Slides bài giảng thuế tndn (cit) phục vụ kỳ thi f6 acca

Corporate Income Tax (CIT) in Vietnam

Overview and Updates from Law No 76/2025/QH15

National Assembly of VietnamVietnam Tax FrameworkJuly 24, 2025

What is Corporate Income Tax (CIT)?

Definition: Mandatory tax on enterprises income, paid to the

government

Components:

Tax: Funds public services.

Income: Based on enterprises taxable income.

Enterprise: Organizations producing goods/services.

Purpose: Supports state budget, regulates business activities.

Legal Framework

Law on CIT: No 14/2008/QH12, amended by No 74/2024/QH15 Circulars: No 78/2014/TT-BTC, No 96/2015/TT-BTC.

Law No 76/2025/QH15: Updates enterprise registration, beneficial

owner (BO) disclosure (effective July 1, 2025)

Decree No 168/2025/ND-CP: Details BO and registration rules.

CIT Calculation Formula

Formula:

CIT = (Taxable Income− Science & Tech Fund) × CIT Rate

Components:

Taxable Income: From main business + other income.

Science & Tech Fund: Up to 10% of taxable income.

CIT Rate: Standard 20%, preferential 10%/15%.

Note: BO disclosure (Law No 76/2025/QH15) ensures accurate

income reporting

Determining Taxable Income

Formula:

Taxable Income = [Main Business Income+Other Income]−[Tax-Exempt Income+Losses]

Key Steps:

Start with accounting profit before tax.

Adjust for tax-accounting differences (e.g., non-deductible expenses).

Law No 76/2025/QH15: Prohibits false charter capital

declarations (Article 16.5)

Main Business Income

Definition: Income from registered business activities.

Formula:

Main Income = Revenue− Deductible Expenses

Revenue: Sales, services (tax-adjusted).

Deductible Expenses: Costs meeting tax rules (e.g., documented

salaries)

Example: Company earns USD 1M in sales, deducts USD 800K in

expenses

Other Income: Separately Taxed

Types:

Capital Transfers: Income from selling equity.

Securities Transfers: Income from shares, bonds (Article 4.14, Law No 76/2025/QH15).

Real Estate Transfers: Income from land, buildings.

Taxation: Calculated separately, often at 20% CIT.

Example: Selling 10% equity for USD 100K yields taxable income.

Other Income: Simple and Complex

Simple Other Income:

Royalties, asset leasing, gifts, recovered bad debts.

Example: USD 10K from leasing equipment.

Complex Other Income:

Interest income (net of loan interest).

Contractual fines (net of penalties paid).

Foreign exchange gains (non-business related).

Note: Adjustments ensure accurate tax base.

Tax-Exempt Income

Common Exemption: Dividends from capital contributions, share

purchases, or joint ventures if investee paid CIT

Example:

Company B pays 20% CIT on VND 100M profit Company As dividend (VND 80M) is exempt.

If B is 50% CIT-exempt, As dividend (VND 90M) is exempt.

Law No 76/2025/QH15: BO disclosure ensures dividend

transparency (Article 8.5a)

Carry-Forward Losses

Definition: Negative taxable income in a tax period.

Rule: Offset against future taxable income for up to 5 years.

CIT Rates

Preferential (e.g., high-tech, remote areas) 10% or 15%

Law No 76/2025/QH15: Science, tech, innovation enterprises may

access preferential rates (Article 17)

CIT Incentives

Types:

Preferential Rates: 10%/15% for priority sectors.

Exemptions/Reductions: Full or partial tax relief.

Purpose: Encourage investment in high-tech, renewable energy, etc Example: New factory in industrial zone gets 4-year CIT exemption Condition: Must meet eligibility criteria (e.g., project scale).

Example 1: Taxable Income Calculation

Scenario: Company A has USD 1M accounting profit, USD 50K

non-deductible expenses, USD 20K other income

Example 2: Loss Carry-Forward

Scenario: 2024: VND 10B loss 2025: VND 7B taxable income.

Calculation:

2025 Taxable Income = 7, 000, 000, 000 − 7, 000, 000, 000 = 0 VND

Remaining Loss = 10, 000, 000, 000 −7, 000, 000, 000 = 3, 000, 000, 000 VND (to 2029)

Lesson: Losses reduce future tax liability, limited to 5 years.

CIT Overview: Tax on enterprise income, standard rate 20%.

Key Components: Taxable income, exemptions, losses, incentives Law No 76/2025/QH15: Enhances transparency (BO disclosure,

Article 8.5a)

Application: Adjust accounting profit, apply correct rates, ensure

compliance

Deductible Expenses for CIT in Vietnam

Overview and Updates from Law No 76/2025/QH15

National Assembly of VietnamVietnam Tax FrameworkJuly 24, 2025

What Are Deductible Expenses?

Definition: Expenses allowed to reduce taxable income for Corporate

Income Tax (CIT)

Purpose: Ensure accurate tax calculations, align with business

Conditions for Deductible Expenses

General Conditions (Article 4, Circular No 96/2015/TT-BTC):

Actually incurred, related to business activities.

Supported by valid invoices/documents.

Invoices VND 20M require non-cash payment.

Note: Non-compliant expenses recorded in financials are adjusted out.

Taxable Income Adjustment

Formula:

Taxable Income = Accounting Profit Before Tax± Adjustments

Adjustments:

If Deductible < Accounting Expenses: Increase profit.

If Deductible > Accounting Expenses: Decrease profit.

Example: Non-deductible expenses increase taxable income.

Non-Deductible Expenses Overview

Source: Article 6, Circular No 78/2014/TT-BTC; Article 4, Circular

No 96/2015/TT-BTC; Article 3, Circular No 25/2018/TT-BTC

Categories:

Fixed assets (depreciation).

Salaries and wages.

Loan interest.

Foreign exchange differences.

Other expenses.

Non-Deductible Expenses: Fixed Assets

Focus: Depreciation expenses only.

Issue: Different depreciation periods (accounting vs tax per Circular

No 45/2013/TT-BTC)

Non-Deductible:

Depreciation outside tax-prescribed schedule.

Welfare assets not used by employees.

Car depreciation > VND 1.6B.

Example: H Co Fixed Assets

Scenario: 2018 profit VND 80B Issues:

Machine: VND 96B, 8-year accounting vs 5.5-year tax (no adjustment needed).

High-tech equipment: VND 600M accelerated depreciation

(deductible).

Welfare assets: VND 15M non-deductible (30% water tanks).

Car: VND 25M non-deductible (> VND 1.6B).

Taxable Income: VND 80B + VND 0.04B = VND 80.04B.

Non-Deductible Expenses: Salaries and Wages

Non-Deductible:

Salaries/bonuses not in contracts or regulations.

Unpaid expenses by finalization.

Expenses exceeding caps (e.g., meal allowances).

Common Issue: Missing documentation or over-cap payments.

Example: V Co Salaries (1)

Scenario: 2018 profit VND 80B Issues:

Health checks: VND 200M excess non-deductible.

Bonuses: VND 12.5B deductible, adjust profit down VND 1B.

Non-business expenses: VND 1,120M non-deductible.

Example: V Co Salaries (2)

Scenario (cont.):

Allowances: VND 150M investor payment non-deductible.

Training: VND 54M non-job-related non-deductible.

Provisions: VND 10.5B additional deductible.

Taxable Income: VND 80B VND 9.976B = VND 70.024B.

Non-Deductible Expenses: Loan Interest

Rule: Interest on loans for unfulfilled charter capital is non-deductible

Example: V Co Loan Interest (1)

Scenario: 2017, V Co borrows VND 100B (9.6%) for T Co.

investment; charter capital fully contributed

Calculation: Interest VND 7.2B deductible.

Lesson: Full charter capital ensures interest deductibility.

Example: T Co Loan Interest (2)

Scenario: T Co borrows VND 200B (VND 110B at 12%, VND 90B

at 14%); VND 150B charter capital shortfall

Calculation:

Non-Deductible = 19.35B × 150B

200B = 14.513B Deductible = 19.35B − 14.513B = 4.837B

Total Deductible: VND 7.2B + VND 4.837B = VND 12.037B.

