LAW ON ENTERPRISE INCOME TAX

THE NATIONAL ASSEMBLY
Số: 09/2003/QH11
CỘNG HOÀ XÃ HỘI CHỦ NGHĨA VIỆT NAM
Độc lập - Tự do - Hạnh phúc
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Hà Nội i , Ngày 17 tháng 06 năm 2003
LAW ON ENTERPRISE INCOME TAX
(No. 09/2003/QH11 of June 17, 2003)
In order to contribute to boosting the production and business development and
mobilizing part of income into the State budget; to ensure equitable and reasonable
contributions by organizations and individuals producing and/or trading in goods and/or
providing services with incomes;
Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was
amended and supplemented under Resolution No. 51/2001/QH10 of December 25, 2001
of the Xth National Assembly, its 10th session;
This Law prescribes the enterprise income tax,
Chapter I
GENERAL PROVISIONS
Article 1.- Payers of enterprise income tax
Organizations and individuals engaged in goods production and trading and/or service
provision (hereinafter referred collectively to as business establishments) with incomes
shall all have to pay enterprise income tax, except for the subjects defined in Article 2 of
this Law.
Article 2.- Subjects not liable to enterprise income tax
Family households, individuals, cooperation groups and cooperatives engaged in
agricultural production with incomes from cultivation, husbandry and aquaculture
products are not liable to enterprise income tax, except for family households and
peasants engaged in large-scale commodity production with high incomes as defined by
the Government.
Article 3.- Interpretation of terms
In this Law, the following expressions shall be construed as follows:
1. Organizations engaged in goods production and trading and/or service provision
include State enterprises, limited liability companies; joint stock companies; partnerships;
foreign-invested enterprises and foreign parties to business cooperation contracts under
the Law on Foreign Investment in Vietnam; foreign companies and organizations doing
business in Vietnam not under the Law on Foreign Investment in Vietnam; private
enterprises; cooperatives; cooperation groups; economic establishments of political
organizations, socio-political organizations, social organizations, socio-professional
organizations, people’s armed force units; administrative agencies and non-business units
engaged in goods production and trading and/or service provision.
2. Individuals engaged in goods production and trading and/or service provision include
individual business households and business groups; family households and individuals
engaged in agricultural production; businesspeople; independent practitioners; individual
property lessors; foreign businesspeople with incomes generated in Vietnam.
3. Resident establishments of foreign companies in Vietnam are business establishments
through which foreign companies conduct part or all of their income-generating business
operations, including:
a/ Branches, executive offices, factories, workshops, transport means, mines, oil or gas
fields and any natural resource-exploiting places in Vietnam;
b/ Construction sites; construction, installation and/or assembly projects;
c/ Establishments providing services, including consultancy services, through their
employees or other subjects;
d/ Agents of foreign companies;
e/ Vietnam-based representatives who are competent to sign contracts on behalf of foreign
companies or incompetent to sign contracts on behalf of foreign companies but regularly
performing the delivery of goods or the provision of services in Vietnam.
In cases where a double taxation avoidance agreement which the Socialist Republic of
Vietnam has signed otherwise provides for resident establishments, the provisions of such
agreement shall apply.
Article 4.- Obligations and responsibilities to implement the Law on Enterprise Income
Tax
1. Business establishments are obliged to pay tax fully and on time as prescribed by this
Law.
2. Tax offices shall, within the ambit of their tasks and powers, have to strictly implement
the provisions of this Law.
3. State agencies, political organizations, socio-political organizations, social
organizations, socio-professional organizations and people’s armed force units shall,
within the ambit of their respective functions, tasks and powers, have to supervise the
implementation of, and coordinate with the tax offices in implementing, this Law.
4. Vietnamese citizens shall have to assist tax offices and tax officials in implementing the
provisions of this Law.
Chapter II
TAX CALCULATION BASES AND TAX RATES
Article 5.- Tax calculation bases
Tax calculation bases are taxable incomes and tax rates.
Article 6.- Taxable incomes
Taxable incomes include incomes from goods production and trading and/or service
provision activities and other incomes, including those generated from goods production
and trading and/or service provision activities overseas.
Article 7.- Determination of taxable incomes
1. Taxable incomes from goods production and trading and/or service provision activities
equal the turnovers therefrom minus the reasonable expenses related to taxable incomes.
2. Other taxable incomes include incomes earned from securities trading margin, property
ownership and use rights; incomes from the transfer of land use right or land rent right;
profits from the transfer, lease or liquidation of property or deposits, lending of capital,
sale of foreign currencies; year-end balance of reserves; recovered bad debts which had
been written off from accounting records; payable debts with creditors being
unidentifiable; incomes from business activities in the previous years which had been
omitted but later discovered, and other incomes.
The Government shall specify methods of determining taxable incomes for income
amounts from the transfer of land use right and land rent right as well as tax rates
according to the partially progressive tax table, which must not exceed 30% of remaining
income from the transfer of land use right and land rent right after the enterprise income
tax is paid.
In cases where a double taxation avoidance agreement which the Socialist Republic of
Vietnam has signed otherwise provides for methods of determining taxable incomes for
resident establishments, the provisions of such agreement shall apply.
Article 8.- Turnover
Turnover used for the calculation of taxable income is the total of money proceeds from
the sale of goods, processing remuneration and/or service provision charges, including
price subsidies, surcharges or extra-sums enjoyed by business establishments. In cases
where a turnover arises in a foreign currency, it must be converted into Vietnam dong at
the exchange rate announced by the State Bank of Vietnam at the time when such foreigncurrency
turnover arises.
Article 9.- Expenses
1. Reasonable expenses to be subtracted for the calculation of taxable income include:
a/ Depreciation of fixed assets used for production and/or business activities. The
depreciation rate shall be based on the value of fixed assets and depreciation duration.
Establishments producing and/or dealing in goods and services with high economic
efficiency may apply quicker depreciation rates which, however, must not exceed two
times the prescribed depreciation rate, in order to quickly renew their technologies.
The Finance Ministry shall specify fixed asset standards and depreciation rates prescribed
at this Point;
b/ Costs of raw materials, materials, fuel, energy and goods volume actually used in goods
production and trading and/or services related to turnover and taxable income in a period,
which are calculated according to a reasonable wastage rate and actual ex-warehouse
prices;
c/ Salaries, wages, allowances provided for by the Labor Code, mid-shift meal allowance,
except for salaries or wages of owners of private enterprises, heads of individual business
households and incomes of the founding members of companies who do not directly take
part in production and business management;
d/ Expenses for scientific and technological researches; innovations and improvements;
health care; training of laborers according to the prescribed regime; financial donations
for education;
e/ Expenses for services purchased from outside: electricity, water, telephone; repair of
fixed assets; rent of fixed assets; audit; legal services; designing, establishment and
protection of trademarks; property insurance; payments for use of technical materials,
patents, technological licenses not belonging to fixed assets; technical services and other
services purchased from outside;
f/ Payments for female laborers as provided for by law; expenses for labor protection
devices or outfits; expenses for protection of business establishments; working mission
allowances; deductions for payment of social insurance and medical insurance premiums
under the liability of employing business establishments; trade union funding; support of
the Party’s and mass organizations’ activities at business establishments; deductions for
setting up the superior levels’ management funds and associations’ funds according to the
prescribed regime;
g/ Payment of interests on loans for goods production and trading and/or service provision
to banks and other credit institutions as well as economic organizations at the actual
interest rates; payment of interests on borrowings from other subjects at the actual interest
rates at the time of signing borrowing contracts, which must not exceed 1.2 times the
lending interest rate of commercial banks at the time of borrowing;
h/ Deductions for reserves according to the prescribed regime;
i/ Severance allowances for laborers;
j/ Expenses for the sale of goods and/or services;
k/ Expenses for advertisement, marketing and trade promotion directly related to goods
production and trading and service provision activities and other expenses, which are
controlled at no more than 10% of the total expenditure. For trading activities, the total
expense for determining the controlled level shall not include purchasing prices of goods
sold;
l/ Payable taxes, charges, fees and land rents, which are related to goods production and
trading and/or service provision activities, and accounted into reasonable expenses;
m/ Business administration expenses allocated by foreign companies to their resident
establishments in Vietnam as prescribed by the Government;
n/ Expenses for purchase of goods and/or services of non-business organizations and/or
individuals without invoices and vouchers prescribed by the Government.
2. The following expenses shall not be accounted into reasonable expenses:
a/ Deductions advanced as expenses but actually not spent;
b/ Expenses without vouchers or with invalid vouchers;
c/ Fines and expenses not related to tax-calculation turnover and taxable income;
d/ Expenses covered by other capital sources.
3. The reasonable expenses prescribed in Clause 1 of this Article shall all be recorded in
accounting books in Vietnam dong; for expenses in foreign currency(ies), they must be
converted into Vietnam dong at the exchange rate(s) announced by the State Bank of
Vietnam at the time when such foreign-currency expenses are effected.
Article 10.- Tax rates
1. The enterprise income tax rate applicable to business establishments is 28%.
2. The enterprise income tax rate applicable to business establishments conducting
activities of prospection, exploration and exploitation of oil and gas and other precious
and rare natural resources is between 28% and 50%, depending on each project or
business establishment.
The Government shall specify this Article.
Chapter III
TAX DECLARATION, PAYMENT AND SETTLEMENT
Article 11.- Responsibilities of business establishments
Business establishments shall have the responsibilities:
1. To strictly abide by the regimes on accounting, invoices and vouchers according to the
provisions of law;
2. To fully declare their turnovers, expenses and incomes strictly according to the regimes
prescribed by the Finance Ministry;
3. To pay fully and on time payable tax amounts and fines into the State budget according
to the notices of tax offices;
4. To supply documents, accounting books, accounting statements, invoices and vouchers
related to the tax calculation at the requests of tax offices;
5. To purchase, sell, exchange, and account the values of, goods and services at market
prices.
Article 12.- Tax declaration
1. Every year, business establishments shall base themselves on the results of goods
production and trading and/or service provision of the previous year and the result
projection for the subsequent year to declare their turnovers, expenses and taxable
incomes as well as the whole year’s payable tax amounts divided for each quarter,
according to the form set by the tax offices and submit the declarations to the tax offices
directly managing them on January 25 at the latest; in case of big changes in the
production and business situation during the year, the business establishments shall have
to report such to their managing tax offices for adjustment of the tax amounts to be
temporarily paid for the whole year and each quarter. If the tax offices examine and detect
that the tax declarations by the business establishments are improper, they may fix the tax
amounts to be temporarily paid for the whole year and each quarter.
2. For business establishments which have not yet applied the prescribed regime of
accounting, invoices and vouchers, the tax amounts to be paid monthly shall be calculated
according to the presumptive turnover and the taxable income percentage suitable to each
branch or trade, which are set by competent tax offices.
Article 13.- Tax payment
1. Business establishments shall temporarily pay fully and on time into the State budget
the quarterly tax amounts according to their declarations or tax amounts fixed by tax
offices. The deadline for the quarterly tax payment shall be the last day of the quarter.
The Government prescribes simple and convenient procedures for tax payment, thus
raising the business establishments’ sense of responsibility before law, and at the same
time enhances the work of inspection, examination and handling of law violations
committed by tax offices, ensuring the tight and effective tax collection management.
2. The business establishments defined in Clause 2, Article 12 of this Law shall have to
pay tax into the State budget every month according to the notices of tax offices. The
deadline for the monthly tax payment stated in such notices is the 25th day of the
following month at the latest.
3. Business establishments engaged in consignment trading shall have to declare and pay
tax upon each consignment to the tax offices of the localities where the goods are
purchased before transporting such goods.
