HCMC: Last month, Vietnam released Circular 96/2015/TT-BTC, the new Circular lays out the updated regulations relating to the country’s corporate income tax (CIT). The revised rules will become effective on August 6th and will be applied to the 2015 tax year of assessment and the subsequent years following.
Circular 96 amends and supplements Circular 78/2014, which focused on the changes introduced in Law 712 on CIT provisions. The new Circular aims to streamline administrative procedures, thus creating a more conducive business environment for enterprises and taxpayers.
CIT is a direct tax levied on the profits earned by companies or organizations. In general, profits are considered gross revenue minus expenses. Taxpayers include business entities in all economic sectors, professional organizations, and foreign corporations with production and trading activities in Vietnam. Individuals and families conducting business are also subject to Personal Income Tax (PIT). CIT declaration and payment is required every three months and is compulsory at the end of the fiscal year.
