Circular No. 151/2014/TT-BTC guides the implementation of Decree No. 91/2014/NĐ-CP dated October 1, 2014, of the Government on amending and supplementing certain provisions of decrees concerning tax.

CIRCULAR

Guidelines for implementing Decree No. 91/2014/ND-CP dated October 1, 2014 of the Government on amending and supplementing certain provisions of decrees on tax in 2014 by the Government to amend and supplement some Articlesin Decrees stipulating tax-related matters

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Pursuant to the Law on Tax Administration No. 78/2006/QH11 and the Law No. 21/2012/QH13 amending and supplementing certain provisions of the Law on Tax Administration;

Pursuant to the Law on Personal Income Tax No. 04/2007/QH12 and the Law No. 26/2012/QH13 amending and supplementing certain provisions of the Law on Personal Income Tax;

Pursuant to the Law on Value Added Tax No. 13/2008/QH12 and the Law No. 31/2013/QH13 amending and supplementing certain provisions of the Law on Value Added Tax;

Pursuant to the Law on Corporate Income Tax No. 14/2008/QH12 and the Law No. 32/2013/QH13 amending and supplementing certain provisions of the Law on Corporate Income Tax;

Pursuant to Decree No. 83/2013/ND-CP dated July 22, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Tax Administration and the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration;

Pursuant to Decree No. 65/2013/ND-CP dated June 27, 2013 of the Government detailing certain provisions of the Law on Personal Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax;

Pursuant to Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Value Added Tax;

Pursuant to Decree No. 218/2013/ND-CP dated December 26, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Corporate Income Tax;

Pursuant to Decree No. 91/2014/ND-CP dated October 1, 2014 of the Government on amending and supplementing certain provisions of decrees on tax;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director General of the State Revenue Administration,

The Minister of Finance guides the implementation of the provisions of Decree No. 91/2014/ND-CP dated October 1, 2014 of the Government on amending and supplementing certain provisions of decrees on tax as follows:

Article 1. Amend and supplement Clause e, Point 2.2 and Point 2.31, Clause 2, Article 6, Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance guiding the implementation of Decree No. 218/2013/ND-CP dated December 26, 2013 of the Government detailing and guiding the implementation of the Law on Corporate Income Tax (hereinafter referred to as Circular No. 78/2014/TT-BTC) as follows:

"e) The portion of depreciation corresponding to the original value exceeding VND 1.6 billion per vehicle for passenger cars with up to nine seats (excluding: vehicles used for passenger transport business, tourism, hotels; vehicles used as samples and test drives for automobile sales); the portion of depreciation for fixed assets being civil aircrafts, yachts not used for cargo transportation, passenger transportation, tourism, and hotel business.

Passenger cars with up to nine seats dedicated to commercial passenger transport, tourism, and hotel operations are those registered under the name of an enterprise that has one of the following business lines registered in its Enterprise Registration Certificate or Business Registration Certificate: passenger transport, tourism, hotel operation, and has been licensed to operate in accordance with legal documents on transportation, passenger transport, tourism, and hotels.

Civil aircrafts and yachts not used for commercial cargo and passenger transport are civil aircrafts and yachts of enterprises that have registered and accounted for depreciation of fixed assets, but in their Enterprise Registration Certificate or Business Registration Certificate, they do not register business lines for cargo transport, passenger transport, or tourism.

In cases where an enterprise transfers or liquidates passenger cars with up to nine seats, the residual value of the car is determined by subtracting the accumulated depreciation of the fixed asset from the original cost of the fixed asset according to the management and depreciation rules applicable up to the transfer or liquidation date.

Example 8: Enterprise A purchased a passenger car with fewer than nine seats at an original cost of 6 billion VND, and the company depreciated it over one year before selling it off. The accumulated depreciation according to the management and depreciation rules for fixed assets is 1 billion VND (with a depreciation period of six years as stipulated in the fixed asset depreciation regulations). The depreciation expense deductible for tax purposes is calculated as 1.6 billion VND divided by 6 years, which equals 267 million VND. Enterprise A sold the car for 5 billion VND.

Income from liquidating the car: 5 billion VND - (6 billion VND - 1 billion VND) = 0 VND

"2.31. Expenses not corresponding to taxable revenue, except for the following expenses:

- Actual expenses incurred by the enterprise for HIV/AIDS prevention and control activities at the workplace, including: training costs for enterprise staff on HIV/AIDS prevention and control, communication costs for HIV/AIDS prevention and control for enterprise employees, fees for HIV counseling, testing, and examination, support costs for HIV-infected enterprise employees.

- Actual expenses incurred by the enterprise to fulfill national defense and security education tasks, training, and activities of self-defense forces and other national defense and security tasks as prescribed by law.

- Actual expenses incurred by the enterprise to support political organizations and social organizations within the enterprise.

- Welfare expenses directly provided to employees, such as: funeral and wedding expenses for employees and their families; vacation expenses, treatment support expenses; supplementary knowledge learning expenses at educational institutions; support expenses for employees' families affected by natural disasters, enemy attacks, accidents, illness; award expenses for employees' children who excel in studies; travel expenses during holidays and festivals for employees, and other welfare expenses. The total amount of such welfare expenses shall not exceed one month of the average actual salary paid by the enterprise in the tax year.

Determining one month of the average actual salary paid by the enterprise in the tax year is calculated by dividing the annual salary fund by twelve months. The annual salary fund is defined in paragraph c, point 2.5, Clause 2, Article 6 of Circular No. 78/2014/TT-BTC dated June 18, 2014, issued by the Ministry of Finance.

Example: Enterprise A had an actual annual salary fund of 12 billion VND in 2014, then the determination of one month of the average actual salary paid by the enterprise in the 2014 tax year would be as follows: (12,000,000,000 VND ÷ 12 months) = 1,000,000,000 VND.

- Other expenses with special characteristics suitable for each industry or field as guided by the Ministry of Finance.

Article 2. Amend and supplement Clause 14, Article 7, Circular No. 78/2014/TT-BTC as follows:

"14. The difference arising from the revaluation of assets in accordance with the law for capital contribution, asset transfer when dividing, splitting, merging, consolidating, converting the form of enterprise (except in cases of equitization, restructuring, and modernizing state-owned enterprises with 100% state capital), shall be determined specifically as follows:

a) The difference arising from revaluation of assets is the difference between the revalued value and the remaining book value of the asset recorded in the accounting books, and is recognized once as other income (for increases) or deducted from other income (for decreases) in the tax period when determining the taxable income of the enterprise with revalued assets.

b) The difference arising from revaluation of land use rights for: capital contribution (where the enterprise receives the land use rights allocated gradually into deductible costs), reallocation when splitting, merging, consolidating, converting business forms, contributing to investment projects for building houses and infrastructure for sale, is recognized once as other income (for increases) or deducted from other income (for decreases) in the tax period when determining the taxable income of the enterprise with revalued land use rights.

Any increase due to the revaluation of the value of land use rights contributed to a business to form fixed assets for production and business activities, where the business receives the value of land use rights that are not subject to depreciation and are not allocated gradually to deductible costs, shall be gradually included in other income of the business with land use rights revalued over a maximum period of ten years starting from the year the value of land use rights was contributed. The business must notify the number of years it allocates to other income when submitting the tax return filing for corporate income tax for the year it begins to declare such income (the year of revaluation of land use rights contributed).

In cases where, after contributing capital, the business continues to transfer contributed capital by the value of land use rights (including cases of transferring contributed capital before the ten-year period), income from the activity of transferring contributed capital by the value of land use rights must be calculated and declared for tax according to income from the transfer of real estate.

The difference arising from the revaluation of the value of land use rights includes: For perpetual land use rights, it is the difference between the revalued value and the value recorded in the accounting books; for land use rights with a term, it is the difference between the revalued value and the remaining unallocated value of the land use rights.

c) A business receiving assets contributed, receiving assets transferred when splitting, separating, merging, consolidating, or converting the type of business can deduct depreciation or allocate gradually to costs based on the revalued price (except in cases where the value of land use rights is not subject to depreciation or allocation to costs as prescribed).

