Vietnamese
To calculate exactly the payable enterprise income tax, it is necessary to define the total revenue from production and business activities, and other taxable incomes in accordance with law provisions.
Pursuant to Article 7 of Circular No. 78/2014/TT-BTC (a number of provisions are amended and supplemented by Circular No. 96/2015/TT-BTC, Circular No. 15/2014/TT-BTC), other incomes of taxable incomes include:
1. Income from the transfer of capital or securities as guided in Chapter IV of Circular 78/2014.
2. Incomes from the transfer of real estate as guided in Chapter V of Circular 78 are as follows:
- Incomes from real estate transfer include income from the transfer of land use rights, or land lease rights (including also the transfer of projects associated with the transfer of land use rights or land lease right in accordance with the law);
- Income from the sublease of the land of real estate enterprises in accordance with the land law regardless of whether there is an infrastructure facility or architectural work attached to land;
- Income from the transfer of houses or construction works attached to land, including their appurtenances, in case the value of such appurtenances is inseparable upon the transfer, regardless of whether land use rights or land lease right are/is transferred;
- Income from the transfer of house ownership or use right
3. Income from the transfer of investment projects; transfer of the right to participate in investment projects; transfer of the right to explore, exploit and process minerals as prescribed by law.
4. Income from asset ownership or use rights, including also copyright royalties in any form paid for asset ownership or use rights; royalties from intellectual property rights; and income from technology transfer in accordance with law.
Income from intellectual property right royalties or technology transfer is the total collected sum of money minus (-) the cost price or expense for the creation of the transferred intellectual property rights or technology, minus (-) the expense for maintaining, upgrading or developing the transferred intellectual property rights or technology and other deductible expenses.
5. Income from asset lease in any form.
Income from asset lease is the turnover from the asset lease minus as follows:
- Expenses for asset depreciation, renovation, repair and maintenance, expense for the lease of assets for sublease (if any).
- Other deductible expenses related to the asset lease.
6. Income from transfer or liquidation of assets (excluding real estate) and other valuable papers
This income equals (=) turnover from asset transfer or liquidation minus (-) the residual book value of the transferred or liquidated asset at the time of transfer or liquidation, and deductible expenses related to the asset transfer or liquidation.
7. Income from deposit or loan interests, including also interests on deferred and installment payments, credit guarantee charges and other charges under loan provision contracts
- In case income from deposit or loan interests is higher than expenses for payment of loan interests as prescribed, the remainder after the income-expense clearing may be included in other incomes for determining taxable income.
- In case income from deposit or loan interests is lower than expenses for payment of loan interests as prescribed, the remainder after the income-expense clearing may be cleared against income from main production and business activities for determining taxable income.
8. Income from the sale of foreign currency
Which equals total proceeds from the sale of foreign currency minus (-) total buying price of the sold foreign currency amount.
9. Income from exchange rate difference
10. Recovered bad debts which have been written of
11. Payable debts of unidentifiable creditors
12. Previous years’ omitted incomes from production and business activities, which are now discovered
13. If fines or compensations received by enterprises from their partners for contract breaches or rewards for good realization of commitments under contracts are higher than those paid by these enterprises for their contract breaches (these fines are other than those paid for administrative violations in accordance with the law on handling of administrative violations), the remainder after the clearing may be included in other income.
If fines or compensations received by enterprises from their partners for contract breaches or rewards for good realization of commitments under contracts are lower than those paid by these enterprises for their contract breaches (these fines are other than those paid for administrative violations in accordance with the law on handling of administrative violations), the remainder after the clearing may be deducted from other income.
If there is no other income in a year, the remainder may be deducted from income from production and business activities.
Revenues from the above-said fines and compensations exclude fines and compensations already recorded as decrease in the construction value in the stage of investment.
15. Donations and gifts in cash or in kind; income received in cash or in kind from financing sources; income received from marketing support, expense support, payment discount, promotional prizes and other supports.
For incomes received in kind, the value of these incomes shall be determined according to the value of similar goods or services at the time of receipt
16. Sums of money, property and material benefits received by enterprises from organizations and individuals as agreed or contracted in accordance with the civil law when enterprises had over their land areas for relocation of their production and business facilities, after subtracting related expenses, such as expenses for relocation (transportation and installation costs), the residual value of fixed assets and other expenses (if any).
Sums of money, property and material benefits received by enterprises under the State policy and approved by competent state agencies for relocation of their production facilities, shall be managed and used in accordance with relevant laws.
17. Amounts pre-deducted as expenses but left unused or not fully used in the deduction period which is not accounted by enterprises as a decrease in expenses; refunded provisions for warranty of construction works.
18. Incomes related to goods sale or service provision which are not included in turnover, such as: bonus for quick clearance of ships, tips for food and drink catering or hotel services, after subtracting expenses for generating such incomes.
19. Income from the sale of scraps and discarded products after subtracting recovery and sale expenses.
This income is defined as follows:
- In case enterprises generate the income from the sale of scraps and discarded products generated in the production of products eligible for enterprise income tax incentives, such income is eligible for enterprise income tax incentives.
- In case enterprises generate the income from the sale of scraps and discarded products generated in the production of products ineligible for enterprise income tax incentives, such income shall be accounted as other income.
20. Refunded import duty or export duty amounts on actually imported or exported goods right in the year of enterprise income tax finalization may be accounted as deductible expenses in that year.
In case refunded import duty or export duty amounts on actually imported or exported goods are for previous years of enterprise income tax finalization, they shall be accounted as other incomes of these years.
If such income is directly related to a production or business sector currently eligible for enterprise income tax incentives, it is eligible for such incentives.
If such income is not directly related to the production or business sector currently eligible for enterprise income tax incentives, it shall be accounted as other income.
21. Incomes from the contribution of equity capital, contribution of capital to joint ventures or economic associations at home which are divided from pre-enterprise income tax incomes.
22. In case an enterprise admits a new capital-contributing member as
prescribed by law and the amount contributed by this member is larger than the value of his/her/its contribution to the total charter capital of the enterprise:
- If this positive difference is identified as belonging to the enterprise to be added to its business capital, it shall not be included in taxable income for calculating enterprise income tax of the enterprise.
- If this positive difference is divided to the existing capital-contributing members, it is the income of these members.
23. Other incomes as provided by law.
Here are other incomes of enterprise income tax.
