Circular No. 74/2000/TT-BTC provides tax incentives for securities trading activities over three years, including exemption from value-added tax and reduction of 50% corporate income tax for securities companies, fund managers, and issuers of securities. Individuals investing in securities are also exempted from income tax on dividends, bond interest, and gains from buying and selling securities.
적용 범위
Securities companies, fund management companies, and investment funds, issuing organizations with listed securities, and individuals investing in securities.
핵심 사항
- Securities companies are exempt from value-added tax for three years (2000-2002).
- Securities companies and fund management companies are exempt from corporate income tax for an additional year, and have their corporate income tax reduced by 50% for the following two years.
- Issuing organizations with listed securities are entitled to a 50% reduction in corporate income tax for two years following listing.
- Individuals investing in securities are exempt from income tax on dividends, bond interest, and gains from buying and selling securities.
- To be eligible for incentives, entities must hold a business license pursuant to Decree No. 48/1998/NĐ-CP.
🌐 이 문서의 사회적 영향
- Positive impact: Reduces the tax burden on securities trading enterprises, encouraging investment in the securities market.
- Negative impact: May reduce state budget revenue in the short term.
- Benefit: Enterprises have more time to develop and compete in the securities market.
- Cost: Enterprises must comply with separate accounting regulations and use invoices as prescribed.
❓ 자주 묻는 질문
For how long are securities companies exempt from value-added tax?
Securities companies are exempt from value-added tax for three years (from January 1, 2000 to December 31, 2002).
What percentage of corporate income tax is reduced for issuing organizations with listed securities?
Issuing organizations with listed securities are entitled to a 50% reduction in corporate income tax for two years following listing.
From which sources are individuals investing in securities exempt from income tax?
Individuals investing in securities are exempt from income tax on dividends, bond interest, and gains from buying and selling securities.
What conditions must entities meet to be eligible for tax incentives?
Entities must hold a business license pursuant to Decree No. 48/1998/NĐ-CP to be eligible for tax incentives.
What percentage of corporate income tax are securities companies and fund management companies exempt from?
Securities companies and fund management companies are exempt from corporate income tax for an additional year, and have their corporate income tax reduced by 50% for the following two years.
전문
CIRCULAR
Guidelines for Implementing Decision No. 39/2000/QĐ-TTg
dated March 27, 2000 of the Government Chairman on temporary tax incentives for securities trading activities
ưu đãi về thuế đối với hoạt động kinh doanh chứng khoán ||| tax incentives for securities trading activities
Pursuant to the Law on Value Added Tax No. 02/1997/QH9 dated May 10, 1997 and the Law on Corporate Income Tax No. 03/1997/QH9 dated May 10, 1997;
Pursuant to the Government Decree No. 61/2003/NĐ-CP dated June 6, 2003 stipulating the functions, tasks, powers, and organizational structure of the Ministry of Planning and Investment;
Pursuant to Decree No. 48/1998/NĐ-CP dated July 11, 1998 of the Government on securities and the securities market;
Pursuant to Decision No. 39/2000/QĐ-TTg dated March 27, 2000 of the Government Chairman on temporary tax incentives for securities trading activities;
The Ministry of Finance hereby provides guidance as follows:
I- SCOPE OF APPLICATION:
The subjects temporarily enjoying tax incentives include the following enterprises and individuals operating in the securities sector:
- Securities companies;
- Fund management companies and investment funds;
- Issuing organizations with listed securities.
- Individual investors in securities;
II- CONTENTS OF TEMPORARY TAX INCENTIVES FOR SECURITIES TRADING ACTIVITIES
1/ Regarding Value-Added Tax:
a- Temporarily exempt from value added tax on securities trading activities of securities companies for a period of three years (from January 1, 2000 to December 31, 2002). Securities trading activities as defined in Clause 2, Article 29 of Decree No. 48/1998/NĐ-CP dated July 11, 1998 of the Government include:
- Brokerage;
- Proprietary trading;
- Portfolio management;
- Underwriting;
- Investment advisory services in securities.
b- To be eligible for VAT tax incentives, securities companies must separately account for revenues from securities trading activities and use invoices and documents in accordance with current regulations of the Ministry of Finance. For revenues not subject to VAT, securities companies shall use VAT invoices, and when issuing such invoices, the lines for "VAT rate" and "VAT amount" shall not be filled in and shall be crossed out.
Securities trading activities that are not subject to VAT output tax shall not be entitled to deduct input VAT on goods or services related to non-taxable activities.
