Are incomes earned from internal transactions of a vtv5 trực tiếp bóng đá hôm nay exempt from corporate income tax in Vietnam?

Areincomes earned from internal transactions of a cooperativeexempt from corporate income tax in Vietnam?

The policy on taxes, fees, and charges for cooperatives is stipulated in Clause 3, Article 22 of theLaw on vtv5 trực tiếp bóng đá hôm nay 2023as follows:

Tax, Fee, and Charge Policy

1. vtv5 trực tiếp bóng đá hôm nay groups, cooperatives, and vtv5 trực tiếp bóng đá hôm nay alliances are entitled to the highest tax preferences, fee, and charge incentives in the same field, industry, occupation, and locality in accordance with the laws on taxes, fees, and charges.

2. No registration fee is collected for vtv5 trực tiếp bóng đá hôm nay groups, and no fee is charged for publishing registration content on the electronic information system of the business registration authority.

3. Exemption and reduction of corporate income tax according to the provisions of the Law on Corporate Income Tax for:

a) Income from internal transactions of cooperatives, vtv5 trực tiếp bóng đá hôm nay alliances;

b) Income of vtv5 trực tiếp bóng đá hôm nay groups, cooperatives, vtv5 trực tiếp bóng đá hôm nay alliances when participating in linking with other individuals, organizations to form value chains, industry clusters, associated with green economy, circular economy, knowledge economy for sustainable development goals;

c) Other cases as prescribed by the Law on Corporate Income Tax.

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Hence, income from internal transactions of cooperatives is one of the incomes exempt from corporate income tax.

Are incomes earned from internal transactions of a vtv5 trực tiếp bóng đá hôm nay exempt from corporate income tax in Vietnam?(Image from the Internet)

What are internal transactions of a vtv5 trực tiếp bóng đá hôm nay in Vietnam?

According to Clause 1, Article 4 of theLaw on vtv5 trực tiếp bóng đá hôm nay 2023, the provisions are as follows:

Terminology Interpretation

In this Law, the terms below are understood as follows:

1. Internal transactions are the provision of products, services, including job-creating services and internal lending activities of the vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliances to the official members according to a written agreement.

2. External transactions are the transactions of the vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance that are not internal transactions.

3. vtv5 trực tiếp bóng đá hôm nay registration certificate is a paper or electronic document recording information on the registration of cooperatives, vtv5 trực tiếp bóng đá hôm nay alliances issued by the business registration authority to cooperatives, vtv5 trực tiếp bóng đá hôm nay alliances.

4. vtv5 trực tiếp bóng đá hôm nay group registration certificate is a paper or electronic document recording information on the registration of vtv5 trực tiếp bóng đá hôm nay groups issued by the business registration authority.

5. Labor contribution is when a member directly participates in management, labor according to the agreement in the vtv5 trực tiếp bóng đá hôm nay group, vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance.

6. Capital contribution is when a member contributes assets to form charter capital when establishing a vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance or to supplement the charter capital of an established vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance, or to create common assets of the vtv5 trực tiếp bóng đá hôm nay group members.

Thus, internal transactions are the provision of products, services including job-creating services and internal lending activities of the vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance to the official members according to a written agreement.

How to determine theincome from internal transactions of a vtv5 trực tiếp bóng đá hôm nay in Vietnam?

Based on Article 20 ofDecree 113/2024/ND-CPstipulating internal transactions of cooperatives as follows:

Internal Transactions and Income from Internal Transactions of Cooperatives, vtv5 trực tiếp bóng đá hôm nay Alliances

1. Internal transactions of cooperatives, vtv5 trực tiếp bóng đá hôm nay alliances include activities:

a) The vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance organizes production or procures external products, input materials to supply to official members for production according to the general orientation of the vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance, or to meet the living needs of official members;

b) The vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance directly provides or hires another party to provide services to support production activities of official members according to the orientation of the vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance, or to serve the living needs of official members;

c) The vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance provides storage, classification, cleaning, preservation, packaging, preliminary processing, processing, and consumption services for products produced by official members;

d) The vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance acts as a sponsor for official members with suppliers of products and input services, procurement to consume the products produced by official members through promoting contracts between official members and suppliers, procurement entities. The vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance is paid by official members, suppliers, procurement entities for its sponsorship services;

đ) The vtv5 trực tiếp bóng đá hôm nay, vtv5 trực tiếp bóng đá hôm nay alliance organizes internal lending activities to support production, business, and living costs of official members.

2. Income from internal transaction activities of cooperatives, vtv5 trực tiếp bóng đá hôm nay alliances is the revenue of internal transaction activities minus (-) the directly related costs of those internal transaction activities.

Thus, according to the above provisions, income from internal transactions of cooperatives is determined as follows:

Income from internal transaction activities of cooperatives is the revenue from internal transaction activities minus (-) the directly related costs of those internal transaction activities.

Accordingly, we have: