Circular No. 24TC/TCT guides the reduction of business income tax for businesses operating in mountainous areas in 1996, applicable to organizations and individuals of all economic sectors. The tax reduction rate is 50% for production, construction, and transportation industries, and 25% for other industries, from January 1, 1996 to December 31, 1996.
적용 범위
Organizations and individuals (referred to collectively as entities) of all economic sectors operating in mountainous areas, including entities established and operating under the Law on Foreign Investment in Vietnam.
핵심 사항
- Entities with fixed business locations or actually operating in mountainous areas are eligible for a 50% reduction in business income tax for production, construction, and transportation industries, and a 25% reduction for other industries.
- The tax reduction applies from January 1, 1996 to December 31, 1996.
- Entities must present their establishment permits and business registration certificates to the tax authority managing the mountainous area and declare and register tax payments according to regulations.
- The Tax Department is responsible for reviewing, guiding, and inspecting accounting work of entities to ensure accurate tax reductions and prevent tax evasion.
- Violations of declaration, registration, bookkeeping records, and accounting documents result in disqualification from tax reduction.
🌐 이 문서의 사회적 영향
- Positive impact: Helps reduce financial burdens for businesses in mountainous areas, encourages investment, and promotes production development.
- Negative impact: May cause difficulties in tax management if regulations are not strictly followed.
❓ 자주 묻는 질문
How much percentage of tax reduction do businesses in mountainous areas receive?
Businesses in mountainous areas receive a 50% reduction in business income tax for production, construction, and transportation industries, and a 25% reduction for other industries.
What is the duration of the tax reduction application period?
The tax reduction applies from January 1, 1996 to December 31, 1996.
What must businesses do to qualify for tax reduction?
Businesses must present their establishment permits and business registration certificates to the tax authority managing the mountainous area and declare and register tax payments according to regulations.
If there are violations in declarations, registrations, bookkeeping records, and accounting documents, can businesses still receive tax reduction?
Violations in declarations, registrations, bookkeeping records, and accounting documents disqualify businesses from receiving tax reduction.
Which agency is responsible for reviewing and guiding the implementation of tax reduction?
The Tax Department is responsible for reviewing, guiding, and inspecting accounting work of entities to ensure accurate tax reductions and prevent tax evasion.
전문
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIETNAM |
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NUMBER: 24TC/TCT |
HA NOI, MAY 10, 1996 |
CIRCULAR
DIRECTIVE NO. 24 TC/TCT OF THE MINISTRY OF FINANCE ON MAY 10, 1996 GUIDING THE REDUCTION OF BUSINESS INCOME TAX FOR BUSINESSES OPERATING IN MOUNTAINOUS AREAS IN 1996
Pursuant to Article 18 of the Business Income Tax Law and the Law Amending and Supplementing Certain Articles of the Business Income Tax Law adopted at the third session of the Ninth National Assembly on July 5, 1993; Directive No. 525/TTg dated November 2, 1993 on certain policies and measures for continued economic and social development in mountainous areas; and the opinion of the Prime Minister in Official Letter No. 287/KTTH dated January 21, 1994 from the Government Office, the Ministry of Finance guides certain points regarding the continued reduction of business income tax for businesses operating in mountainous areas to be implemented in 1996 as follows:
Article 1. Scope of Application:
a. The subjects eligible for tax reduction under this Circular include organizations and individuals (referred to collectively as entities) of all economic sectors (including entities established and operating under the Foreign Investment Law in Vietnam), which actually engage in production and business activities and generate business income within the highland and mountainous regions (excluding those mentioned in point 1b below), including:
- Entities with fixed business locations in mountainous areas and operating there or in other mountainous areas.
- Entities without fixed business locations in mountainous areas but actually operating in mountainous areas (construction, artistic performances, film screenings, etc.).
- Itinerant trade of domestically produced goods from mountainous areas to other places.
b. The following entities shall not be considered for tax reduction under this Circular:
- Fixed business households subject to business income tax under the quota system.
- New entities that have been exempted or granted tax reductions in 1996 according to Clause 3, Article 18 of the Business Income Tax Law; or granted tax reductions under Article 10 of the Law on Encouraging Domestic Investment.
- Entities belonging to units with full-sector accounting.
c. The mountainous area basis for tax reduction as stipulated in this Circular shall be determined based on the administrative boundaries of counties and towns (collectively referred to as counties) recognized as mountainous counties by the Ethnic Minorities Committee.
Some examples: County X is recognized as a mountainous county.
a. Enterprise A has a fixed production location in County X and a sales location in County Y (also a mountainous county) and Nam Dinh City (not a mountainous area). Enterprise A will be eligible for tax reduction on its production activities in County X and sales activities in County Y; however, it must pay the full business income tax on its sales activities in Nam Dinh City.
b. Construction enterprise B operates with a fixed business location in Nam Dinh City and undertakes construction projects in County X. Enterprise B will be eligible for tax reduction on the construction project in County X.
c. Enterprise C has a fixed production location in Nam Dinh City and a sales location in County X. Enterprise C must pay business income tax on its production activities in Nam Dinh City; it will be eligible for tax reduction on its sales activities in County X.
2. Level and duration of tax reduction:
- Reduction level: For manufacturing, construction, and transportation industries, the reduction is 50%; for other industries, the reduction is 25% of the business income tax payable to the State budget. Lottery operations are only eligible for tax reduction on lottery tickets and instant lottery games.
- Duration of tax reduction: One year, from January 1, 1996 to December 31, 1996.
3. Implementation:
a. To ensure that the tax reduction targets the correct entities and truly encourages and creates conditions for businesses to serve the production and living needs of mountainous residents in accordance with Directive No. 525/TTg of the Prime Minister, the Ministry of Finance requests the Tax Departments:
- To disseminate the government's policy on tax reduction to businesses and guide them on necessary procedures to implement the policy.
- To review and closely monitor both regular and irregular business activities in the region, promptly incorporating them into tax management according to the prescribed policies.
- To provide continuous guidance and strict oversight of accounting practices of businesses to accurately reflect all activities, ensuring accurate and targeted tax reduction while preventing tax evasion and promoting compliance with invoice and accounting regulations.
b. Businesses operating in mountainous areas eligible for tax reduction under this Circular are responsible for:
- Presenting establishment permits and business registration certificates to the tax authority managing the mountainous area where they conduct their business.
- Declaring and registering business income tax payments with the tax authority in accordance with regulations.
- Fully declaring business income generated periodically as required by the tax authority.
The calculation of tax reduction will be conducted directly by the tax authority managing the tax collection (Tax Department; Tax Branch) and approved by the head of the tax authority in the tax declaration and payment notification.
Entities violating declaration and registration requirements, bookkeeping, and accounting records will not be eligible for tax reduction under this Circular; they may also face penalties according to current regulations depending on the severity of the violation.
c. The tax authority must clearly record the business income tax payable, the amount of tax reduction, the remaining tax due, and other specified indicators on monthly tax receipts, tax declarations, tax ledgers, and accounting books.
At the end of the year, the tax authority must compile a comprehensive report on the implementation of tax reduction under this Circular and submit it to the Ministry of Finance (General Department of Taxation).
This Circular takes effect from January 1, 1996, replacing Circulars No. 20 TC/TCT dated March 12, 1994, No. 07 TC/TCT dated January 7, 1995, and No. 30 TC/TCT dated April 12, 1995 of the Ministry of Finance. Any issues arising during implementation should be reported to the Ministry of Finance for timely resolution.
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Vu Mong Giao (Signed) |
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