Circular No. 32/TC-TCT guides the tax exemption and reduction for vocational training establishments as provided in the Labor Code. This Circular applies to enterprises, organizations, individuals, and employment service centers engaged in vocational training activities. The establishments are exempted or reduced from taxes based on the number of trainees, vocational training fields, and specific trainee categories.
适用范围
Vocational training establishments include enterprises, organizations, individuals; employment service centers; vocational training establishments with legal personality.
要点
- Vocational training establishments teaching disabled persons, orphaned children without guardianship, ethnic minorities, and social delinquents are exempted from business income tax and profit tax (Article 1).
- Vocational training establishments with fewer than ten trainees or providing individual tutoring at workshops or homes are exempted from business income tax and profit tax (Article 2).
- Vocational training establishments regularly having more than 31% of trainees who are disabled persons, orphaned children without guardianship, ethnic minorities, and social delinquents have their business income tax reduced by 50% (Article 3).
- Traditional vocational training establishments such as wood carving, mother-of-pearl inlay, lacquer painting, rattan and bamboo weaving, pottery, porcelain, and silk weaving are eligible for a 50% reduction in business income tax for two years (Article 3).
- Procedures for tax exemption and reduction are conducted annually, and the tax authority decides temporarily not to collect or reduce taxes monthly (Article 4).
🌐 本文件的社会影响
- Positive impact: Helps vocational training establishments develop their activities and create jobs for disabled persons and orphaned children.
- Negative impact: May impose financial burdens on vocational training establishments that do not meet the conditions for tax exemption and reduction.
❓ 常见问题
Which vocational training establishments may be exempted or reduced from taxes?
Vocational training establishments exclusively for disabled persons, orphaned children without guardianship, ethnic minorities, and social delinquents; vocational training establishments regularly having fewer than ten trainees or providing individual tutoring at workshops or homes; and traditional vocational training establishments.
Which vocational training establishments are exempted from business income tax?
Vocational training establishments exclusively for disabled persons, orphaned children without guardianship, ethnic minorities, and social delinquents.
How long is the period for tax reduction consideration?
The period for tax reduction consideration does not exceed two years (Article 3).
Which vocational training establishments must apply for tax exemption and reduction?
All vocational training establishments must follow the procedures for tax exemption and reduction as outlined in this Circular (Article 4).
What penalties will vocational training establishments face if they violate tax exemption and reduction regulations?
In addition to being denied tax exemption and reduction, vocational training establishments may be subject to administrative fines under the law on administrative sanctions in the field of taxation (Article 4).
全文
CIRCULAR
GUIDING IMPLEMENTATION OF TAX EXEMPTIONS AND REDUCTIONS FOR VOCATIONAL TRAINING INSTITUTIONS AS PROVIDED BY LABOR LAW ISSUED BY THE MINISTRY OF FINANCE NUMBER 32 TC/TCT ON JULY 6, 1996
BASED ON CURRENT TAX LAWS AND LEGISLATIONS; BASED ON DECREE NO. 90/CP OF DECEMBER 15, 1995 OF THE GOVERNMENT PROVIDING GUIDELINES FOR IMPLEMENTATION OF CERTAIN PROVISIONS OF THE LABOR CODE REGARDING VOCATIONAL TRAINING, DECREE NO. 81/CP OF NOVEMBER 23, 1995 OF THE GOVERNMENT PROVIDING GUIDELINES FOR IMPLEMENTATION OF CERTAIN PROVISIONS OF THE LABOR CODE REGARDING DISABLED WORKERS, AND DECREE NO. 72/CP OF OCTOBER 31, 1995 OF THE GOVERNMENT PROVIDING GUIDELINES FOR IMPLEMENTATION OF CERTAIN PROVISIONS OF THE LABOR CODE REGARDING EMPLOYMENT;
THE MINISTRY OF FINANCE GUIDES THE DETAIL IMPLEMENTATION OF TAX EXEMPTIONS AND REDUCTIONS FOR VOCATIONAL TRAINING INSTITUTIONS AS FOLLOWS:
I. SCOPE OF APPLICATION:
1. Vocational training institutions eligible for tax exemptions and reductions under this Circular are defined in Article 17 of Decree No. 72/CP dated October 31, 1995, Article 10 and Article 13 of Decree No. 81/CP dated November 23, 1995, and Article 10 of Decree No. 90/CP dated December 15, 1995 of the Government, including:
a. Training facilities of enterprises, organizations, and individuals providing vocational training and supplementary training to those seeking employment or self-employment.
b. Training facilities of enterprises providing vocational training and supplementary training to workers to meet production and business development needs, changes in production structure, or technology.
c. Vocational training facilities attached to job creation services of employment service centers.
The entities mentioned in points a, b, and c of Item I-1 of this Circular shall be eligible for tax exemptions and reductions only if they satisfy the conditions for establishing vocational training facilities as stipulated in Chapter II of Decree No. 90/CP dated December 15, 1995, and the following conditions:
- Conducting vocational training activities within the scope of the profession specified in the business license or registered with the competent labor and social affairs authority.
- Registering tax payments in accordance with the provisions of the Law.
- For vocational training facilities with legal personality, they must maintain accounting books and records and use accounting vouchers in accordance with current regulations.
2. This Circular does not apply to the following entities:
- Regular vocational schools, long-term and short-term vocational training facilities managed by the Ministry of Education and Training and subject to tuition fee collection and utilization as prescribed by Decision No. 241/TTg dated May 24, 1993 of the Prime Minister. The collection and payment to the State budget for these entities shall be carried out according to the guidelines set forth in Circular No. 01 TC/HCVX dated January 4, 1994 and Circular No. 25 TC/TCT dated March 28, 1994 of the Ministry of Finance regarding temporary financial management regulations for administrative agencies, public institutions, mass organizations, and organizations with income-generating activities.
- Foreign vocational schools established in Vietnam pursuant to Decree No. 115/CP dated September 5, 1994 of the Government on the issuance of regulations governing foreign vocational schools in the Socialist Republic of Vietnam.
II. REGULATIONS ON TAX EXEMPTIONS AND REDUCTIONS FOR VOCATIONAL TRAINING FACILITIES
Vocational training facilities mentioned in points a, b, and c of Item I-1 of this Circular shall be considered for tax exemptions and reductions as follows:
1. Exemption from business revenue tax and profit tax for vocational training activities conducted by vocational training facilities recognized by competent state authorities as specialized vocational training facilities for specific groups such as disabled persons, orphaned children without guardianship, ethnic minorities, and social delinquents.
2. Exemption from business revenue tax and profit tax for vocational training activities conducted by vocational training facilities that regularly have fewer than ten trainees and provide training through individual tutoring at workshops or homes.
3. Reduction of 50% of the business revenue tax payable for vocational training activities conducted by vocational training facilities that regularly have more than 31% of their trainees being disabled persons, orphaned children without guardianship, ethnic minorities, and social delinquents but do not meet the criteria to be recognized as specialized vocational training facilities for these groups.
4. Reduction of 50% of the business revenue tax payable for vocational training activities conducted by vocational training facilities that teach traditional crafts such as carving, mother-of-pearl inlay, lacquer painting, rattan and bamboo weaving, pottery, porcelain, and silk weaving. The tax reduction period shall not exceed two years.
III. PROCEDURES AND AUTHORITY FOR CONSIDERING TAX EXEMPTIONS AND REDUCTIONS:
1. Procedures for considering tax exemptions and reductions:
In addition to vocational training activities exempted or reduced from taxes as provided in Section II of this Circular, other vocational training activities, production and business operations, sale of products or provision of services by trainees during practical training must comply with the tax laws and decrees currently in effect.
The process of considering tax exemptions and reductions for vocational training facilities will be conducted annually. However, to ensure timely and lawful collection of the State budget and to avoid difficulties for the operation of vocational training facilities, the direct tax management agency has the responsibility to inspect and verify against the conditions for tax exemptions and reductions stipulated in Section I of this Circular, deciding temporarily not to collect taxes or reduce taxes monthly; managing taxes for other production and business activities of vocational training facilities. After the end of the fiscal year, the vocational training facility must submit a tax exemption and reduction application to the competent tax authority for resolution. The tax exemption and reduction application includes:
- A tax exemption or reduction application from the vocational training facility, confirmed by the direct tax management agency regarding the conditions for tax exemptions and reductions; the amount of tax exempted or reduced by the vocational training facility, and requesting the competent tax authority to decide on tax exemptions and reductions.
