Decree No. 152/2004/ND-CP amending and supplementing some articles of Decree No. 164/2003/ND-CP dated December 22, 2003, guiding the implementation of the Law on Corporate Income Tax.

DECREE OF THE GOVERNMENT

Amending and supplementing some articles of Decree No. 164/2003/NĐ-CP

dated December 22, 2003, of the Government detailing the implementation of the Law on Corporate Income Tax

Pursuant to the Law on Corporate Income Tax No. 09/2003/QH11 dated June 17, 2003;

__________________________ 

THE GOVERNMENT

On the basis of  Law on Government Organization dated December 25, 2001;

Amending and supplementing some articles of Decree No. 164/2003/NĐ-CP

At the proposal of the Minister of Finance,

DECREE:

Article 1. dated December 22, 2003, of the Government detailing the implementation of the Law on Corporate Income Tax as follows: "Article 12. The taxpayers of income tax from the transfer of land use rights and lease rights are organizations engaged in production and business activities that derive income from the transfer of land use rights and lease rights.

1. Clause 12 shall be amended and supplemented as follows:

Households and individuals engaged in business activities that derive income from the transfer of land use rights and lease rights shall not pay income tax from the transfer of land use rights and lease rights according to this Decree but shall pay tax according to the current Law on Land Transfer Tax."

2. Point a of Clause 2, Article 33 is amended as follows:

"a) In special-class cities and class 1 cities: 100 people;"

Supplementing point e to Clause 1

3. Article 35 as follows: "e) Tax rate

20% for new service establishments established from investment projects implemented in Industrial Zones;  Tax rate 15% for new service establishments established from investment projects implemented in Export Processing Zones; new manufacturing establishments established from investment projects implemented in Industrial Zones;

Tax rate 10% for new infrastructure development establishments established from investment projects developing infrastructure in Industrial Zones and Export Processing Zones; export processing enterprises newly established in manufacturing sectors regardless of whether they are within or outside Export Processing Zones."

4. Supplementing Clause 13 to Article 36 as follows:

"13. New business establishments established from investment projects implemented in Industrial Zones and Export Processing Zones:

a) Exempted from tax for two years, starting from when taxable income is derived, and reduced by 50% of the tax payable for the next six years for new service establishments established from investment projects implemented in Industrial Zones;

b) Exempted from tax for three years

starting from when taxable income is derivedand reduced by 50% of the tax payable for the next seven years for new service establishments established from investment projects implemented in Export Processing Zones, and new manufacturing establishments established from investment projects implemented in Industrial Zones; c) Exempted from tax for four years, starting from when taxable income is derived, and reduced by 50% of the tax payable for the next seven years for new infrastructure development establishments established from investment projects developing infrastructure in Industrial Zones and Export Processing Zones; export processing enterprises in manufacturing sectors regardless of whether they are within or outside Export Processing Zones."

5. Article 37 is amended and supplemented as follows:

Corporate income tax incentives for economic zones and special investment encouragement projects are as follows:

"Article 37. 1. Business establishments operating in economic zones,

the preferential tax rates and tax exemption periods are decided by the Prime Minister but shall not exceed four years of tax exemption, starting from when taxable income is derived and reduced by 50% of the tax payable for the next nine years.2. New business establishments established from special investment encouragement projects;

new healthcare, education, training, and scientific research establishments with foreign investment capital are subject to a preferential tax rate of 10% for 15 years, starting from the date of commencement of business operations, exempted from tax for four years, starting from when taxable income is derived, and reduced by 50% of the tax payable for the next nine years. In cases requiring particularly high encouragement,the Ministry of Finance shall submit to the Prime Minister for approval to apply a preferential tax rate of 10% throughout the project implementation period. The list of special investment encouragement projects is specified by the Government during each period."

6. Amending Point 12, Section VI, List A as follows:

Investment in high-tech production, processing, and services in small and medium-sized industrial parks and industrial clusters.”

“12. This Decree takes effect 15 days after its publication in the Official Gazette and applies to tax periods from 2004 onwards.

Article 2. The corporate income tax incentives for investment projects implemented in High-Tech Zones shall be carried out according to the Prime Minister's Decision.

In cases where the corporate income tax incentives stipulated in the Investment License or Investment Incentive Certificate are lower than those prescribed in this Decree, the business establishment shall enjoy the incentives under this Decree for the remaining incentive period. For investment projects establishing new business establishments from January 1, 2004, until the effective date of this Decree, if applying the incentives under Decree No. 164/2003/NĐ-CP dated December 22, 2003, which are higher than those prescribed in this Decree, the business establishment shall enjoy the incentives under Decree No. 164/2003/NĐ-CP dated December 22, 2003, for the remaining incentive period.

All previous regulations on corporate income tax that conflict with this Decree are hereby abolished.

The Minister, Heads of Ministries equivalent to ministries, Heads of agencies under the Government, Chairmen

Article 3. The Ministry of Finance shall provide guidance on the implementation of this Decree;

Article 4. of provinces and centrally-administered cities are responsible for implementing this Decree./. the People's Committee The provinces and centrally governed cities are responsible for implementing this Decree./.