Vietnam: Does xoilac tv trực tiếp bóng đá hôm nay company providing installation of magnetic card lock systems, receiving 60 percent upfront payment, record this in taxable corporate income?
Vietnam: Does xoilac tv trực tiếp bóng đá hôm nay company providing installation of magnetic card lock systems, receiving 60 percent upfront payment, record this in taxable corporate income?
Based on xoilac tv trực tiếp bóng đá hôm nay provisions at Clause 2 Article 5 ofCircular 78/2014/TT-BTC, as amended by Article 3 ofCircular 96/2015/TT-BTCas follows:
Turnover
1. Turnover for calculating taxable income is determined as follows:
Turnover for calculating taxable income is xoilac tv trực tiếp bóng đá hôm nay total of all proceeds from selling goods, processing work, or providing services, including subsidies, surcharges, and additional charges xoilac tv trực tiếp bóng đá hôm nay enterprise receives, regardless of whether xoilac tv trực tiếp bóng đá hôm nay money has been collected.
a) For enterprises paying value-added tax (VAT) by xoilac tv trực tiếp bóng đá hôm nay deduction method, xoilac tv trực tiếp bóng đá hôm nay turnover does not include VAT.
Example 4: Enterprise A is subject to VAT by xoilac tv trực tiếp bóng đá hôm nay deduction method. xoilac tv trực tiếp bóng đá hôm nay VAT invoice includes xoilac tv trực tiếp bóng đá hôm nay following indicators:
Selling price: 100,000 VND.
VAT (10%): 10,000 VND.
Payable amount: 110,000 VND.
Turnover for calculating taxable income is 100,000 VND.
b) For enterprises paying VAT by xoilac tv trực tiếp bóng đá hôm nay direct method on xoilac tv trực tiếp bóng đá hôm nay added value, xoilac tv trực tiếp bóng đá hôm nay turnover includes VAT.
Example 5: Enterprise B is subject to VAT by xoilac tv trực tiếp bóng đá hôm nay direct method on xoilac tv trực tiếp bóng đá hôm nay added value. xoilac tv trực tiếp bóng đá hôm nay sales invoice only states xoilac tv trực tiếp bóng đá hôm nay selling price as 110,000 VND (including VAT).
Turnover for calculating taxable income is 110,000 VND.
c) In cases where enterprises have service business activities for which customers pay in advance for several years, xoilac tv trực tiếp bóng đá hôm nay turnover for calculating taxable income is allocated to xoilac tv trực tiếp bóng đá hôm nay number of pre-paid years or determined according to xoilac tv trực tiếp bóng đá hôm nay one-time payment turnover. In case xoilac tv trực tiếp bóng đá hôm nay enterprise is enjoying tax incentives, xoilac tv trực tiếp bóng đá hôm nay determination of xoilac tv trực tiếp bóng đá hôm nay incentivized tax amount must be based on xoilac tv trực tiếp bóng đá hôm nay total corporate income tax payable for xoilac tv trực tiếp bóng đá hôm nay pre-paid years divided (:) by xoilac tv trực tiếp bóng đá hôm nay pre-paid years.
2. xoilac tv trực tiếp bóng đá hôm nay time of determining turnover for calculating taxable income is defined as follows:
a) For goods sales activities, it is xoilac tv trực tiếp bóng đá hôm nay time of transferring xoilac tv trực tiếp bóng đá hôm nay ownership or usage rights of goods to xoilac tv trực tiếp bóng đá hôm nay buyer.
b) For service provision activities, it is xoilac tv trực tiếp bóng đá hôm nay time of completing xoilac tv trực tiếp bóng đá hôm nay provision of services or completing each phase of xoilac tv trực tiếp bóng đá hôm nay service provision for xoilac tv trực tiếp bóng đá hôm nay buyer except as stated at Clause 3 Article 5 of Circular 78/2014/TT-BTC, Clause 1 Article 6 of Circular 119/2014/TT-BTC.
c) For air transport activities, it is xoilac tv trực tiếp bóng đá hôm nay time of completing xoilac tv trực tiếp bóng đá hôm nay transport service provision for xoilac tv trực tiếp bóng đá hôm nay buyer.
d) Other cases as prescribed by law.
...
Thus,according to xoilac tv trực tiếp bóng đá hôm nay above regulation, xoilac tv trực tiếp bóng đá hôm nay company providing installation of magnetic card lock systems which receives 60 percent upfront payment without installation (meaning not yet completed) will not be recorded in xoilac tv trực tiếp bóng đá hôm nay taxable corporate income.
Vietnam: Does xoilac tv trực tiếp bóng đá hôm nay company providing installation of magnetic card lock systems, receiving 60 percent upfront payment, record this in taxable corporate income? (Image from Internet)
Is xoilac tv trực tiếp bóng đá hôm nay corporate income tax period determined according to xoilac tv trực tiếp bóng đá hôm nay Gregorian calendar or lunar calendar in Vietnam?
Pursuant to Article 6 of xoilac tv trực tiếp bóng đá hôm nayCorporate Income Tax Law 2008xoilac tv trực tiếp bóng đá hôm nay calculation of corporate income tax is based on taxable income and tax rates.
In addition, according to xoilac tv trực tiếp bóng đá hôm nay guidance at Article 5 ofDecree 218/2013/ND-CPimplementing xoilac tv trực tiếp bóng đá hôm nayLuật lịch trực tiếp bóng đá hômstates that:
Tax base is taxable income in xoilac tv trực tiếp bóng đá hôm nay period and tax rates.
xoilac tv trực tiếp bóng đá hôm nay tax period is implemented according to xoilac tv trực tiếp bóng đá hôm nay provisions at Article 5 of xoilac tv trực tiếp bóng đá hôm nayCorporate Income Tax Law 2008and tax management law regulations.
Referencing Article 5 of xoilac tv trực tiếp bóng đá hôm nayCorporate Income Tax Law 2008which stipulates xoilac tv trực tiếp bóng đá hôm nay tax periods include:
(1) Corporate income tax period is determined according to xoilac tv trực tiếp bóng đá hôm nay calendar year or financial year, except for case (2).
(2) xoilac tv trực tiếp bóng đá hôm nay corporate income tax period for each time income arises applies to foreign enterprises as specified at points c and d, clause 2, Article 2 of xoilac tv trực tiếp bóng đá hôm nayCorporate Income Tax Law 2008.
*Note: Enterprises can choose xoilac tv trực tiếp bóng đá hôm nay tax period according to xoilac tv trực tiếp bóng đá hôm nay calendar year or financial year but must notify xoilac tv trực tiếp bóng đá hôm nay tax agency before implementation.
Thus, according to xoilac tv trực tiếp bóng đá hôm nay above regulations, xoilac tv trực tiếp bóng đá hôm nay corporate income tax period is determined according to xoilac tv trực tiếp bóng đá hôm nay calendar year.
What are regulations on determining taxable income as a basis for corporate income tax calculation in Vietnam?
Pursuant to Article 7 of xoilac tv trực tiếp bóng đá hôm nayCorporate Income Tax Law 2008(amended and supplemented by Clause 4 Article 1 of xoilac tv trực tiếp bóng đá hôm nayAmended Corporate Income Tax Law 2013) and Article 6 ofDecree 218/2013/ND-CPguiding xoilac tv trực tiếp bóng đá hôm nay determination of taxable income specifically as follows:
(1) Taxable income in xoilac tv trực tiếp bóng đá hôm nay tax period is determined by taxable income minus tax-exempt income and losses carried forward from previous years.
Taxable income in xoilac tv trực tiếp bóng đá hôm nay tax period is determined as follows:
| Taxable Income | = | Taxable Income | - | (Tax-exempt Income | + | Losses carried forward as stipulated) |
(2) Taxable income equals turnover minus deductible expenses of production and business operations plus other incomes, including incomes earned outside Vietnam.
Taxable income is determined as follows:
| Taxable Income | = | (Turnover | - | Deductible Expenses) | + | Other Income |
- Enterprises with multiple business activities will have taxable income from production and business operations as xoilac tv trực tiếp bóng đá hôm nay sum of income from all business activities.
- In cases of loss in a business activity, xoilac tv trực tiếp bóng đá hôm nay loss can be offset against taxable income from other profitable business activities as chosen by xoilac tv trực tiếp bóng đá hôm nay enterprise. xoilac tv trực tiếp bóng đá hôm nay remaining income after offsetting will be subject to xoilac tv trực tiếp bóng đá hôm nay corporate income tax rate applicable to xoilac tv trực tiếp bóng đá hôm nay profitable business activity.
- Income from real estate transfer, investment project transfer, investment participation rights transfer, exploration, extraction and processing of minerals transfer must be separately declared for tax purposes.
- In cases of losses from transferring investment participation rights, investment projects (except exploration and exploitation mineral projects), and real estate transfers, these losses can be offset against profits from production and business operations within xoilac tv trực tiếp bóng đá hôm nay tax period.
- If xoilac tv trực tiếp bóng đá hôm nay enterprise is in dissolution procedures and sells real estate which is fixed assets, income from real estate transfer (if any) is offset against income from xoilac tv trực tiếp bóng đá hôm nay enterprise's production and business activities.