Article 3. Amend and supplement Clause 3, Article 8, Circular No. 78/2014/TT-BTC as follows:

"3. Income from the performance of scientific research and technological development contracts in accordance with the laws on science and technology is exempted from tax during the contract performance period but not exceeding three years from the date of commencement of revenue generation from the performance of scientific research and technological development contracts;

Income from selling products made using new technology applied for the first time in Vietnam in accordance with the provisions of the law and guidelines of the Ministry of Science and Technology is exempted from tax for a maximum of five years starting from the year revenue from selling such products is generated.

Income from selling experimental products during the experimental production period as prescribed by law.

a) Income from implementing scientific research and technological development contracts that are exempted from tax must meet the following conditions:

- Having a registration certificate for scientific research activities;

- Being recognized by the competent state management agency for science as a scientific research and technological development contract.

b) Income from selling products made using new technology applied for the first time in Vietnam that is exempted from tax must ensure that the new technology applied for the first time in Vietnam is recognized by the competent state management agency for science.

Article 4. Amend and supplement Clause 9, Article 8, Circular No. 78/2014/TT-BTC as follows:

"9. Income from performing state tasks assigned to the Vietnam Development Bank in credit investment activities, export credit; income from credit activities for poor people and other policy targets of the Vietnam Social Policy Bank; income of the Limited Liability Company managing assets of credit organizations in Vietnam; income from activities generating revenue from performing state tasks assigned to financial state funds: the Vietnam Social Security Fund, deposit insurance organization, Health Insurance Fund, vocational training support fund, overseas job placement support fund under the Ministry of Labor, Invalids and Social Affairs, farmer support fund, legal aid fund, public telecommunications service fund, local development investment fund, environmental protection fund, small and medium-sized enterprise guarantee fund, cooperative development support fund, poor women support fund, overseas citizen and legal entity protection fund, housing development fund, small and medium-sized enterprise development fund, national science and technology development fund, national technological innovation fund, income from performing state tasks assigned to land development fund and other state funds operating without profit-making objectives as prescribed or decided by the Government, Prime Minister and operating in accordance with the law.

In cases where units generate other income outside income from activities with revenue from performing state-assigned tasks, such income must be calculated and taxed according to the regulations.

Article 5. Supplement Point e and Point g, Clause 5, Article 18, Circular No. 78/2014/TT-BTC as follows:

"e) For investment projects that have been granted investment permits where the initial investment registration dossier submitted to the investment permit authority includes registered investment capital, phased investment plans along with implementation schedules, if subsequent phases are actually implemented according to the schedule (excluding cases of force majeure, difficulties due to objective reasons in land clearance, administrative procedures of state agencies, natural disasters, fires, or other unforeseen difficulties), then the subsequent project components of the initial investment project will enjoy tax incentives for the remaining time of the initial investment project starting from the point at which the subsequent project component begins to generate income eligible for incentives.

For investment projects licensed before January 1, 2014, which implement phased investments as mentioned above, the project components will enjoy tax incentives at the current applicable rate for the initial investment project for the remaining incentive period starting from January 1, 2014.

The income of project components of initial investment projects before January 1, 2014, which have enjoyed corporate income tax incentives under the provisions of legal documents prior to January 1, 2014, will not be adjusted for tax incentives already enjoyed before January 1, 2014.

During the implementation of project components in phases as mentioned above, if the investor is permitted by the state management agency for investment (as stipulated in Law on Investment No. 59/2005/QH11 dated November 29, 2005, and guiding legal documents) to extend the project implementation period and the enterprise implements according to the extended deadline, it will also enjoy tax incentives as prescribed above.

g) For investment projects of enterprises currently enjoying tax incentives, if there were additional investments in machinery and equipment regularly during the period 2009-2013, which are not part of new investment projects or expanded investment projects, the additional income generated from these regular investments in machinery and equipment will also enjoy tax incentives at the current applicable rate for the remaining period starting from the tax period of 2014.

Article 6. Amend and supplement Clause 3, Article 20, Circular No. 78/2014/TT-BTC as follows:

"3. Exempt two years of tax and reduce 50% of the tax payable for the next four years on income from new investment projects specified in Clause 4, Article 19 of Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance and income of enterprises from new investment projects in industrial zones (excluding industrial zones located in areas with favorable economic and social conditions).

The favorable economic and social conditions area specified in this clause refers to the inner-city districts of special-class cities, class-I cities directly under the central government, and class-I cities directly under provinces, excluding districts of special-class cities, class-I cities directly under the central government, and class-I cities directly under provinces newly established from counties since January 1, 2009; in cases where industrial zones are located in both favorable and unfavorable areas, the determination of tax incentives for industrial zones will be based on the actual location of the investment project on-site.

The identification of special-class cities and class-I cities as specified in this clause shall be carried out in accordance with the provisions of Government Decree No. 42/2009/NĐ-CP dated May 7, 2009, on the classification of cities and amendments to this Decree (if any).

Article 7. Supplement Clause 8, Article 23, Circular No. 78/2014/TT-BTC as follows:

"8. An enterprise still enjoys tax incentives based on export ratio conditions but has been suspended from such incentives due to commitments with the World Trade Organization (WTO) for textile and garment activities from January 11, 2007, and other activities from January 1, 2012, may choose to combine non-simultaneously and non-synchronously tax rate incentives and tax exemption and reduction periods to continue enjoying corporate income tax incentives for the remaining time starting from 2007 for textile and garment activities or from 2012 for other activities, corresponding to the actual tax incentive conditions met by the enterprise (excluding tax incentives based on meeting export ratio conditions or using domestic raw materials) as prescribed in consolidated legal documents on corporate income tax effective from the date the enterprise was granted the Business Registration Certificate until before the Government's Decree No. 24/2007/NĐ-CP dated February 14, 2007, detailing the implementation of the Law on Corporate Income Tax came into effect, or according to the legal documents on corporate income tax at the time when the enterprise's tax incentives were adjusted due to implementing WTO commitments.

In cases where businesses have chosen the conversion option according to previous documents (regardless of whether the business has been inspected or audited for tax), if implementing the conversion according to the guidance in this Circular is more beneficial, the business is allowed to choose to convert again according to the guidance in this Circular. The business must file adjustments and supplements according to the Tax Administration Law and guiding documents on tax administration and will not be penalized for tax law violations due to the adjustment. If, after filing adjustments and supplements, the business has paid more tax than required, the excess amount can be offset against the tax payable in the next tax period or refunded according to regulations. In cases where businesses have implemented adjustments according to the WTO commitments for the textile industry according to previous documents and have been penalized for tax law violations, late payment penalties, and have paid fines and late payment penalties, they will not be required to make further adjustments.

Article 8. Amend and supplement Point a Clause 8 Article 4 Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the implementation of the Law on Value Added Tax and Decree No. 209/2013/NĐ-CP dated December 18, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Value Added Tax (referred to collectively as Circular No. 219/2013/TT-BTC) as follows:

"a) Credit services include the following forms:

- Lending;

- Discounting, rediscounting transferable instruments and other securities;

- Bank guarantee;

- Financial leasing;

- Issuing credit cards.

In case credit institutions collect fees related to issuing credit cards, the fees collected from customers under the lending process (such as issuance fees) according to the lending regulations of credit institutions for customers like early repayment fees, late payment penalties, debt restructuring fees, loan management fees, and other fees within the lending process are exempt from Value Added Tax (VAT).

Transaction fees for card services that do not fall under the lending process, such as PIN replacement fees for credit cards, fee for providing transaction invoice copies, fee for claim reimbursement when using the card, lost card notification fee, card cancellation fee, card conversion fee, and other fees within this category are subject to VAT.

- Domestic factoring; international factoring for banks permitted to conduct international transactions;

- Sale of collateral assets by credit institutions or enforcement agencies or borrowers selling collateral assets pursuant to the lender's authorization to repay secured loans, specifically:

+ The collateral assets sold must be registered with the competent authority in accordance with the law on collateral registration.

+ The handling of collateral assets must comply with the law on collateral transactions.

When the repayment period expires and the debtor is unable to repay the debt and must hand over the collateral asset to the credit institution for the credit institution to handle the collateral asset according to the law, the parties must follow the legal procedures for handing over the collateral asset.

If the credit institution receives collateral assets to offset the debt obligation, the credit institution must record an increase in the value of production and business assets according to the regulations. When the credit institution sells these assets for business purposes, if they are subject to VAT, the credit institution must declare and pay VAT according to the regulations.

Example 3: In March 2014, Business A, a VAT taxpayer under the tax deduction method, mortgaged a chain of machinery and equipment to borrow capital from Bank B, with a borrowing term of one year (repayment deadline is March 31, 2015). By March 31, 2015, Business A was unable to repay the debt and had to hand over the collateral asset to Bank B. At the time of handing over the collateral asset, Business A must follow the legal procedures for handing over the collateral asset. When Bank B sells the collateral asset to recover the debt, the sold asset is exempt from VAT.

Example 3a: In December 2014, Business B, a VAT taxpayer under the tax deduction method, mortgaged a factory building and land use rights to borrow capital from Commercial Bank C, with a borrowing term of one year and a repayment deadline of December 15, 2016. Commercial Bank C and Business B registered the mortgage with the competent authority. By December 15, 2016, Business B was unable to repay the debt, and Commercial Bank C agreed in writing to release the mortgage so that Business B could sell the factory building to repay the debt. In January 2017, Business B sold the factory building to repay the debt, and the sold factory building is exempt from VAT.

- Credit information provision service provided by units or organizations under the State Bank for credit institutions to use in credit activities in accordance with the Law on the State Bank.

Example 4: Organization X is a unit under the State Bank authorized by the State Bank to provide credit information services. In 2014, Organization X signed a contract to provide credit information services to some commercial banks to serve credit activities and other bank activities. Revenue from credit information services provided to serve credit activities is exempt from VAT, while revenue from credit information services provided to serve other bank activities not in accordance with the Law on the State Bank is subject to VAT at a rate of 10%.

- Other forms of credit services as prescribed by law."

Article 9. Amend and supplement Clause 3 Article 14 Circular No. 219/2013/TT-BTC as follows:

"3. Input VAT on fixed assets, machinery, equipment, including input VAT on leasing activities of such fixed assets, machinery, equipment, and other related input VAT such as warranty, repair in the following cases shall not be deductible but included in the original cost of fixed assets or deductible costs according to the Enterprise Income Tax Law and its guiding documents: Fixed assets specifically used for producing weapons, military equipment serving national defense and security; fixed assets, machinery, equipment of credit organizations, reinsurance enterprises, life insurance enterprises, securities trading enterprises, medical facilities, training facilities; civil aircraft, yachts not used for commercial cargo and passenger transport, tourism, hotel business.

Fixed assets are automobiles carrying up to nine passengers (excluding vehicles used for commercial transportation of goods, passengers, tourism, hotels; vehicles used as samples and test drives for automobile sales) with a value exceeding 1.6 billion VND (excluding VAT) shall not be eligible for input VAT deduction corresponding to the value exceeding 1.6 billion VND.

Article 10. Amend and supplement Point c Clause 3 Article 15 Circular No. 219/2013/TT-BTC as follows:

"c) For goods and services purchased on deferred payment or installment with a value of goods and services purchased at or above twenty million dong, businesses shall base their declaration and deduction of input VAT on the purchase of goods and services on written purchase contracts, VAT invoices, and bank payment vouchers for deferred payment or installment purchases.

In cases where there are no bank payment vouchers due to the payment period not having arrived according to the contract, the business entity may still declare and deduct input VAT. When making payments, if the business entity does not have bank payment vouchers, the business entity must declare and adjust downward the amount of VAT already deducted for the portion of goods and services without bank payment vouchers during the tax period when cash payments occur (including situations where the tax authority and other competent agencies have made decisions to inspect or audit the tax period resulting in additional VAT declared and deducted).

Chapter III
INCOME TAX

Article 11. Amend and supplement Clause đ.1, Point đ, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013, guiding the implementation of the Law on Personal Income Tax, the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax, and Decree No. 65/2013/NĐ-CP of the Government detailing certain provisions of the Law on Personal Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax (collectively referred to as Circular No. 111/2013/TT-BTC) as follows:

"đ) Other monetary or non-monetary benefits outside of salary and wages paid by the employer that the taxpayer receives in any form:

đ.1) Housing allowance, electricity, water, and accompanying services (if any), excluding: housing benefits provided free of charge by the employer for employees working in industrial zones; housing built by the employer in economic zones, areas with difficult socio-economic conditions, and particularly difficult socio-economic conditions provided free of charge to employees.

In cases where individuals reside at the workplace, taxable income is based on rent or depreciation costs, electricity, water, and other services calculated according to the ratio between the area used by the individual and the total office area. Rent paid by the employer on behalf of the employee is included in taxable income based on the actual amount paid but not exceeding 15% of the total taxable income (excluding rent) at the unit.

Article 12. Amend and supplement Point c, Clause 2, Article 26 of Circular No. 111/2013/TT-BTC as follows:

"c) Resident individuals with income from salaries, wages, and business operations who are responsible for filing final tax returns if they have additional tax payable or overpaid tax requesting a refund or offset against the next tax period, except for the following cases:

c.1) Individuals whose additional tax payable is less than the tax already withheld and do not request a refund or offset against the next period.

c.2) Individuals and households engaged in business operations that have paid taxes under the presumptive taxation method.

c.3) Individuals and households solely deriving income from renting out houses or land use rights that have paid taxes based on declarations at the location of the rented house or land use rights.

c.4) Individuals with income from salaries and wages under employment contracts lasting three (03) months or more at one unit, who additionally earn casual income elsewhere averaging no more than 10 million VND per month during the year, which has been subject to withholding tax at source at a rate of 10% by the paying unit, and who do not request a refund or offset will not file a tax return for this portion of income.

c.5) Individuals with income from salaries and wages under employment contracts lasting three (03) months or more at one unit, who additionally earn income from renting out houses or land use rights with average monthly revenue not exceeding 20 million VND during the year, which has been paid at the location of the rented house or land use rights, and who do not request a refund or offset will not file a tax return for this portion of income.

c.6) Individuals who are insurance agents, lottery agents, or multi-level marketing sellers who have had their income subject to withholding of personal income tax by the organization will not file a tax return for this portion of income.

Article 13. Amend and supplement Clause 5, Article 30 of Circular No. 111/2013/TT-BTC as follows:

"5. For cases where the user acquires real estate through transfer during the period from July 1, 1994, to before January 1, 2009, if they submit an application for issuance of the Land Use Right Certificate, House Ownership Certificate, and Certificates for Other Assets Attached to Real Estate to the competent state agency for approval starting from January 1, 2009, they only need to pay personal income tax once. For users acquiring real estate through transfer before July 1, 1994, no personal income tax will be levied.

Starting from January 1, 2009, when implementing the Law on Personal Income Tax, individuals transferring real estate with either a notarized contract or a handwritten agreement must pay personal income tax for each transfer.

Chapter IV
TAX ADMINISTRATION

"đ) Taxpayers during periods of temporary cessation of business operations without generating tax liabilities do not need to submit tax declaration forms for the period of temporary cessation. If taxpayers temporarily cease business operations for less than a full calendar year or fiscal year, they still need to submit annual tax settlement forms.

đ.1) Taxpayers who register their business operations with the registration authority must notify in writing about the temporary cessation of business operations or resumption of business activities to the registration authority where they registered according to regulations.

