Circular 71/2021/TT-BTC on socialization establishment’s enterprise income tax that has not been retrospectively collected

CIRCULAR

Providing guidance on enterprise income tax for establishments performing socialization policy not yet retrospectively collected under the Government’s Resolution No. 63/NQ-CP of August 25, 2014^[1]

Pursuant to the June 13, 2019 Law on Tax Administration;

Pursuant to the June 3, 2008 Law on Enterprise Income Tax; and the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Enterprise Income Tax;

Pursuant to the November 26, 2014 Law Amending and Supplementing a Number of Articles of the Tax Laws;

Pursuant to the Government’s Decree No. 126/2020/ND-CP of October 19, 2020, detailing a number of articles of the Law on Tax Administration;

Pursuant to the Government’s Decree No. 218/2013/ND-CP of December 26, 2013, detailing and guiding the implementation of a number of articles of the Law on Enterprise Income Tax;

Pursuant to the Government’s Decree No. 12/2015/ND-CP of February 12, 2015, detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws and amending and supplementing a number of articles of the decrees on taxes;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

In furtherance of the Government’s Resolution No. 118/NQ-CP of August 10, 2020, on the Government’s July 2020 regular meeting;

At the proposal of the General Director of Taxation,

The Minister of Finance promulgates the Circular providing guidance on enterprise income tax for establishments performing socialization policy not yet retrospectively collected under the Government’s Resolution No. 63/NQ-CP of August 25, 2014.

Article 1. Establishments performing socialization policy that were established before the effective date of the Prime Minister’s Decision No. 1470/QD-TTg of July 22, 2016, and have income from socialization activities, shall fulfill enterprise income tax obligations as follows:

1. An establishment performing socialization policy is entitled to enterprise income tax incentives in accordance with law and the Prime Minister’s decisions in each period, specifically as follows:

a/ In case the establishment meets the conditions prescribed in the detailed List of types and criteria on scale of, and standards applicable to, establishments performing socialization policy in the fields of education-training, vocational training, health, culture, sports and environment promulgated together with the Prime Minister’s Decision No. 1466/QD-TTg of October 10, 2008 (below referred to as Decision No. 1466/QD-TTg), it will be entitled to enterprise income tax incentives for the remaining period in accordance with the law on enterprise income tax, counting from the time it meets the conditions prescribed in Decision No. 1466/QD-TTg.

b/ In case the establishment meets the conditions prescribed in the List amending and supplementing a number of contents of the List of types and criteria on scale of, and standards applicable to, establishments performing socialization policy in the fields of education-training, vocational training, health, culture, sports and environment promulgated together with the Prime Minister’s Decision No. 693/QD-TTg of May 6, 2013 (below referred to as Decision No. 693/QD-TTg), it will be entitled to enterprise income tax incentives for the remaining period in accordance with the law on enterprise income tax, counting from the time it meets the conditions prescribed in Decision No. 693/QD-TTg.

c/ In case the establishment meets the conditions prescribed in the List amending and supplementing a number of contents of the List of types and criteria on scale of, and standards applicable to, establishments performing socialization policy in the fields of education-training, vocational training, health, culture, sports and environment promulgated together with the Prime Minister’s Decision No. 1470/QD-TTg of July 22, 2016 (below referred to as Decision No. 1470/QD-TTg), it will be entitled to  enterprise income tax incentives for the remaining period in accordance with the law on enterprise income tax, counting from the time it meets the conditions prescribed in Decision No. 1470/QD-TTg.

d/ In case the establishment has already met the conditions prescribed in the detailed List of types and criteria on scale of, and standards applicable to, establishments performing socialization policy in the fields of education-training, vocational training, health, culture, sports and environment before the effective date of Decision No. 1466/QD-TTg or Decision No. 693/QD-TTg or Decision No. 1470/QD-TTg, it will be entitled to enterprise income tax incentives for the remaining period in accordance with the law on enterprise income tax, counting from the time Decision No. 1466/QD-TTg or Decision No. 693/QD-TTg or Decision No. 1470/QD-TTg takes effect.

2. An establishment performing socialization policy that fails to meet the conditions prescribed in the Prime Minister’s Decisions specified in Clause 1 of this Article shall additionally declare the insufficient enterprise income tax amount (if any) and calculate the payable enterprise income tax amount or have the enterprise income tax amount retrospectively collected by tax offices in accordance with the Law on Tax Administration and guiding documents, counting up to the time it meets the conditions prescribed in the Prime Minister’s Decisions.

3. An establishment performing socialization policy that has an incurred enterprise income tax amount as specified in Clause 2 of this Article shall be neither sanctioned for violations of the tax laws nor liable to late-payment interest calculated on the enterprise income tax amount not yet retrospectively collected under Article 24 of the Ministry of Finance’s Circular No. 151/2014/TT-BTC of October 10, 2014, up to the time this Circular takes effect. From the day following the effective date of this Circular, if the establishment still fails to pay the enterprise income tax amount temporarily not collected as mentioned above, it shall pay late-payment interest calculated on the unpaid tax amount and be sanctioned for violations of the tax laws (if any).

Article 2. Effect

1. This Circular takes effect on November 1, 2021.

2. To annul Article 24 of the Ministry of Finance’s Circular No. 151/2014/TT-BTC of October 10, 2014, guiding the implementation of the Government’s Decree No. 91/2014/ND-CP of October 1, 2014, amending and supplementing a number of articles of the decrees on taxes.

Article 3. Organization of implementation

1. Tax offices of all levels shall disseminate and provide guidance on enterprise income tax applicable to establishments performing socialization policy and having enterprise income tax not yet retrospectively collected for the latter to comply with this Circular.

2. Any problems arising in the course of implementation of this Circular should be promptly reported to the Ministry of Finance for study and settlement.-

For the Minister of Finance
Deputy Minister
TRAN XUAN HA