- A business registration certificate for vocational training activities or a confirmation letter from the Department of Labor, Invalids, and Social Affairs certifying the vocational training facility as a home-based or workshop-based training facility.
- A confirmation letter from the Department of Labor, Invalids, and Social Affairs certifying the vocational training facility as a specialized vocational training facility for disabled persons, orphaned children without guardianship, ethnic minorities, and social delinquents or a traditional craft vocational training facility.
- Tax registration
- Final tax settlement record issued by the direct tax management agency.
||| A list of students accompanied by confirmation from the directly managing tax authority regarding the ratio of students who are disabled persons, orphaned children without guardianship, ethnic minorities, and social delinquents (for cases eligible for tax reduction under Point 3, Section II of this Circular).
||| Within thirty days from the date of receipt of the application for tax exemption or reduction submitted by the vocational training institution, the competent authority must issue a decision on tax exemption or reduction or notify the vocational training institution of the reasons for not processing or granting such exemption or reduction.
||| In the year, if there is a change leading to the vocational training institution no longer meeting the conditions for tax exemption or reduction under this Circular, within five days from the date of the change, the vocational training institution must report to the directly managing tax authority to terminate the temporary suspension of tax collection or tax reduction, and the institution must comply with the tax declaration and payment procedures as prescribed by law.
||| 2. Authority to Exempt or Reduce Tax:
||| The tax authorities at all levels are responsible for inspecting and deciding or recommending to higher-level tax authorities to decide on tax exemptions or reductions for business income and profit taxes for each specific case according to their respective authority as follows:
||| - The Director of the General Department of Taxation shall examine and decide on tax exemptions or reductions for vocational training institutions managed by localities with average monthly business income tax exemptions or reductions up to five million dong; and profit tax exemptions or reductions up to fifty million dong annually.
||| - The Director-General of the State Revenue总局局长负责审查并决定中央管理的职业培训机构以及地方管理且月平均营业收入免税或减税额超过五百万至五千万越南盾，年利润免税或减税额超过五千万至一亿越南盾的职业培训机构的税收减免。
||| - The Minister of Finance shall examine and decide on tax exemptions or reductions for all vocational training institutions with average monthly business income tax exemptions or reductions exceeding fifty million dong; and profit tax exemptions or reductions exceeding one hundred million dong annually.
IV. IMPLEMENTATION
||| 1. The directly managing tax authority is responsible for managing tax collection and guiding vocational training institutions to implement bookkeeping, accounting records, annual tax settlement, and the use of tax receipts, invoices, declarations, and registration of tax payments in accordance with established regulations; guiding vocational training institutions to comply with the conditions and procedures for tax exemptions or reductions and confirming the applications for tax exemptions or reductions in accordance with the guidelines of this Circular.
||| 2. Vocational training institutions are responsible for fully fulfilling their obligations regarding tax declarations and payments, procedures for tax exemptions or reductions as guided by this Circular; providing all necessary documentation related to tax exemptions or reductions as required by the tax authority.
||| If a vocational training institution engages in fraudulent behavior to obtain tax exemptions or reductions as stipulated in this Circular and is discovered, in addition to being denied tax exemptions or reductions for its vocational training activities, it may also be subject to administrative penalties according to the laws on administrative penalties in the field of taxation depending on the severity of the violation.
||| 3. Tax officials or other individuals who abuse their positions or powers to intentionally provide false confirmations or cover up for vocational training institutions to obtain tax exemptions or reductions as guided by this Circular will be subject to disciplinary action, administrative penalties, or criminal liability according to the laws depending on the severity of the violation.
||| In addition to the provisions of the Labor Code and detailed guidance provided in this Circular regarding tax exemptions or reductions for vocational training activities, if a vocational training institution has other production and business activities eligible for tax exemptions or reductions, such exemptions or reductions shall be implemented in accordance with the relevant Tax Laws, Tax Ordinances, and current guiding documents.
||| This Circular takes effect from the date of signature. During implementation, if any issues arise, vocational training institutions and tax authorities are advised to report them to the Ministry of Finance (State Revenue总局) for timely research and resolution.
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