Official letter No. 2212/TCT-CS dated June 21st, 2021 of the General Department of Taxation regarding tax policy applicable to undistributed incomes of an establishment engaging in socialization

According to point a clause 10 Article 8 of Circular No. 78/2014/TT-BTC , incomes retained (undistributed incomes) for investment in development of an establishment engaging in socialization, including medical establishment, shall be exempt from enterprise income tax (EIT).

However, because now specialized laws on health do not have regulations in details on undistributed incomes of an establishment engaging in socialization, the General Department of Taxation does not have ground to consider granting EIT exemption.

In this case the General Department of Taxation assumes that the establishment should contact with specialized agency (the Ministry of Health) to ask for its opinions about determination of undistributed incomes before requesting tax authority to consider granting EIT exemption.