Circular No. 73A-TC/TCT guides the implementation of Decree No. 55-CP dated August 28, 1993 of the Government detailing the implementation of the Law on Business Income Tax and the Law amending and supplementing certain Articles of the Law on Business Income Tax.

MINISTRY OF FINANCE ********	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ********
NUMBER: 73A-TC/TCT	HA NOI, AUGUST 30, 1993

 

CIRCULAR

DIRECTIVE NO. 73A TC/TCT OF THE MINISTRY OF FINANCE ON AUGUST 30, 1993 GUIDING THE IMPLEMENTATION OF DECREE NO. 55-CP OF THE GOVERNMENT ON AUGUST 28, 1993 PROVIDING DETAILS FOR THE IMPLEMENTATION OF THE LAW ON BUSINESS INCOME TAX AND THE LAW AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE LAW ON BUSINESS INCOME TAX

BASED ON THE LAW ON BUSINESS INCOME TAX PASSED BY THE NATIONAL ASSEMBLY AT ITS EIGHTH SESSION ON JUNE 30, 1990. THE LAW AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE LAW ON BUSINESS INCOME TAX PASSED BY THE NATIONAL ASSEMBLY AT ITS NINTH SESSION ON JULY 5, 1993.
BASED ON DECREE NO. 55-CP OF THE GOVERNMENT ON AUGUST 28, 1993 PROVIDING DETAILS FOR THE IMPLEMENTATION OF THE LAW ON BUSINESS INCOME TAX AND THE LAW AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE LAW ON BUSINESS INCOME TAX;
The Ministry of Finance hereby provides guidance as follows:

I. SCOPE OF APPLICATION OF BUSINESS INCOME TAX

A. TAXPAYERS, TAXABLE PERSONS

ACCORDING TO ARTICLE 1 OF THE LAW ON BUSINESS INCOME TAX, THE TAXPAYERS OF BUSINESS INCOME TAX INCLUDE ORGANIZATIONS AND INDIVIDUALS ENGAGED IN BUSINESS; FOREIGN-INVESTED ENTERPRISES ESTABLISHED AND OPERATING UNDER THE LAW ON FOREIGN INVESTMENT (COLLECTIVELY REFERRED TO AS BUSINESS UNITS); BELONGING TO VARIOUS SECTORS, ECONOMIC COMPONENTS, FORMS OF ACTIVITY, WITH FIXED OR MOBILE BUSINESS LOCATIONS, OPERATING REGULARLY OR IRREGULARLY ON THE TERRITORY OF VIETNAM; IF THERE IS ANY BUSINESS INCOME GENERATED FROM BUSINESS ACTIVITIES, THEY MUST PAY BUSINESS INCOME TAX.

B. NON-TAXABLE BUSINESS INCOME

ACCORDING TO THE PROVISIONS OF ARTICLE 2 OF THE LAW ON BUSINESS INCOME TAX AND ARTICLE 2 OF DECREE NO. 55-CP OF THE GOVERNMENT ON AUGUST 28, 1993, THE FOLLOWING BUSINESS INCOMES ARE NOT SUBJECT TO BUSINESS INCOME TAX:

1. BUSINESS INCOME FROM THE SALE OF AGRICULTURAL PRODUCTS SUBJECT TO AGRICULTURAL TAX OR LAND USE TAX, WHEN THE PRODUCER SELLS RAW PRODUCTS SUCH AS CROPS, AQUACULTURE PRODUCTS WITHOUT PROCESSING OR ONLY SIMPLE PREPARATION SUCH AS DRYING, SORTING FOR STORAGE.

2. BUSINESS INCOME FROM THE CONSUMPTION OF GOODS SUBJECT TO SPECIAL CONSUMPTION TAX, WHEN THE UNIT SELLS THE GOODS IT PRODUCES DIRECTLY.

3. BUSINESS INCOME FROM EXPORT OF GOODS IN THE FOLLOWING SPECIFIC CASES: - GOODS PRODUCED BY THE UNIT AND EXPORTED DIRECTLY OR PROCESSED FOR ABROAD ACCORDING TO CONTRACTS SIGNED WITH FOREIGN PARTIES.

- GOODS PRODUCED BY THE UNIT SOLD DIRECTLY OR THROUGH COMMISSION TO TRADING ENTERPRISES FOR EXPORT ACCORDING TO ECONOMIC CONTRACTS AND EXPORT LICENSES.

4. REVENUE FROM FEES AND CHARGES ALREADY DEPOSITED INTO THE STATE BUDGET ACCORDING TO DECISION NO. 276-CT OF THE CHAIRMAN OF THE COUNCIL OF MINISTERS ON JULY 28, 1992 (NOW THE PRIME MINISTER).

C. TEMPORARY NON-TAXABLE BUSINESS ACTIVITIES

ACCORDING TO THE PROVISIONS OF ARTICLE 13 OF DECREE NO. 55-CP OF THE GOVERNMENT ON AUGUST 28, 1993, THE FOLLOWING ACTIVITIES ARE TEMPORARILY EXEMPT FROM BUSINESS INCOME TAX:

1. PRINTING AND PUBLISHING ACTIVITIES (EXCLUDING ADVERTISING ACTIVITIES): PEOPLE'S ARMED FORCES NEWSPAPER, PEOPLE'S MILITARY NEWSPAPER, SPECIALIZED MAGAZINES, POSTERS, PROPAGANDA POSTERS, PRINTING AND PUBLISHING LEADERS' PORTRAITS, MAKING LEADERS' STATUES, PRINTING MONEY.

2. BROADCASTING RADIO AND TELEVISION PROGRAMS ACCORDING TO PLANS USING STATE BUDGET FUNDS.

DIRECT SERVICE ACTIVITIES FOR AGRICULTURAL PRODUCTION OF RURAL WATER STATIONS; MAINTENANCE OF ORIGINAL ANIMAL BREEDS.

3. STUDENT INSURANCE FEES, ANIMAL INSURANCE FEES, CROP INSURANCE FEES, AND OTHER TYPES OF INSURANCE WITHOUT A COMMERCIAL NATURE SUCH AS HEALTH INSURANCE, SOCIAL INSURANCE.

4. DIRECT SLAUGHTERING OF LIVESTOCK THAT HAS PAID THE SLAUGHTER TAX.

5. SALES OF WASTE MATERIALS AND BYPRODUCTS THAT HAVE BEEN ACCOUNTED FOR AS REDUCTIONS IN COSTS AND CIRCULATION FEES SUCH AS BRAN FROM RICE MILLING, PACKAGING MATERIALS OUTSIDE CAPITAL RECOVERY... WASTE MATERIALS AND BYPRODUCTS NOT SUBJECT TO TAX UNDER THIS POINT DO NOT INCLUDE SUBSIDARY PRODUCTS OBTAINED DURING THE PRODUCTION OF MAIN PRODUCTS SUCH AS RICE BRAN FROM RICE MILLING, PEANUT SKINS FROM PEANUT OIL PRODUCTION, RECOVERED COMPOUNDS FROM MINERAL EXTRACTION.