The business registration agency shall be responsible for notifying the tax authority about the information on taxpayers temporarily suspending business operations or resuming business operations no later than two working days from the date of receipt of the document from the taxpayer. In the case where a taxpayer registers to temporarily suspend business operations, the tax authority shall be responsible for notifying the business registration agency about the outstanding tax liabilities owed to the state budget no later than two working days from the date of receipt of the information from the business registration agency.

d.2) For taxpayers who directly register for tax code issuance at the tax authority, before temporarily suspending business operations, the taxpayer must notify in writing the directly managing tax authority no later than fifteen (fifteen) days prior to the suspension of business operations. The notification content includes:

- Name, headquarters address, tax code;

- Duration of temporary suspension of business operations, start date and end date of the suspension period;

- Reason for temporarily suspending business operations;

- Full name, signature of the legal representative of the enterprise, representative of the group of individual businesses, or head of the household business.

Upon expiration of the temporary suspension period, the taxpayer must declare taxes according to regulations. If the taxpayer resumes business operations before the notified suspension period, they must notify in writing the directly managing tax authority simultaneously with submitting the tax declaration documents as prescribed.

"b) Value Added Tax Declaration Quarterly

b.1) Taxpayers Subject to Quarterly VAT Declaration

Quarterly tax declaration applies to taxpayers subject to value added tax whose total revenue from selling goods and providing services in the previous year does not exceed fifty billion dong.

In cases where new taxpayers commence production and business activities, quarterly value added tax declaration will be implemented. After operating for twelve months, starting from the next calendar year, the basis for monthly or quarterly VAT declaration will be determined based on the revenue from selling goods and services in the previous calendar year (full twelve months).

Example 21:

- Enterprise A commenced production and business activities from January 2015, thus in 2015, Enterprise A will implement quarterly VAT declaration. The enterprise will base its determination of monthly or quarterly VAT declaration for 2016 on the revenue of 2015 (full twelve months of the calendar year).

- Enterprise B commenced production and business activities from August 2014, thus in 2014 and 2015, Enterprise B will implement quarterly VAT declaration. The enterprise will base its determination of monthly or quarterly VAT declaration for 2016 on the revenue of 2015.

Taxpayers are responsible for self-determining whether they belong to the category of taxpayers subject to monthly or quarterly VAT declaration to comply with the regulations.

In cases where taxpayers meet the conditions and belong to the category of taxpayers subject to quarterly VAT declaration but wish to switch to monthly declaration, they must notify (using Form No. 07/GTGT issued together with this Circular) the directly managing tax authority no later than the deadline for submitting the VAT declaration form for the first month of the year when switching to monthly VAT declaration.

b.2) Period of Quarterly Tax Declaration

- Implementation of quarterly or monthly tax declaration is stable throughout the calendar year and follows a three-year cycle. Specifically, the initial stability cycle is from October 1, 2014 to December 31, 2016.

Example 22: Enterprise C had a total revenue of thirty-eight billion dong in 2013, thus it was subject to quarterly VAT declaration from October 1, 2014. If the revenue declared by the enterprise in 2014, 2015, and 2016 (including supplementary declarations or conclusions from inspections and audits) is fifty-five billion dong, then Enterprise C will continue to implement quarterly VAT declaration until the end of 2016. From 2017, the new tax declaration cycle will be determined based on the revenue of 2016.

Example 23: Enterprise D had a total revenue of fifty-seven billion dong in 2013, thus it implemented monthly VAT declaration. If the revenue declared by the enterprise in 2014 (including supplementary declarations or conclusions from inspections and audits) is forty-eight billion dong, then Enterprise D will continue to implement monthly VAT declaration until the end of 2016. From 2017, the new tax declaration cycle will be determined based on the revenue of 2016.

- During the stable quarterly tax declaration cycle, if taxpayers discover through their own means or through inspections and audits that the revenue of the previous year of the stable tax declaration cycle exceeds fifty billion dong, making them ineligible for quarterly VAT declaration during that stable cycle, then from the following year of discovery until the end of the cycle, taxpayers must implement monthly VAT declaration.

Example 24: Enterprise E had a total revenue of forty-seven billion dong on the VAT declaration form in 2013, thus it was subject to quarterly VAT declaration from October 1, 2014. In 2015, the tax authority concluded through an audit that the VAT taxable revenue of 2013 increased by five billion dong compared to the declared amount, totaling fifty-two billion dong, then in 2016, Enterprise E will implement monthly VAT declaration. From 2017, the new tax declaration cycle will be determined based on the revenue of 2016.

Example 25: Enterprise G had a total revenue of forty-seven billion dong on the VAT declaration form in 2013, thus it was subject to quarterly VAT declaration from October 1, 2014. In 2015, Enterprise G supplemented its declaration of VAT taxable revenue for 2013 by increasing it by five billion dong compared to the originally declared amount, totaling fifty-two billion dong, then in 2016, Enterprise G will implement monthly VAT declaration. From 2017, the new tax declaration cycle will be determined based on the revenue of 2016.

- During the stable monthly tax declaration cycle, if taxpayers discover through their own means or through inspections and audits that the revenue of the previous year of the stable tax declaration cycle is fifty billion dong or less, making them eligible for quarterly VAT declaration during that stable cycle, then taxpayers may choose between monthly or quarterly VAT declaration from the following year of discovery until the end of the cycle.

- For enterprises that have implemented quarterly tax declaration before the effective date of this Circular, the first stabilization period shall be calculated up to December 31, 2016.

b.3) Method for determining the turnover from selling goods and providing services in the preceding year as a condition for determining the subject of quarterly value-added tax declaration.

- The turnover from selling goods and providing services is determined as the total turnover on Value-Added Tax declarations for all taxable periods within the calendar year (including both taxable turnover and non-taxable turnover).

- In cases where the taxpayer declares taxes at the main office for subordinate units, the turnover from selling goods and providing services includes the turnover of the subordinate units.

"Article 12. Declaration of Corporate Income Tax

1. Responsibility for submitting corporate income tax declaration forms to the tax authority

a) The taxpayer submits the corporate income tax declaration form to the directly managing tax authority.

b) In cases where the taxpayer has subordinate units with independent accounting, such subordinate units submit the corporate income tax declaration form for transactions occurring at the subordinate unit to the directly managing tax authority of the subordinate unit.

c) In cases where the taxpayer has subordinate units but with dependent accounting, the subordinate unit does not need to submit the corporate income tax declaration form; when submitting the corporate income tax declaration form, the taxpayer must declare centrally at the main office including the portion arising from the subordinate unit.

d) In cases where the taxpayer has production bases (including processing and assembly bases) with dependent accounting operating in a different province or centrally-administered city from the location of the main office, when submitting the corporate income tax declaration form, the taxpayer must declare centrally at the main office including the portion arising from the main office and the production base with dependent accounting.

đ) For economic groups and corporations with dependent accounting subsidiaries if they can account for revenue, expenses, and taxable income, the subsidiary must declare and pay corporate income tax to the directly managing tax authority of the subsidiary.

e) In cases where the subsidiary engages in business activities different from the common business activities of the group or corporation and separately accounts for income from such different business activities, the subsidiary must declare corporate income tax to the directly managing tax authority of the subsidiary.

If it is necessary to apply a different tax declaration method than the guidance provided herein, economic groups and corporations must report to the Ministry of Finance for specific guidance.

2. Corporate income tax declaration is made either on a transaction-by-transaction basis, annual settlement, or settlement up to the time of decision regarding the enterprise's division, merger, consolidation, conversion of business form, dissolution, or cessation of operations. In cases of business form conversion where the entity taking over inherits all tax obligations of the enterprise before the conversion (such as converting from a Limited Liability Company to a Joint Stock Company or vice versa, converting a wholly state-owned enterprise into a Joint Stock Company, and other cases as prescribed by law), there is no need to settle tax up to the time of decision regarding the conversion; the enterprise only settles annual tax according to regulations.

