Law from 1 July 2013, the Ministry of Finance (MoF) released Official Letter No 8336/BTC-CST on 28 June 2013 to provide the following key
► 20% CIT rate shall apply from 1 July 2013 forenterprises including cooperatives with total revenue of less than VND20
billion. The revenue as the basis for determining the eligibility for 20% CIT rate adoption is that of the preceding year.
► However, the 20% CIT rate shall not be used for income from specifically listed activities such as capital transfer, transfer of investment projects, or the right to participate in investment projects, the right to explore, mine and process minerals, or business activities conducted outside Vietnam etc
► Income from investment in social residential housing for sales, rent or a combination of both shall apply the CIT rate of 10% from 01 July 2013.
Penalty regarding declaration of 2% provisional CIT
As specified in the GDT’s Official Letter 2000/TCT-CS dated 19 June 2013, if 2% CIT is paid according to the tax authorities’ tax audit minutes on the money collected from the customers regarding interior design, installation, and construction for construction projects the CIT of which will be finalized upon completion of these projects, no penalty on wrong declaration and late payment will be imposed.