Công văn 1761/BTC-CST 2022 chính sách thuế đối với các cơ sở doanh nghiệp giáo dục
MINISTRY OF
FINANCE OF VIETNAM
——-
SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
—————-
No. 1761/BTC-CST
Tax policies applicable to education
institutions, education enterprises, and education services
Hanoi, February
23, 2022
To: Prime
Minister
Pursuant to Point 3c Section I of Resolution No.
138/NQ-CP dated November 10, 2021 of the Government on Regular Government
Meeting in October 2021, Ministry of Finance is assigned to: Take charge and
cooperate with Ministry of Education and Training and relevant authorities in
reviewing, researching, and proposing amendments to policies on exemption of
VAT, corporate income tax, land rent for education institutions, education
enterprises, and education services for the 2 years of 2020 – 2021 and for the
period of 2022 – 2027 in order to reduce operational costs, encourage, mobilize
public – private resources for developing and recovering at the fastest pace
and maintaining operation in subsequent years, Ministry of Finance issued
Official Dispatch No. 14098/BTC-CST dated December 10, 2021 reporting to the
Prime Minister regarding tax policies applicable to education institutions,
education enterprises, and education services.
Implementing order of Deputy Prime Minister Le Minh
Khai under Official Dispatch No. 9569/VPCP-KTTH dated December 29, 2021 of the
Office of the Government, Ministry of Finance sent Official Dispatch No.
12/BTC-CST dated January 4, 2022 to Ministry of Education and Training,
Ministry of Planning and Investment, Ministry of Justice, Ministry of Labor –
War Invalids and Social Affairs, Vietnam Chamber of Commerce and Industry in
order to collect feedback regarding tax policies applicable to education
institutions, education enterprises, and education services. So far, Ministry
of Finance has received written feedback of Ministry of Justice (under Official
Dispatch No. 110/BTP-PLDSKT dated January 12, 2022), Ministry of Education and
Training (under Official Dispatch No. 118/BGDDT-KHTC dated January 13, 2022),
and Ministry of Planning and Investment (under Official Dispatch No.
489/BKHDT-TCTT dated January 20, 2022).
After reviewing the current legal system regarding
tax and policies assisting enterprises and the general public affected by
COVID-19 issued the past few years and the collective feedback of the
aforementioned ministries and authorities, Ministry of Finance hereby reports
to the Prime Minister:
1. Various preferential tax
policies under the current tax policy system incentivizing education
institutions, education enterprises, and education services
The current tax laws apply consistently to all
types of ownership, organizations, and individuals regardless of nationality
and forms of ownership. Tax incentives are elaborated under tax laws, in which,
education and training sectors are always prioritized for the highest
preferential tax policies within the legal framework regarding tax in order to
encourage development of these sectors. To be specific:
– Pursuant to the Law on
Corporate Income Tax: Adopt 10% preferential tax rate on revenues of
enterprises generated from the mobilization of private sector involvement in
education and training sectors. At the same time, if enterprises implement new
investment projects in education and training sectors in which private sector
investment is encouraged in areas with disadvantaged socio-economic conditions
or extremely disadvantaged socio-economic conditions, they shall benefit from 4
years of tax exemption and subsequent 9 years of 50% tax payable reduction; if
enterprises implement new investment projects in education and training sectors
in which private sector investment is encouraged in other areas, they shall
benefit from 4 years of tax exemption and subsequent 5 years of 50% tax payable
reduction
In addition, the Law on Corporate Income Tax also
prescribes corporate income tax exemption for: Leftover undistributed income of
institutions implementing private sector involvement in education and training
sectors invested in development of the institutions as per field-specific laws;
Donations received for education activities. In case of enterprises and
organizations spending on education purposes, such expenses shall also be
deducted upon determining income subject to corporate income tax.