4. For foreign organizations or individuals doing business without resident establishments
in Vietnam but having incomes generated in Vietnam, the organizations or individuals
that pay such incomes shall have to deduct the tax amounts at the rates prescribed by the
Finance Ministry from the total paid incomes and remit them into the State budget
concurrently with the transfer of payment money to the foreign organizations or
individuals.
Article 14.- Tax settlement
1. Business establishments shall have to make annual tax settlements with the tax offices.
A tax settlement must reflect fully and accurately the following:
a/ Turnover;
b/ Reasonable expenses;
c/ Taxable income;
d/ Payable income tax amount;
e/ Income tax amount already temporarily paid in the year;
f/ Income tax amount already paid abroad for incomes received therefrom;
g/ Underpaid or overpaid income tax amount.
2. The tax-settlement year is calculated according to the solar year. In cases where
business establishments are allowed to apply a fiscal year other than the solar year, the tax
settlement shall be made according to that fiscal year. Within 90 days as from the end of a
solar year or a fiscal year, business establishments shall have to submit their tax
settlement reports to the tax offices, and fully pay the outstanding tax amounts into the
State budget within 10 days thereafter. Overpaid tax amounts shall be cleared against the
payable tax amounts of the subsequent period.
In case of enterprise transformation, merger, consolidation, division, separation,
dissolution or bankruptcy, business establishments shall have to make tax settlements
with the tax offices and submit tax settlement reports within 45 days after the date of
issuance of decisions on the enterprise transformation, merger, consolidation, division,
separation, dissolution or bankruptcy.
The Finance Ministry shall guide the settlement of enterprise income tax prescribed in this
Article.
Article 15.- Tasks, powers and responsibilities of tax offices
Tax offices have the following tasks, powers and responsibilities:
1. To guide business establishments in declaring and paying tax in strict accordance with
the provisions of this Law;
2. To notify business establishments of the delayed submission of declaration forms,
delayed tax payment and decisions on sanctioning violations of tax legislation; if business
establishments fail to fully pay tax and/or fine amounts according to tax notices, to be
entitled to apply the handling measures prescribed in Clause 4, Article 23 of this Law to
ensure the full collection of tax and fine amounts; in cases where the said handling
measures have been taken but business establishments still fail to pay fully tax and/or fine
amounts, to transfer the dossiers thereof to competent State agencies for handling
according to the provisions of law;
3. To inspect and examine the tax declaration, payment and settlement by business
establishments, ensuring their compliance with the provisions of law. In cases where
purchasing prices, selling prices, business expenses and other factors are found
unreasonable, the tax offices have the right to re-determine them so as to ensure the
accurate and full collection of enterprise income tax;
4. To handle tax-related administrative violations and settle tax-related complaints;
5. To request business establishments to provide accounting books, invoices, vouchers
and other dossiers and documents related to the tax calculation and payment; to request
banks, other credit institutions, and concerned organizations and individuals to provide
documents related to the tax calculation and payment;
6. To keep and use data and documents provided by business establishments and other
subjects according to the prescribed regime.
Article 16.- Right to fix taxable incomes
1. The tax offices shall fix taxable income for tax calculation for business establishments
in the following cases:
a/ Failing to observe or improperly observing the regime of accounting, invoices and
vouchers;
b/ Failing to declare or improperly declaring bases for tax calculation or failing to prove
the bases already stated in their declarations at the requests of tax offices;
c/ Refusing to produce accounting books, invoices, vouchers and necessary documents
related to the calculation of enterprise income tax;
d/ Doing business without business registrations.
2. Tax offices shall base themselves on the investigation documents on the situation of
goods production and trading and/or service provision activities of the business
establishments or on taxable incomes of business establishments engaged in the same
business line, with the similar business scale, to fix the taxable income. If the business
establishments disagree with such fixed taxable income level, they may lodge complaints
to the immediate superior tax offices according to the provisions of law; pending the
settlement thereof, the business establishments shall still have to pay tax at the fixed tax
level.
