This is the guidance at the Decree No. 92/2013/ND-CP dated August 13, 2013 of the Government guiding the implementation of some articles taking effect on July 01, 2013 of the Law on amending and supplementing some articles of the Law on Enterprise Income Tax and the Law on amending and supplementing some articles of the Law on Value-Added Tax.

In accordance with this Decree, In case of sale, lease for purchase of social houses, tax rate of 5% is applied under contracts of sale, lease for purchase of social houses signed from July 01, 2013 and applied to the amounts paid from July 01, 2013 of contracts signed before July 01, 2013. Case of lease of social houses, tax rate of 5% is applied basing on time of collecting amounts under contract (including case of collecting advance amounts for many terms) from July 01, 2013. Case where enterprises have not yet received rents from July 01, 2013, tax rate is applied under time of issuing invoice.
At the same time, To reduce 50% of VAT tax rate from July 01, 2013 to the end June 30, 2014, for sale, lease or lease for purchase of commercial houses which are completed houses with floor area of under 70m2 and sale price less than VND 15 million /m2. Commercial houses as completed houses prescribed in this Clause are houses which have been completed and accepted for receipt according to design of investors and used for dwelling after being handed over; for apartments for lease, they must meet conditions including the area of under 70 m2 and having value equal to the apartments of the same type at sale price less than VND 15 million/m2.
Also according to this Decree, enterprises which are established as prescribed by Vietnamese law, including cooperatives, non-business units with total annual revenue not exceeding VND 20 billion are subject to apply the tax rate of 20% from July 01, 2013. Total annual revenue as the basis for determining enterprises which belong to subjects applied the tax rate of 20% prescribed in this Clause is total revenue from goods sale and service provision of enterprises in the adjacent previous year.
This Decree takes effect on the signing date.

If you would like further information on Apply VAT tax rate of 5% for purchasing social houses from july, 01, please either email to our Partners at: info@sblaw.vn or call to our Office:
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