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– Pursuant to the Law on
Import, Export Duties and the Law on Levy of Non-agricultural Land,
preferential policies of these taxes are applied depending on incentivized
lines of business and incentivized areas in accordance with investment laws, in
which, education is incentivized for investment and subject to preferential tax
policies such as import duty exemption in order to create fixed assets
belonging to beneficiaries of preferential tax treatment; exempt from import
duties for imports for domestic consumption that have not been domestically
produced and are serving education; exempt land rent for non-agricultural land
of institutions implementing private sector involvement for education
activities; etc.
– Regarding land rent,
pursuant to Decree No. 59/2008/ND-CP dated May 30, 2008 and Decree No.
59/2014/ND-CP dated June 16, 2014 of the Government, private sector involvement
projects in education and training sectors shall benefit from the maximum
preferential treatment in form of exemption from land rent for the entire
duration of the projects and the minimum preferential treatment in form of
preferential tax rate in accordance with regulations on land and investment.
Under the impact of COVID-19 on operation of
enterprises and the general public, on the basis of reviewing the current legal
system and practical situations, multiple support solutions have been
promulgated and implemented in order to assist enterprises and the general
public affected by COVID-19.
Regarding support solutions in terms of tax, fees,
charges, and land rent, in 2020, Ministry of Finance requested competent
authorities and promulgated document on: extension of tax submission dead line
(VAT, corporate income tax, personal income tax) and land rent for mostly
enterprises and households affected by COVID-19 (Decree No. 41/2020/ND-CP dated
April 8, 2020 of the Government); 15% reduction of land rent payable in 2020
for annual land rent payers affected by COVID-19 (Decision No. 22/2020/QD-TTg
dated August 10, 2020 of the Prime Minister); 30% reduction of corporate income
tax payable in 2020 for enterprises, cooperatives, service providers, and other
organizations whose total revenues in 2020 do not exceed 200 billion VND
(Resolution No. 116/2020/QH14 dated June 19, 2020 of the National Assembly);
exemption and reduction of various fees and charges to reduce costs incurred by
enterprises and the general public, etc.
In 2021, the followings have also been implemented:
further extension of tax submission deadline (VAT, corporate income tax,
personal income tax) and land rent (Decree No. 52/2021/ND-CP dated April 19,
2021 of the Government); 30% reduction of land rent payable in 2021 for
entities affected by COVID-19 (Decision No. 27/2021/QD-TTg dated September 25,
2021 of the Prime Minister); further reduction of corporate income tax payable
in 2021 and exemption of taxes (VAT, corporate income tax, and other taxes) in
the 3rd Quarter and the 4th Quarter of 2021 for household
businesses and individual businesses, 30% reduction of VAT for goods and
services within sectors severely affected by COVID-19, exemption of late
payment fine to be incurred in 2020 and 2021 by enterprises and organizations
facing deficit in 2020 (Resolution No. 406/NQ-UBTVQH15 dated October 19, 2021
of the Standing Committee of the National Assembly); inclusion of sponsors,
donations of enterprises and organizations financing COVID-19 control
activities as deductibles (Decree No. 44/2021/ND-CP dated March 31, 2021 of the
Government); further reduction of fees and charges payable; etc.
Recently, National Assembly promulgated Resolution
No. 43/2022/NQ-QH15 dated January 11, 2022 on fiscal and monetary policies
assisting Program for socio-economic recovery and development, which prescribes
several tax reduction and exemption policies to be applied in 2022 such as:
Reduce 2% of VAT for goods and services under 10% VAT (to 8%), except the
following goods and services: telecommunication, information technology,
financial operation, banking, securities, insurance, real estate trading,
metal, pre-cast metal products, mining products (excluding coal mining), coke,
refined petroleum, chemical products, goods and service subject to excise tax;
Record sponsors, donations of enterprises and organizations financing COVID-19
control activities as deductibles.
At the same time, implementing the aforementioned
Resolution No. 43/2022/QH15, Ministry of Finance is also research, requesting
Government and Prime Minister to consider the continuation of other support
solutions regarding taxes, fees, charges, and land rents in 2022 such as:
extension of tax and land rent submission deadline; reduction of land rent
payable in 2022; etc. Ministry of Finance also reduces various fees and charges
within their competence in 2022.
Thus, there have been multiple solutions regarding
taxes, fees, charges, and land rent imposed to assist enterprises and the
general public affected by COVID-19 (including education and training
institutions).
In addition to the aforementioned solutions
regarding taxes, fees, charges, and land rent, various other solutions have
been implemented such as those relating to credit, direct financing from state
budget, reducing electricity, water, telecommunication costs, etc.
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After consolidating remarks of Ministry of
Education and Training, Ministry of Planning and Investment, and Ministry of
Justice, Ministry of Education and Training remarks on tax policies applicable
to education institutions and enterprises, to be specific:
(i) Continue to adopt preferential tax and land
rent treatment applicable to education institutions and education enterprises.
Research and expand support solutions regarding taxes, fees, charges, and land
rent in order to exempt VAT, corporate income tax, and land rent for all
education institutions and education enterprises, especially non-public
preschools and education services in 2022-2023 in order to reduce operational
costs, encourage and mobilize public – private resources to develop and recover
education sector as fast as possible.
Ministry of Finance hereby responds to the remark
made by Ministry of Education and Training:
– In case of education
institutions and education enterprises, the primary difficulty originates from
implementation of COVID-19 control measures which causes them to temporarily shut
down as seen in recent years (especially preschool education). However, no
revenues or incomes subject to VAT and corporate income tax will be incurred.
When these education institutions and education enterprises reopen, the
preferential tax policies reported above are already consistent and specific.
– Regarding request for land
rent exemption for education institutions and education enterprises in 2022 –
2023, Ministry of Finance shall report to the Prime Minister during
implementation of Resolution No. 43/2022/QH15.
(ii) Propose amendments to the Law on Value-added
Tax so that textbooks are subject to 0% VAT; amend regulations to allow public
education institutions that have not guaranteed recurrent expenditure by
themselves to not submit corporate income tax for full-time education tuition
(according to Decree No. 81/2021/ND-CP, tuition is insufficient to cover the
costs).
– Regarding request for
amendments to the Law on Value-added Tax so that textbooks are subject to 0%
VAT, Ministry of Finance reports as follows: Pursuant to the current Law on
Value-added Tax, textbooks are currently exempt from VAT. Regarding
international principals and practice, 0% VAT only applies to export goods and
services. Thus, in order to ensure consistency, Ministry of Finance hereby
requests adherence to applicable laws.
– Regarding the request for
amendments of regulations in order to allow public education institutions that
have not guaranteed recurrent expenditure by themselves to not submit corporate
income tax for full-time education tuition: Ministry of Finance consolidates
this remark made by Ministry of Education and Training and requests competent
authorities to consider and decide during the amendment process of the Law on
Corporate Income Tax in order to establish the legal basis for stable and
long-term implementation (currently, Ministry of Finance is cooperating with
relevant ministries, departments, provinces, and authorities in develop Report
on review, assessment, and proposition regarding amendments to the Law on
Corporate Income Tax and will report to the Government before March 31, 2022,
to the Standing Committee of the National Assembly before June 30, 2022 for
consideration and inclusion in the Program for development of Law and Ordnance
of 2023 – 2025).
Based on the aforementioned reports, regarding tax
policies applicable to education institutions, education enterprises, and
education services in the near future, Ministry of Finance hereby proposes the
following:
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– Consolidate and request the
Prime Minister to consider and include exemption of land rent for education
institutions and education enterprises when developing legislative documents on
reduction of land rent for the implementation of Resolution No. 43/2022/QH15.
– Research and report to
competent authorities in order to resolve difficulties regarding corporate
income tax applicable to tuition revenues as per regulations of the Government
(tuition that is insufficient to cover other costs) of public education
institutions when amending the Law on Corporate Income Tax.
For your consideration and decision./.
MINISTER
Ho Duc Phoc
