This circular stipulates the tax incentive policy for fishermen involved in marine product exploitation. The Ministry of Finance proposes amending the Law on Corporate Income Tax to reduce the tax rate from 32% to 25% for fishing enterprises, but during the period awaiting legislative amendment, these entities must continue to pay taxes according to current regulations.
Scope of application
Fishermen and businesses engaged in marine product exploitation
Key points
- Business establishments involved in fishing operations shall not be eligible for a preferential tax rate of 25% until the Law on Corporate Income Tax is amended (Article 10).
- During the period awaiting legislative amendment, these entities must pay taxes at the current statutory rate of 32%.
- The Ministry of Finance has issued Circular No. 03/2002/TT-BTC guiding simplified tax calculation methods for fishing enterprises.
- Fishing enterprises must pay taxes based on a percentage (%) of stable revenue over a certain period, ensuring each enterprise can determine its own tax liability.
- Tax collection and exemption procedures are simple and convenient.
🌐 Social impact of this document
- Fishermen and businesses engaged in marine product exploitation will benefit when the Law on Corporate Income Tax is amended to apply a preferential tax rate.
- During the period awaiting legislative amendment, these entities must still pay higher taxes than expected.
❓ Frequently asked questions
Are fishermen involved in marine product exploitation eligible for a preferential tax rate of 25%?
During the period awaiting amendment of the Law on Corporate Income Tax, fishermen and businesses must continue to pay taxes at the rate of 32%.
How are fishing enterprises guided in calculating their taxes?
The Ministry of Finance has issued Circular No. 03/2002/TT-BTC guiding simplified tax calculation methods based on a percentage (%) of revenue.
What new procedures for tax exemptions and reductions apply to fishermen engaged in marine product exploitation?
Procedures for tax exemptions and reductions have been simplified and made more convenient to suit the operational conditions of fishing enterprises.
When will the Law on Corporate Income Tax be amended?
No specific timeframe has been set, but the Ministry of Finance is studying to complete a draft proposal to submit to the National Assembly.
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 4066 TC/TCT DATED APRIL 25, 2002
REGARDING TAX INCENTIVES FOR FISHERMEN
ENGAGED IN MARINE RESOURCES EXPLORATION AND HARVESTING
TO: THE PRIME MINISTER
IMPLEMENTING THE GUIDANCE OF THE PRIME MINISTER AS STATED IN LETTER NUMBER 1230/VP-NN DATED MARCH 23, 2002 FROM THE OFFICE OF THE GOVERNMENT REGARDING THE PROPOSAL FOR TAX INCENTIVES FOR FISHERMEN ENGAGED IN MARINE RESOURCES EXPLORATION AND HARVESTING AS SUGGESTED BY THE PEOPLE'S COMMITTEE OF BINH THUAN PROVINCE, THE MINISTRY OF FINANCE REPORTS AS FOLLOWS:
1- BASED ON THE PROVISIONS OF ARTICLE 10 OF THE ENTERPRISE INCOME TAX LAW (EITL), THE RATE OF ENTERPRISE INCOME TAX APPLIED TO DOMESTIC BUSINESS ENTITIES AND FOREIGN ORGANIZATIONS AND INDIVIDUALS OPERATING IN VIETNAM NOT UNDER THE FOREIGN INVESTMENT LAW IS 32%. PRODUCTION, CONSTRUCTION, AND TRANSPORTATION BUSINESSES CURRENTLY PAYING INCOME TAX AT A RATE OF 25% MAY CONTINUE TO DO SO AT A RATE OF 25% FOR A PERIOD OF THREE YEARS FROM THE DATE THIS LAW BECOMES EFFECTIVE; AFTER THAT PERIOD, THEY MUST IMPLEMENT THE RATE OF 32%. THE GOVERNMENT HAS ESTABLISHED THAT PRODUCTION, CONSTRUCTION, AND TRANSPORTATION BUSINESSES MAY APPLY A TAX RATE OF 25%. ACCORDING TO THE ABOVE MENTIONED PROVISIONS, THE REGULATION GRANTING FISHERMEN ENGAGED IN MARINE RESOURCES EXPLORATION AND HARVESTING A TAX RATE OF ENTERPRISE INCOME TAX AT 25% FROM 2002 ONWARDS MUST BE SUBMITTED TO THE NATIONAL ASSEMBLY FOR AMENDMENT OF THE ENTERPRISE INCOME TAX LAW. THE MINISTRY OF FINANCE REQUESTS TO INCORPORATE THE PROPOSAL OF THE PEOPLE'S COMMITTEE OF BINH THUAN PROVINCE INTO ITS STUDIES AND COMPLETION OF A PROJECT TO SUBMIT TO THE NATIONAL ASSEMBLY FOR AMENDMENT AND SUPPLEMENTATION OF THE ENTERPRISE INCOME TAX LAW. UNTIL SUCH AMENDMENTS ARE MADE, FISHERMEN ENGAGED IN MARINE RESOURCES EXPLORATION AND HARVESTING MUST PAY ENTERPRISE INCOME TAX ACCORDING TO THE CURRENT LEGAL PROVISIONS. 2- REGARDING THE SUGGESTION TO SIMPLIFY THE CALCULATION OF TAXES FOR FISHERMEN ENGAGED IN MARINE RESOURCES EXPLORATION AND HARVESTING, THE MINISTRY OF FINANCE HAS ISSUED CIRCULAR NUMBER 03/2002/TT-BTC DATED JANUARY 14, 2002 TO GUIDE MANAGEMENT REGULATIONS FOR TAX COLLECTION FROM BUSINESSES ENGAGED IN MARINE RESOURCES EXPLORATION AND HARVESTING. THE MAIN CONTENT OF THIS CIRCULAR IS GUIDANCE ON METHODS OF CALCULATING TAXES, EACH FISHERMEN'S BUSINESS MUST PAY CERTAIN AMOUNTS OF TAX AS A PERCENTAGE (%) OF STABLE REVENUE OVER A SPECIFIED PERIOD TO ENSURE THAT EACH BUSINESS CAN DETERMINE ITS OWN TAX LIABILITY AND SIMULTANEOUSLY ENJOY FULL TAX BENEFITS ACCORDING TO THE LAW (INCLUDING
SITUATIONS WHERE ACCOUNTING RECORDS, DOCUMENTATION, AND INVOICES ARE NOT YET IMPLEMENTED), SIMPLE AND CONVENIENT PROCEDURES FOR PAYMENT AND PROCESSING OF TAX EXEMPTIONS.
THE MINISTRY OF FINANCE RESPECTFULLY SUBMITS THIS REPORT TO THE PRIME MINISTER FOR REVIEW. fishing enterprises must pay taxes at a fixed rate (%) on their revenue for a specified period of time, ensuring that each enterprise can determine its own tax liability and enjoy all tax incentives as provided by law (including in cases where accounting systems, documents, and invoices have not yet been implemented), procedures for collection and processing simple and convenient tax exemptions and reductions. exemption and reduction of tax in a simple and convenient manner.
The Ministry of Finance respectfully submits this to the Prime Minister for consideration.
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