On 27th December 2011, the Government issued Decree no. 122/2011/ND-CP amending and supplementing a number of articles of Decree no. 124/2008/ND-CP. Accordingly, the list of incomes subject to corporate income tax (CIT) has been restructured.

In particular, a number of types of income are added as CIT taxable incomes, including:

• Income from the transfer of projects;
• Income from the transfer of rights to explore, mine and process minerals;
• Income from selling by-products or scraps which are not directly related to the business subject to tax incentives;

On the other hand, it is stipulated that the reversal of provisions for inventory devaluation, financial investment loss, bad debts, warranty for products and goods of the enterprises shall not be included in the list of taxable incomes.

In addition, Decree 122 also exempts tax for enterprises employing disabled persons, people after detoxification and people infected with HIV provided that such enterprises:

• Have an average number of employees in the year from 20 employees or more;
• Have 30% of average number of employees in the year or more being disabled persons, people after detoxification and people infected with HIV /AIDS;
• Not being enterprises operating in the financial sector and real estate business.

By courtesy of ©LuatViet - Advocates & Solicitors 2012