6. ACTIVITIES: MAINTENANCE, REPAIR, AND PRESERVATION OF ROADS, WATERWAYS, BRIDGES, DAMS, RESERVOIRS, CANALS, CITY DRAINAGE SYSTEMS, CONSTRUCTION OF CHARITY HOUSES; RESTORATION OF CULTURAL AND ARTISTIC WORKS; ENVIRONMENTAL SANITATION, MAINTENANCE OF ZOO, GARDENS, PARKS, GREEN SPACES, URBAN LIGHTING USING FUNDS FROM PUBLIC AFFAIRS PROVIDED BY THE STATE BUDGET OR CONTRIBUTIONS FROM CITIZENS.

7. GEOLOGICAL SURVEYS, MEASUREMENTS, AND MAP DRAWING.

8. SALE OF FIXED ASSETS (EXCLUDING TRANSFER FEES FOR LAND USE RIGHTS ATTACHED TO FACTORIES, WAREHOUSES, STOREFRONTS). FIXED ASSETS ARE MACHINERY, EQUIPMENT, TRANSPORTATION MEANS, FACTORIES... REGISTERED IN THE FIXED ASSET BOOKS OF THE ENTERPRISE FOR DEPRECIATION CALCULATION.

9. ACTIVITIES SERVING DAILY MEALS IN SCHOOLS, OFFICES, FACTORIES, MILITARY FORCES ORGANIZED AND SERVED INTERNALLY BY THE UNIT. IF THESE ACTIVITIES ARE CONDUCTED BY BUSINESSES OR INDIVIDUALS, THEY MUST PAY BUSINESS INCOME TAX ACCORDING TO THE LAW ON BUSINESS INCOME TAX.

II. BASIS FOR CALCULATING TAX AND TAX RATE

ACCORDING TO ARTICLE 7 OF THE LAW ON BUSINESS INCOME TAX, THE BASIS FOR CALCULATING BUSINESS INCOME TAX IS TAXABLE INCOME AND THE TAX RATE.

A. ABOUT TAXABLE INCOME

TAXABLE INCOME IS THE TOTAL AMOUNT OF MONEY FROM SALES OF GOODS, SALES OF ASSETS AS GOODS; COMMISSION FEES, FREIGHT CHARGES, SERVICE FEES... GENERATED DURING THE PERIOD OF TAX PAYMENT AFTER THE SALE OF GOODS, COMMISSION WORK, OR SERVICE DELIVERY, WITHOUT DEDUCTING ANY EXPENSES AND ALREADY ACCOUNTED FOR AND REFLECTED IN THE RESULTS OF THE PERIOD, REGARDLESS OF WHETHER THE MONEY HAS BEEN COLLECTED OR NOT.

TAXABLE INCOME IS DEFINED IN ACCORDANCE WITH THE CHARACTERISTICS OF EACH BUSINESS ACTIVITY AS FOLLOWS:

1. FOR MANUFACTURING, PROCESSING, ASSEMBLING, MINING, FORESTRY, AND FISHERY ACTIVITIES, TAXABLE INCOME IS THE MONEY FROM THE SALE OF PRODUCTS, SEMI-FINISHED GOODS, RAW MATERIALS, MATERIALS, FUELS, ENERGY, MACHINERY, AND EQUIPMENT...

FOR ELECTRICITY GENERATION, TAXABLE INCOME IS THE SALES REVENUE FROM COMMERCIAL ELECTRICITY.

2. FOR PRINTING ACTIVITIES, TAXABLE INCOME DOES NOT INCLUDE THE PRICE OF PRINTING PAPER.

3. FOR PUBLISHING ACTIVITIES, TAXABLE INCOME IS THE MONEY RECEIVED FROM PUBLISHING ACTIVITIES.

4. FOR CONSTRUCTION ACTIVITIES, IT IS THE TOTAL AMOUNT OF MONEY RECEIVED FROM CONSTRUCTING PROJECTS, PROJECT COMPONENTS, OR COMPLETED WORKS; MONEY RECEIVED FROM SURVEYING, DESIGNING, PLANNING, AND OTHER ACTIVITIES IN CONSTRUCTION.

Construction activities include construction installation, road building, bridge and culvert construction, interior decoration, electrical and water system installation, and machinery and equipment installation attached to construction works. For the installation of entire machinery and equipment attached to construction works, taxable revenue does not include the value of the machinery and equipment.

5. For transportation activities, it includes freight charges for transporting goods, passengers, luggage, and other revenues as prescribed for the transportation sector.

6. For commercial and catering activities, it includes proceeds from selling goods (including purchased goods resold and goods self-manufactured; commercial activities also include sorting, recycling to improve quality, packaging, and preservation of goods).

Business entities that meet the following conditions may apply to calculate turnover tax based on the difference between the sales price recorded on the sales invoice and the purchase price recorded on the purchase invoice:

a) Conditions for applying turnover tax based on the difference:

- The entity must comply with the Accounting and Statistics Law issued by the State Council under Decree No. 06/LCT-HĐNN dated May 10, 1988, and detailed implementing regulations issued by the Council of Ministers (now the Government), and guidance documents from the Ministry of Finance and the General Statistics Office.

- Comply with the invoice and record-keeping system as stipulated by the Ministry of Finance, ensuring invoices are obtained for purchases and sales, and that these invoices are either issued by the Ministry of Finance or recognized by the Ministry of Finance.

- Register with the tax authority to implement the payment of turnover tax based on the difference between the sales price and the purchase price (according to the prescribed form).

In cases where a business purchases certain goods but cannot issue purchase and sale invoices, such as directly purchasing agricultural products, fresh food, seafood, forest products from producers, or purchasing from individuals not engaged in business, or retailing small-value goods, they must record transactions in a purchase ledger (issued or confirmed by the tax authority) to serve as the basis for calculating turnover tax based on the difference between the sales price and the purchase price.

A business meeting all three conditions above will be accepted by the directly managing tax authority to apply turnover tax based on the difference between the sales price and the purchase price.

b) Determination of the sales price and purchase price to calculate the difference.

- The sales price is the actual sales price recorded on the invoice. For exported goods, it is the price at the export port (FOB price).

- The purchase price:

+ For domestically purchased goods, it is the price recorded on the purchase invoice, including packaging materials purchased together (if any). However, it does not include handling fees, transportation costs, capital preservation expenses, or circulation costs of the entity.

+ For imported goods, it is the price at the import port (CIF price) plus (+) import duties (if applicable).

Entities applying the turnover tax calculation method based on the difference can offset differences among items and groups of items with the same tax rate when calculating monthly turnover tax payable, and offset between months within the quarter to determine the quarterly turnover tax payable.

Within a single entity engaging in commercial activities, turnover tax for commercial activities can only be applied using one of two methods: paying tax on total sales revenue or paying tax on the difference between the sales price and the purchase price (if the conditions are met). If the entity engages in other types of business, separate accounting must be done and turnover tax paid according to the tax rate of the respective business activity.

7. For agency sales activities, consignment purchase and sale, consignment import and export, and consignment storage, it includes commission income received.

a) Only entities meeting the following conditions are recognized as agents or consignees and allowed to pay turnover tax based on commission income.

- Possess a business license for agency and consignment activities.

- Have a contract between the party entrusting and the party receiving goods for agency and consignment. The contract must clearly state the quantity, type of goods, prices, and commission income.

The agency and consignment contract must be submitted to the directly managing tax authority for monitoring.

- Carry out agency sales and consignment purchases strictly according to the prices stated in the contract.

- Strictly adhere to accounting records, invoices, and clear and accurate accounting of revenue from agency and consignment sales and related commissions and expenses.

If the aforementioned conditions are not met, or if the consignee directly invests funds to purchase goods for resale, the taxable revenue is the full amount of sales proceeds.

If the consignee implements a closed-loop process, undertaking both consignment purchases and consignment sales (consignment imports followed by consignment sales), the consignee must pay turnover tax on the commission income received and also collect and remit turnover tax on behalf of the entrusting party based on the sales revenue (after deducting the commission). This tax is deducted from the payment to the entrusting party.

If the consignee acts as an agent for foreign parties, the consignee, in addition to paying its own tax on the commission income, must declare and pay taxes as follows:

- If the foreign party belongs to a country that has signed a "Double Taxation Avoidance Agreement" with Vietnam, the consignee must collect and remit turnover tax on behalf of the foreign party before paying the foreign party, and also collect and remit withholding tax on behalf of the foreign party according to the agreement. This tax is deducted from the payment for goods to the foreign party.

- If the foreign party belongs to a country that has not signed a "Double Taxation Avoidance Agreement" with Vietnam, the consignee must collect and remit turnover tax on behalf of the foreign party before paying the foreign party, and also collect and remit withholding tax on behalf of the foreign party according to the guidelines of the Ministry of Finance. This tax is deducted from the payment for goods to the foreign party.

b) Businesses engaged in consignment sales must have a business license and declare and register to pay taxes on consignment sales activities, and must comply with national regulations on accounting records and invoices.

b) The business entity receiving consignment sales must have a business license and declare, register to pay taxes on consignment sales activities, and must implement accounting records and invoices in accordance with state regulations.

Upon receiving consigned goods, they must immediately record in the ledger, along with invoices or sales authorization letters from the consignor for cases where there is no business registration: name, address of the consignor, type of goods, quantity, and value of consigned goods. Monthly, the business entity must declare revenue from consigned sales and commission received, and declare and pay turnover tax according to the Law.

- The consignee must pay turnover tax on the commission received.

- The consigner, if it is a production unit subject to special consumption tax, must pay special consumption tax at the place of production. If it is not subject to special consumption tax, then it must pay turnover tax at the place of consignment receipt based on revenue minus consignment commission, which is paid by the consignee and deducted from the payment before paying the consigner. (Based on proof of tax payment at the consignment receipt location, the consigner does not need to pay turnover tax at the production business establishment anymore).

- For consigners who are organizations or individuals without production and business registration, in all cases, they must pay turnover tax or special consumption tax at the consignment receipt location, which is paid by the consignee and deducted from the payment before paying the consigner. At the same time, they must also pay withholding income tax according to the guidelines of the Ministry of Finance.

8. For service business activities, revenue includes fees for services, including labor costs, raw materials, spare parts (if any), and other expenses related to service activities.

a) For postal service business activities, revenue includes postal fee income (including stamp sales revenue), installation revenue, telephone machine rental tax, fax machine rental tax... and other postal service activity revenues.

b) For credit activities of banking organizations (including specialized banks, foreign banks, joint-stock banks), financial companies, and other credit institutions, revenue includes the difference between interest income from loans and deposits and interest expense on loans and deposits from customers.

For other banking and credit activities such as agency payments, money transfers... revenue includes income or commissions earned from those service activities.

c) For insurance activities, revenue includes premiums received from customers and other income from insurance activities.

d) For asset leasing and transportation equipment leasing activities, revenue includes income from leasing assets and transportation equipment.

In cases where leasing of assets and transportation equipment includes drivers (full-package leasing), if the leasing fee and driver's wages cannot be separated, tax is paid on the total full-package revenue.

For leasing of assets and equipment from foreign entities, the lessee must pay turnover tax on the lease payment amount. This tax amount is deducted from the lease payment before paying the foreign lessor.

Specifically, for withholding income tax, for the income of foreign lessors, it will be implemented according to the "Double Taxation Avoidance Agreement" signed or according to the guidelines of the Ministry of Finance regarding withholding income tax.

e) For brokerage activities, revenue includes income from those activities. For transportation brokerage activities, taxable revenue does not include transportation fees paid on behalf of customers as specified in the contract (if any).

g) For lottery activities, revenue includes actual income from selling lottery tickets (revenue according to ticket price minus (-) commission paid to lottery ticket agents according to regulations).

For other lottery activities, total revenue is declared before deducting any expenses.

9. Business entities with revenue in foreign currency converted can pay taxes in foreign currency or Vietnamese dong, converted at the buying rate published by the State Bank at the time of tax payment.

For revenue in other foreign currencies, taxes must be paid in Vietnamese dong, converted at the buying rate published by the State Bank at the time of tax payment. If the State Bank does not publish a rate for that foreign currency, it will be converted according to the rate set by the Ministry of Finance.

Converting from foreign currency to Vietnamese dong for tax payment or as working capital does not constitute foreign exchange business activities and does not require payment of turnover tax.

10. For businesses using goods, materials, machinery, equipment... (self-produced or purchased externally) or providing services to exchange goods, settle debts, or for internal use (excluding use for self-construction), or giving as gifts to others, must determine taxable revenue based on the market price of similar products at the same time. The entity receiving materials and goods, if selling those materials and goods, must also pay turnover tax on the sale of materials and goods.

11. For printing, publishing, broadcasting... activities (including temporary activities not subject to turnover tax under this Circular, if there is revenue from advertising activities, must declare and pay turnover tax according to the service advertising tax rate.

12. For economic organizations using contracting forms (in any form) for individuals or groups of people (inside or outside the organization) to manage and distribute income independently, the contractor is the taxpayer and the taxable revenue is the actual revenue generated by each contractor.

13. According to Article 14 of the Turnover Tax Law, Article 11 of the Income Tax Law, and Article 10 of Decree No. 55-CP dated August 28, 1993 of the Government, small-scale traders may pay tax based on contracted revenue. Small-scale traders are those with average monthly revenue subject to tax as follows by industry:

- Production and trade up to 6 million VND.

- Catering up to 3 million VND.

- Processing, construction, transportation, and service up to 2 million VND.

The tax authority bases its assessment on the declaration materials of individual businesses and the investigation materials of tax officers, combined with public and democratic discussions among industry groups, recording minutes to propose specific turnover levels for each business to determine those that should pay taxes based on turnover quotas. This turnover level serves as the basis for calculating taxes for a three-month period. If the actual turnover increases or decreases by more than 20% compared to the quota within this period, the turnover quota and the amount of tax payable must be adjusted. If the turnover exceeds the specified limit, the business must switch to paying taxes based on declarations. The procedure for making adjustments must follow the principles and procedures established when determining the turnover quota.

B. TAX RATE ON BUSINESS INCOME

Based on Article 9 of the Business Income Tax Law, Article 2 of the Law Amending and Supplementing Certain Provisions of the Business Income Tax Law, and Article 4 of Decree No. 55-CP dated August 28, 1993 of the Government, the tax rate on business income is applied according to the attached Table. ^(1). The Ministry of Finance provides guidance on the application of tax rates as follows:

General principle: The tax rate on business income is not applied to individual production and business units but rather to each industry or production and business activity of the unit. For industries or product categories that have been detailed in the tax table, the applicable tax rate shall be strictly followed. Businesses operating in multiple industries or producing various products subject to different business income tax rates must separately account for revenue by industry or product and pay business income tax according to the respective tax rates for each industry or product. If a business cannot separately account for revenue by industry or product, the highest tax rate shall apply to the total revenue from all industries or products produced.

Determination of the business industry is based on the national economic sector classification regulations issued by the State. In certain cases, the tax rate on business income is determined as follows:

1. Enterprises producing products that are subject to both industry-based and product-based tax rates, as well as usage-based tax rates, shall apply the lowest tax rate.

Example 1: Producing rubber toys, where rubber products are taxed at 4%, and toys at 0.5%, the tax rate of 0.5% applies to the revenue from selling rubber toys.

Producing musical instruments made of wood, where wooden products are taxed at 5%, and musical instruments at 1%, the tax rate of 1% applies to the revenue from selling musical instruments.

Example 2: Producing iron beams and iron doors, which are considered construction materials taxed at 5% or consumer machinery products taxed at 2%, the tax rate of 2% applies to the revenue from selling iron beams and iron doors.

2. Enterprises producing ice sold to fishing enterprises under economic contracts for cooling fish on fishing vessels or at fish processing facilities shall pay business income tax at a rate of 2% on such revenue. If the enterprise cannot clearly account for the portion of ice sold to fishing enterprises (invoices corresponding to the contract), it must pay business income tax at a rate of 6% on the total revenue from selling ice.

Enterprises providing mechanical repair services, electrical, electronic repairs, etc., that purchase machinery, equipment, transportation means, electrical, and electronic products, then repair, refurbish, and resell them, shall apply the tax rate for the industry or production on the revenue from selling the products.

3. Regarding agricultural products.

a) Revenue from selling processed agricultural products (irrespective of crop or livestock products) is subject to business income tax. The tax rate is determined according to the industry or product production rate.

Example 1: Tea companies or industrial cooperatives that grow and process tea, if they sell fresh tea leaves, they do not need to pay business income tax; however, if they use fresh tea leaves to produce black tea, scented tea, packaged tea, etc., they must pay business income tax at a rate of 6% on the revenue from selling processed tea (according to the industry tax rate for food processing, Point 15 - Section 1 of the Business Income Tax Table).

Example 2: Tobacco purchasing companies that buy tobacco leaves from growers do not require the growers to pay business income tax; however, if the purchasing company sells tobacco leaves to tobacco processing enterprises or cigarette manufacturing enterprises, the purchasing company must pay business income tax at a rate of 1% on the revenue from selling tobacco leaves (according to the tax rate specified in Point 1 - Section IV of the Business Income Tax Table). Processing enterprises selling tobacco leaves or tobacco threads must pay business income tax at a rate of 6%.

b) Agricultural production not subject to agricultural tax or land use tax for agricultural purposes must pay business income tax at the rate specified in Point 29 - Section I of the Business Income Tax Table. Revenue for taxation includes money from selling livestock products, poultry products, including fresh milk, eggs, honey, silk, duck eggs, breeding stock, and various animals such as soft-shelled turtles, eels, snails, frogs, pearls from freshwater mussels raised in natural rivers and lakes not included in land or ponds already taxed for agricultural land use; selling ornamental birds, ornamental fish, ornamental plants, plant seedlings...

4. Enterprises with retail outlets for their products must pay business income tax (or special consumption tax) at the industry or product tax rate at the place of production and must also pay business income tax at the trade industry tax rate at the location of the retail outlet.

When selling goods for consumption, regardless of the buyer or sales method, the enterprise must issue invoices or invoices combined with warehouse delivery notes, clearly stating prices and sales volume.

Example 1: Enterprise A produces plastic products located in District 1, Ho Chi Minh City, and has a retail store selling its own products.

In October 1993, it sold 500 plastic products (assuming all of the same type):

- Sold to customers 400 products.

- Sold to its own store 100 products.

The selling price to customers was 50 thousand VND per product.

The enterprise must reflect this on the invoice to determine the taxable production revenue.

- Sales to customers: 400 products x 50,000 VND = 20 million VND.

- Sales to the store: 100 products x 50,000 VND = 5 million VND.

The production stage tax payable is 25 million x 4% = 1 million dong.

A store selling 100 products with revenue of 6 million dong must declare and pay business trade tax: 6 million x 2% = 0.12 million (in cases where tax is paid based on revenue). If it meets the conditions stipulated for business trade, the turnover tax for the store will be calculated based on the difference between the sales price and the warehouse price of the production base.

In cases where the production base organizes a retail store to introduce products in the same locality (district, county), and transfers goods to the store according to the internal dispatch and transportation form, and the sales revenue is recorded as part of the unit's revenue, which has already declared and paid tax at the production industry rate, then there is no need to pay turnover tax under business trade for such goods.

Example 2: Similar to example 1, but the retail store introduces products directly at the production base or in District 1. The base uses the internal dispatch and transportation form to transfer products to the retail store, and the plastic product sales revenue is recorded as part of the total revenue of the base.

The turnover tax that the base must pay is: (20 million + 6 million) x 4% = 1.04 million dong.

The store does not have to pay turnover tax for the quantity of products sold from the production base, if the store also deals in other items, it still has to pay turnover tax for those other items.

5. Tax rate for processing activities.

a) Units receiving processing: apply a tax rate of 6% on processing revenue (as stipulated in Point 28 - Section 1 of the Tax Table).

b) Units providing processing: apply the production industry tax rate on the total revenue of processed products (including cases where the received processed products are resold as well as cases where the completed products are produced for sale).

6. According to Article 15 of the Turnover Tax Law, for wholesale trading, turnover tax must be paid at a rate of 2% and income tax at a rate of 3% (combined total of 5%) based on the market value of each shipment at the departure location. In cases where tax is not declared and paid at the departure location, it must be paid at the arrival location based on the taxable value at the arrival location, discovery location, or sale location. In addition to paying taxes as prescribed, traders will also be subject to penalties as stipulated.

7. In cases where a business with an export permit purchases products from a production base for export but does not export them and instead sells them domestically, in addition to paying turnover tax on domestic sales revenue at the business trade rate, they must also pay turnover tax or special consumption tax at the production industry rate in lieu of the production stage. For items subject to special consumption tax, the special consumption tax payable on the sold item is calculated based on the special consumption tax rate of similar or equivalent items at the time of sale.

8. Sales of teaching and learning equipment and supplies are subject to a tax rate of 1% (as stipulated in Point 1, Section IV of the Tax Table).

9. Revenue from the resale of shares is subject to a sales tax rate of 2%.

10. For credit services, a unified tax rate is applied to each banking organization engaged in credit activities based on the establishment decision and operational activities granted by the regulatory authority, without taxing individual lending transactions. In cases where the credit activities of an entity cannot be specifically categorized, a tax rate of 15% shall be applied.

For banking and credit service activities, a tax rate of 6% applies; pawnshop services are subject to a tax rate of 4%; foreign currency trading, if taxed based on revenue, the tax rate is 0.5%, and if taxed based on the difference, the tax rate is 25%.

11. Other services are subject to a tax rate of 4%, including: budget guesthouses, service activities not specifically defined in the Tax Table. Public services are subject to a tax rate of 1%, including: bicycle, car, motorcycle parking, street cleaning and environmental sanitation contracting...

III. REGISTRATION AND DECLARATION OF PAYMENT OF TURNOVER TAX

- According to Articles 10 and 11 of the Turnover Tax Law, businesses are responsible for declaring and registering with the tax authority, fully declaring business revenue subject to tax according to the time specified on the tax notice, strictly adhering to accounting record-keeping systems, invoices, and providing materials as required by the tax authority, paying taxes in full and on time. - According to Article 16 of the Turnover Tax Law, the tax authority has the duty and authority to guide and assist businesses in implementing accounting record-keeping systems, declaration procedures, and tax payment processes, inspect and control business operations, calculate taxes, establish tax ledgers, approve tax amounts, and notify businesses of monthly tax payments due. Request businesses to provide complete documentation related to determining tax amounts, inspect compliance with tax laws and budget collection, prepare records and handle violations. Consider and resolve complaints... Pursuant to these provisions, the Ministry of Finance provides specific guidance on certain points as follows:

1. Declaration and registration for tax:

- Businesses must declare and register for tax payment with the local tax authority. Subordinate units, branches, stores... of the business must register and declare tax payment with the tax authority where the branch or store is located.

For businesses operating production in one locality (province, centrally-administered city), but with an office (transaction office) in another locality (without warehouses for import and export of goods in this locality), the business must declare and pay production activity turnover tax at the production locality.

- The tax declaration form must be made in two copies sent to the tax authority for verification and confirmation. (One copy returned to the business, one copy retained by the tax authority for tracking tax payment implementation).

- When there are changes to registered indicators, mergers, divisions, or dissolution of the business, it must report to the tax authority at least five days before the merger, division, or dissolution, and must settle all outstanding turnover tax before the change occurs.

2. Tax Declaration Procedures:

a) Business entities must prepare monthly tax declarations according to the prescribed form and submit them to the directly managing tax authority no later than the 5th day of the following month.

For example, by the end of January, they must prepare the January sales tax declaration; however, it must be submitted to the tax authority no later than February 5.

b) The tax revenue management agency is responsible for checking the tax calculation declarations, maintaining tax records, and notifying the taxpayer of the monthly tax due. The tax authority must send the notification of the previous month's tax due to the taxpayer before the 10th day of the following month.

In cases where business entities fail to fully and timely declare taxable income, comply with accounting record-keeping systems, invoices, and refuse to provide relevant materials for calculating sales tax, the tax authority has the right to determine the taxable income and tax payable based on investigation materials. If the business entity disagrees with the determined taxable income and tax, it may file a complaint, but during the resolution period, it still must pay the tax according to the determined taxable income and tax.

c) Small individual businesses may pay taxes based on fixed turnover and according to the notification or collection order issued by the tax authority.

3. Tax Payment Deadline:

The tax authority bases its determination of the regular monthly tax payment date on the business characteristics and average monthly tax payable. For units with large monthly tax payments, the tax payment date can be set at intervals of 5, 10, or 15 days. Based on the turnover generated during each period, the unit must deposit the tax money into the State Treasury.

Each month, based on the tax due amount and the payment date specified on the tax notification, the business entity must deposit the tax money into the State Treasury. Where treasury offices have not yet established tax collection points, the tax authority directly collects and deposits the tax money into the State Treasury according to regulations. Entities that have made periodic advance payments as determined by the tax authority must settle any remaining tax due (as notified). Any overpayment can be deducted from the next month's tax due. In all cases, the deadline for paying the previous month's tax cannot exceed the 15th day of the following month. If the sales tax for the previous month is paid after the 15th day of the following month, a daily late payment penalty of 0.92% will apply to the overdue amount.

- Itinerant traders must declare and pay taxes on a per-trip basis. (According to point 5 - Section II).

- Fixed business entities purchasing raw materials or goods must have invoices issued by the seller recognized by the Ministry of Finance; they must maintain purchase books recording quantities and prices of goods (issued by the local tax revenue management agency) to avoid paying sales tax on trading activities. If transporting goods for sale or exchange with other entities, invoices or warehouse dispatch notes must accompany the shipment; if no invoice accompanies the shipment, sales tax must be paid for trading activities.

- When a business sells goods outside the permitted trading area and has already paid sales tax on trading activities, this portion of the turnover does not need to be taxed again under the fixed business entity's sales tax; if both sales tax and profit tax were paid together for trading activities, then no profit tax needs to be paid for these trading activities. When declaring and paying sales tax and profit tax, the business must present receipts and proof of tax payment to the local tax authority.

To ensure uniform tax calculation within each locality and prevent revenue loss due to price fluctuations, the district tax authority or equivalent must organize market price surveys for goods commonly traded by itinerant traders in the locality, informing tax stations and teams to establish a basis for determining the tax calculation price for trading activities.

4. In all tax collection cases, the tax collection agency must issue a tax receipt or confirmation of tax payment to the taxpayer using standardized receipts and tax certificates issued by the Ministry of Finance.

The tax authority is responsible for guiding and inspecting business entities to implement accounting record-keeping systems, bookkeeping, and the use of invoices according to regulations; organizing tax collection management in accordance with established procedures and practices.

IV. TAX REDUCTION AND EXEMPTION

Based on Article 18 of the Sales Tax Law and Article 12 of Decree No. 55-CP dated August 28, 1993 of the Government, the procedures and authority for reviewing tax reduction and exemption for the specified cases are as follows:

A. CASES ELIGIBLE FOR TAX EXEMPTION

Elderly, disabled individuals, or small-scale traders whose monthly income only covers their basic living expenses.

The income level serving as the basis for tax exemption review for the aforementioned cases is 90,000 VND/month, calculated based on the average monthly income of workers directly involved in production and business operations.

Income is determined by subtracting related business operation costs from the turnover, but excluding wages and salaries paid to the exempted individual.

The head of the Tax Revenue Office is responsible for coordinating with the commune or ward authorities to review and issue decisions or notifications regarding tax exemptions, promptly adjusting them to match changes in the subjects and scale of production and business operations.

B. CASES ELIGIBLE FOR TAX REDUCTION

1. Business entities facing difficulties due to natural disasters, enemy attacks, or unexpected accidents may be eligible for tax reduction. The reduction rate is proportional to the percentage of asset and business capital losses compared to the total value of assets and business capital, but not exceeding 50% of the sales tax due for the reduction period. Additionally, it cannot exceed 30% of the value of damaged assets. The tax reduction period shall not exceed 12 months, including the month of damage occurrence and subsequent months with business revenue.

To have grounds for tax reduction as stipulated above, business entities affected by natural disasters, enemy attacks, or unexpected accidents must prepare and submit application files to the directly managing tax authority. The tax reduction application file includes:

- The application for tax reduction due to natural disasters, enemy activities, or unexpected accidents shall clearly state the reasons for the damage incurred.

- A record confirming the extent and value of the loss of assets and capital from the competent authority.

- Confirmation of the value of assets and business capital according to the business registration or the final accounts before the occurrence of the damage.

- A letter from the tax authority managing the unit specifying the rate of damage and recommending specific levels and time periods for tax reduction.

- The tax authority managing the unit must submit all documentation to the higher-level tax authority for review and decision in accordance with the prescribed jurisdiction.

Example: On March 10, 1994, Enterprise A suffered a fire. The value of damaged business assets was 120 million dong. Compared to the total value of business assets of 600 million dong, the damage ratio was 20%. Enterprise A had to cease production to address the aftermath until May 20, 1994, when it resumed operations.

- The business income tax payable for the first ten days of March 1994 by Enterprise A was 20 million dong.

- The business income tax payable according to the Law from May 20, 1994, to August 30, 1994 (three months and ten days thereafter) was 180 million dong.

The amount of tax reduction for three months and subsequent months starting from May 1994 is 20% (corresponding to the damage ratio), but the maximum tax reduction amount does not exceed 30% of the damage value, which is 40 million dong (30% x 120 million dong), and the tax reduction period does not exceed twelve months.

According to the above example: Enterprise A is eligible for a tax reduction on business income in March 1994 (20 million x 20% = 4 million) and subsequent months May, June, July, and August (180 million x 20% = 36 million). Thus, the total tax reduction amount is 20%, over a period of five months, totaling 40 million dong.

2. Business establishments operating in mountainous areas, islands, engaging in fishing in distant sea regions, research institutions, applying new technology, testing new production lines if encountering difficulties, paying taxes according to the law while incurring losses may be considered for a tax reduction on business income for the corresponding year based on the losses caused by these factors, but not exceeding 50% of the tax payable and the tax reduction period does not exceed two years from the year the loss occurred. For businesses applying new technology and testing new production lines, the tax reduction period starts from the date of applying new technology and putting new production lines into operation.

Documentation for requesting tax reduction includes:

- An application for tax reduction from the business establishment clearly stating the reasons for requesting the reduction.

- Financial settlement statements for the year requesting tax reduction accompanied by explanations of the financial settlement provided by the business establishment.

- Inspection records of production and business costs and results issued by the local tax authority, clearly stating the reasons for the losses.

- Decision approving the research plan, application of new technology, and testing of new production lines (specifying the duration, type, and quantity of products) by the competent authority. Research institutions must provide complete documentation according to current regulations on managing scientific programs, projects, and plans issued by the State, and in cases where contracts are directly signed between domestic organizations and foreign entities or between domestic organizations, confirmation from the central or provincial science management agency or the relevant ministry is required.

- A letter from the tax authority recommending the level of tax reduction.

Procedure for considering tax reduction:

- Reducing the basic depreciation rate for the business establishment as stipulated in Article 14 of Decision No. 507-TC/ĐTXD dated July 22, 1986, issued by the Ministry of Finance.

- Exempting or reducing the revenue from the use of state budget funds (if applicable).

- Considering tax reduction on business income according to the provisions (after implementing measures to reduce the basic depreciation rate and exempt or reduce revenue from the use of state budget funds as mentioned above). During the period before the competent authority decides on tax reduction, the tax authority managing the unit eligible for tax reduction due to losses can temporarily defer payment of taxes corresponding to 70% of the losses and up to a maximum of 50% of the tax payable during the tax reduction period.

3. Production units producing substitute goods for imported goods (listed in the directory published by the State Planning Commission) are eligible for a 50% tax reduction on business income for one year for products with a production cycle under six months, and two years for products with a production cycle over six months, within the validity period of the directory of goods encouraged for production to replace imported goods issued by the State Planning Commission.

Documentation for considering tax reduction includes:

- An application for tax reduction from the production and business establishment clearly stating the product listed in the directory of goods encouraged for production to replace imported goods and the start date of production.

- Confirmation from the quality control inspection agency regarding the specifications and quality of the produced product.

- A letter from the Tax Bureau confirming the type of product produced, the start date of product consumption, and recommending the level and period of tax reduction.

4. New production units established and commenced operations from 1993 are eligible for a 50% tax reduction on business income for one year (twelve months), and two years (twenty-four months) in mountainous and island areas, starting from the month of revenue generation.

New production units that commence operations are newly established and invested in according to the decision of the competent authority and have obtained a business license. Units previously established and now divided, merged, renamed, or have undergone investment improvements or changes in product lines do not qualify for tax reduction under this provision.

Documentation for considering tax reduction includes:

- An application for tax reduction from the production and business establishment clearly stating the establishment date and the start date of production, and requesting the tax reduction period.

- The establishment decision of the enterprise by the competent authority (copy).

- The production and business plan of the unit detailing revenue targets, cost, tax, profit, and loss indicators.

- A letter from the tax authority managing the unit inspecting and confirming, recommending tax reduction.

For units eligible for tax reduction on business income as specified in Section IV, Part B above, if they continue to face difficulties, the tax reduction period may be extended depending on the specific circumstances, but the total tax reduction period does not exceed two years, and three years in mountainous and island areas.

C. AUTHORITY TO CONSIDER AND DECIDE ON TAX EXEMPTIONS AND REDUCTIONS ON BUSINESS INCOME

The tax authorities at all levels shall be responsible for examining, considering, resolving, or recommending to higher-level tax authorities to make decisions on reducing taxes for each specific case as stipulated below:

1. The Director of the Tax Revenue Collection Office may examine and notify the exemption of taxes for business entities with low income levels as specified in Section IV Part A and those businesses that have ceased operations.

2. The Director of the Provincial Tax Department may examine and decide to reduce taxes for households and organizations engaged in business activities and state-owned enterprises managed by localities as specified in Point 1 and Point 2, Section IV Part B, where the average monthly tax reduction is less than four million dong.

