Corporate income tax rates in Vietnam

by BichNgoc

When businesses conduct production and business, they need to pay taxes to the state. A question that many businesses are interested in is how much is the current corporate income tax rate? LSX Lawfirm will give you an article about: “Corporate income tax rates in Vietnam”, as follows:

Law on Corporate Income Tax 2008 (amended and supplemented in 2013, 2014, 2020)

Corporate income tax rates in Vietnam

The corporate income tax rates applicable to enterprises are specified in the Law on corporate income tax, specifically including:

(1) Firstly, the enterprise is established in accordance with the laws of Vietnam;

(2) Secondly, Enterprises established in accordance with foreign laws with a permanent establishment or without a permanent establishment in Vietnam;

(3) Thirdly, organizations established under the Law on Cooperatives;

(4) Then Non-business units established in accordance with Vietnamese law;

(5) Finallly, Other organizations with income-generating production and business activities.

Accordingly, the provisions of Article 10 of the Law on corporate income tax 2008 (amended and supplemented in 2013); the current common corporate income tax rate (2021) is 20%.

So, the corporate income tax rate for enterprises operating in the field of oil and gas prospecting; exploration and exploitation in Vietnam is from 32% to 50% depending on the specific location of each project.

So, corporate income tax rate applicable to enterprises operating in the field of prospecting; exploration and exploitation of a number of rare and precious resources; (platinum, gold, silver, tin, tungsten, antimony, precious stones, rare earths) ) is 40% or 50% depending on the location.

The enterprise is established in accordance with the laws of Vietnam

  • Firstly, Vietnamese organizations or individuals, foreign organizations or individuals have full identity cards; passports, or certificates of legal identity; and are not serving a prison sentence and are in a state of prosecution. no mental illness, etc.
  • Secondly, in Vietnam, individuals who want to establish an enterprise must have full citizenship rights; and do not fall into cases where they are prohibited from setting up an enterprise; according to the provisions of the law such as: civil servants, public employees, employees officers, professional soldiers, etc. (refer to the Enterprise Code 2020).

Related article: Procedures for revocation of business registration certificate in Vietnam

You can also refer to the article related to company division in Vietnam, or Registration company in Vietnam after a full or partial divisionCease existence of divided company in Vietnam or Names of Vietnam’s branches and representative offices.

Conditions for granting business certificates in Vietnam

So, Conditions for registration of a business certificate include: clear and correct business name; not duplicated according to the provisions of law; The address of the head office of the enterprise must be accurate; and in accordance with the provisions of the Law on Enterprises.

There must be a set of registration documents in accordance with the law; and the attached information and documents must be complete. The registered business lines are not on the prohibited list specified in the Law.

Finally, the business owner must pay the full business establishment fee.

Persons established under the Enterprise Law in Vietnam

Organizations and individuals have the right to establish and manage enterprises in Vietnam; according to the provisions of the Enterprise Law 2020, except for the following organizations and individuals that do not have the right to establish and manage enterprises in Vietnam:

  • State agencies and units of the people’s armed forces use state assets to establish profit-making enterprises for their own agencies or units;
  • Then Cadres, civil servants and public employees according to the provisions of the Law on Cadres and Civil servants and the Law on Public Employees;
  • Then Officers, non-commissioned officers, professional soldiers, defense workers and officers in agencies and units of the Vietnam People’s Army; officers, professional non-commissioned officers, public security workers in agencies and units of the Vietnam People’s Public Security; except those appointed as authorized representatives to manage the State’s capital contribution in enterprises. or management at a state-owned enterprise;
  • Professional leaders and managers in state-owned enterprises as prescribed at Point a, Clause 1; Article 88 of the Enterprise Law 2020, except for those appointed as authorized representatives to manage the State’s capital contribution at another enterprise;
  • Minors; people with limited civil act capacity; persons who have lost their civil act capacity; people with difficulties in cognition and behavior control; organizations without legal status;

So, persons being examined for penal liability, are held in custody, are serving prison sentences; are serving administrative handling measures at compulsory detoxification establishments; compulsory education establishments or prosecuted by courts prohibited from holding certain posts, practicing certain professions or doing certain jobs; other cases as prescribed by the Law on Bankruptcy and the Law on Anti-corruption.

Then, at the request of the business registration authority; the person registering the establishment of an enterprise must submit a judicial record card to the business registration authority.

Related questions about Corporate income tax rates in Vietnam

Limited liability company with legal status

A limited liability company has legal status. Therefore, the company has independent assets, its own seal, its own headquarters and can participate in legal relations on its own behalf without being dependent on the status of the owner.

Limited liability member

Capital contributors are only liable for debts and other property obligations of the enterprise to the extent of the amount of capital contributed to the enterprise. This is a great advantage of a limited company as well as a joint stock company. The fact that the members contributing capital to the company are only responsible to the extent of the contributed capital, separating personal assets to ensure certain safety for business participants.

About raising capital

The limited company can raise capital through borrowing capital and credit from individuals and organizations. The limited company also has the right to issue bonds. Neither one member limited liability company nor two or more member limited liability companies are allowed to issue shares. A limited company is not allowed to issue many types of Securities in the form of certificates, journal entries or electronic data issued like a joint stock company.

Contact LSX Lawfirm

Finally, hope this article is useful for you to answer the question about: “Corporate income tax rates in Vietnam”, please contact  LSX Law firm : +84846175333 or Email: hoangson@lsx.vn

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