Circular 96/2015/TT-BTC (Circular 96) on Corporate Income Tax (CIT) was officially issued on 22 June 2015, which is quite some time since the effective date of the Law 71 and Decree 12. Circular 96 details significant CIT changes introduced in the Decree 12 and Law 71 by amending and supplementing a number of articles of Circular 78/2014 (Circular 78).

Below are notable changes in the Circular 96:

Revenue recognition of services provision

► Revenue from services shall be taxable when the services are either fully completed or partially provided by agreed progress to buyers, irrespective of invoice issuance time.

Difference between VAT revenue and CIT revenue is anticipated, due to this change.

CIT declaration and payment for income generating from offshore investment project of Vietnamese companies

► Income from offshore investments of Vietnamese companies shall be included into the CIT finalization returns of the year when such income is repatriated, instead of the income generating year as per previous rules. Income or loss arising from the offshore investment projects is not allowed to be offset against domestic business for CIT calculation purposes.

► Dossiers to be submitted upon CIT declaration and payment for the income from offshore investment project are simplified.

Please click EY Tax Alert-June 2015 -New CIT Circular-English for more information and EY Tax Alert-June 2015 -New CIT Circular-Vietnamese for Vietnamese version.


In the toolbar of this website, click on “NEWS” for the drop down menu which includes: