HomeAbout UsExpertisePeopleLocationsCareersMore ..
Vinaora Nivo SliderVinaora Nivo SliderVinaora Nivo SliderVinaora Nivo SliderVinaora Nivo Slider

HIT COUNTER

mod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_countermod_vvisit_counter
mod_vvisit_counterToday56
mod_vvisit_counterYesterday149
mod_vvisit_counterThis week205
mod_vvisit_counterThis month205
mod_vvisit_counterAll400674
Project transfers, forex subject to CIT

The Ministry of Finance has proposed imposing a corporate income tax (CIT) rate of 22% on a number of activities of enterprises starting in 2014, including income from exchange rate difference, project transfer, transfer of participating right of investment project and transfer of the right of minerals exploration, exploitation and processing.

This is part of the draft decree regulating some articles of the Law on Corporate Income Tax (CIT) and the law amending and supplementing a number of articles of the Law on CIT. Enterprises are expected to be subject to the rules from January 1, 2014.

The Ministry of Finance is fielding suggestions for the draft decree before submitting it to the Government. Aside from income from production, goods and service trading, the ministry has suggested that local enterprises will have to pay taxes for other incomes such as savings interest, loan interest and foreign currency sales.

Taxes have been imposed on savings and loan interest of enterprises given current regulations. The most noteworthy change in the draft is imposing the CIT on the exchange rate differences from revaluation of liabilities payable with origin from foreign currencies at the end of the fiscal year (excluding exchange rate differences arising during the basic construction investment process to form fixed assets that such fixed assets have not been included in production and business) and exchange rate differences arising during the tax period.

The ministry has also proposed CIT on income from capital transfer, including income from the transfer of part or the whole of the capital amount invested in an enterprise, even in case of sales of enterprises, transfer of securities and other forms of transfer of capital as prescribed by law, income from the right to own or use assets, including earned copyright royalties in any form and earned royalties from intellectual property rights and income from technology transfer under the laws and asset lease in any form.

Recovered bad debts which have been written off, payable debts of unidentifiable creditors and omitted income from previous years’ business activities to be discovered will be also subject to the tax.

The National Assembly has approved slashing the CIT to 22% against the current level of 25% starting January 1, 2014.

 
© Group Counsel 2012. All rights reserved. | Attorney Advertising | Disclaimers | Privacy Statement | Contact Us