this Decree./.