Socialist Republic of Vietnam

In order to contribute to the promotion of business and production activities and to mobilize part of the income for the State Budget; in order to ensure reasonable and fair contribution by all organizations and individuals conducting production, business and service activities and earning income;

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam;

This Law provides for corporate income tax.

CHAPTER I

General Provisions

Article 1 Payers of Corporate Income Tax

Organizations and individuals producing and trading goods and services (hereinafter collectively referred to as business establishments) and earning income shall, subject to the exceptions provided for in article 2 of this Law, be liable to pay corporate income tax.

Article 2 Subjects Not Liable to Pay Corporate Income Tax

Family households, individuals, co-operatives and agricultural production co-operatives earning income from products of cultivation, husbandry, and aquaculture, with the exception of family households and individual farmers producing substantial products and earning high levels of income as provided for by the Government.

Article 3 Interpretation of Terms

In this Law, the following terms shall have the meanings ascribed to them hereunder:

1. Organizations producing and trading goods and services comprise State owned enterprises, limited liability companies, shareholding companies, enterprises with foreign owned capital and foreign parties to business co-operation contracts under the Law on Foreign Investment in Vietnam; foreign companies and foreign organizations conducting business activities in Vietnam beyond the scope of the Law on Foreign Investment in Vietnam; private enterprises; co-operatives; co-operation teams; economic organizations belonging to political organizations, socio-political organizations, social organizations, socio-professional organizations and units of the people's armed forces; administrative and professional bodies engaged in production and trading of goods and services;

2. Individuals producing and trading goods and services include individual households and business groups, family households and individuals conducting agricultural production; business individuals; freelancers; individuals leasing out assets; foreigners conducting business and having income sourced in Vietnam;

3. Resident establishments of foreign companies in Vietnam means the business establishments through which foreign companies conduct part or all of their business activities in Vietnam and earn income, including:

(a) Operational branches, offices, plants, workshops, means of transportation, mines, petroleum or gas fields, or any location in Vietnam where natural resources are exploited;

(b) Construction sites, construction, installation and assembly works;

(c) Establishments providing services, including consultancy services provided through employees or others;

(d) Agents of foreign companies;

(e) Representatives in Vietnam in the following cases:

· Having authority to sign contracts in the name of foreign companies;
· Not having authority to sign contracts in the name of foreign companies but regularly delivering goods or providing services in Vietnam;
Where a treaty on avoidance of double taxation to which the Socialist Republic of Vietnam is a signatory contains different provisions relating to resident establishments, such treaty shall prevail.

Article 4 Obligations and Responsibilities for Implementation of Law on Corporate Income Tax

1. Business establishments shall be obliged to pay tax in full and in a timely manner in accordance with this Law.

2. Tax offices shall be responsible for implementing strictly the provisions of this Law within their respective duties and powers.

3. State bodies, political organizations, socio-political organizations, social organizations, socio-professional organizations and units of the people's armed forces shall, within their respective functions, duties and powers, supervise and co-ordinate with tax offices in the implementation of the Law on Corporate Income Tax.

4. Vietnamese citizens shall be responsible for assisting tax offices and tax officers in the implementation of this Law.


CHAPTER II

Bases for Tax Calculation and Tax Rates

Article 5 Bases for Tax Calculation

The bases for tax calculation are taxable income and tax rates.

Article 6 Taxable Income

Taxable income shall comprise income earned from production, business and service activities and other income, including income earned from production, trading and service activities conducted overseas.

Article 7 Determination of Taxable Income

1. Taxable income earned from production, business and service activities shall equal turnover less reasonable expenses related to taxable income.

2. Other taxable income includes income in the form of the difference between the sale and purchase prices of securities, ownership rights with respect to and right to use assets, profits made from assignments, leases and sales of assets, deposits, loans, sales of foreign currency; the balance of contingency funds at the end of the year, income in the form of recovery of bad debts which have been written-off; income in the form of accounts payable which are unclaimed; income from previous years which was unaccounted for and which has been discovered, and other income.

