Circular No. 14-TC/TQD explains the implementation of corporate income tax for the basic transportation industry.

 CIRCULAR

Explanation on the implementation of corporate income tax for the bulk transportation industry
Administrative Procedure: Recognition of forest tree planting seed sources 

Circular No. 74 dated May 5, 1966 of the Ministry of Finance detailed the implementation of corporate income tax, temporarily exempting corporate income tax for cooperative organizations and individuals engaged in cargo transportation using wheelbarrows, three-wheeled trucks, ox-drawn carts, and rickshaws exclusively for carrying goods. According to the business tax regulations, these establishments must pay corporate income tax.

The aforementioned exemption was intended to support the rudimentary transportation sector during wartime, which faced numerous difficulties.

Currently, the situation has changed, and the operation of the rudimentary transportation sector is no longer as challenging as before. The income from transporting goods with wheelbarrows, three-wheeled trucks, ox-drawn carts, and rickshaws is generally higher than many other professions.

To ensure fair contributions between the rudimentary transportation sector and other professions, the Ministry of Finance decides that starting July 1, 1971, all establishments (collective and individual) engaged in transporting goods using wheelbarrows, three-wheeled trucks, ox-drawn carts, and rickshaws exclusively for carrying goods must also pay corporate income tax like other transportation professions.

However, for establishments operating in areas where transportation still faces difficulties and requires encouragement for such means of transport, the administrative committee may consider reducing taxes appropriately for a suitable period.

Additionally, the Ministry reminds the administrative committees to apply the general provisions in Article 32 of the business tax regulations regarding tax exemptions: "Establishments subject to corporate income tax with low revenue or facing difficulties due to natural disasters, enemy attacks, or unexpected accidents may be granted reductions or exemptions of corporate income tax for a certain period upon proposal by the tax collection agency."

To ensure the effective implementation of the corporate income tax regulations for the rudimentary transportation sector, the Ministry of Finance requests the administrative committees to direct transportation agencies and financial agencies to effectively carry out propaganda and explanations so that those engaged in rudimentary transportation clearly understand the temporary nature of previous tax exemptions, thereby recognizing their full obligations to contribute to the state budget for the cause of resisting the United States and saving the country and building socialism.