Circular guiding the calculation of reasonable expenses and determination of taxable income for corporate income tax in journalism activities, particularly commission fees paid to units and individuals seeking advertising clients for newspapers.
Đối tượng áp dụng
Journalism agencies and public service entities with revenue conducting production and service supply activities
Các điểm cốt lõi
- Commission brokerage costs paid to units and individuals seeking advertisements are included as reasonable expenses when determining taxable income for corporate income tax but not exceeding 10% of the total amount of reasonable expenses (Point 11, Section III, Part B Circular No. 128/2003/TT-BTC).
- Public service entities with revenue must declare and pay corporate income tax in accordance with the Corporate Income Tax Law and guiding documents (Circular No. 25/2002/TT-BTC).
- Total costs are determined according to Circular No. 25/2002/TT-BTC, excluding unreasonable expenses such as purchasing fixed assets, implementing state-level scientific research projects; departmental or sector-level projects; and personnel reduction costs in accordance with regulations set by the State.
- If the total amount of commission fees exceeds 10% of the total reasonable expenses, the excess portion will not be included as reasonable expenses when determining taxable income for corporate income tax (Point 11, Section III, Part B Circular No. 128/2003/TT-BTC).
- Public service entities with multiple production and service activities must report to the local tax authority to determine the tax payable for their service activities.
🌐 Tác động xã hội từ văn bản này
- Assist journalism agencies and public service entities with revenue in declaring and calculating reasonable expenses when determining taxable income for corporate income tax.
- Strengthen financial management of advertising on newspapers.
- Contribute to enhancing the efficiency of resource utilization in public service entities with revenue.
❓ Câu hỏi thường gặp
To what extent can commission fees paid to units and individuals seeking advertising clients be included as reasonable expenses?
Up to a maximum of 10% of the total amount of reasonable expenses.
How must public service entities with revenue declare and pay corporate income tax?
Must comply with regulations set forth in the Corporate Income Tax Law and Circular No. 25/2002/TT-BTC.
What are unreasonable expenses excluded from total costs when determining them?
Exclude expenses for purchasing fixed assets, implementing state-level scientific research projects; departmental or sector-level projects; and personnel reduction costs in accordance with regulations set by the State.
If the total amount of commission fees exceeds 10% of the total reasonable expenses, will the excess portion be included as reasonable expenses?
No, the excess portion will not be included as reasonable expenses when determining taxable income for corporate income tax.
What must public service entities with multiple production and service activities do to determine their tax payable?
Must report to the local tax authority where the entity is headquartered to determine the tax payable for their service activities.
Toàn văn
LETTER
OF THE MINISTRY OF FINANCE NO. 2925 TC/TCT DATED MARCH 14, 2005
REGARDING TAXES ON JOURNALISM ACTIVITIES
Dear: - Ministries, Agencies Equivalent to Ministries, and Government Agencies
- People's Committees of Provinces and Central Cities.
Recently, the Ministry of Finance received comments from several units regarding the inclusion of reasonable expenses when determining taxable income for corporate income tax (CIT) on commissions paid to entities and individuals who find advertising clients for newspapers and methods of accounting and determining CIT on journalism activities. Regarding this issue, the Ministry of Finance has the following opinions: following:
1. On commissions paid to entities and individuals finding advertising clients for Newspapers:
Commissions paid to entities and individuals seeking advertisements are considered brokerage fees. According to Point 11, Section III, Part B of Circular No. 128/2003/TT-BTC dated December 22, 2003 issued by the Ministry of Finance guiding the implementation of Decree No. 164/2003/NĐ-CP dated December 22, 2003 of the Government detailing the implementation of the Law on Corporate Income Tax, such brokerage fees and other expenses as specified in Point 11 are only included in reasonable costs when determining taxable income based on actual expenditures but these expenses must not exceed 10% of the total reasonable costs.
In cases where newspapers pay commissions to entities and individuals for advertising exploitation, if the total amount of such payments exceeds 10% of the total reasonable costs, the excess portion will not be included in reasonable costs when determining taxable income for corporate income tax. Newspapers must use post-tax profits to cover this excess expenditure.
2. Corporate Income Tax on newspapers as revenue-generating public institutions:
- Paragraph V of Circular No. 25/2002/TT-BTC dated March 21, 2002 guiding the implementation of Decree No. 10/2002/NĐ-CP dated January 16, 2002 of the Government on financial regulations applicable to revenue-generating public institutions stipulates: "Revenue-generating public institutions engaged in production and service provision activities shall register for tax declaration and payment according to relevant laws and guiding documents; they are entitled to exemptions and reductions as provided by tax laws and current guiding documents.
In cases where there are multiple production or service activities, making it difficult to separately account for each activity to determine the amount of tax payable under regulations, the institution must report to the local tax authority. The local tax authority shall review and issue a report to the General Department of Taxation to determine the tax payable for the services provided by the institution."
Based on the above provisions, revenue-generating public institutions must declare and pay corporate income tax according to the Law on Corporate Income Tax and current guiding documents. The total expenses are determined as specified in Circular No. 25/2002/TT-BTC mentioned above. It is necessary to exclude ineligible expenses (funded by other sources) as stipulated in Circular No. 128/2003/TT-BTC, such as expenditures on fixed asset purchases, implementation of national or ministry-level scientific research projects; expenditures for staff reduction according to state regulations, development investments...
During the implementation process, if there are any difficulties, please report them to the Ministry of Finance (General Department of Taxation) for study and resolution.
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