Cases for declaring corporate income tax on a transaction-by-transaction basis:

- Declare corporate income tax on a transaction-by-transaction basis for real estate transfer activities applicable to enterprises without real estate trading functions and enterprises with real estate trading functions if required.

- Declare corporate income tax on a transaction-by-transaction basis applicable to foreign organizations conducting business or earning income in Vietnam (referred to collectively as foreign contractors) which do not operate under the Investment Law and the Enterprise Law and earn income from capital transfers.

3. Settlement of Corporate Income Tax

a) Settlement of Corporate Income Tax includes annual settlement and settlement up to the time of decision regarding the enterprise's division, merger, consolidation, conversion of business form, dissolution, or cessation of operations.

b) Documents for settlement of Corporate Income Tax include:

b.1) Corporate Income Tax Settlement Declaration Form according to Model No. 03/TNDN issued together with this Circular.

b.2) Annual financial statements or financial statements up to the time of decision regarding the enterprise's division, merger, consolidation, conversion of business form, dissolution, or cessation of operations.

b.3) One or more annexes accompanying the declaration form issued together with Circular No. 156/2013/TT-BTC and this Circular (depending on the actual situation of the taxpayer):

- Annex on business operation results according to Model No. 03-1A/TNDN, Model No. 03-1B/TNDN, and Model No. 03-1C/TNDN issued together with Circular No. 156/2013/TT-BTC.

- Annex on loss carryforward according to Model No. 03-2/TNDN issued together with Circular No. 156/2013/TT-BTC.

- Annexes on corporate income tax incentives:

+ Model No. 03-3A/TNDN: Corporate income tax incentives for newly established businesses from investment projects, businesses relocating their premises, and new investment projects issued together with Circular No. 156/2013/TT-BTC.

+ Model No. 03-3B/TNDN: Corporate income tax incentives for businesses investing in new production lines, expanding scale, modernizing technology, improving ecological environment, and enhancing production capacity (expansion investment) issued together with Circular No. 156/2013/TT-BTC.

+ Model No. 03-3C/TNDN: Corporate income tax incentives for businesses employing ethnic minority workers or businesses engaged in production, construction, transportation using a large number of female workers issued together with Circular No. 156/2013/TT-BTC.

- Appendix on corporate income tax paid abroad deductible in the tax period according to Form No. 03-4/TNDN issued together with Circular No. 156/2013/TT-BTC.

- Appendix on corporate income tax for real estate transfer activities according to Form No. 03-5/TNDN issued together with this Circular.

- Appendix on reporting the allocation and utilization of science and technology funds (if applicable) according to Form No. 03-6/TNDN issued together with Circular No. 156/2013/TT-BTC.

- Appendix on information on related party transactions (if applicable) according to Form No. 03-7/TNDN issued together with Circular No. 156/2013/TT-BTC.

- Appendix on the calculation and payment of corporate income tax for enterprises having production units under their accounting that are located in different provinces/cities directly under the central government from the location of their main office (if applicable) according to Form No. 03-8/TNDN issued together with Circular No. 156/2013/TT-BTC.

- In cases where enterprises have investment projects abroad, in addition to the above-mentioned documents, enterprises must supplement documents and materials in accordance with the guidance of the Ministry of Finance on corporate income tax.

4. Declaration of corporate income tax for real estate transfer activities in accordance with the laws on corporate income tax.

a) Enterprises conducting real estate transfer activities within the same province/city directly under the central government as the location of their main office shall declare taxes at the direct tax management agency (Tax Department or Tax Branch). In cases where enterprises have their main office in this province/city but conduct real estate transfer activities in other provinces/cities, they shall submit tax declaration documents at the Tax Department or Tax Branch decided by the Director of the Tax Department where the real estate transfer activities occur.

b) Enterprises that do not regularly engage in real estate transfer activities shall declare provisional corporate income tax each time such activity occurs. Enterprises that do not regularly engage in real estate transfer activities are those without the function of real estate business.

The tax declaration document for each real estate transfer transaction is the Real Estate Transfer Income Tax Return Form No. 02/TNDN issued together with this Circular.

At the end of the tax year when filing the final corporate income tax return at the main office, the enterprise must settle separately the corporate income tax from real estate transfers. At the main office, the handling of corporate income tax from real estate transfer activities is as follows: If the tax already paid is lower than the tax payable according to the final corporate income tax return, the enterprise must pay the remaining tax due to the state budget. If the tax already paid exceeds the tax payable according to the final corporate income tax return, the excess tax paid can be deducted from the outstanding corporate income tax of other business activities or deducted from the corporate income tax payable in the next period or refunded according to regulations. In cases where real estate transfer activities result in losses, the enterprise must track them separately and offset the losses from real estate transfers against profits from other production and business activities if any (applicable from January 1, 2014) and carry forward the losses to subsequent years in accordance with the laws on corporate income tax.

c) For enterprises that regularly engage in real estate transfer activities, they must pay provisional corporate income tax quarterly as prescribed. Enterprises that regularly engage in real estate transfer activities are those with the function of real estate business.

At the end of the tax year, enterprises must complete the final settlement of corporate income tax for all real estate transfer activities that have been provisionally paid quarterly or each time they occurred.

At the main office, the handling of corporate income tax from real estate transfer activities is as follows: If the provisional tax paid during the year is lower than the tax payable according to the final corporate income tax return, the enterprise must pay the remaining tax due to the state budget. If the provisional tax paid exceeds the tax payable according to the final corporate income tax return, the excess tax paid can be deducted from the outstanding corporate income tax of other business activities or deducted from the corporate income tax payable in the next period or refunded according to regulations. In cases where real estate transfer activities result in losses, the enterprise must track them separately and offset the losses from real estate transfers against profits from other production and business activities if any (applicable from January 1, 2014) and carry forward the losses to subsequent years in accordance with the laws on corporate income tax.

d) Enterprises implementing infrastructure investment projects, houses for transfer or lease, receiving advance payments from customers according to progress in any form shall:

- In cases where enterprises receive customer payments and can identify corresponding costs associated with recognized revenue (including pre-drawn costs of unfinished project items corresponding to recognized revenue), enterprises shall pay corporate income tax based on revenue minus costs.

- In cases where enterprises receive customer payments but cannot identify corresponding costs associated with revenue, enterprises shall provisionally pay corporate income tax at a rate of 1% of the revenue received, and this revenue does not need to be included in taxable revenue for the current year. When transferring real estate, enterprises must settle the actual corporate income tax for real estate transfer activities.

5. Enterprises and organizations subject to corporate income tax at a percentage rate on sales revenue and service income according to the laws on corporate income tax shall file the annual final corporate income tax return according to Form No. 04/TNDN issued together with this Circular.

In cases where enterprises or organizations subject to corporate income tax at a percentage rate based on sales revenue according to the Corporate Income Tax Law do not regularly engage in business activities subject to corporate income tax, they shall declare corporate income tax on a case-by-case basis using Form No. 04/TNDN issued along with this Circular, and are not required to file annual finalization returns.

6. In cases where an enterprise has production bases (including processing and assembly facilities) that are dependent accounting units operating in a province or centrally-administered city different from the location of its main office, when paying corporate income tax, the enterprise at the location of its main office shall be responsible for paying both the amount generated at the main office location and the amount generated at the location of the dependent production bases.

a) Procedures for transferring documents between the Treasury and the agency

The Enterprise shall independently determine the amount of corporate income tax payable at the main office location and each dependent production base according to the Corporate Income Tax Law to prepare tax payment vouchers for submission to the localities where the main office and each dependent production base are located. On the tax payment voucher, it must clearly state the deposit into the government budget account at the Treasury equivalent to the tax authority's registration location of the main office and the locality where the dependent production base is located. The Treasury at the main office location shall transfer funds and government revenue collection documents to the relevant Treasury to record government revenue for the tax portion of the dependent production base.

b) Finalization of tax

Enterprises shall declare and finalize corporate income tax at the main office location, the remaining corporate income tax payable shall be determined by subtracting the provisional tax paid at the main office location and provisional tax paid at the locations of the dependent production bases from the total tax payable according to the finalization. Any remaining tax payable or refundable upon finalization shall also be allocated proportionally at the main office location and at the locations of the dependent production bases.

