- August 28, 2020
- Posted by: Thu Phuong
- Category: Tax newsletter
CIT for Schools
Preferential tax rate
– Tax rate 10% for the following income: Enterprise income from implementing socialization activities in the fields of education - training, vocational training, health, culture, sports and environment.
(The list of types, scale criteria and standards of enterprises implementing socialization specified in this Clause is prescribed by the Prime Minister)
– Tax rate 20%: applies to production and business activities of goods and services outside the field of education such as: scientific research of the unit under service contracts, dormitory services, bookstores, Sports fields, dining, parking, selling practical products, manufacturing activities, outsourcing, collecting other services...
(According to Clause 2, Article 11, Chapter II, Circular 78/2014/TT-BTC stipulates: Enterprises established under the provisions of Vietnamese law (including cooperatives and public service units) operating in production, Trading in goods and services with total annual revenue not exceeding 20 billion VND is subject to tax rate 20%.)
– Tax rate 2%: According to Clause 5, Article 3, Chapter II, Circular 78/2014/TT-BTC stipulates:
Non-business units and other organizations other than enterprises established and operating under the provisions of Vietnamese law, enterprises paying value-added tax by the direct method and trading in goods and services If there is income subject to corporate income tax and these units can determine revenue but cannot determine costs and income of business activities, then declare and submit it. Corporate income tax calculated according to the ratio % on revenue from sales of goods and services, specifically as follows:
+ For services (including deposit interest and loan interest): 5%.
+ Particularly for educational, medical and performing arts activities: 2%.
+ For commodity trading: 1%.
+ For other activities: 2%.
Tax exemption and tax reduction
– Tax exemption for 4 years, reduction of 50% in tax payable in the next 9 years for: Enterprise income from implementing new investment projects in the field of socialization in areas with economic conditions – socially difficult or extremely difficult conditions specified in the Appendix issued with this Decree.
– Tax exemption for 4 years, reduction of 50% in tax payable in the next 5 years for business income from implementing new investment projects in the field of socialization in areas that are not on the list of areas with difficult or extremely difficult socio-economic conditions specified in the Appendix issued with this Decree .
Contact AACS immediately for advice and support.
AACS AUDITING COMPANY LIMITED
Phone: 028 66 500 381 – Mobile: 0908 381 550 (Mr Manh) – Mobile: 0908 688 550 (Ms Phuong)