Official Letter 373/TCT-CS 2025 on Corporate Income Tax Policy.

MINISTRY OF FINANCE GENERAL DEPARTMENT OF TAXATION -------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------
No: 373/TCT-CS Regarding Corporate Income Tax Policy	Hanoi, January 22, 2025

 

To:	Da Nang Tax Department; University of Da Nang. Address: 41 Le Duan Street, Hai Chau District, Da Nang City

The General Department of Taxation has received Official Letter No. 5141/ĐHĐN-KHTC dated December 12, 2024, from the University of Da Nang regarding the declaration and payment of corporate income tax (CIT) on tuition fee income. The General Department of Taxation provides the following comments on this issue:

On November 28, 2017, the Government Office issued Notice No. 551/TB-VPCP, which communicated the Government's leadership conclusions regarding tax policies for public non-business units in the fields of healthcare, education, and training: "(1) Tax for public non-business units shall be implemented in accordance with the legal regulations on taxes."

Based on the tax laws related to corporate income tax, in principle, non-business units engaged in business activities generating taxable income, with identifiable revenue, costs, and income, must calculate the CIT for the tax period as taxable income multiplied by the applicable tax rate. In cases where these units can account for revenue but cannot identify costs or income from business activities, they must declare and pay CIT based on a percentage of the revenue from selling goods and services, as prescribed in Article 11 of Decree No. 218/2013/ND-CP dated December 26, 2013, by the Government. For educational activities, this rate is 2%.

According to the provisions of the legal documents on tax and the leadership of the Government as communicated in Document No. 551/TB-VPCP dated November 28, 2017, regarding tax policies for public non-business units in the education and training sectors, the Ministry of Finance has issued several guidance letters: Official Letter No. 11391/BTC-TCT dated September 18, 2020, to the State Audit and the Ministry of Education and Training; Official Letter No. 7616/BTC-CST dated July 12, 2021, to the People's Committee of Thua Thien Hue Province; Official Letter No. 13387/BTC-CST dated December 4, 2023, to the Vietnam Academy of Agriculture. The General Department of Taxation has also issued Official Letter No. 3002/TCT-CS dated July 28, 2020, to the Tax Department of Binh Phuoc Province and to the Tax Departments of other provinces and central cities about CIT policy for public non-business units in healthcare and education (a copy of this letter is attached).

Regarding this matter, the Da Nang Tax Department has issued Official Letter No. 8454/CTDNA-TTKT1 dated October 31, 2024, to the University of Da Nang.

Regarding the proposal: “We request that the Ministry of Finance and the Ministry of Education and Training report to the Government to present to the National Assembly the amendment of the Corporate Income Tax Law to include provisions for exempting CIT on revenue from education and training services provided by public non-business units, in order to support units in ensuring financial resources for operations, investment, and quality improvement of training,” the General Department of Taxation has forwarded this issue to the Tax Policy Department, which has been tasked by the Ministry of Finance to lead the study and development of the proposal to amend the Corporate Income Tax Law.

The General Department of Taxation provides this response for the University of Da Nang's information.

 

Recipients: As above; Deputy General Director Đặng Ngọc Minh (for reporting); Department of PC – TCT; TCT Website; Archive: VT, CS (3b).

On behalf of the GENERAL DIRECTOR OF TAXATION For the DIRECTOR OF THE POLICY DEPARTMENT DEPUTY DIRECTOR Manh Thi Tuyet Mai

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