Circular No. 40/TC-TCT supplements and amends certain points in Circular No. 73A TC/TCT dated August 30, 1993, issued by the Ministry of Finance, regarding turnover tax.

CIRCULAR

ISSUED BY THE MINISTRY OF FINANCE NUMBER: 40/TC-TCT DATE: MAY 25, 1995

GUIDELINES FOR ADDITIONAL AND AMENDED PROVISIONS IN

CIRCULAR NO. 73A/TC-TCT DATED AUGUST 30, 1993 ISSUED BY THE MINISTRY OF FINANCE

GUIDELINES ON BUSINESS INCOME TAX

To implement the Business Income Tax Law accurately and promptly address issues arising during its implementation;

Pursuant to the Business Income Tax Law, the Law amending and supplementing certain provisions of the Business Income Tax Law, and Decree No. 55/CP dated August 28, 1993 of the Government detailing the implementation of the Business Income Tax Law, the Ministry of Finance hereby supplements and amends certain points in Circular No. 73A/TC-TCT dated August 30, 1993 of the Ministry of Finance guiding the implementation of Decree No. 55/CP of the Government on business income tax as follows:

I- On the scope of application for business income tax

1. Additional guidance on specific cases where production and processing of export goods are exempt from business income tax as follows:

a. Goods produced by the entity and directly processed for foreign entities under contracts signed with foreign parties, including cases where goods are taken out of the production facility to participate in overseas trade fairs and sold abroad.

b. Goods produced by the entity and sold to duty-free shops if such goods fall within the categories of goods sold to eligible duty-free recipients as stipulated by the Government.

c. Goods produced and sold for processing to entities within export processing zones (excluding goods for consumption and daily use such as foodstuffs, etc., as specified in Decree No. 322/HĐBT dated October 18, 1991 of the Council of Ministers (now the Government) regarding export processing zone activities).

d. Goods directly produced and processed for export by the entity but not directly contracted with foreign entities, instead selling export goods through contracts or entrusting export through an import-export trading company.

Example one: The Import-Export Trading Corporation directly signs a contract to purchase clothing products from a production facility for export. The production facility does not have to pay business income tax on the sale of these products to the Import-Export Trading Corporation. When the Import-Export Trading Corporation exports the purchased products, it must pay business income tax at the export sales rate.

Example two: The Import-Export Trading Corporation signs a contract for processing clothing products for foreign entities, then assigns other enterprises to process them. These processing enterprises are exempt from business income tax on exported processed goods. The Import-Export Trading Corporation must pay business income tax at a rate of 12% on commission or profit earned.

In the case where entity A is determined to be directly processing export goods, but entity A subcontracts all or part of the finished products to entity B under a raw material supply and return agreement, entity A must pay business income tax on the goods subcontracted to entity B at a rate of 12% based on the difference between the processing fee received and the price transferred to entity B.

Cases where production and processing of export goods are exempt from business income tax must meet the following conditions:

- For cases mentioned in point a, b, and c, there must be:

+ Production, processing, or sales contracts signed by the entity with foreign entities or entities considered as exporters.

+ Sales invoices and export processing returns consistent with the economic contracts mentioned above.

+ Export declaration forms confirmed by customs authorities.

- For the case mentioned in point d, there must be:

+ Economic contracts between the production or processing entity and the import-export trading company or representative organization signing contracts with foreign entities; the contract content must clearly specify the quantity and type of goods produced and exported consistent with the import-export trading company's license and its contract with foreign entities.

+ Sales invoices and export processing returns consistent with the economic contracts mentioned above.

+ Settlement statements for export sales contracts or processing returns serving as the basis for tax settlement.

Apart from the cases of direct production and processing of export goods exempt from business income tax as specified in point 1 above, all other cases must pay business income tax, including the following specific cases:

- Production of raw materials, packaging, labels, components, spare parts, semi-finished products, etc., sold to production and processing entities exporting goods for their own production and packaging.

- Undertaking sub-contracting of some production stages of products from entities producing and processing export goods that are exempt from business income tax.

- Import-export trading companies purchasing export goods, if they engage in preliminary processing, sorting, and packaging of purchased goods for export, these activities of the import-export trading company cannot be considered as production or processing of export goods. The import-export trading company must pay business income tax according to its import-export trading activities.