7. Declaration of corporate income tax for capital transfer activities

a) Capital transfer income of enterprises is considered other income, enterprises with capital transfer income shall be responsible for determining, declaring the corporate income tax from capital transfers on the annual finalization declaration form.

In cases of selling a wholly-owned limited liability company under the ownership of an organization through capital transfer transactions linked to real estate, tax shall be paid on a case-by-case basis and declared using Form No. 06/TNDN issued along with this Circular, and finalized annually at the main office location of the enterprise.

b) Foreign organizations conducting business in Vietnam or earning income in Vietnam (collectively referred to as foreign contractors) which do not operate under the Investment Law or the Enterprise Law and have capital transfer activities shall declare corporate income tax on a case-by-case basis.

The entity receiving the capital transfer shall be responsible for determining, declaring, withholding, and remitting on behalf of the foreign organization the corporate income tax payable. If the recipient of the capital transfer is also a foreign organization not operating under the Investment Law or the Enterprise Law, then the enterprise established under Vietnamese law where the foreign organizations have invested capital shall be responsible for declaring and remitting on behalf of the foreign organization the corporate income tax payable from the capital transfer activity.

The deadline for submitting the tax declaration application is the tenth day following the date the competent authority approves the capital transfer transaction, or the tenth day following the date the parties agree on the capital transfer transaction in the capital transfer contract in cases where approval is not required.

Documents for tax declaration for income from capital transfer:

- Corporate Income Tax Declaration Form for Capital Transfer (Form No. 05/TNDN issued together with Circular No. 156/2013/TT-BTC);

- Copy of the capital transfer agreement. In cases where the capital transfer agreement is in a foreign language, it must be translated into Vietnamese for the main contents: the transferor; the transferee; the transfer time; the transfer content; rights and obligations of each party; the value of the agreement; payment terms, methods, and currency.

- Copy of the decision approving the capital transfer transaction by the competent authority (if applicable);

- Copy of the capital contribution certificate;

- Original receipts of all expenses.

In cases requiring additional documentation, the tax authority must notify the entity receiving the capital transfer on the same day of receipt if the documents are received directly; within three working days from the date of receipt if received via postal service or electronic transactions.

Location for submitting tax declaration documents: at the tax authority where the foreign organization's enterprise conducting the capital transfer is registered to pay taxes.

8. Inspection and finalization of corporate income tax for enterprises implementing division; merger; consolidation; conversion of enterprise type; dissolution; cessation of operations

8.1. The tax authority shall be responsible for inspecting and finalizing the tax of enterprises within fifteen working days from the date of receipt of related documents and files concerning the finalization of tax obligations in cases of division, merger, consolidation, conversion of enterprise type, dissolution, cessation of operations, except for cases specified in Point 8.2 of this Clause.

8.2. Cases of dissolution and cessation of operations where the tax authority does not need to carry out tax finalization:

a) Enterprises and organizations subject to corporate income tax at a percentage rate based on sales revenue according to the Corporate Income Tax Law that implement dissolution and cessation of operations.

b) An enterprise that is dissolved or ceases operations but has not generated revenue from the date it was issued a Business Registration Certificate or Enterprise Registration Certificate until the date of dissolution or cessation of operations, and has not used invoices.

c) An enterprise subject to corporate income tax based on declaration that dissolves or ceases operations if it meets the following conditions:

- The average annual revenue (calculated from the year not yet settled or audited for tax purposes to the date of dissolution or cessation of operations) does not exceed one billion VND per year.

- From the year not yet settled or audited for tax purposes to the date of dissolution or cessation of operations, the enterprise has not been penalized for violations of laws related to tax evasion.

- The amount of corporate income tax paid from the year not yet settled or audited for tax purposes to the date of dissolution or cessation of operations is higher than the corporate income tax calculated at a percentage rate on sales revenue.

For the cases mentioned in sub-items a, b, and c of this point, within no more than five working days from the date of receiving the file submitted by the taxpayer (including the decision to dissolve or cease operations; documents proving that the taxpayer falls under the above cases and has paid all taxes due, if applicable), the tax authority shall confirm that the enterprise has fulfilled its tax obligations.

8.3. For enterprises that dissolve or cease operations and do not fall under the cases specified in Article 8.2 of this Decree, based on actual needs, the direct managing tax authority may commission and utilize the results of the tax settlement audit conducted by independent auditing companies or organizations providing tax service procedures as stipulated in Article 18 of this Circular.

"Article 12a. Advance payment of corporate income tax quarterly and annual tax settlement

Based on business production and operation results, taxpayers shall make advance payments of corporate income tax for the quarter no later than the thirtieth day of the following quarter in which the tax liability arises; enterprises are not required to submit quarterly provisional tax return forms.

For enterprises required to prepare quarterly financial reports according to the law (such as state-owned enterprises, listed enterprises on the stock market, and other cases as prescribed), enterprises shall base their advance quarterly tax payments on the quarterly financial report and relevant tax laws.

For enterprises not required to prepare quarterly financial reports, enterprises shall base their advance quarterly tax payments on the previous year's corporate income tax and projected business results for the current year.

If the total advance tax payments during the tax period are lower than the corporate income tax payable upon annual settlement by twenty percent or more, the enterprise must pay late payment interest on the difference between the advance tax payments and the tax payable upon annual settlement, starting from the day following the last day of the fourth quarter tax payment deadline until the day the outstanding tax is actually paid.

If the quarterly advance tax payments are lower than the tax payable upon annual settlement by less than twenty percent and the enterprise delays payment beyond the prescribed deadline (annual tax settlement filing deadline), late payment interest will be charged from the end of the tax payment deadline until the day the outstanding tax is actually paid.

In cases where the competent authority discovers an increase in the tax payable upon annual settlement compared to the declared tax after the enterprise has filed its annual tax settlement, the enterprise will be charged late payment interest on the entire additional tax payable from the day following the last day of the annual tax settlement filing deadline until the day the additional tax is actually paid.

Example 1: For the 2014 tax period, Enterprise A made advance payments of corporate income tax totaling 80 million VND. Upon annual settlement, the corporate income tax payable was 90 million VND, an increase of 10 million VND. Since the difference between the tax payable upon annual settlement and the advance tax payments is less than twenty percent, the enterprise only needs to pay the remaining 10 million VND into the state budget according to the prescribed deadline. If the enterprise delays payment of this difference, late payment interest will be charged as prescribed.

Example 2: Enterprise B has a fiscal year coinciding with the calendar year. For the 2015 tax period, the enterprise made advance payments of corporate income tax totaling 80 million VND. Upon annual settlement, the corporate income tax payable was 110 million VND, an increase of 30 million VND.

Twenty percent of the tax payable upon annual settlement is: 110 x 20% = 22 million VND.

The difference amount of 20% or more is valued at: 30 million - 22 million = 8 million VND.

At that time, Enterprise B must pay the remaining tax due after settlement of accounts, which is 30 million VND. Simultaneously, Enterprise B will be subject to late payment interest on the tax difference of 20% or more (which is 8 million VND) from the day following the last day of the deadline for paying the fourth quarter tax (from January 31, 2016) until the actual date of payment of the outstanding tax. The remaining tax difference (which is 30 - 8 = 22 million VND) if paid late by the enterprise will incur late payment interest from the day following the last day of the deadline for submitting the final settlement report (from April 1, 2016) until the actual date of payment of this tax.

