Circular providing detailed guidance for implementation of Decree 92/2013/ND-CP on CIT and VATThe Ministry of Finance issued Circular 141/2013/TT-BTC dated 16 October 2013 providing detailed guidance for implementation of the Governmental Decree 92/2013/ND-CP dated 13 August 2013 regarding a number of articles of the Amended Law on CIT and VAT taking effect from 1 July 2013.

Some of the salient points are summarized below:

• Annual turnover as the basis for determining whether an enterprise is entitled to the 20% tax rate from 01 July 2013 shall based on item No. 01 – Turnover from sale of goods and provision of services and item No. 08 – Financial income on the Appendix of Income Statement of the previous tax period enclosed with the form No. 03-1A/TNDN, promulgated under Circular No. 28/2011/TT-BTC and its amendments (if any).

• For new entities established during QI and QII 2013, the turnover is determined on the item No. 21 “Turnover earned in the period” (excluding other incomes) on the provisional corporate income tax statement of QI and QII 2013 on the form No. 01A/TNDN promulgated under Circular No. 28/2011/TT-BTC and its amendments (if any).

• New enterprises established from 01 July 2013 shall apply 25% tax (unless tax incentives are applicable). If the average monthly turnover does not exceed 1.67 billion VND, it shall apply 20% CIT rate at the end of fiscal year.

• If the enterprise fails to separate its income eligible for 20% tax rate, the rate shall be applied based on the ratio of turnover from the sale of goods and services eligible for 20% tax rate over the total turnover in the tax period of the company.

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