2. Additional guidance on specific cases temporarily exempt from business income tax as follows:

a/ Printing and publishing activities temporarily exempt from business income tax as stipulated in Article 13 of Decree No. 55/CP dated August 28, 1993 of the Government and taxed at a rate of 0% (as per Point 22 - Section I - Business Income Tax Rate Table) apply only to printing and publishing activities. Sales and distribution of these products must be subject to business income tax according to commercial trading activities.

b/ Activities such as "repair, maintenance, and preservation of roads, railways, waterways, bridges, dykes, etc., funded by state budget or contributions from the public" are temporarily exempt from business income tax.

Specific determination must be based on the following conditions:

- It must be repair, maintenance, and preservation activities of facilities listed in the prescribed catalog, approved by competent authorities with budget estimates.

- Funded by state budget or contributions from the public...

The agency managing state budget funds when establishing unit prices for budget estimates shall not include the structure of turnover tax on revenue from projects that are exempt from turnover tax under this provision.

Units performing activities exempt from turnover tax under this provision, if they generate revenue from other activities, must pay turnover tax on such revenue.

Example: An entity engaged in canal dredging is determined to be an activity exempt from turnover tax, but it will only be exempt from turnover tax on revenue from dredging activities. If the entity generates revenue from selling land or dredged sand, it must pay turnover tax on the sale of land and sand at the rate applicable to the exploitation activity based on the revenue from the sale of land and sand.

c. No turnover tax shall be levied on the sale of fixed assets such as machinery, equipment, transportation vehicles, and factory buildings that have been purchased or constructed over one year ago and in accordance with the prescribed investment procedures, and which are recorded and tracked according to the current accounting regulations for fixed assets.

II- Regarding taxable revenue

Taxable revenue for certain activities is defined as follows:

1. For construction activities:

a. Turnover tax on construction activities that include material supply contracts and full material supply contracts.

The concept of full material supply in construction refers to materials constituting part of the construction product, supplied by the contractor responsible for building the project (excluding the value of complete machinery and equipment if any). Materials and supplies used for construction machinery and equipment are not considered full material supply.

Determining whether construction revenue includes full material supply or not must be based on the construction contract and the actual final settlement of the contract.

Construction activities that include major material supply types where the total value of full material supply exceeds 50% of the total value of construction materials for the project are considered construction with full material supply, subject to a turnover tax rate of 3%. If the value of full material supply is less than 50% of the total value of construction materials for the project, the following turnover tax rates apply:

+ The construction revenue (excluding the value of materials) is subject to a turnover tax rate of 5% on the value of materials supplied by the contractor to the project owner (including those supplied through proxy purchase) for material supply activities; if there is insufficient evidence to determine detailed revenue as mentioned above, then a turnover tax rate of 5% applies to the total construction revenue.

b. Turnover tax on construction activities involving multiple entities participating in the construction of a single project:

To prevent overlapping turnover tax collection for a single construction project, in principle, turnover tax should be calculated and collected once on the total construction revenue, with the revenue generated where the tax declaration and payment should be made there.

In cases where multiple organizations or individuals participate in constructing a project under the form of one or several main contractors signing contracts directly with the project owner (referred to as the main contractor) who then sign subcontracts with other contractors (referred to as subcontractors), the main contractors must declare and pay turnover tax on their construction activities to the local tax authority where the project is located. The taxable revenue is the total value of the project or project component received by the main contractor (including the value of the project components subcontracted to other subcontractors); subcontractors do not need to pay turnover tax on construction projects for which the main contractor has already paid turnover tax.

In cases where the main contractors receive construction contracts for projects with construction components in different locations (provinces, cities), the main contractors or direct subcontractors must declare and pay turnover tax to the local tax bureaus where the construction work is carried out. The taxable revenue is determined based on the value of the project component or work performed in each location; when settling the turnover tax for the construction project, the main contractor can deduct the turnover tax paid in different locations for project components or work, provided that the main contractor presents relevant documents and confirmation from the local tax authorities to the tax management body.

To establish the basis for determining revenue and taxes payable by contractors and participating units as stipulated above, contractors must provide the tax authority with all contracts for receiving construction projects and subcontracting contracts to other units, payment and settlement documents for construction contracts, and tax payment documents (if any).

In cases where intermediaries in construction earn commissions and cases where the winning bidder subsequently subcontracts the entire project to another contractor and only earns income from the transfer of the bid, the turnover tax is applied at a rate of 15% (Point 15.e - Section VI - Turnover Tax Table).

c. For basic construction activities conducted by units themselves:

+ Not required to pay turnover tax in the following cases:

- Activities of planting trees and caring for long-term trees during the period when basic construction transitions to business operations.

- Construction of factory buildings, office buildings, and internal roads within the unit using its own capital without generating revenue.

+ Required to pay turnover tax in the following cases:

- When the unit is a member of a joint venture undertaking construction projects funded by the joint venture.

Example: Unit B is a member of Joint Venture A and undertakes the construction of a project belonging to Joint Venture A; Unit B must pay turnover tax on the construction project undertaken for Joint Venture A.

- Subordinate units undertaking construction for other units within a Company or Corporation or superior units according to economic contracts.

- Construction of projects listed in the State plan, with investment capital belonging to State investment (directly allocated from the State budget or allocated through other forms).

The taxable revenue in these cases is the value of the construction project handed over to the user of the project.

2. For transportation activities:

Transport units implement a mechanism linking revenue allocation with the assignment of vehicles to drivers, taxable revenue and tax payers being determined for each specific case as follows:

- In cases where transport vehicles belong to enterprises but the enterprise allocates part of the costs (fuel, oil, grease, regular maintenance, wages, etc.) or a lump sum required to be paid by the unit to meet general management requirements, cost control, etc., then the transport unit is the entity required to declare and pay turnover tax on transport activities; taxable revenue is the total revenue without any deductions for costs.

Turnover tax revenue is calculated as:

Taxable turnover = allocated payment + allocated expenses

Allocated expenses are determined according to the quota allocated to the recipient of the vehicle, appropriate to each type of transport vehicle and each method of allocation.

- In cases where transport vehicles belong to individual owners or private households, the vehicle owner is the entity directly required to declare and pay turnover tax on revenue and other types of taxes (if applicable).

For marine transport units that have registered for business and pay taxes in Vietnam, if they generate revenue from transport activities between foreign ports and from foreign ports to Vietnam (excluding transport from Vietnam through foreign ports), and if they can provide sufficient evidence such as transportation contracts and payment documents proving that the revenue from these transport activities arises outside Vietnam's territory, they are not required to pay turnover tax, but must still reflect this revenue in their total transport revenue to determine their business results and profits.

3. Regarding commercial trade operations:

a. On the application of turnover tax based on the difference between selling price and purchase price.

Commercial trade units meeting the conditions stipulated in Section A, Part II, Circular No. 73 TC/TCT may declare and pay turnover tax based on the difference between selling price and purchase price.

Within a unit engaged in commercial trade operations, the commercial trade operation can only apply one of two methods for calculating and paying turnover tax: based on revenue or based on the difference. The "unit" referred to here for determining the method of declaring and paying turnover tax is an entity that has registered directly with the tax authority for declaration and settlement of turnover tax.

b. Purchase and sale prices used as the basis for calculating turnover tax based on the difference are determined according to the price recorded on invoices.

In cases of purchasing and selling multiple types of goods where purchase and sale prices fluctuate, to determine the difference between selling price and purchase price: the purchase price of goods sold is calculated based on the weighted average price of inventory at the end of the previous period and purchases made during the current period of declaration and payment of turnover tax.

c. For certain items subject to additional charges as prescribed by the State, the tax calculation price is determined as follows:

- For additional charges paid into the price stabilization fund: If the unit applies turnover tax declaration based on revenue, the additional charge cannot be deducted from taxable revenue. If the unit applies turnover tax declaration based on the difference between selling price and purchase price, the additional charge cannot be deducted when determining the taxable difference for turnover tax.

- For other additional charges such as electricity surcharges, telephone installation surcharges, etc., except for specific cases as provided by the Government which allow the entire additional charge to be used as investment capital and not included in taxable revenue and business results, all other cases must include the additional charge in revenue and declare and pay turnover tax according to the Law.

4. For production units that organize retail outlets:

Production units must declare and pay turnover tax at the production industry rate at the place of production and declare and pay turnover tax at the commercial industry rate at the location of the retail outlet.

To determine revenue and tax payable at each location, when the unit supplies goods to retail outlets, it must use sales invoices clearly indicating quantity, type of goods, unit price, and total value of goods dispatched. Retail outlets must use sales invoices purchased from the tax authority at the location of the outlet when selling goods. If the retail outlet meets the conditions to declare and pay turnover tax based on the difference, the tax authority will allow the application of turnover tax based on the difference, and if the unit implements a unified pricing mechanism (same price at the production site and the outlet) without generating a price difference, the outlet does not need to pay turnover tax on this merchandise.

For production bases that organize warehouses in different locations (warehouses not directly engaged in sales), they must use invoices and declare and pay taxes as follows:

- When dispatching goods from the production base to affiliated warehouses or transferring goods from one warehouse to another, internal dispatch and transportation slips must be used. The production base and warehouses do not need to declare and pay turnover tax on internally circulated goods.

- When dispatching goods from warehouses to buyers, agents, and affiliated outlets, the production base must issue sales invoices and declare and pay turnover tax at the production location according to the production industry rate.

5. For commercial trade units that organize warehouses and affiliated outlets, dependent accounting, they do not need to declare and pay turnover tax on internally circulated goods dispatched from the unit's warehouse to affiliated outlets or transferred between outlets within the unit. These cases must use internal dispatch and transportation slips.

6. For installment sales transactions:

Turnover tax revenue for goods sold on installment is determined by the total amount actually paid by the buyer as recorded on the sales invoice or purchase contract.

Specifically, for house sales on installment over several years, turnover tax revenue and payment are determined according to the amount due in each period as stipulated in the installment contract.

7. Regarding service activities:

a. Postal services: Organizations and individuals not belonging to the Postal Industry such as hotels, restaurants... engaging in postal service business activities like telephone, fax, etc., shall apply the following tax rates:

In cases where they provide services for the Postal Industry with economic contracts signed with the Postal Industry and only enjoy commission, the tax rate applied is 12% as in agency sales activities.

In cases where they do not engage in commission-based services but directly operate and collect money from postal service business activities, they must pay taxes according to postal service business operations at a rate of 4% on the total revenue from postal services. If it is not possible to separately identify the revenue, they must pay taxes based on the highest tax rate applicable to their business activity.

b. For rental activities of houses, shops, machines..., the taxable revenue is the rental income received before deducting any cost.

- In cases of long-term rentals paid in advance for several months or years, the business tax is calculated and collected once on the entire amount paid by the taxpayer.

- In cases where tenants pay rent in advance partially or fully under the form of investment costs for renovation or reconstruction of the house or shop for use during the lease period, the entire amount paid in advance by the tenant for investment costs agreed upon and specified in the lease contract shall be considered as prepaid rental income and the lessor must declare and pay business tax on this amount.

The determination of taxable revenue for rental activities of houses, shops... must be based on the lease contract, the rental price stipulated in the contract, and actual payment vouchers. If an inspection finds that the contract is invalid or the rental price recorded in the contract is incorrect, the tax authority must cooperate with relevant departments to inspect and verify, and the tax authority has the right to determine the taxable revenue based on the housing price set by the People's Committee of the province or city according to Article 22 of Decree No. 61/CP dated July 5, 1994 of the Government regarding the purchase and sale of residential properties. If violations of false declaration to evade taxes are discovered, they must be handled according to current laws.

The determination of revenue and expenses for calculating profit tax for various forms of renting houses, shops... with prepaid payments has separate guidelines.

c. Transportation service activities:

- In cases where services such as introducing cargo owners to transport means and finding cargo sources for transport means, including handling procedures, supervising transportation, and preserving goods for cargo owners are provided; if organizations or individuals providing these services only earn service fees, while the costs for renting transport means and loading/unloading are borne by the cargo owner or paid on behalf of the cargo owner as clearly stated in the economic contract, the service provider must pay business tax at a rate of 15% on the revenue or commission earned from the service (according to point 15.e - Section IV - Business Tax Table) regardless of the name of the contract being agency, brokerage, or transportation service.

In cases where the unit signs a contract with the cargo owner to transport goods on a lump-sum basis, and the contract does not specify specific costs and commissions; the calculation of business tax shall be applied as in transportation activities, with the taxable revenue being the total lump-sum revenue received (regardless of whether the unit transports itself or hires others).

III - Regarding the business tax rate

Based on the business tax table issued together with Decree No. 55/CP dated August 28, 1993 of the Government and the business tax rates amended and supplemented in Decree No. 182/CP dated November 10, 1994 of the Government, the Ministry of Finance provides additional guidance on applying tax rates to certain specific business activities as follows:

1. Mining: Apply the tax rate according to the industry and product mined (point 2, Section I, Business Tax Table). In cases where the mining unit uses the extracted materials to produce other products, the business tax payable is calculated on the sold production product according to the tax rate of the producing industry or product.

Example: A unit mines stone and produces stone tiles for sale; the production of stone tiles pays business tax at a construction material production rate of 5%.

2. Production of metal cables of all kinds, including power cables, communication cables, telephone cables (with plastic, insulating coating, and without coating) applies the tax rate for metal smelting and drawing (point 4, Section I, Business Tax Table).

3. Production, new construction of transportation means (except bicycles, motorcycles), machinery, equipment, production tools, molds, and spare parts of machinery and equipment... applies a tax rate of 1% (point 5a, Section I).

4. Production, assembly: locks, scales, silver safes, bicycles, motorcycles, sewing machines, watches, and spare parts of these products (excluding electronic products) and household items made of iron enamel, aluminum, zinc-coated roofing sheets, tin-coated sheets, apply a tax rate of 2% (point 5b, Section I).

5. Production of various types of insecticides, rodenticides, ant killers, fly killers, mosquito killers (including mosquito repellents), applies a tax rate of 0.5%, production of basic chemicals (according to the product list of the Heavy Industry Department) applies a tax rate of 1% (point 7, Section I).

6. Production of oil paper, lime, bricks, roof tiles, refractory materials applies a tax rate of 5% (point 9, Section I).

7. Production and repair of various types (including soy milk) applies a tax rate of 4% (point 15, Section I).

8. By-products recovered in production apply the tax rate according to the main production industry or product.

Example: A unit grinding grain sells bran and rice husks as by-products, which are subject to business tax at the milling rate of 2%.

Sale of scrap and by-products in cases where cost reduction is not accounted for applies a business tax rate of 1%. Sale of secondary products (second-grade, third-grade products...) applies the tax rate according to the main production industry or product.

9. Passenger transportation within urban areas by means such as cars, motorized rickshaws, bicycles... applies a tax rate of 1%. In cases where passenger transportation mainly serves officials, workers commuting from urban areas to adjacent regions.

Example: From Hanoi to Ha Dong town, from Ho Chi Minh City to Bien Hoa city, the intra-urban transportation fare applies a tax rate of 1%.

10. Sale of the following items listed in the category of items subject to a tax rate of 1% (point 1, Section IV, Business Tax Table):

- Grains,

- Food,

- Types of production materials include: fuel, combustibles, various types of burning oil, coal (including processed coal into briquettes, honeycomb coal for sale), lubricating oils, canvas, tarpaulins.

- Transportation vehicles such as ships, boats, trucks, passenger cars, motorized rickshaws, farm vehicles, improved vehicles, cargo handling vehicles (excluding bicycles, motorcycles, private cars with up to 15 seats).

- Production machinery and tools: machine tools, power machines, welding machines, generators... and other types of production tools, fishing gear.

- Sale of spare parts for machinery, equipment, transportation vehicles (excluding spare parts for assembling consumer products such as bicycles, motorcycles, watches, cameras...).

- Sale (distribution) of books, films (types that have been developed into film for projection). In cases where conditions are met to pay tax on the difference, apply a tax rate of 4% (point 10, Section IV, Tax Table).

11. Trading goods that cannot be distinguished as machinery, equipment (production materials), raw materials, spare parts to apply a tax rate of 1%, shall apply a tax rate of 2% for domestically produced goods, and a tax rate of 4% for imported goods (except for specific items already defined in point 4 - Section IV - Business Revenue Tax Table).

12. Remittance services earning commission, tax rate of 6% like bank payment services (point 3b, Section VI).

13. Karaoke, advertising services, apply a tax rate of 8% (point 9, Section VI).

Advertising includes forms such as: advertising through mass media: TV, radio, newspapers, magazines, renting advertising locations, billboards, posters.

14. Operating sauna, massage services, apply a tax rate of 10% (point 11, Section VI).

15. Operating table tennis tables, billiards, football tables, electronic games (excluding electronic lottery) apply a tax rate of 4% (point 14, Section VI).

IV - Regarding the examination and reduction of taxes

1. New production establishments eligible for examination and reduction of business revenue tax are those engaged in production activities in industries listed in "Section I - Manufacturing" of the Business Revenue Tax Table.

