Businesses will soon be required to pay corporate income
tax on interest earnings from banks or credit organisations, lending capital to
other ventures or sales of foreign currencies, under a new decree.
Decree 122/2011/ND-CP, which
will take effect at the beginning of March and be applied to all 2012 earnings,
adds several specific regulations to Government Decree 124/2008/ND-CP guiding
the Law on Corporate Income Tax which was issued in 2008.
Under the new regulation,
corporate income tax will also be imposed on income earned by partially or
fully transferring capital which was invested in other ventures, selling their
affiliates and transferring shares.
Enterprises who transfer
projects or their mineral exploration and exploitation rights will have to pay
income tax on any related earnings.
Several types of earnings are
eligible for tax breaks. Specifically, income collected from production,
commodities sales and service enterprises will be exempt from corporate income
tax if 30 per cent of their labour force includes handicapped, HIV/AIDS
sufferers or recovered drug addicts. These enterprises must have at least 20
workers during a year and cannot be involved in the finance or real estate
sector.
The previous proportion was 51
per cent.
Tax exemptions will also be
applied for income earned in operations that offer training for ethnic
minorities, disabled people, needy children, drug addicts and people suffering
from HIV/AIDS.
Vietnam News
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