3. The Director General of the State Tax Administration may examine and decide to reduce taxes for enterprises and companies under central management; enterprises and companies established and operating according to the Law on Foreign Investment in Vietnam; and businesses and companies managed by localities with an average monthly tax reduction of four million dong or more, as provided in Section IV.

4. The Minister of Finance may examine and decide to reduce taxes for special cases or the maximum period of tax reduction as prescribed by law and cases where the amount of tax reduction is one hundred million dong or more, upon the recommendation of the Director General of the State Tax Administration.

V. VIOLATION HANDLING

According to Article 19 of the Business Tax Law, violations of the Business Tax Law shall be handled as follows:

1. Administrative penalties for tax violations shall be imposed as follows:

a) Organizations and individuals who fail to comply with the regulations on procedures for declaration, registration, bookkeeping, use, and retention of vouchers and invoices as stipulated in Articles 10 and 11 of the Business Tax Law shall be warned or fined depending on the severity of the violation.

b) Organizations and individuals who engage in false declarations to evade taxes shall, in addition to paying the full amount of business tax as prescribed by law, be fined from one to three times the amount of evaded tax:

- For the first offense: a fine of one time the amount of evaded tax;

- For the second offense: a fine of two times the amount of evaded tax;

- For the third offense and subsequent offenses: a fine of three times the amount of evaded tax.

In cases where there are aggravating circumstances, the first offense may also result in a fine of two to three times the amount of evaded tax;

c) Organizations and individuals who delay payment of taxes or fines as stated in the tax notice, collection order, or penalty decision shall, in addition to paying the full amount of tax or fine as prescribed by law, be subject to a daily fine of 0.2% (two thousandths) of the delayed payment amount;

The period for determining late payment for calculating late payment penalties is as follows:

- For business tax due for the previous month if it is not paid into the National Treasury by the 15th day of the following month;

- For fines, it is the period determined by the tax authority and recorded on the penalty notice or tax collection order.

d) Organizations and individuals who delay payment of taxes or fines shall be dealt with as follows:

- Funds of the organization or individual held in banks shall be seized to pay taxes or fines. Banks shall prioritize the deduction of funds from the accounts of businesses to pay taxes or fines into the State Bank;

- Seize goods or evidence to ensure the collection of the full amount of taxes or fines owed;

- Seize assets in accordance with the law to secure the outstanding amount of taxes or fines.

When tax authorities at all levels discover violations of the Business Tax Law by business establishments, they must investigate and determine the nature of the violation, its severity, and the cause; the responsibility of organizations and individuals for each violation; and prepare a file in accordance with the regulations. Based on their authority and the provisions of Decree No. 01-CP dated October 18, 1992, issued by the Government on administrative penalties in the field of taxation, the tax authority shall issue a decision on penalties or recommend to higher-level tax authorities or legal agencies to consider and decide on handling the matter.

2. Criminal liability shall be pursued against individuals who evade large amounts of tax or who have been administratively punished as stipulated in Point 1 above but continue to evade large amounts of tax or commit serious crimes as provided in Article 169 of the Penal Code.

VI. COMPLAINTS AND STATUTE OF LIMITATIONS

1. Right to Appeal Against Tax

According to Article 24 and Article 25 of the Business Tax Law, organizations and individuals have the right to complain about the incorrect implementation of the Business Tax Law concerning themselves.

The complaint must be submitted to the tax authority issuing the collection order or decision within thirty days from the date of receipt of the order or decision. While waiting for resolution, the organization or individual making the complaint must still pay the full amount of tax and fines as notified, on time.

If the organization or individual making the complaint disagrees with the tax authority's decision on the complaint or exceeds the thirty-day period from the date of submission of the complaint, they have the right to appeal to a higher-level tax authority.

2. Responsibilities and authorities of the tax authority.

Tax authorities at all levels, upon receiving complaints about taxes from taxpayers, must examine and resolve them within fifteen days from the date of receipt of the complaint. For complex cases requiring investigation and verification, which take longer, the parties concerned must be informed, but the resolution period shall not exceed thirty days from the date of receipt of the complaint.

According to Article 26 and Article 27 of the Business Tax Law, the tax authority receiving the complaint must issue a decision with one of the following contents:

- Not changing the previous decision;

- Changing the form, degree, or measures of the decision;

- Revoking the previous decision and stopping the enforcement of the previous decision.

In cases where the tax authority changes or revokes the previous decision, or when a decision is made by a higher-level tax authority, the tax authority that previously decided must refund the improperly collected tax or fine and compensate for any damages (if any) to the taxpayer. The resolution period shall not exceed fifteen days from the date of changing the decision or receiving the decision from a higher-level tax authority.

Upon discovering and concluding that there has been false declaration, tax evasion, or errors in tax calculation or penalty processing, the tax authority shall be responsible for recovering or refunding the incorrectly calculated tax or fine within three years from the date of discovery of the false declaration, tax evasion, or error in tax calculation or penalty processing.

VII. IMPLEMENTATION ORGANIZATION

1. This Circular takes effect from September 1, 1993, replacing Circular No. 45-TC/TCT dated October 4, 1990 of the Ministry of Finance on "Guidelines for Implementing the Law on Business Tax and Decree No. 351-HĐBT of the Council of Ministers detailing the implementation of the Law on Business Tax."

Other provisions on business tax in other Circulars, guiding documents issued by the Ministry of Finance, the General Department of Taxation, as well as those of various sectors and localities that conflict with this Circular shall be abolished.

As for cases where reductions in business tax were decided before the implementation of the Law amending and supplementing the Law on Business Tax, such reductions shall continue to be implemented according to the previously determined reduction rates and periods.

2. The General Department of Taxation shall be responsible for organizing and directing the tax sector, inspecting and guiding units to properly implement the Law on Business Tax, Government Decree No. 55-CP dated August 28, 1993 on "Detailed Provisions for Implementing the Law on Business Tax and the Law Amending and Supplementing Certain Articles of the Law on Business Tax," and this Circular.

In the course of implementation, if there are any difficulties or obstacles, units and agencies are requested to promptly report them to the Ministry of Finance for research and supplementary guidance.

(1)     The business tax schedule can be found in the preceding document (Publisher).

Phan Van Dinh (Signed)

(2)      

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

BUSINESS TAX REGISTRATION BOOK:

BUSINESS TAX REGISTRATION FORM (1)

To: (2)

1. Name of business establishment (3)

2. Administrative authority

3. Name of Director or owner of the business establishment (4)

4. Decision on establishment of the enterprise

Number... Date... Issuing authority:

- Business license number date / / 19..

issued by …

5. Time of commencement of business (5): from / / 19..

6. Business activities (6): main:

Secondary:

7. Goods or business activities: main:

Secondary:

8. Business location (7): main

Secondary

Location of raw material warehouse, goods warehouse:

9. Total business capital or investment: dong

Of which: Statutory capital

+ Capital provided by the State budget:

+ Other sources of capital:

10. Total number of employees: people

11. Accounting method applied:

12. Bank account number: at Bank:

Treasury account number: at Treasury:

13. Registration of place of tax payment: (2)

I hereby undertake responsibility for the accuracy of the information declared above and will strictly comply with the responsibilities and obligations of the business establishment as prescribed in the tax laws.

