Headlines 14/11/2022 10:30 SA

New regulations of Vietnam on tax liabilities when enterprises do not use the annual Science and Technology Development Fund

Lê Huy

On October 7, 2022, the Minister of Finance of Vietnam promulgated Circular No. 67/2022/TT-BTC guiding tax liabilities when enterprises contribute to and use the Science and Technology Development Fund.

Circular No. 67/2022/TT-BTC contains regulations on tax liabilities when enterprises do not use or use less than 70% of the annual fund contribution.

Particularly, within 5 years, from the contribution to the Fund according to regulations, if enterprises do not use or use less than 70% of the annual contribution:

Enterprises shall transfer corporate income tax calculated on the contributed revenue that is unused or used less than 70% of the annual fund contribution to the State Budget while transferring the interest generated from such corporate income tax.

The interest generated from the payable corporate income tax is determined according to Point b Clause 2 Article 4 of Circular No. 67/2022/TT-BTC.

In the case of transferring the Fund, the 5-year time limit for the transferred Fund begins from the tax period in which the receiving enterprise's income tax is calculated.

Circular No. 67/2022/TT-BTC comes into force as of December 23, 2022.

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