blue-check Regarding EIT on undivided incomes used for re-investment

Official letter No. 1321/TCT-CS dated April 14th, 2023 of the General Department of Taxation regarding tax policy
Posted: 16/5/2023 10:27:54 AM | Latest updated: 23/5/2023 11:47:35 PM (GMT+7) | LuatVietnam: 5702 | Vietlaw: 613

The General Department of Taxation has provided guidelines on enterprise income tax (EIT) policy for undivided incomes of establishments carrying out socialized activities at Official letter No. 2212/TCT-CS dated June 21st, 2021 and Official letter No. 3290/TCT-CS dated September 1st, 2021.

Accordingly, in case an enterprise is a General Hospital Joint Stock Company that meets the regulations on types, sizes and standards of enterprises engaged in socialized fields in the health sector, its undivided incomes which are retained for investment in development of socialized fields shall be exempt from EIT.

However, if the enterprise uses the undivided incomes for investment in development of the Company then it issues stocks to its shareholders in order to record the increase in equity, it shall not be exempt from EIT on these incomes.

Ms Phuong Thao (
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Published Vietlaw's Newsletter No. 613

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