In case during the year 2017, the tax authority conducts a tax inspection at Enterprise B and discovers that the corporate income tax that Enterprise B must pay for the 2015 tax period is 160 million VND (an increase of 50 million VND compared to the tax payable declared in the final settlement report), for the additional tax discovered through the inspection, the enterprise will be subject to penalties for violation of tax laws as prescribed, including late payment interest on the additional tax of 50 million VND from April 1, 2016, to the actual date of payment of this tax, without separately calculating the portion exceeding 20% of the additional tax.

Example 3: For the 2016 tax period, Enterprise C had temporarily paid corporate income tax of 80 million VND, when finalizing the annual settlement, the corporate income tax payable according to the final settlement was 70 million VND, then the excess tax payment of 10 million VND will be considered as the provisional tax payment for the next year or refunded according to regulations.

"Article 12b. Mechanism for the tax authority to commission and utilize the results of independent auditing companies and organizations providing tax service procedures to conduct final settlement tax inspections of dissolved enterprises and those ceasing operations:

1. Rights and responsibilities of independent auditing companies and organizations providing tax service procedures

1.1. When performing the final settlement tax service contract, the independent auditing company and organization providing tax service procedures have the following rights:

a) To carry out the tasks and receive remuneration as stipulated in the contract signed with the tax authority.

b) To request taxpayers to provide complete and accurate documents, records, and information necessary for the final settlement tax process as stipulated in the contract signed with the tax authority.

1.2. Responsibilities of the independent auditing company and organization providing tax service procedures

a) To bear legal responsibility for the results of the final settlement tax service based on the declaration forms submitted by taxpayers. If the competent state agency finds errors in the final settlement tax report affecting the tax payable or refundable to the taxpayer, the independent auditing company and organization providing tax service procedures shall be responsible for paying the outstanding tax, the higher refundable tax, and be subject to tax law violations as if the taxpayer had violated.

b) To provide accurate and timely documentation and evidence upon request of the tax management agency to prove the accuracy of the final settlement tax inspection service.

c) To keep confidential the information of taxpayers. If the taxpayer has sufficient evidence that the independent auditing company and organization providing tax service procedures have not fulfilled this responsibility, causing damage to the taxpayer, the taxpayer has the right to request the tax authority to terminate the service contract.

2. Rights and responsibilities of the direct tax management agency of the taxpayer

a) To select and sign annual service contracts with independent auditing companies and organizations providing tax service procedures.

b) To accept the final settlement tax application from the taxpayer and assign it to the independent auditing company and organization providing tax service procedures that have signed the service contract.

c) To notify the taxpayer about the independent auditing company and organization providing tax service procedures conducting the final settlement tax inspection.

d) To use the unit's funds to pay the independent auditing company and organization providing tax service procedures according to the service contract signed.

e) To unilaterally terminate the contract's effectiveness if it is found that the independent auditing company and organization providing tax service procedures have breached the contract.

3. The Director of the General Department of Taxation shall issue guidelines for tax agencies at all levels to uniformly implement the use of funds and sources of funding to pay independent auditing companies and organizations providing tax service procedures under service contracts for final settlement tax inspections of dissolved enterprises and those ceasing operations.

"a.3) Organizations and individuals paying income subject to personal income tax are responsible for declaring and settling personal income tax and settling personal income tax on behalf of individuals who have authorized them regardless of whether withholding tax has occurred or not. If organizations and individuals do not generate income payments, they are not required to declare and settle personal income tax.

In cases where organizations and individuals paying income dissolve or cease operations and have generated income payments but no withholding of personal income tax has occurred, these organizations and individuals are not required to settle personal income tax, but must provide the tax authority with a list of individuals who received income payments during the year (if any) using Form 25/DS-TNCN issued together with this Circular, no later than the 45th day from the date of the decision to dissolve or cease operations.

"2. Declaration and payment of corporate income tax for hydropower production activities

Taxpayers engaged in hydropower production activities shall make provisional payments and declare final settlement of corporate income tax in accordance with the guidance provided in Articles 16 and 17 of this Circular.

Declare and pay corporate income tax for specific cases as follows:

a) Independent accounting hydroelectric companies shall declare and pay corporate income tax at their headquarters location; independent accounting hydroelectric companies with dependent accounting hydroelectric production facilities operating in provinces or centrally governed cities different from the location of their headquarters shall have corporate income tax calculated and paid at both the headquarters and the locations of the dependent hydroelectric production facilities according to the Corporate Income Tax Law;

Dependent accounting hydroelectric production facilities of power generation corporations under the Vietnam Electricity Group or the parent company of the Vietnam Electricity Group (referred to as EVN) (including dependent accounting hydroelectric companies and dependent hydroelectric plants) located in provinces or centrally governed cities different from the headquarters of EVN and power generation corporations shall have corporate income tax calculated and paid at both the headquarters and the locations of the dependent hydroelectric production facilities according to the Corporate Income Tax Law.

b) In the case where a hydroelectric power plant (where the turbine, dam, and other main facilities of the hydroelectric power plant are located) is situated across multiple provinces or centrally governed cities, the corporate income tax generated by the hydroelectric power plant shall be paid to the provincial budgets according to the proportion of the investment value of the hydroelectric power plant (including: turbines, dams, and other main facilities of the hydroelectric power plant) located within each province or centrally governed city. The hydroelectric production facility shall prepare a distribution table of the corporate income tax payable by the facility to localities according to Form No. 02-1/TĐ-TNDN issued together with this Circular. The hydroelectric production facility shall declare corporate income tax at the locality where its headquarters is located while simultaneously sending the Corporate Income Tax Final Settlement Declaration Form according to Form No. 03/TNDN issued together with this Circular, the Appendix for Calculating Corporate Income Tax of Enterprises with Dependent Production Facilities according to Form No. 03-8/TNDN issued together with Circular No. 156/2013/TT-BTC (for enterprises with dependent hydroelectric units), and the Distribution Table of Corporate Income Tax Payable by Hydroelectric Production Facilities to Localities according to Form No. 02-1/TĐ-TNDN issued together with this Circular to the local tax authority where the tax revenue is received.

c) In the case where a hydroelectric production facility has multiple hydroelectric power plants, including those located in provinces or centrally governed cities different from the location of the hydroelectric production facility's headquarters, if it is not possible to determine the cost ratio of each hydroelectric power plant due to centralized accounting without separate accounting for each hydroelectric power plant, the amount of corporate income tax payable in the province or centrally governed city where the hydroelectric power plant is located shall be determined by multiplying the total corporate income tax payable for the period by (x) the ratio of the electricity production volume of the hydroelectric power plant to the total electricity production volume of the hydroelectric production facility.

1. Supplement Point a and Point d Clause 1 Article 31 as follows:

"a) Suffering material damage directly affecting production and business operations due to natural disasters, fires, or unexpected accidents.

Material damage refers to losses of assets of taxpayers that can be quantified in monetary terms such as machinery, equipment, means of transportation, materials, goods, factories, offices, money, and valuable papers.

Unexpected accidents refer to unforeseen incidents occurring suddenly outside the control of taxpayers caused by external factors that directly affect the taxpayer's production and business activities, not due to violations of the law. Situations considered as unexpected accidents include traffic accidents, workplace accidents, contracting serious illnesses, being infected with contagious diseases during times and in regions declared by competent authorities as having contagious disease outbreaks, and other force majeure situations.

The list of serious illnesses shall be implemented according to the provisions of regulatory legal documents.

"d) Being unable to pay taxes on time due to encountering other special difficulties.

Other special difficulties include: the main business activity of the taxpayer being prohibited or suspended temporarily according to the requirements of competent state agencies (excluding cases of prohibition or suspension due to violation of the law); partners canceling or failing to make timely payments according to signed contracts causing the taxpayer's production and business results to suffer losses due to the partner being in one of the following situations:

- Bankruptcy;

- The enterprise manager as stipulated by the Enterprise Law or the individual business owner dying suddenly;

- The enterprise manager as stipulated by the Enterprise Law or the individual business owner going missing."

