Circular No. 244-TC/TCT stipulates that organizations within the banking sector must pay business income tax and profit tax in accordance with current legal provisions, while providing specific guidance on declaration, registration, and payment of taxes for each type of bank.
Scope of application
Commercial banks, Development Banks, credit cooperatives, financial companies, and State Bank (if engaging in commercial activities outside their prescribed duties)
Key points
- Banks must declare, register, and pay business income tax at the local tax authority where the revenue is generated
- Banking institutions that consolidate profits across the entire sector must declare and pay profit tax at the Tax Bureau where the Central Bank's office is located
- Independent accounting banking units must declare and pay profit tax at the tax authority where each unit’s headquarters is situated
- Banks must comply with the national tax policy as prescribed by law and submit tax declarations in accordance with guidelines issued by the Ministry of Finance
- Any issues encountered during implementation should be directly discussed with the Ministry of Finance
🌐 Social impact of this document
- The banking sector must adhere to declaration, registration, and payment of taxes according to legal provisions
- Local tax authorities are guaranteed revenue from the business operations of the banking industry
❓ Frequently asked questions
Which banks must declare, register, and pay taxes?
All organizations within the banking sector such as commercial banks, Development Banks, credit cooperatives, financial companies, and State Bank (if engaging in commercial activities outside their prescribed duties)
Where do banking institutions that consolidate profits across the entire sector pay profit tax?
At the Tax Bureau where the Central Bank's office is located
Where do independent accounting banking units pay profit tax?
At the tax authority where each unit’s headquarters is situated
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 244-TC/TCT DATED FEBRUARY 28, 1991 REGARDING
PAYMENT OF BUSINESS INCOME TAX AND PROFIT TAX
FOR THE BANKING SECTOR
BASED ON THE LAWS ON BUSINESS INCOME TAX AND PROFIT TAX, DECREE NO. 351-HĐBộ trưởng AND DECREE NO. 353-HĐBT DATED OCTOBER 2, 1990 OF THE COUNCIL OF MINISTERS PROVIDING GUIDELINES FOR IMPLEMENTATION OF THE ABOVE LAWS, AND CIRCULARS NO. 45-TC/TCT AND NO. 47-TC/TCT DATED OCTOBER 4, 1990 OF THE MINISTRY OF FINANCE GUIDING IMPLEMENTATION OF THE LAWS AND DECREE OF THE COUNCIL OF MINISTERS MENTIONED ABOVE:
1. BUSINESS OPERATIONS OF THE BANKING SECTOR INCLUDE COMMERCIAL BANKS, DEVELOPMENT BANKS, CREDIT COOPERATIVES, FINANCIAL COMPANIES, AND THE STATE BANK (IF ENGAGING IN BUSINESS ACTIVITIES OUTSIDE THE DUTIES AND AUTHORITY DEFINED IN ARTICLE 3 OF THE ORDINANCE ON THE STATE BANK OF VIETNAM) ARE SUBJECT TO PAYMENT OF BUSINESS INCOME TAX AND PROFIT TAX.
2. REGARDING DECLARATION, REGISTRATION, PAYMENT OF BUSINESS INCOME TAX AND PROFIT TAX FOR THE BANKING SECTOR, THE MINISTRY OF FINANCE GUIDES AS FOLLOWS:
a) FOR BUSINESS INCOME TAX:
Banks engaging in the aforementioned business activities must declare and pay business income tax at local tax authorities where such income is generated by each bank or branch.
b) FOR PROFIT TAX:
- For banks that consolidate profits on an industry-wide basis, they shall declare and pay profit tax to the Tax Bureau located in the headquarters of the Central Bank;
- For banks that independently account for profits at each unit, they shall declare and pay profit tax at local tax authorities where such units are headquartered.
3. WE REQUEST THE LEADERS OF THE BANKING SECTOR TO DIRECT CENTRAL AND LOCAL BANKS TO IMPLEMENT THE GOVERNMENT'S TAX POLICIES ACCURATELY AND DECLARE AND PAY TAXES IN ACCORDANCE WITH GUIDELINES FROM THE MINISTRY OF FINANCE.
ANY ISSUES ENCOUNTERED DURING IMPLEMENTATION SHOULD BE DISCUSSED DIRECTLY WITH THE MINISTRY OF FINANCE.
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