Vietnam: Settlement of difference between revenue and expenditure

09:20, 14/02/2016

This is a notable content specified in Circular No. 14/2016/TT-BTC issued on January 20, 2016 by the Ministry of Finance of Vietnam, which guides finance mechanisms applied to wholly state-owned single-member limited liability companies participating in political objectives.

According to Circular No. 14/2016/TT-BTC of the Ministry of Finance of Vietnam, the difference between revenue and expenditure of business operation and provision of products and services during participation in accomplishment of political objectives shall be aggregated with the enterprise's business outcomes when determining corporate income tax as prescribed by law.

In which:

- If revenue is higher than expenditure, income from accomplishment of political objectives shall be eligible for preferential corporate income tax according to the Law on Corporate income tax and relevant legislative documents.

- The revenue is smaller than expenditure, the difference shall be offset against the profit from the enterprise's overall business operation.

View details at Circular No. 14/2016/TT-BTC of the Ministry of Finance of Vietnam, effective from March 07, 2016.

-Thao Uyen-

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