According to the provisions of the Law on Corporate Income Tax, income from business activities is considered as taxable income. However, for income that does not originate from business activities but from various other activities of the enterprise, whether that income should be included in taxable income or not depends on the specific provisions of the law.

1. Determining taxable income

To figure out the amount of income tax that the enterprise must pay in each tax period, it is necessary to first determine the taxable income. The taxable income generated in a given tax period is determined as follows:

Taxable income = Revenue – Deductible expenses + Other income

Income from production and business activities of goods and services will be equal to the revenue of production and business activities of goods and services minus deductible costs of production and business activities of those goods and services.

2. Taxable income

If the enterprise has multiple production and business activities subject to different tax rates, the income of each activity must be separately calculated by multiplying it with the corresponding tax rate.  Below are other income items that must be included in income subject to corporate income tax (“CIT”).

No Taxable income Details
1 Income from capital transfer and securities transfer. