Circular No. 2007-TC/TCT regarding tax regulations for educational institutions' production and service activities

LETTER

OF THE MINISTRY OF FINANCE NUMBER 2007 TC/TCT DATED DECEMBER 26, 1990
REGARDING TAX REGIME FOR PRODUCTION AND SERVICE ACTIVITIES OF SCHOOLS
RECENTLY, THE MINISTRY OF EDUCATION AND TRAINING AND SOME INSTITUTIONS, CENTERS, AND SCHOOLS UNDER THE MINISTRY OF EDUCATION AND TRAINING HAVE SENT LETTERS TO THE COUNCIL OF STATE AND THE MINISTRY OF FINANCE REQUESTING GUIDANCE ON IMPLEMENTING TAX POLICIES FOR PRODUCTION AND SERVICE ACTIVITIES OF SCHOOLS.

On December 14, 1990, representatives of the Ministry of Finance met with representatives of the Ministry of Education and Training. It was determined that tax policies for labor production and scientific research activities in units under the Ministry of Education and Training should be implemented according to current state regulations, specifically:

1. Article 18 of Decree No. 53-HĐBT dated May 27, 1989 of the Council of Ministers stipulates: "Universities, secondary vocational schools, and general high schools that engage in production and business activities selling products externally must pay corporate tax or goods tax (if applicable)."

2. Decision No. 270-CT dated July 30, 1990 of the Chairman of the Council of Ministers on urgent issues for the academic year 1990-1991 stipulates: "For products produced by school production and service facilities and other educational institutions, if sold outside the scope of use

of the institution, they must pay tax according to the mechanism applicable to administrative agencies engaged in economic activities." 3. Letter No. 3986-PPLT dated December 7, 1990 from the Office of the Council of Ministers to the State Scientific Committee states: "Before the Chairman of the Council of Ministers signed Decision No. 268-CT, the issues mentioned in the above report by the State Scientific Committee were carefully considered by the Standing Committee of the Council of Ministers and relevant ministries and agencies. Therefore, the spirit and wording of this decision do not require adjustment or supplementation. The Office of the Council of Ministers requests to transfer the file for the Ministry of Finance to guide and assist the State Scientific Committee and the Ministry of Education and Training in strictly implementing Decision No. 268-CT of the Chairman of the Council of Ministers." 4. On November 9, 1990, Vice-Chairman of the Council of Ministers Vo Van Kiet noted: "Tax exemption for labor by staff and students producing products directly serving teaching, learning, and research activities within schools. Production activities with products sold externally must pay tax according to regulations."

5. The Ministry of Finance requests the Ministry of Education and Training to instruct subordinate units to comply strictly with current state regulations.

a) Pay corporate income tax, special consumption tax (if applicable), and profit tax in full. In cases where encouragement is needed as stated in point 4 above and for businesses facing difficulties, the Ministry of Finance will consider reducing the amount of profit tax payable by units according to the provisions of the Profit Tax Law.

b) Production and service business facilities within units under the Education and Training sector must obtain a business license and register for taxes as stipulated in Decision No. 268-CT dated July 30, 1990 of the Chairman of the Council of Ministers.

c) The Ministry of Finance will work with the Ministry of Education and Training to provide detailed guidance on classifying production, business, and service activities within units under the Education and Training sector that must register for tax payment.

b) Business service production and business establishments within units under the Education-Training sector must apply for a business license and register tax declarations in accordance with the provisions of Decision No. 268-CT dated July 30, 1990, issued by the Chairman of the Council of Ministers.

c) The Ministry of Finance, together with the Ministry of Education and Training, shall provide detailed guidance on classifying production, business, and service activities within units under the Education-Training sector that are required to register for tax declarations.