Chapter IV
ENTERPRISE INCOME TAX EXEMPTION AND REDUCTION
Article 17.- Tax exemption and reduction for investment projects on setting up business
establishments, cooperatives, relocated business establishments
1. Investment projects on setting up new production establishments in branches, trades,
fields or geographical areas in which the investment is encouraged, or cooperatives shall
enjoy the tax rates of 20%, 15% and 10%.
2. Investment projects on setting up new production establishments in branches, trades,
fields or geographical areas in which the investment is encouraged, business
establishments relocated under the planning and business establishments relocated to
geographical areas in which the investment is encouraged shall be entitled to the tax
exemption for 4 years at most after their taxable incomes are generated, and a 50%
reduction of payable tax amounts for 9 subsequent years at most.
The Government shall specify branches, trades, fields and geographical areas in which the
investment is encouraged; tax rates and application duration for each branch, trade, field
or geographical area in which the investment in encouraged; tax exemption duration, tax
reduction levels and duration as prescribed in this Article.
Article 18.- Tax exemption and/or reduction for business establishments investing in
building new production lines, expanding their production, renewing technology,
improving the ecological environment or raising their production capacity
Production establishments investing in building new production lines, expanding their
production, renewing technology, improving the ecological environment and raising their
production capacity shall be exempt from enterprise income tax on their increased
incomes brought about by such investment for 4 years at most and a 50% reduction of
payable tax amounts for 7 subsequent years at most.
The Government shall prescribe the methods of determining the increased incomes
brought about by investment, and tax exemption or reduction duration for each case
prescribed in this Article.
Article 19.- Tax exemption and reduction for other cases
1. The following incomes of business establishments shall be exempt from enterprise
income tax:
a/ Income from the performance of contracts on scientific research and development of
technologies, products being in the stage of trial production, or products turned out from
new technologies applied for the first time in Vietnam;
b/ Income from the performance of technical service contracts in direct service of
agriculture;
c/ Income from business establishments’ goods production and trading and/or service
provision activities reserved for laborers being disabled people;
d/ Income from job training reserved for disabled people, children in exceptionally
difficult plights and social-evils doers;
e/ Income of cooperatives and individual households engaged in goods production and
trading and/or service provision with low incomes under the regulations of the
Government.
2. Enterprise income tax shall be exempt for investors contributing capital with patents,
technical know-hows, technological processes or technical services; enterprise income tax
shall be reduced for income from the transfer of the value of capital portions of foreign
investors to Vietnamese enterprises under the Government's regulations.
3. Enterprise income tax shall be reduced for business establishments engaged in
production, construction or transport activities and employing a large number of female
laborers under the Government's regulations.
4. Enterprise income tax shall be reduced for business establishments employing a large
number of laborers, laborers being ethnic minority people under the Government's
regulations. Enterprise income tax shall be exempt for income portions from activities of
job training reserved for ethnic minority people.
Article 20.- Transfer of losses
If business establishments, after making the tax settlements with the tax offices, suffer
from losses, they shall be entitled to transfer such losses to the following year, which shall
be offset against their taxable incomes. The duration eligible for the loss transfer shall not
exceed 5 years.
Article 21.- Procedures for effecting tax exemption, tax reduction and loss transfer
The tax exemption, tax reduction and loss transfer prescribed in Articles 17, 18, 19 and 20
of this Law shall apply only to the business establishments which have strictly observed
the regime of accounting, invoices and vouchers and paid tax according to their
declarations, except for individual households engaged in goods production and trading
and/or service provision with low incomes. Business establishments shall determine by
themselves the conditions for enjoying tax preferences, tax exemption, and tax reduction
and loss transfer levels for registering them with the tax offices and for implementation
upon making tax settlements.
The tax offices are tasked to examine the conditions for enjoying tax preferences,
determine tax exemption or reduction amounts which the business establishments are
entitled to, loss amounts which the business establishments are allowed to offset against
their taxable incomes.