2/ Regarding corporate income tax.
a- In addition to the tax incentives provided under the current Corporate Income Tax Law, securities companies and fund management companies shall also be exempt from corporate income tax for an additional year and have their corporate income tax reduced by 50% for the next two years.
b- In addition to the tax incentives provided under the current Corporate Income Tax Law, issuers with listed securities shall have their corporate income tax reduced by 50% for the next two years starting from the first listing of their securities at the securities exchange center.
c- The tax incentives for corporate income tax mentioned above shall be handled according to the following principles:
- If the exemption year under the Corporate Income Tax Law coincides with the exemption year under Decision No. 39/2000/QĐ-TTG, the exemption period shall be extended by one year.
- If a company is simultaneously granted a 50% reduction in tax under the Corporate Income Tax Law and a 50% reduction in tax under Decision No. 39/2000/QĐ-TTG in the same year, it shall be treated as a year of full exemption.
- The tax incentives for corporate income tax shall be implemented after the initial listing of securities but shall start from the time the company begins to generate taxable income.
Example: Company A, a newly established production company in 1999, will be exempt from corporate income tax for the first two years (2001 and 2002) and have its corporate income tax reduced by 50% for the next two years (2003 and 2004) according to the Corporate Income Tax Law.
Assuming Company A has its shares listed for the first time at the securities exchange center in the following cases:
- Listed for the first time in 2001: According to the Corporate Income Tax Law, it will be exempted for two years (2001 and 2002) and have a 50% reduction in tax for the next two years (2003 and 2004). According to Decision No. 39/2000/QĐ-TTg dated March 27, 2000 of the Government Chairman, it will have a 50% reduction in tax for two years (2002 and 2003). However, since 2002 is both an exemption year and a reduction year, the reduction year will be shifted to 2003 and 2004. In total, the company will be exempt from tax for four years: 2001, 2002, 2003, and 2004.
In the case where Company B does not have any tax incentives for corporate income tax according to the Corporate Income Tax Law at the time of its first listing in 2001, the company will have a 50% reduction in corporate income tax for two years (2002 and 2003).
- The tax exemption and reduction period is calculated over a 12-month period, starting from the date the company's securities are listed at the securities exchange center.
d- Procedures and documents for tax exemption and reduction
In addition to the procedures and documents stipulated in the guidelines issued pursuant to the Corporate Income Tax Law, companies must also submit the following documents:
- For securities companies, fund management companies, and investment funds:
+ A letter requesting tax exemption and reduction sent to the direct tax collection authority detailing the reasons for the tax reduction and exemption
+ Certificate of establishment of the company
+ Business operation permit
+ Financial settlement report and corporate income tax settlement report.
- For fund management companies listing fund certificates, they must additionally submit copies of the establishment and issuance permits for fund certificates.
- For issuing organizations with listed securities:
+ A letter requesting tax exemption and reduction sent to the direct tax collection authority detailing the reasons for the tax reduction and exemption;
+ Permit for public issuance of securities;
+ Approval certificate for listing securities on the securities exchange center.
đ- The process of granting tax exemptions and reductions under this circular shall be carried out by the tax authority directly managing the enterprise annually after the enterprises have submitted their financial settlement reports and corporate income tax settlement reports. To reduce difficulties for enterprises during the tax exemption and reduction period, the tax authority may grant temporary tax exemptions and reductions.
Within thirty days of receiving complete tax exemption and reduction application documents, the competent tax authority must issue a formal decision on tax exemption and reduction (or a temporary tax exemption and reduction decision) for the enterprise or notify the enterprise of the reasons for not processing or rejecting the application.
3/ Conditions for enjoying VAT and corporate income tax incentives.
The conditions for the subjects specified in points 1; 2, Section II of this Circular to enjoy preferential treatment on value-added tax and corporate income tax are that such enterprises must be granted operating licenses by competent authorities in accordance with Decree No. 48/1998/NĐ-CP dated July 11, 1998 of the Government or a confirmation of initial securities listing from the Securities Trading Center (for issuers whose securities are listed).
4/ Regarding income tax for high-income individuals:
Individuals investing in securities are exempt from income tax for high-income individuals on income from dividends, bond interest, and gains from buying and selling securities.
III- IMPLEMENTATION ORGANIZATION.
1/ This Circular takes effect from the date of signature.
2/ Other provisions on taxation outside of the above-mentioned preferential treatments shall be implemented by enterprises and individuals engaged in securities trading in accordance with general legal regulations.
During implementation, if there are any difficulties, business entities, sectors, and localities shall promptly report them to the Ministry of Finance for research and resolution.
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