New production establishments must meet the following conditions to be eligible for examination and reduction of business revenue tax:

- Having a decision to establish a business, a business registration certificate clearly stating the industry and products being produced and traded. For individual households starting to operate, only a business license is required.

- Actually investing in purchasing machinery, equipment, construction (or leasing) of production workshops to form new production establishments. Large enterprises (companies, factories) must have economic and technical investment justification, final accounts, or handover records for basic construction projects.

- Registering and declaring tax payments to the tax authority.

- Having a production and business plan for the year requesting tax reduction, clearly stating the amount of business revenue tax payable and the requested reduction.

New production establishments requesting tax reduction must submit the above documents along with their tax reduction application to the managing tax authority. Copies of the business establishment's decision and business registration certificates must be notarized, and if other documents are copies, they must bear the stamp of the issuing unit or the authority making the decision. The managing tax authority is responsible for receiving and checking the documents and the actual situation of the establishment to determine whether it qualifies as a new production establishment eligible for tax reduction. If the establishment does not qualify for tax reduction, the authority must notify the establishment in writing. If the establishment qualifies but the documents are incomplete or incorrect, the authority must request the establishment to supplement them. After reviewing and completing the documents, the tax authority will issue a written opinion attached to the establishment's documents and submit them to the higher-level tax authority for consideration and resolution according to the prescribed authority.

New production establishments meeting the conditions specified above, but which are subsidiaries or branches that consolidate profits into companies or corporations, are only eligible for examination and reduction of business revenue tax, not profit tax, according to this regulation, only for production activities.

The following cases do not qualify as new production establishments eligible for tax reduction under this regulation:

- Production establishments that were previously established and now have changed their name, ownership, division, merger, dissolution, and re-establishment (including joint ventures, stock companies, limited liability companies established with capital contributions from machinery, equipment, and workshops of previous establishments).

- Existing production establishments registering as businesses, or production and trading establishments currently operating and now investing in upgrading or changing product lines or adding production industries.

2. The authority to examine and decide on the reduction of business revenue tax as stipulated in Part C, Section IV of Circular No. 73A TC/TCT for the Director of the Tax Department is specifically determined as follows:

The Director of the Tax Department may examine and decide to reduce taxes for individual households, collective economic organizations, limited liability companies, and state-owned enterprises managed by localities (excluding companies established and operating under the Law on Foreign Investment) in cases of tax reduction as provided in points 1 and 2 of Part B of Circular No. 73A TC/TCT, with an average tax reduction of less than 4 million VND per month for each case.

In addition to the objects and cases of tax reduction within the authority of the Director of the Tax Department as stipulated above, other cases requesting tax reduction and cases within the authority of the Director of the Tax Department but with an average monthly tax reduction of 4 million VND or more are within the authority of the Minister of Finance or the Director of the General Department of Taxation (by delegation of the Minister of Finance).

The procedures for examining and reducing business revenue tax in all cases require the applicant to complete the necessary documents as prescribed, the tax authority to check the documents and the actual situation, and issue a decision to reduce taxes for cases within its authority, or propose in writing together with the establishment's documents to the higher-level tax authority for consideration and decision. The tax reduction must be implemented according to the decision of the competent authority.

3. Supplemental guidance on the examination for exemption and reduction of tax for small production and business households subject to turnover tax and income tax on turnover who have experienced a decrease in monthly income due to actual cessation of business operations is as follows:

- Households with five days or fewer of actual business operation in a month shall be examined for exemption from turnover tax and income tax for that month.

- Households with fifteen days or fewer of actual business operation in a month shall be examined for a fifty percent reduction in the turnover tax and income tax for that month.

To be eligible for tax reduction, the business household must submit a declaration form to the tax authority detailing the reasons and number of days of cessation of business operations (according to the application form for tax reduction and the guidance of the tax authority).

The decision to reduce taxes for small households that cease business operations as stipulated above falls within the jurisdiction of the Director of the Tax Revenue Office. The General Department of Taxation will provide specific guidance on procedures and documentation for examining tax reductions for households that cease business operations under this regulation.

V- Implementation Organization

The additional and amended provisions regarding turnover tax in this Circular take effect from June 1, 1995. Previous guidelines on turnover tax that conflict with this document are no longer effective. Points not addressed in this Circular shall be implemented according to the guidelines in Circular No. 73A TC/TCT.

Any difficulties encountered during implementation should be reported to the Ministry of Finance for further study and supplementary guidance. /