This circular guides the application of corporate income tax incentives for people's credit funds, including both existing and newly established funds since 2001.
Scope of application
People's Credit Fund
Key points
- Existing people's credit funds that have enjoyed tax benefits under current regulations shall continue to be exempted or granted reductions in corporate income tax as with preferential investment sectors from January 1, 2001 onwards.
- People's credit funds established on or after January 1, 2001 shall be exempted or granted reductions in corporate income tax as with preferential investment sectors from the date they generate taxable income.
- It is requested that competent authorities issue certificates of investment incentives for people's credit funds in accordance with regulations.
- This provision aims to facilitate the operation and development of people's credit funds.
- Tax incentives are applied based on the Law on Encouragement of Domestic Investment.
🌐 Social impact of this document
- To create favorable conditions for people's credit funds to operate, attract capital, and support local economic development.
- Reduce financial burdens on people's credit funds through tax exemptions and reductions.
- State management agencies have additional tasks in issuing certificates of investment incentives for the funds.
❓ Frequently asked questions
How do people's credit funds established before 2001 enjoy tax benefits?
Existing people's credit funds that have enjoyed tax benefits under current regulations shall continue to be exempted or granted reductions in corporate income tax from January 1, 2001 onwards.
Do people's credit funds established after 2001 receive tax incentives?
People's credit funds established on or after January 1, 2001 shall be exempted or granted reductions in corporate income tax from the date they generate taxable income.
Which agencies issue certificates of investment incentives for people's credit funds?
Competent authorities are requested to issue certificates of investment incentives for people's credit funds in accordance with regulations.
When does this provision take effect?
The provisions on tax exemptions and reductions for corporate income tax for people's credit funds shall be applied from January 1, 2001.
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 9842TC/TCT DATED OCTOBER 17, 2001
REGARDING TAX EXEMPTIONS FOR RURAL CREDIT FUNDS
Dear: - Provincial Tax Departments
- Provincial Planning and Investment Departments
- Branches of the State Bank of Vietnam in provinces and centrally administered cities
under the central authority
Pursuant to the directive of the Prime Minister as stated in Document No. 2767/VPCP-KTTH dated June 22, 2001 from the Office of the Government; the Ministry of Finance provides guidance on the application of tax exemptions for rural credit funds as follows:
- For rural credit funds currently operating and already benefiting from tax incentives under existing regulations, if the period of investment incentives is still in effect, they will be exempted or granted reductions in corporate income tax according to the provisions of the Law on Encouragement of Domestic Investment for the remaining period of incentive, starting from January 1, 2001.
- For rural credit funds established from January 1, 2001 onwards, they will be eligible for exemptions or reductions in corporate income tax according to the provisions of the Law on Encouragement of Domestic Investment for industries benefiting from investment incentives, starting from when they generate taxable income.
To ensure that rural credit funds receive the aforementioned levels of tax benefits, it is recommended that competent authorities issue certificates of investment incentives to these rural credit funds in accordance with regulations.
The Ministry of Finance hereby informs relevant units for their knowledge and implementation.
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