This circular guides on recovering profits from activities involving the sale of vehicles outside the province not in line with initial import intentions. It specifies methods for calculating profit, declaration procedures, and penalties for non-compliant businesses.
Đối tượng áp dụng
Businesses (or individuals) selling cars outside their province; Provincial Tax Departments
Các điểm cốt lõi
- Businesses selling cars outside their province contrary to import purposes must declare and submit documents to the local tax authority (Point 1).
- If a business reports inaccurately, it will be subject to profit recovery and penalties as per current regulations (Point 1).
- Recovered profits from car sales are fully remitted to the central government budget (Point 2).
- Taxes paid in the calculation of recovered profits include import duties and special consumption taxes (Point 3).
- If a business has already paid corporate income tax on car sale profits, the Tax Department will still recover and adjust final tax settlements for the business (Point 3).
🌐 Tác động xã hội từ văn bản này
- Violating businesses are responsible for inaccurate declarations and profit recovery penalties.
- The state budget increases revenue from recovering profits from selling cars outside the province.
- Businesses complying with regulations will not be affected.
❓ Câu hỏi thường gặp
What should a business do when selling cars outside its province?
A business must declare and submit documents to the local tax authority as per Circular No. 4325 TC/TCT dated May 7, 2002.
How will a business be treated if it reports inaccurately?
The business will face profit recovery and penalties under current legal regulations.
Where should recovered profits from car sales be remitted to the state budget?
All recovered profits are remitted to the central government budget, recorded in Chapter 07 - Item 026 - Subitem 01.
What taxes paid are included in the calculation of recovered profits?
This includes import duties and special consumption taxes as reported by customs authorities at the import stage.
How will a business be treated if it has already paid corporate income tax on car sale profits?
The Tax Department will still recover and adjust final tax settlements for the business.
Toàn văn
LETTER
OF THE MINISTRY OF FINANCE NUMBER 7524 TC/TCT DATED JULY 9, 2002
REGARDING THE COLLECTION OF PROFITS FROM THE SALE OF MOTOR VEHICLES
Respected: - Ministries, ministerial-level agencies, and government agencies
- People's Committees of provinces and centrally-run cities.
Regarding the collection of profits from motor vehicles imported with permission from the Prime Minister for public passenger transportation in certain localities but not used for their intended purpose and sold outside the province, the Ministry of Finance issued Letter No. 4325 TC/TCT dated May 7, 2002 to guide implementation.
Following up on Letter No. 4325 TC/TCT dated May 7, 2002 from the Ministry of Finance regarding the collection of profits from the sale of motor vehicles, the Ministry of Finance provides further guidance for cases where motor vehicles sold outside the province do not generate profit, the accounting of state budget revenue for the collection of profits from the sale of motor vehicles, and the method to calculate such profits as follows:
1. For cases where motor vehicles are sold outside the province without generating profit according to the calculation methods specified in points 2.1.1 and 2.1.2 of Letter No. 4325 TC/TCT dated May 7, 2002 from the Ministry of Finance regarding the collection of profits from the sale of motor vehicles:
Enterprises (or individuals) selling motor vehicles outside the province must declare and submit documents and reports to local tax authorities regarding the sale of motor vehicles without profit according to the procedures outlined in Letter No. 4325 TC/TCT dated May 7, 2002 from the Ministry of Finance. The enterprise director (or individual) is responsible under the law for the accuracy of the figures and documents attached to the report submitted to the local tax authority. If enterprises (or individuals) selling motor vehicles outside the province do not accurately report their actual purchase and sale activities or fail to comply with established regulations, they will be subject to profit collection and penalties according to current legal provisions upon discovery.
Provincial tax bureaus shall review enterprise reports and related documents and issue confirmation letters for cases where motor vehicles are sold without profit outside the province.
In cases where the sales price of motor vehicles on value-added tax invoices is lower than the actual market prices in localities: provincial tax bureaus shall conduct inspections, confirmations, and collections to ensure enterprises follow procedures outlined in Letter No. 4325 TC/TCT dated May 7, 2002 from the Ministry of Finance and this letter, while also collecting value-added tax and corporate income tax when the Ministry of Finance issues guidelines for implementing Decision No. 41/2002/QĐ-TTg dated March 18, 2002 by the Prime Minister on preventing revenue loss through sales prices in motor vehicle trading activities.
Regarding the accounting of state budget revenues from the collection of profits from the sale of motor vehicles:
The entire profit collected from the sale of motor vehicles shall be remitted to the central government budget and accounted for as follows:
Section on revenue recording: remit to the central government budget for recovery of profits from selling passenger-carrying automobiles.
State budget planning section: Corresponding Chapter - type 07 - item 01 - Sub-item 026 - Minor sub-item 01.
Provincial Tax Departments shall take the lead and coordinate with National Treasury Offices at provincial levels to monitor the aforementioned revenue collection.
3. Regarding the method of calculating recovered profits:
The tax amount already paid as mentioned in the formula for calculating recovered profits prescribed in point 2.1.1 of Circular No. 4325 TC/TCT dated May 7, 2002 by the Ministry of Finance is understood to be: the import tax and special consumption tax (if applicable) payable according to the customs declaration issued by Customs authorities at the import stage.
In cases where automobiles sold outside the province generate profits and the enterprise has already paid corporate income tax based on consolidated business results: (including profits from selling automobiles outside the province): Provincial Tax Departments shall continue to recover profits from selling automobiles outside the province in accordance with Circular No. 4235 TC/TCT dated May 7, 2002 and the guidance provided in this circular by the Ministry of Finance, while adjusting the corporate income tax settlement for the enterprise accordingly.
We request relevant ministries, ministerial-level agencies, governmental bodies, provincial People's Committees under central government jurisdiction, and related agencies to coordinate and direct implementation.
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