Taxable Income from Interest on Deposits in 2012

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By Vo Thi Bich Hong

Feb. 17 – From March 1, 2012, income from interest on deposits and loans – including interest on deposits at credit institutions, interest on loans in any form as prescribed by Law, credit guarantee fee, and other charges – will be subject to corporate income tax.

This is specified in Decree No.122/2011/CĐ-CP dated Dec 27, 2011 which amends and supplements some articles of Decree No.124/2008/NĐ-CP detailing and guiding the implementation of some articles of the Enterprise Income Tax Law.

According to this Decree, the income from the sale of foreign currency and the exchange rate from the revaluation of payable accounts having origin of the end fiscal year are also subject to corporate income tax (excluding arisen exchange rate in capital construction investment process to form fixed assets, which is not used for business purposes).

In addition to income, the Decree also stipulated the types of income that are taxable as follows: Income from transfer or liquidation of assets (excluding real estate), other valuable papers, income from intellectual property, income from technology transfer under the provisions of Law, or rental of property in any form.

The amended and supplemented content takes effect from March 1, 2012 and applies for tax periods from 2012 onwards.

Dezan Shira & Associates is boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in Vietnam. To contact the firm, please email vietnam@dezshira.com, visit www.dezshira.com, or download the firm’s brochure here.

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