Where a treaty on avoidance of double taxation to which the Socialist Republic of Vietnam is a signatory contains different provisions relating to the determination of taxable income of resident establishments, such treaty shall prevail.

Article 8 Turnover

Turnover used to calculate taxable income shall equal total sales revenue, processing fees, and fees for provision of services, including price subsidies.

Where turnover is generated in foreign currency, it must be converted into Vietnamese dong at the official exchange rate published by the State Bank of Vietnam at the time when the foreign currency is received.

Article 9 Expenses

1. Reasonable expenses which are deductible for the purpose of calculation of taxable income comprise:

(a) Depreciation of fixed assets used for production, business and service activities in accordance with law;

(b) Costs of raw materials, fuel, power and goods actually used for production, business and service activities relating to the turnover and taxable income of the relevant period, calculated on the basis of reasonable consumption levels and actual ex-work prices;

(c) Salaries, wages, costs of mid-shift meals, and payments in the nature of salary made in accordance with applicable regulations, except for salaries and wages of owners of private enterprises, heads of individual households conducting production, business and service activities, and income of founders of companies who are not directly involved in the management of production, business and service activities;

(d) Expenses for scientific and technological research; innovations and initiatives, funding education, health care and training in accordance with applicable regulations;

(e) Costs of hired services, including electricity, water, telephones; repair of fixed assets, rent paid for leases of fixed assets; auditing, insurance of assets, charges for using technical documents, patents, technological licences not forming part of the fixed assets; technical services;

(f) Payments made to female employees in accordance with law; expenses for occupational safety protection; expenses for maintenance of security of business establishments, contributions which business establishments employing labour must make to social insurance and medical insurance funds; trade union expenses; payments made to cover management expenses of superior authorities in accordance with applicable regulations;

(g) Payment of interest on loans for production, business and service activities borrowed from banks or credit organizations at actual interest rates; payment of interest on loans borrowed from other lenders at actual interest rates which must not exceed the ceiling interest rate fixed by the State Bank of Vietnam for credit organizations;

(h) Contingency provisions in accordance with law;

(i) Retrenchment benefits paid to employees;

(j) Expenses relating to sales of goods and services;

(k) Expenses for advertisement, marketing and promotion directly related to production, business and trading activities and other expenses, the total of which may not exceed seven per cent of total expenses. In case of commercial trading activities, total expenses within this limit shall not include purchase price of goods sold;

(l) Taxes, fees, charges and land rent payable related to production, business and service activities shall be considered as expenses;

(m) Business operational expenses allocated by foreign companies to their resident establishments in Vietnam in accordance with regulations of the Government.

2. The following shall not be considered to be reasonable expenses:

(a) Amounts advanced for expenses but, in fact, not expended;

(b) Expenses incurred without source documents or with unlawful source documents;

(c) Fines and expenses unrelated to turnover used for calculation of tax and taxable income;

(d) Expenses covered by other sources of capital.

3. Reasonable expenses stipulated in clause 1 of this article shall be recorded in books of account in Vietnamese dong. Where expenses are incurred in foreign currency, they must be converted into Vietnamese dong at the official exchange rate published by the State Bank of Vietnam at the time when the foreign currency is expended.

Article 10 Tax Rates

1. The rate of corporate income tax applicable to domestic business establishments and foreign organizations and individuals conducting business activities in Vietnam beyond the scope of the Law on Foreign Investment in Vietnam shall be thirty two (32) per cent.

Production, construction and transport establishments which formerly paid profits tax at the rate of twenty five (25) per cent and which now encounter difficulties in paying corporate income tax at the rate of thirty two (32) per cent may apply the tax rate of twenty five (25) per cent for a period of three years commencing from the date on which this Law becomes effective. The tax rate of thirty two (32) per cent shall apply upon expiry of that three year period. The Government shall stipulate the production, construction and transport establishments which may apply the tax rate of twenty five (25) per cent.