2. Amend and supplement Point c Clause 2 Article 31 as follows:

"c) The taxpayer mentioned in Point c Clause 1 of this Article shall be granted an extension for the amount of overdue tax at the time of the request for extension. The maximum extended tax amount shall not exceed the unpaid government budget funds including the value of advisory, supervisory, survey, design, and project planning services for construction projects or project components directly contracted by the taxpayer with the project sponsor funded by the government budget or sourced from the government budget. The maximum tax payment extension period shall not exceed two years from the date of the tax payment deadline.

Example 41: On December 26, 2014, the tax authority received a request for tax payment extension dated December 23, 2014, accompanied by the tax payment extension application documents, specifically as follows:

According to the sponsor's confirmation letter, the amount of government budget funds yet to be paid to the taxpayer is 100 million VND. Company D owes 250 million VND in taxes, including: 60 million VND in VAT due on July 21, 2014; 190 million VND in corporate income tax due on July 30, 2014.

Giả sử hồ sơ gia hạn đầy đủ theo quy định, Công ty D được xử lý gia hạn nộp thuế với số tiền thuế là 100 triệu đồng:

Thuế GTGT 60 triệu đồng được gia hạn từ ngày 22/7/2014 và tối đa không quá ngày 21/7/2016.

Thuế TNDN chỉ được gia hạn 40 triệu đồng từ ngày 31/7/2014 và tối đa không quá ngày 30/7/2016.

Số tiền thuế TNDN 150 triệu đồng còn lại Công ty D phải nộp vào ngân sách nhà nước.

c.1) Đối với những khoản tiền thuế nợ đã được cơ quan thuế ban hành quyết định gia hạn với thời hạn 01 (một) năm, nếu hết thời gian gia hạn người nộp thuế chưa được ngân sách nhà nước thanh toán và khoản tiền thuế nợ vẫn trong thời hạn 02 (hai) năm kể từ ngày hết thời hạn nộp thuế đến ngày đề nghị gia hạn thì được xem xét gia hạn tiếp với thời gian không quá 01 (một) năm.

Người nộp thuế gửi văn bản đề nghị gia hạn nộp thuế và văn bản xác nhận của chủ đầu tư về số vốn chủ đầu tư chưa thanh toán cho người nộp thuế tính đến thời điểm đề nghị gia hạn nộp thuế để được xem xét gia hạn tiếp.

Ví dụ: Ngân sách nhà nước nợ người nộp thuế A 100 triệu đồng, người nộp thuế A nợ thuế GTGT 100 triệu đồng, khoản tiền thuế nợ này có hạn nộp là ngày 20/5/2013.

Cơ quan thuế đã ban hành quyết định gia hạn nộp thuế với số tiền là 100 triệu đồng và thời gian được gia hạn đến ngày 20/5/2014.

Đến ngày 26/11/2014, ngân sách nhà nước chưa thanh toán 100 triệu đồng cho người nộp thuế A và người nộp thuế A đề nghị gia hạn nộp thuế gửi đến cơ quan thuế. Khoản nợ thuế GTGT 100 triệu đồng được gia hạn tiếp và thời gian gia hạn không quá ngày 20/5/2015."

c.2) Trong thời gian đang được gia hạn mà ngân sách nhà nước thanh toán vốn đầu tư xây dựng cơ bản còn nợ thì người nộp thuế có trách nhiệm nộp số tiền thuế vào ngân sách nhà nước ngay sau ngày được thanh toán, cụ thể như sau:

- Nếu vốn đầu tư được thanh toán bằng hoặc lớn hơn số tiền thuế được gia hạn thì người nộp thuế có trách nhiệm nộp ngay số tiền thuế đang được gia hạn vào ngân sách nhà nước.
- Nếu vốn đầu tư được thanh toán nhỏ hơn số tiền thuế được gia hạn thì người nộp thuế có trách nhiệm nộp ngay số tiền thuế bằng số vốn được thanh toán. Người nộp thuế có thể lựa chọn nộp toàn bộ hoặc một phần số tiền thuế của một loại thuế nào đó trong các khoản thuế được gia hạn.

Số tiền thuế đã được gia hạn còn lại và chưa được ngân sách nhà nước thanh toán thì tiếp tục được gia hạn cho đến hết thời hạn gia hạn hoặc đến thời điểm được ngân sách nhà nước thanh toán trong thời gian gia hạn.

c.3) Trường hợp cơ quan có thẩm quyền phát hiện người nộp thuế không nộp tiền thuế được gia hạn khi được ngân sách nhà nước thanh toán thì phải tính tiền chậm nộp đối với số tiền thuế được gia hạn kể từ ngày kế tiếp ngày được thanh toán theo quy định tại Điều 34 Thông tư số 156/2013/TT-BTC."

Chương V 
TỔ CHỨC THỰC HIỆN

Điều 22. Hiệu lực thi hành

Thông tư này có hiệu lực thi hành kể từ ngày 15 tháng 11 năm 2014.

Riêng quy định tại Chương I Thông tư này áp dụng cho kỳ tính thuế thu nhập doanh nghiệp từ năm 2014.

Điều 23. Thay thế cụm từ và các biểu mẫu sau:

1. Thay thế cụm từ "Khu công nghiệp nằm trên địa bàn các quận nội thành của đô thị loại đặc biệt, đô thị loại I trực thuộc trung ương và khu công nghiệp nằm trên địa bàn các đô thị loại I trực thuộc tỉnh" tại Thông tư số 78/2014/TT-BTC bằng cụm từ "Khu công nghiệp nằm trên địa các quận nội thành của đô thị loại đặc biệt, đô thị loại I trực thuộc trung ương và các đô thị loại I trực thuộc tỉnh, không bao gồm các quận của đô thị loại đặc biệt, đô thị loại I trực thuộc trung ương và các đô thị loại I trực thuộc tỉnh mới được thành lập từ huyện kể từ ngày 01/01/2009".

2. Thay thế các mẫu biểu 02/TNDN, 03/TNDN, 03-5/TNDN, 04/TNDN, 02-1/TĐ-TNDN ban hành kèm theo Thông tư số 156/2013/TT-BTC bằng các mẫu biểu mới tương ứng ban hành kèm theo Thông tư này.

Điều 24. Tạm thời chưa thực hiện truy thu thuế thu nhập doanh nghiệp (bao gồm cả trường hợp đã ban hành Quyết định xử lý truy thu thuế hoặc doanh nghiệp đang trong thời gian xử lý khiếu nại) đối với các cơ sở thực hiện xã hội hóa trong lĩnh vực giáo dục đào tạo, dạy nghề,y tế, văn hóa, thể thao, môi trường nhưng chưa đáp ứng theo Danh mục chi tiết các loại hình, tiêu chí quy mô, tiêu chuẩn của các cơ sở thực hiện xã hội hóa trong lĩnh vực giáo dục đào tạo, dạy nghề, y tế, văn hóa, thể thao, môi trường do Thủ tướng Chính phủ quy định cho đến khi có hướng dẫn mới của cơ quan Nhà nước có thẩm quyền.

Điều 25. Trách nhiệm thi hành

1. Uỷ ban nhân dân các tỉnh, thành phố trực thuộc Trung ương chỉ đạo các cơ quan chức năng tổ chức thực hiện đúng theo quy định của Chính phủ và hướng dẫn của Bộ Tài chính.

2. Cơ quan thuế các cấp có trách nhiệm phổ biến, hướng dẫn các tổ chức, cá nhân thực hiện theo nội dung Thông tư này.

3. Tổ chức thuộc đối tượng điều chỉnh của Thông tư này thực hiện theo hướng dẫn tại Thông tư này. Trong quá trình thực hiện nếu có vướng mắc, đề nghị các tổ chức, cá nhân phản ánh kịp thời về Bộ Tài chính để nghiên cứu giải quyết.

Trong quá trình thực hiện nếu có vướng mắc, đề nghị các tổ chức, cá nhân phản ánh kịp thời về Bộ Tài chính để nghiên cứu giải quyết./.