Non-Deductible Expenses: Exchange Differences

Realized Differences: No adjustment.

Unrealized Differences:

Payables: No adjustment.

Cash/Receivables: Gains non-taxable, losses non-deductible.

Example: V Co Exchange Differences

Scenario: 2018, V Co records:

Realized gain: VND 900M (no adjustment).

Unrealized loss (receivables): VND 1.4B (non-deductible).

Unrealized gain (payables): VND 1.2B (no adjustment).

Unrealized gain (cash): VND 300M (non-taxable).

Adjustment: Increase profit by VND 1.4B VND 0.3B = VND 1.1B.

Other Non-Deductible Expenses

Examples:

Services without valid invoices.

Small purchases without documents.

Non-compliant provisions.

Sponsorships to ineligible recipients.

Note: Proper documentation critical (Law No 76/2025/QH15,

Article 16.5)

Example: H Co Other Expenses

Scenario: 2018 profit VND 80B Issues:

Consulting fees: VND 360M non-deductible (no invoices, revenue > VND 100M).

Share issuance: VND 160M non-deductible.

Sponsorships: VND 80M non-deductible (unlicensed fund).

Taxable Income: VND 80B + VND 0.6B = VND 80.6B.

Practical Application

Steps for CIT Calculation:

Start with accounting profit before tax.

Identify non-deductible expenses.

Adjust profit for tax-accounting differences.

Example: Add non-deductible depreciation, remove non-taxable gains.

Law No 76/2025/QH15 Updates

Article 16.5: Prohibits fictitious charter capital declarations, ensuring

accurate expense reporting

Article 8.5a: Beneficial owner disclosure enhances transparency in

expense allocation

Impact: Stricter documentation and compliance for deductible

expenses

Summary of Deductible Expenses

Conditions: Business-related, valid documents, non-cash for VND

Key Takeaways

Deductible Expenses: Must meet strict tax criteria.

Non-Deductible: Common in fixed assets, salaries, and loans.

Law No 76/2025/QH15: Ensures accurate reporting (Article 16.5) Application: Adjust profit for CIT compliance.

Common Mistakes

Missing Documentation: Invalid invoices lead to non-deductible

expenses

Cash Payments: VND 20M requires non-cash payment.

Non-Business Expenses: Welfare, sponsorships must comply with

rules

Compliance Tips

Documentation: Maintain valid invoices, contracts.

Payments: Use bank transfers for large expenses.

Review: Cross-check accounting vs tax rules.

Law No 76/2025/QH15: Ensure accurate capital and expense

reporting

Contact Information

For Details: Vietnam Tax Authority.

References: Circulars 78/2014, 96/2015, 25/2018; Law No.

76/2025/QH15

Website: Ministry of Finance, Vietnam.

Note: Consult official documents for compliance.

CIT on Capital and Securities Transfers in Vietnam

Detailed Guide with Law No 76/2025/QH15 Updates

National Assembly of VietnamVietnam Tax FrameworkJuly 24, 2025

Introduction to CIT on Transfers

Topic: Corporate Income Tax (CIT) on income from capital and

Article 4.14: Clarifies market price for securities.

Article 8.5a: Requires beneficial owner disclosure.

What Are Capital Transfers?

Definition: Income from transferring:

Part or all of invested capital (e.g., LLCs, partnerships).

Securities (subset: shares, bonds).

Capital contribution rights.

Other legal forms.

Note: Securities have distinct rules due to valuation methods.

Scope of Capital Transfers

Included:

Stakes in LLCs, partnerships, joint ventures.

Sale of entire enterprises (excluding real estate rules).

Excluded: Securities transfers (e.g., joint-stock company shares) Special Case: LLC with real estate follows real estate transfer rules.

Timing of Taxable Income

Capital Transfers: Recognized at transfer completion (e.g., contract

signing, ownership transfer)

Foreign Entities: 10-day declaration for foreign contractor tax

(Decree No 126/2020/ND-CP)

Law No 76/2025/QH15: Beneficial owner disclosure ensures

compliance (Article 8.5a)

CIT Calculation Formula

Formula:

Taxable Income = Transfer Price− Original Cost − Transfer Expenses

CIT = Taxable Income× 20%

Components:

Transfer Price: Contract or market price (Article 4.14, Law No.

76/2025/QH15).

Original Cost: Contribution or purchase price.

Transfer Expenses: Valid costs (e.g., legal fees).

Contribution: Book value in audited financials.

Purchase: Contract price.

Law No 76/2025/QH15: Prohibits fictitious valuations (Article

16.5)

Foreign Currency Transactions

Conversion Rule: Use buying exchange rate at transfer date for

transfer price, contribution/purchase date for original cost

Foreign Entities: Vietnamese entity declares/pays CIT within 10

days

Example: USD proceeds converted to VND at banks buying rate.

Example 1: I Co Capital Transfer

Scenario: I Co sells 40

Details:

IT Co capital: USD 10M (2008, VND 16,000/USD).

Exchange rate (2019): VND 22,800/USD.

Transfer expenses: VND 200M.

Example 1: Step-by-Step Calculation

Step 1: Transfer Price = USD 6M ΠVND 22,800 = VND 136.8B Step 2: Original Cost = USD 10M Π40% ΠVND 16,000 = VND

64B

Step 3: Transfer Expenses = VND 0.2B.

Step 4: Taxable Income = VND 136.8B VND 64B VND 0.2B =

VND 72.6B

Example 1: CIT Result

Calculation:

CIT = 72.6B × 0.2 = 14.52B

Note: I Co (Vietnamese) declares as other income.

Law No 76/2025/QH15: Beneficial owner disclosure required

(Article 8.5a)

What Are Securities Transfers?

Definition: Income from transferring:

Shares (joint-stock companies).

Bonds, fund certificates, other securities.

Tax Rate: 20% on taxable income.

Law No 76/2025/QH15: Market price rules (Article 4.14).

Securities Valuation

Listed Securities (Article 4.14a):

Average 30-day trading price, agreed price, or valuation.

Non-Listed Securities (Article 4.14b):

Nearest market price, agreed price, or valuation.

Note: Ensures fair tax assessment.

FIFO Method for Securities

Definition: First-In, First-Out allocates earliest acquired securities

Example 2: I Co Securities Transfer

Scenario: I Co sells 60% shares in M Co (joint-stock) for VND

Example 2: Step-by-Step Calculation

Step 1: Transfer Price = VND 150B (excludes VND 6B late interest) Step 2: Original Cost (FIFO):

Example 2: CIT Result

Foreign Entity Rules

Vietnamese Transferor: Declares as other income in CIT return Foreign Transferor: Vietnamese transferee or target company

declares/pays CIT (10-day deadline)

Law No 76/2025/QH15: Beneficial owner disclosure (Article 8.5a).

Practical Application

Steps:

Verify transfer price (contract or market).

Calculate original cost (contribution or FIFO).

Deduct valid expenses.

Apply 20% CIT rate.

Note: Comply with valuation rules (Law No 76/2025/QH15).

Compliance Tips

Documentation: Keep contracts, invoices, valuation reports.

Valuation: Use market price or approved methods.

Foreign Transactions: Declare within 10 days.

BO Disclosure: Comply with Law No 76/2025/QH15 (Article 8.5a).

Example Summary

Lesson: Accurate valuation and documentation critical.

Impact of Law No 76/2025/QH15

Article 4.14: Standardizes securities valuation (listed: 30-day

average; non-listed: market or valuation)

Article 8.5a: Beneficial owner disclosure enhances transparency Article 16.5: Prohibits fictitious reporting for tax evasion.

Conclusion and Contact

Summary: CIT on capital/securities transfers uses 20% rate, requires

accurate valuation

Contact: Vietnam Tax Authority, Ministry of Finance website.

References: Circulars 78/2014, 96/2015, 25/2018; Law No.

76/2025/QH15