Date…month…year Inspector of the declaration form (Signature for confirmation)

Date…month…year HEAD OF THE BUSINESS ESTABLISHMENT Director or … (Signature - Stamp)

Confirmation of tax registration, entered into the book
day …month…year …
…tax (2)

(Tax authority leader signs and stamps)

PART GUIDANCE ON CONTENTS OF BUSINESS TAX REGISTRATION

1. Business tax registration in accordance with Clause 1, Article 10 of the Law on Business Tax and Special Consumption Tax.

2. The Tax District Office or Tax Branch directly managing the collection of taxes from the business establishment.

3. Name of the business establishment: name of factory, cooperative... or name of shop, store.

4. Name and title of director or owner of the business establishment: director, head, team leader... (if it is an economic organization) or individual household owner (if it is an individual or sole proprietorship).

5. Time of commencement of business operations of the business establishment.

6. Business activities: production, processing, manufacturing, assembly; extraction, cultivation; construction; transportation; wholesale, retail, agency, consignment;

fixed or mobile; regular or seasonal...

7. Business location: place of production, sale, service...

Business capital declared includes all sources of capital at the time of registration.

9. Labor force of the business establishment.

On behalf of the business establishment; Director of factory, company, head of cooperative... signs and writes full name and position, stamp. If it is an individual household, the household owner signs and writes full name.

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

…Day …Month …Year 19

BUSINESS TAX CALCULATION FORM

For the month…year 19

- Name of business establishment (or individual household):

- Business activities:

- Business location:

Account number:…at Bank:

Account number …At Treasury:

Number No.	Business content	Part of Declaration by Business Entity			Part of Inspection by Tax Officer			Part of Tax Calculation by Tax Authority
		Enterprises receiving State support for trade promotion expenses must ensure that the funds are used economically and effectively and bear responsibility for the content of the expenditures according to current regulations; Do đó, để thực hiện nhiệm vụ bán đấu giá đối với các loại tài sản nhà nước trên đây, cơ quan tài chính có thể thành lập Hội đồng bán đấu giá tài sản hoặc thành lập đơn vị sự nghiệp để tổ chức bán đấu giá các loại tài sản nhà nước. Vì thế, việc thành lập đơn vị sự nghiệp thuộc Sở Tài chính để thực hiện các nhiệm vụ có tính chất dịch vụ về quản lý tài sản nhà nước, bao gồm cả việc bán đấu giá tài sản nhà nước là phù hợp với các quy định hiện hành của pháp luật và thuộc thẩm quyền quyết định của Chủ tịch UBND cấp tỉnh. Tuy nhiên, để đảm bảo phù hợp với quy định tại Điều 36 Nghị định số 05/2005/NĐ-CP của Chính phủ, khi lập Đề án thành lập đơn vị sự nghiệp, thì tên gọi của đơn vị sự nghiệp đề nghị không sử dụng cụm từ "dịch vụ bán đấu giá tài sản" hoặc "bán đấu giá tài sản". Đối với các địa phương đã thành lập Trung tâm mà trong tên gọi của Trung tâm có sử dụng những cụm từ "dịch vụ bán đấu giá tài sản" hoặc "bán đấu giá tài sản", đề nghị Sở Tài chính phối hợp với Sở Nội vụ báo cáo UBND tỉnh, thành phố quyết định thay đổi tên gọi cho phù hợp.	Tariff Rate	Amount of Tax Due	Enterprises receiving State support for trade promotion expenses must ensure that the funds are used economically and effectively and bear responsibility for the content of the expenditures according to current regulations; Do đó, để thực hiện nhiệm vụ bán đấu giá đối với các loại tài sản nhà nước trên đây, cơ quan tài chính có thể thành lập Hội đồng bán đấu giá tài sản hoặc thành lập đơn vị sự nghiệp để tổ chức bán đấu giá các loại tài sản nhà nước. Vì thế, việc thành lập đơn vị sự nghiệp thuộc Sở Tài chính để thực hiện các nhiệm vụ có tính chất dịch vụ về quản lý tài sản nhà nước, bao gồm cả việc bán đấu giá tài sản nhà nước là phù hợp với các quy định hiện hành của pháp luật và thuộc thẩm quyền quyết định của Chủ tịch UBND cấp tỉnh. Tuy nhiên, để đảm bảo phù hợp với quy định tại Điều 36 Nghị định số 05/2005/NĐ-CP của Chính phủ, khi lập Đề án thành lập đơn vị sự nghiệp, thì tên gọi của đơn vị sự nghiệp đề nghị không sử dụng cụm từ "dịch vụ bán đấu giá tài sản" hoặc "bán đấu giá tài sản". Đối với các địa phương đã thành lập Trung tâm mà trong tên gọi của Trung tâm có sử dụng những cụm từ "dịch vụ bán đấu giá tài sản" hoặc "bán đấu giá tài sản", đề nghị Sở Tài chính phối hợp với Sở Nội vụ báo cáo UBND tỉnh, thành phố quyết định thay đổi tên gọi cho phù hợp.	Tariff Rate	Amount of Tax Due	Revenue	Machine tools for machining complete units (one operation position) and machine tools for multi-position machining to process metals.	Amount of Tax Due
A	B	1	2	3=1 x 2	4	5	6=4x5	7	8	9=7x8
	(*) The basis for budgeting expenses is based on the current regulations of the Ministry of Finance regarding travel expenses for civil servants and employees of the State going on short-term business trips abroad funded by the state budget.

Amount of Tax Due (in words):

- We hereby solemnly declare that the information and figures declared above are true and accurate; if not, our business entity will accept the consequences as stipulated by the Law on Business Income Tax.

Approval by Head of Tax Authority

Confirmation by Tax Officer

…on…day…month…year…

Director or Household Owner (Signature, stamp)

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

APPLICATION FOR REGISTRATION TO IMPLEMENT THE METHOD OF PAYING BUSINESS INCOME TAX

1. Name of unit:

2. Address:

3. Trading (industry group):

4. Currently Implementing Accounting Method:

(Journal Voucher, Ledger Entry, General Ledger Journal, Other Methods...)

Application for registration to pay business income tax based on the difference between selling price and purchase price from the date of... month... year 199...

The unit hereby commits to comply with all regulations regarding declaration and payment of taxes as stipulated in Circular No....TC/TCT dated... issued by the Ministry of Finance. If there is any violation, the unit will bear full responsibility under the law.

Confirmation by Tax Department District Tax Office

Date...month...year 199 Credit organization branch in province/city and basic credit cooperative… (Signature, stamp)

Unit authorized to implement payment

of business income tax on the difference

between selling price and purchase price,

from month... year 199 (Signature, Stamp)

Note: The application for registration shall be made in two copies: one copy retained by the unit and one copy kept by the directly managing tax authority for monitoring purposes.