In cases where business establishments incorrectly determine the conditions for tax
preferences, tax exemption or reduction amounts, loss amounts to be offset against their
taxable incomes, they shall be sanctioned for tax-related administrative violations.
Chapter V
COMMENDATION, REWARD AND HANDLING OF VIOLATIONS
Article 22.- Commendation and reward
Tax offices and tax officials that well fulfill their assigned tasks; organizations and
individuals that record achievements in the implementation of the provisions of this Law,
business establishments which well perform their tax payment obligations shall be
commended and/or rewarded.
The Government shall specify the commendation and reward.
Article 23.- Handling of tax-related violations committed by tax payers
Tax payers that violate the provisions of this Law shall be handled as follows:
1. If failing to strictly observe the provisions on the regime of accounting, invoices and
vouchers, tax declaration, payment and settlement, as prescribed in Articles 11, 12, 13, 14
and 21 of this Law, they shall, depending on the nature and seriousness of their violations,
be sanctioned for tax-related administrative violations;
2. If delaying the payment of tax and/or fines as compared with the prescribed payment
date or the deadline stated in tax handling decisions, they shall, apart from paying fully
the tax and/or fine amounts, have to pay an amount equal to 0.1% (one thousandth) of the
delayed payment amount for each day of delayed payment;
3. If falsely declaring or evading tax, they shall, apart from having to fully pay the tax
amount according to the provisions of this Law, be imposed a fine being one to five times
the frauded tax amount, depending on the nature and seriousness of their violations; if
evading tax in large amounts, relapsing into already administratively sanctioned taxrelated
violations or committing other serious violations, they shall be examined for penal
liability according to the provisions of law;
4. If failing to pay tax and/or fine according to tax notices or under tax-handling
decisions, they shall be handled as follows:
a/ Deductions from the business establishments’ deposits at banks, other credit institutions
or treasuries to pay tax and/or fines.
The concerned banks, other credit institutions or treasuries shall have to make deductions
from deposit accounts of the business establishments to pay tax and/or fines into the State
budget under tax-handling decisions of tax offices or competent agencies before
collecting debts;
b/ Seizure of goods and/or material evidences to ensure the full collection of tax and/or
fines;
c/ Inventory of assets according to the provisions of law to ensure the full collection of tax
and/or fine arrears.
Article 24.- Competence of tax offices in handling tax-related violations
1. The heads of the tax offices directly managing the tax collection are competent to
handle violations committed by tax payers prescribed in Clauses 1 and 2, and impose
fines being one to five times the frauded tax amount according to the provisions in Clause
3, Article 23 of this Law.
2. The directors of the tax departments and the directors of the tax sub-departments
directly managing the tax collection may apply the handling measures prescribed in
Clause 4, Article 23 of this Law and forward dossiers of violations to the competent
agencies for handling violations prescribed in Clause 3, Article 23 of this Law according
to the provisions of law.
Article 25.- Handling violations committed by tax officials and other individuals
1. Tax officials and other individuals who abuse their positions and powers to illegally
seize or appropriate tax and/or fine amounts, shall have to refund to the State the whole
tax and/or fine amount already illegally used, and shall, depending on the nature and
seriousness of their violations, be disciplined or examined for penal liability according to
the provisions of law.
2. Tax officials and other individuals who show signs of irresponsibility or mishandle
violations, thus causing damage to tax payers, shall have to pay compensation therefor
according to the provisions of law and shall, depending on the nature and seriousness of
their violations, be disciplined or examined for penal liability according to the provisions
of law.
3. Tax officials and other individuals who abuse their positions and powers to act in
complicity with or cover violators, or commit other acts in violation of the provisions of
this Law shall, depending on the nature and seriousness of their violations, be disciplined
or examined for penal liability according to the provisions of law.
4. Persons who obstruct or incite others to obstruct the implementation of this Law shall,
depending on the nature and seriousness of their violations, be administratively
sanctioned or examined for penal liability according to the provisions of law.
Chapter VI
COMPLAINTS AND STATUTE OF LIMITATIONS
Article 26.- Rights and responsibilities of tax payers in making tax-related complaints
1. Tax payers have the right to complain about the improper implementation of the
provisions of this Law by tax officials and/or tax offices.
Complaints must be sent to the tax offices directly managing the tax collection within 30
days after the receipt of notices or handling decisions of the tax officials and/or tax
offices.
Pending the settlement thereof, tax payers shall still have to abide by notices or handling
decisions of the tax offices.
2. In cases where complainants disagree with decisions of agencies settling their
complaints or upon the expiry of the time limit prescribed by the legislation on complaints
and denunciations, their complaints remain unsettled, they have the right to lodge their
complaints to the immediate superior tax offices or initiate lawsuits according to the
provisions of law.
Article 27.- Responsibilities and powers of tax offices in settling tax-related complaints
1. Tax offices, upon receiving tax-related complaints, shall have to consider and settle
them within the time limit prescribed by the legislation on complaints and denunciations.
2. Tax offices which receive complaints have the right to request complainants to supply
dossiers and documents related to the complaints; if the complainants refuse to provide
the requested dossiers and documents, the tax offices shall be entitled to refuse to consider
and settle their complaints.
3. Tax offices shall have to reimburse tax and/or fine amounts improperly collected to
business establishments within 15 days after receiving the handling decisions of superior
tax offices or competent agencies according to the provisions of law.
4. Upon detecting or concluding on false tax declaration, tax evasion or tax-related errors,
tax offices shall have to collect the tax and/or fine arrears or reimburse tax amounts
overpaid within the latest five years as from the date of inspection and detection of the
false tax declaration, tax evasion or tax-related errors. In cases where business
establishments fail to make tax registration, declaration or payment, the time limit for
collecting tax and/or fine arrears shall be counted from the date the business
establishments commence their operation.
5. Heads of superior tax offices shall have to settle tax-related complaints of tax payers
against their subordinate tax offices. The Finance Minister’s decisions on settling taxrelated
complaints shall be final ones.
Chapter VII
ORGANIZATION OF IMPLEMENTATION
Article 28.- The Government shall direct the organization of the implementation of this
Law throughout the country.
Article 29.- The Finance Minister shall have to organize and inspect the implementation
of this Law throughout the country.
Article 30.- The People’s Committees of all levels shall, within the ambit of their tasks
and powers, direct the implementation and inspect the observance of this Law in their
respective localities.
Chapter VIII
IMPLEMENTATION PROVISIONS
Article 31.-
1. This Law takes effect as from January 1, 2004.
2. The May 10, 1997 Law on Enterprise Income Tax shall cease to be effective as from
the effective date of this Law.
To annul regulations on the reimbursement of enterprise income tax already paid for
income amounts reinvested or tax on incomes transferred abroad prescribed in Articles 42
and 43 of the Law on Foreign Investment in Vietnam.
To annul regulations on land use right transfer tax applicable to business establishments
prescribed in the Law on Land Use Right Transfer Tax. Incomes earned from the land use
right transfer by business establishments shall be subject to enterprise income tax
according to the provisions of this Law. Incomes earned from the land use right transfer
by non-business individuals shall be subject to tax on personal incomes according to the
provisions of law.
All previous prescriptions on enterprise income tax contrary to this Law are hereby
annulled.
3. Foreign-invested enterprises, foreign parties to business cooperation contracts already
granted investment licenses, domestic enterprises already granted certificates of
investment preferences shall continue enjoying the tax preferences provided for in their
investment licenses or certificates of investment preferences. In cases where their
investment licenses or certificates of investment preferences provide for preferential
levels lower than the tax preference levels provided for in this Law, they shall enjoy the
preferential levels provided for in this Law for the remaining preferential duration.
Article 32.- The Government shall detail and guide the implementation of this Law.
This Law was passed on June 17, 2003 by the XIth National Assembly of the Socialist
Republic of Vietnam, at its 3rd session.
Chairman of the National l Assembly
NGUYEN VAN AN