Business establishments earning high income due to objective advantages shall be liable to pay, in addition to income tax at the rate of thirty two (32) per cent, additional income tax at the rate of twenty five (25) per cent on the amount of high income earned due to objective advantages. The Government shall provide for the method of determination of amounts of high income earned due to objective advantages.

In the case of new investment projects in sectors, industries and regions in which investment is encouraged, tax rates of twenty five (25) per cent, twenty (20) per cent and fifteen (15) per cent may be applied in accordance with the regulations to be provided by the Government.

2. Corporate income tax rates applicable to enterprises with foreign owned capital and foreign parties to business co-operation contracts shall be the tax rates stipulated in article 38 of the Law on Foreign Investment in Vietnam.
Upon remittance of profits overseas, foreign investors shall be liable to pay tax on the amount of profits remitted overseas at the tax rate stipulated in article 43 of the Law on Foreign Investment in Vietnam.

The term "profits" used in articles 38 and 43 of the Law on Foreign Investment in Vietnam shall be construed as "income" under this Law as the basis for tax calculation.

3. The corporate income tax rate of fifty (50) per cent shall be applied to domestic and foreign organizations and individuals conducting petroleum and gas prospecting, exploration and exploitation activities. Tax rates from thirty two (32) per cent to fifty (50) per cent shall be applied to exploitation of other rare and precious natural resources, depending on each specific project and business establishment.

The Government shall make detailed provisions for this article.


CHAPTER III

Declaration, Payment and Finalization of Tax

Article 11 Responsibilities of Business Establishments

Business establishments shall have the following responsibilities:

1. To maintain proper books of account, receipts and source documents in accordance with law;

2. To declare fully turnover, expenses and income strictly in accordance with the regulations provided by the Ministry of Finance;

3. To pay tax and fines in full and in a timely manner into the State Budget in accordance with notices of tax offices;

4. To provide documents, books of account, accounting statements, receipts and source documents relating to calculation of income tax as required by tax offices.

Article 12 Tax Declaration

1. Annually, business establishments shall, on the basis of the production, business and service results of the previous year and the potential for the following year, declare turnover, expenses and taxable income in accordance with the forms issued by the tax office and shall submit such forms to the tax office directly in charge no later than the twenty fifth day of January. Upon receipt of declaration forms, the tax office shall verify and determine the amount of tax provisionally payable every quarter for the whole year and shall notify business establishments thereof. If there are major changes to the production, business and service situation during the year, business establishments must report to the tax office directly in charge for adjustment of the amount of tax provisionally payable each quarter.

2. In the case of business establishments which do not yet maintain books of account, receipts and other source documents, the amount of tax payable every month shall be determined on the basis of a fixed turnover and the rate of taxable income shall be determined by the authorized tax office as appropriate to each line of business and industry.

Article 13 Tax Payment

1. Business establishments shall pay in full the amounts of tax provisionally payable every quarter into the State Budget in accordance with the tax payment notice issued by the tax office. The time-limit for tax payment for each quarter stated in the notice shall be no later than the last day of the quarter.

2. Business establishments stipulated in clause 2 of article 12 must pay tax into the State Budget on a monthly basis in accordance with the notice of the tax office. The time-limit for tax payment for each month stated in the notice shall be no later than the twenty fifth day of the following month.

3. Business establishments trading in lots must declare and pay tax in respect of each lot of goods to the local tax office where the goods are purchased prior to the goods being taken away.

4. In the case of foreign business organizations and individuals having no resident establishments in Vietnam but having income sourced in Vietnam, the organizations and individuals paying such income shall be responsible for withholding tax at the rate stipulated by the financial body from the total payments and for paying it into the State Budget at the same time as payment is made to the foreign organizations and individuals.

Article 14 Tax Finalization

1. Business establishments must finalize tax with the tax office on an annual basis. The tax finalization statement must contain the following items:

(a) Turnover;

(b) Reasonable expenses;

(c) Taxable income;

(d) Amount of income tax payable;

(e) Amounts of income tax provisionally paid during the year;

(f) Amounts of income tax paid overseas in respect of income received from overseas;

(g) Any excessive amount or shortfall of income tax.

2. A year for the purpose of tax finalization shall be a Gregorian year. Where a business establishment is permitted to apply a financial year other than the Gregorian year, tax finalization shall be conducted in accordance with such financial year. Within sixty (60) days from the last day of the Gregorian year or other financial year, a business establishment must submit its tax finalization statement to the tax office and must pay any outstanding amount of tax into the State Budget within ten (10) days from the date of submission of its finalization statement; any excessive amounts shall be credited against the tax liability for the following period.

In case of merger, amalgamation, division, demerger, dissolution or bankruptcy, the business establishment must finalize tax with the tax office and submit a tax finalization statement within forty five (45) days from the date on which the decision on merger, amalgamation, division, demerger, dissolution or bankruptcy is issued.

The Ministry of Finance shall provide guidelines for the finalization of corporate income tax provided for in this article.

Article 15 Duties, Powers and Responsibilities of Tax Offices

Tax offices shall have the following duties, powers and responsibilities:

1. To provide guidelines for declaration and payment of tax in accordance with this Law by registered business establishments;

2. To issue notices to business establishments of the amounts of tax payable and the time-limits for tax payment in accordance with the applicable regulations. Where a business establishment fails to pay tax after the time-limit stated in the notice, to issue further notices of the amounts of tax and fines payable for delayed payment in accordance with clause 2 of article 24 of this Law. Where the business establishment fails to pay in full the tax and fines stated in such notice, the tax office may take action as provided for in clause 4 of article 24 of this Law in order to recover tax and fines in full. Where the business establishment still fails to pay in full the tax and fines after such action has been taken, the tax office shall forward the relevant documents to the authorized State body for resolution in accordance with law;

3. To examine and inspect the declaration, payment and finalization of tax by business establishments in order to ensure strict compliance with law. Where unreasonable sale prices, purchase prices, business expenses or other items are discovered, the tax office may re-determine such amounts in order to recover fully the correct amount of corporate income tax;

4. To impose administrative tax penalties and to deal with tax complaints;

5. To demand business establishments to provide books of account, receipts, source documents and other documents relating to calculation and payment of tax; to demand credit organizations and banks and other relevant organizations and individuals to provide documents relating to calculation and payment of tax;

6. To maintain and use data and documents provided by business establishments and others in accordance with the applicable regulations.

Article 16 Authority to Determine Taxable Income

1. The tax office shall determine taxable income for the purpose of calculation of the amounts of tax payable by business establishments in the following cases:

(a) Failure to maintain, or to maintain adequately, books of account, receipts and source documents as required by the regulations;

(b) Failure to declare, or to declare accurately, the bases for tax calculation or failure to substantiate the contents of the declaration forms as required by the tax office;

(c) Refusal to provide books of account, receipts, source documents and other necessary documents relating to calculation of corporate income tax;
(d) Discovery of business activities conducted without business registration.

2. The tax office shall determine taxable income by taking into account the business situation of the business establishment or according to the taxable income of other business establishments of similar size operating in the same line of business.

Where a business establishment is not satisfied with its taxable income so determined, it may lodge a complaint to the superior tax office. Pending resolution of the complaint, the business establishment must still pay the amount of tax as determined.


CHAPTER IV

Exemption from and Reduction of Corporate Income Tax

Article 17 Tax Exemption and Reduction for Newly Established Business Establishments

1. In the case of domestic business establishments:

(a) Newly established production establishments shall be exempted from tax for the first two years from the time when taxable income arises and shall be entitled to a fifty (50) per cent reduction of the amount of income tax payable for the two subsequent years. In particular, production establishments established in mountainous regions, islands and other areas with difficult conditions shall be entitled to a further two year period of tax reduction;

(b) Newly established establishments implementing projects in which investment is encouraged shall be entitled to tax exemption and reduction as follows:

