Circular No. 1152-TC/TCT stipulates the method for calculating income tax for domestic economic organizations participating in joint ventures or business cooperation with foreign entities. This document aims to ensure fair contribution and prevent duplicate taxation.
Đối tượng áp dụng
Domestic economic organizations participating in joint ventures or business cooperation with foreign entities
Các điểm cốt lõi
- Domestic economic organizations receiving income from joint venture activities must declare their income and are not subject to tax at the rate applicable to domestic enterprises (Point 1).
- Independent legal entity domestic economic organizations, when receiving income from joint venture activities, still need to declare but should not include this income in their profit for tax calculation purposes again (Point 2).
- Domestic economic entities participating in foreign joint venture contracts must declare and pay taxes according to the rates specified in the Income Tax Law (Point 3).
- In cases of domestic joint ventures, income tax is calculated on the entire financial result and declared by the entity conducting the transaction before profit distribution (Point 4).
- Economic organizations participating in joint ventures must report to the tax authority regarding their capital contribution, industry of joint venture activities, and maintain accounting records for monitoring joint venture operations (Point 5)
🌐 Tác động xã hội từ văn bản này
- To ensure fair tax contributions among economic entities participating in joint ventures.
- To prevent duplicate taxation on income from joint venture activities.
- To strengthen management and supervision of joint venture activities by economic organizations.
❓ Câu hỏi thường gặp
How must domestic economic organizations receiving income from joint venture activities declare their income?
They must declare the amount of income and are not subject to tax at the rate applicable to domestic enterprises.
Must domestic economic entities participating in foreign joint venture contracts pay income tax?
Yes, they must declare and pay taxes according to the rates specified in the Income Tax Law.
In cases of domestic joint ventures, who is responsible for declaring income tax?
The entity conducting the transaction is responsible for declaring before profit distribution.
What obligations do economic organizations participating in joint ventures have towards the tax authority?
They must report on their capital contribution, industry of joint venture activities, and maintain accounting records for monitoring joint venture operations.
When does this document take effect?
Effective from January 1, 1991.
Toàn văn
LETTER
OF THE MINISTRY OF FINANCE NUMBER 1152-TC/TCT DATED AUGUST 22, 1991
REGARDING INCOME TAX FOR JOINT VENTURES
Pursuant to the Income Tax Law adopted by the National Assembly at its seventh session of the Eighth National Assembly.
Pursuant to Decree No. 28-HĐBT dated March 22, 1989 of the Council of Ministers promulgating the Charter for Joint Ventures and Decree No. 28-HĐBT dated February 6, 1991 of the Council of Ministers detailing the implementation of the Law on Foreign Investment in Vietnam.
To ensure fair contributions from economic organizations engaged in joint ventures and to prevent double taxation, the Ministry of Finance provides guidance on calculating income tax for domestic economic organizations with income derived from joint venture activities as follows:
1. Economic organizations contributing capital to establish a joint venture, according to the Law on Foreign Investment in Vietnam, if they receive profits from joint venture operations must declare such profits and are not subject to income tax at the rate applicable to domestic enterprises.
2. For domestic economic organizations contributing capital to establish a joint venture with legal personality and independent accounting, if they receive profits from joint venture operations still must declare them but these shall not be considered additional income and need not be included in the total taxable income of the unit for tax calculation purposes again.
3. Regarding joint ventures between domestic economic organizations and foreign entities under contracts.
According to point a, Article 19 of Decree No. 28-HĐBT dated February 6, 1991 of the Council of Ministers detailing the implementation of the Law on Foreign Investment in Vietnam: Profits distributed must be declared and subject to income tax according to the Income Tax Law applicable to domestic enterprises.
Therefore, domestic economic organizations engaging in business cooperation based on contracts with foreign entities must declare and pay income tax at rates specified in the Income Tax Law.
4. In cases where domestic economic organizations form joint ventures among themselves under contracts, income tax is calculated on the entire financial result and declared by the unit acting as the representative (signature, account...), before profit distribution to the relevant tax authority of the province.
After paying income tax, the domestic economic organization receiving profits from the joint venture must still declare this to the tax authority but it shall not be considered additional income for calculating the overall income tax of the unit.
5. Economic organizations participating in joint ventures activities must report to the tax authority on the amount of capital contributed to joint ventures, industries involved, maintain and keep accounting records related to joint venture economic activities, and present relevant books and documents when requested by the tax authority.
These provisions shall take effect from January 1, 1991.
During implementation, if any difficulties arise, they should be reported to the Ministry of Finance for further study and guidance.
Bản đồ quan hệ
Bấm vào một văn bản để mở. Viền đỏ = quan hệ làm thay đổi hiệu lực.
Bản dịch
Văn bản này có sẵn ở các ngôn ngữ sau: