Decree No. 92/2013/ND-CP dated 13 August 2013 has been issued to provide guidance on the implementation of the amendments to the corporate income tax (CIT) and value added tax (VAT) as previously reported:
|-||Reduction of CIT to 20% for enterprises with a total annual revenue not exceeding VND 20 billion, effective since 1 July 2013. The reduced CIT rate applies to total revenue from the sale of goods and services from the preceding year. Enterprises in operation for less than 1 year, may apply the reduced rate if they have an average monthly revenue (until 30 June 2013) less than VND 1.67 billion.
The reduced rate of 20% does not apply to revenue from:
|-||Reduced CIT rate of 10% for revenue from investment and business in social housing. "Revenue" refers to the income received from the sale, lease or lease for purchase of the social housing from 1 July 2013. The income from such activities should be accounted for separately so as to avoid any confusion.|
|-||Reduced VAT rate of 5% for the sale, lease or lease for purchase of social houses and 50% reduction on the VAT rate for the sale, lease or lease for purchase of commercial houses. The reduced rate of 5% applies to contracts concluded after 1 July 2013 and/or payments made from 1 July 2013 onwards. The 5% VAT rate applies to the gross price but excludes interest due on instalment payments, late payments and other similar interest.
The 50% reduction of VAT tax rate for contracts of sale, lease or lease for purchase of commercial housesapplies to payments made from 1 July 2013 to 30 June 2014.
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