THE MINISTRY OF FINANCE | SOCIALISTREPUBLIC OF VIET NAM |
No. 135/2013/TT-BTC | Hanoi, September 27, 2013 |
CIRCULAR
GUIDING THE PILOT APPLICATION OF POLICY ON ENTERPRISE INCOME TAX TO MICROFINANCE ORGANIZATIONS
Pursuant to the Law on tax administration No. 78/2006/QH11 dated November 29, 2006, and Law amending and supplementing a number of Articles of the Law on tax administration No. 21/2012/QH13 dated November 20, 2012;
Pursuant to the Law on enterprise income tax No. 14/2008/QH12 dated June 03, 2008, and Law amending and supplementing a number of Articles of the Law on enterprise income tax No. 32/2013/QH13 dated June 19, 2013;
Pursuant to the Government’s Decree No. 118/2008/ND-CP dated November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the opinion of the Prime Minister at official dispatch No. 5778/VPCP-KTTH dated July 16, 2013, of the Governmental Office, on the EIT incentive policy for microfinance organizations;
Pursuant to opinion of the Governor of the State bank of Vietnam at the official dispatch No. 3635/NHNN-TTGSNH dated June 15, 2012 and No. 258/NHNN-TTGSNH dated January 16, 2012;
At the proposal of Director of the Tax Policy Department;
The Minister of Finance promulgates the Circular guiding the pilot application of policy on enterprise income tax to microfinance organizations.
Article 1. Subjects and scope of application
This Circular guides the application of pilot EIT policy to microfinance organizations licensed establishment before January 01, 2014, by the State bank, according to Law on credit institutions No. 47/2010/QH12, but not eligible to be applied EIT incentive policies of enterprises established newly from investment projects in localities with special difficult economic-social conditions specified in the Decree No. 124/2008/ND-CP dated December 11, 2008, detailing and guiding implementation of a number of Articles of the Law on EIT.
Article 2. The tax incentive policy of pilot application to microfinance organizations specified in Article 1 of this Circular
1. To apply the EIT rate of 20% during the operational time for income obtaining from implementation of microfinance operation. From January 01, 2016, the EIT rate specified in this Clause shall be turned into rate of 17%.
2. To be eligible for EIT exemption for 2 years, reduction of 50% of the payable tax for 4 following years applicable to income obtaining from implementation of microfinance operation.
Time of tax exemption, tax reduction specified in Clause 2 of this Article is calculated continuously from the first year since microfinance organizations obtain taxable income from implementation of microfinance operation. In case where a microfinance organization has no taxable income for 3 first years, from the first year of obtaining turnover from implementation of microfinance operation, time of tax exemption, tax reduction is calculated from the fourth year.
The microfinance operation specified in this Article includes activities permitted to perform by microfinance organizations according to Article 119, Article 120, Article 121 and Article 122 of the Law on credit institutions No. 47/2010/QH12 and guiding documents.
3. Principles, conditions, and procedures for application of policy on EIT exemption and reduction shall comply with provisions of legal documents on EIT and legal documents on tax administration.
Article 3. Organization of implementation
1. This Circular takes effect on November 11, 2013.
2. The Tinh Thuong one-member limited-liability microfinance institution shall continue implementing the EIT incentive policy guided in Circular No. 116/2012/TT-BTC dated July 18, 2012, by the Ministry of Finance. From January 01, 2013, it shall comply with Article 2 of this Circular about the EIT rate.
3. Annually, microfinance organizations eligible for application of the pilot EIT incentive policy specified in this Circular and Circular No. 116/2012/TT-BTC shall report results of tax exemption and reduction to the Ministry of Finance (General Department of Taxation, the Department of Tax Policy) and the State bank of Vietnam not later than the 90th day, from the end day of calendar year or financial year for summing up and reporting to the Government.
4. The contents not guided in this Circular and contents not contrary to guide in this Circular shall be implemented according to current regulations.
In the course of implementation, any arising problems should be reported to the Ministry of Finance for timely study, guidance and supplementation.
| FOR THE MINISTER OF FINANCE |
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