· Newly established production establishments shall be exempted from tax for the first two years from the time when taxable income arises and shall be entitled to a fifty (50) per cent reduction of income tax payable for a maximum period of four subsequent years. In particular, in the case of investments in mountainous regions, island and other areas with difficult conditions, the duration of income tax exemption shall be extended for a period of one to two years and the duration of the fifty (50) per cent income tax reduction shall also be extended for a period of one to five years;

· Newly established trading and service establishments shall be entitled to a fifty (50) per cent income tax reduction for an initial period of one to two years from the time when taxable income arises. In particular, in the case of investments in mountainous regions, islands and other areas with difficult conditions, income tax shall be exempted for an initial period of one to two years from the time when taxable income arises and shall be reduced by fifty (50) per cent for a maximum period of five subsequent years.

2. In the case of enterprises with foreign owned capital and foreign parties to business co-operation contracts:

(a) Depending on the sector and region of investment as stipulated in the Law on Foreign Investment in Vietnam, enterprises with foreign owned capital and foreign parties to business co-operation contracts may be granted exemption from income tax for a maximum period of two years from the time when taxable income arises and reduction of income tax at the rate of fifty (50) per cent for a maximum period of two subsequent years;

(b) Where an enterprise with foreign owned capital or a foreign party to a business co-operation contract implements a project in which investment is encouraged for a number of reasons, it shall be exempted from income tax for a maximum period of four years from the time when taxable income arises and shall be entitled to a fifty (50) per cent reduction of income tax payable for a maximum period of four subsequent years;

(c) In cases where investment is specially encouraged, income tax shall be exempted for a maximum period of eight years.

The Government shall make detailed provisions for tax exemption and reduction as provided for in this article.

Article 18 Tax Exemption and Reduction for Domestic Business Establishments Investing in New Production Lines, Business Expansion, Technology Renewal, Improvement of Ecological Environment or Improvement of Production Capacity

Production establishments investing in new production lines, business expansion, technology renewal, improvement of ecological environment, or improvement of production capacity shall be exempted from corporate income tax in respect of any increase in income during the first year and shall be granted a fifty (50) per cent reduction of the amount of tax payable due to new investment for two subsequent years.

Article 19 Refund of Tax for Re-Invested Income of Enterprises with Foreign Owned Capital and Foreign Parties to Business Co-operation Contracts

Enterprises with foreign owned capital and foreign parties to business co-operation contracts re-investing their distributed income in projects in which investment is encouraged shall be entitled to a refund of part or all of the corporate income tax already paid in respect of the re-invested income. The Government shall provide for the rate of refund applicable to each sector, region, form and duration of re-investment.

Article 20 Tax Exemption for Business Establishments Relocating to Mountainous Regions, Islands and Other Areas with Difficult Conditions

Business establishments relocating to mountainous regions, islands and other areas with difficult conditions shall be exempted from corporate income tax for the first three years from the time when taxable income arises.

Article 21 Tax Exemption and Reduction for Other Cases

1. Corporate income tax shall be exempted in respect of the following income of domestic business establishments:

(a) Income earned from performance of scientific research contracts;

(b) Income earned from performance of technical service contracts directly serving agricultural production;

(c) Income earned from production, business and service activities conducted by business establishments specially employing disabled people;

(d) Income earned from vocational training specially for disabled people, ethnic minority people, children living in particularly difficult conditions and people involved in social evils;

(e) Individual households involved in production, business and service activities earning low income as stipulated by the Government.

2. Foreign investors shall be entitled to corporate income tax exemptions and reductions as follows:

(a) Overseas Vietnamese investing in Vietnam under the Law on Foreign Investment in Vietnam shall be entitled to a twenty (20) per cent reduction of income tax otherwise payable by projects in the same category, except in cases where they are entitled to apply the income tax rate of ten (10) per cent; shall be entitled to apply a withholding tax rate of five per cent of income remitted overseas;

(b) Patents, technical knowhow, technological processes and technical services used as legal capital contributions shall be exempted from income tax;

(c) Income tax shall be exempted or reduced in respect of income earned from assignment of capital by foreign investors to Vietnamese enterprises in accordance with the regulations provided by the Government.

3. Reductions of income tax shall be granted to domestic business establishments and enterprises with foreign owned capital conducting production, construction and transportation activities and employing a large number of female employees in accordance with the regulations provided by the Government.

Article 22 Carry-Forward of Losses

Domestic business establishments and joint venture enterprises which suffer losses after tax finalization with the tax office shall be entitled to carry forward those losses to the following year and such losses shall be deducted from taxable income. Losses shall be carried forward for a maximum period of five years.

Article 23 Consideration of Tax Exemption and Reduction

1. Tax exemptions and reductions as stipulated in articles 17, 18, 19, 20 and 21 of this Law shall only be applicable to business establishments which maintain proper books of account and pay tax as declared.

2. The Government shall provide for the procedures and powers to grant tax exemptions and reductions as stipulated in articles 17, 18, 19, 20 and 21 of this Law.


CHAPTER V

Dealing with Breaches and Rewards

Article 24 Dealing with Tax Offences Committed by Taxpayers

Taxpayers in breach of the Law on Corporate Income Tax shall be dealt with as follows:

1. Where they fail to comply strictly with regulations on accounting systems, maintaining accounting records, and declaration, payment and finalization of tax in accordance with articles 11, 12, 13 and 14 of this Law, they shall, depending on the nature and seriousness of the breach, be subject to administrative penalty for a tax offence.

2. Where tax or fines are paid after the time-limit stipulated or specified in a tax decision, they shall be liable to pay, in addition to the full amount of tax and fines, one tenth of one (0.1) per cent of the late amount for each day of delay.

3. Where they falsely declare or evade tax, they shall be liable to pay, in addition to the full amount of tax stipulated by this Law, a fine equal to between one and five times the amount evaded, depending on the nature and seriousness of the breach. Where taxpayers evade large amounts of tax, commit tax offences after being subject to an administrative tax penalty, or commit other serious breaches, they shall be prosecuted for criminal liability in accordance with law.

4. Where taxpayers fail to pay tax or fines in accordance with a notice or tax decision, the following action may be taken:

(a) Appropriation of deposits of taxpayers at banks, Treasury or credit organizations for the purpose of payment of tax or fines.

Banks, Treasury and credit organizations shall be responsible for appropriation of funds from deposit accounts of taxpayers for the purpose of payment of tax and fines into the State Budget pursuant to a tax decision of a tax office or another authorized body prior to collection of the debt.

(b) Seizure of the goods in question in order to recover the full amount of tax or fines payable.

(c) Seizure of assets in accordance with law for the purpose of recovery of any outstanding amount of tax and fines.

Article 25 Authority of Tax Offices to Deal with Tax Offences

1. The head of a tax office may take action as stipulated in clauses 1, 2 and 3 of article 24 of this Law against offences by taxpayers under its authority.

2. The heads of the Taxation Department and tax office may take action as stipulated in clause 4 of article 24 of this Law and may, in the case of breaches referred to in clause 3 of article 24 of this Law, forward documents to an authorized body for resolution in accordance with law.

Article 26 Dealing with Offences Committed by Tax Officers and Other Individuals

1. Tax officers and other individuals who abuse their positions and powers to use or possess illegally tax or fines shall be liable to refund to the State the full amount of tax or fines illegally used or possessed and shall, depending on the nature and seriousness of the breach, be subject to disciplinary action or criminal prosecution in accordance with law.

2. Tax officers and other individuals who are irresponsible or take wrongful action thereby causing damage to taxpayers shall be liable to pay compensation in accordance with law and shall, depending on the nature and seriousness of the breach, be subject to disciplinary action or criminal prosecution in accordance with law.

3. Tax officers and other individuals who abuse their positions and powers to assist and protect people breaching the Law on Corporate Income Tax or who commit other breaches of this Law shall, depending on the nature and seriousness of the breach, be subject to disciplinary action or criminal prosecution in accordance with law.

4. People who obstruct, or counsel others to obstruct, the implementation of the Law on Corporate Income Tax shall, depending on the nature and seriousness of the breach, be subject to administrative penalty or criminal prosecution in accordance with law.

Article 27 Rewards

Tax offices and tax officers successfully fulfilling their assigned tasks; organizations and individuals achieving merits in the implementation of the Law on Corporate Income Tax; and business establishments properly performing their tax obligations shall be rewarded.

The Government shall make detailed regulations in relation to rewards.


CHAPTER VI

Complaints and Limitation Periods

Article 28 Rights and Obligations of Taxpayers With Respect to Tax Complaints

1. Taxpayers are entitled to lodge complaints against tax offices or tax officers incorrectly implementing the Law on Corporate Income Tax.

Complaints shall be lodged at the tax office directly in charge within thirty (30) days from the date of receipt of the notice or tax decision of the tax office or officer.

Pending resolution of complaints, taxpayers must still comply with the notice or tax decision of the tax office.

2. Where a complainant is not satisfied with the resolution of the complaint by the tax office or where the complaint is not resolved after the time-limit stipulated in article 29 of this Law, the complainant may complain to the superior tax office or institute court action in accordance with law.

Article 29 Responsibilities and Powers of Tax Offices With Respect to Resolution of Tax Complaints

1. Tax offices must resolve tax complaints within fifteen (15) days from the date of receipt. This time-limit may be extended for complicated matters but shall not exceed thirty (30) days. Where a tax office receives a complaint which is beyond its authority, it must forward the documents or report to the authorized body for resolution and shall notify the complainant thereof within ten (10) days from the date of receipt of the complaint.

2. Tax offices receiving complaints may require the complainant to provide documents relating to the complaint. If the complainant refuses to provide such documents, the tax office may refuse to resolve the complaint.

3. Tax offices must refund to taxpayers any amount of tax or fines wrongfully collected within fifteen (15) days from the date of receipt by the superior tax office or the authorized body in accordance with law.

4. Where a false tax declaration, tax evasion or tax error is discovered, tax offices shall be responsible for recovering taxes or fines or for refunding taxes in respect of five years prior to the date of discovery of the false tax declaration, tax evasion or tax error. Where a business establishment does not register, declare and pay tax, taxes and fines may be recovered retrospectively from the date when the business establishment commenced its operations.

5. Heads of tax offices shall be responsible for resolving tax complaints of taxpayers against tax offices at lower levels.

The decision of the Minister of Finance resolving a tax complaint shall be final.


CHAPTER VII

Organization of Implementation

Article 30

The Government shall direct the organization of implementation of the Law on Corporate Income Tax throughout the country.

Article 31

The Minister of Finance shall be responsible for organizing and inspecting the implementation of the Law on Corporate Income Tax throughout the country.

Article 32

People's committees at all levels shall, within their respective duties and powers, direct and inspect compliance with the Law on Corporate Income Tax within their respective localities.


CHAPTER VIII

Implementing Provisions

Article 33

The Law on Corporate Income Tax shall be of full force and effect as of 1 January 1999.

The Law on Profits Tax, the Law on Amendment of and Addition to a Number of Articles of the Law on Profits Tax and all provisions relating to profits tax contained in other legal instruments shall be repealed as from the date on which the Law on Corporate Income Tax becomes effective.
Any problems relating to taxation, tax finalization, tax exemption and reduction and breaches of profits tax occurring prior to 1 January 1999 shall be resolved in accordance with the Law on Profits Tax, the Law on Amendment of and Addition to a Number of Articles of the Law on Profits Tax and any provisions relating to profits tax contained in other legal instruments.

Article 34

The Government shall make detailed provisions for the implementation of this Law.


This Law was passed by Legislature IX of the National Assembly of the Socialist Republic of Vietnam at its 11th session on 10 May 1997.



Chairman of the National Assembly
NONG DUC MANH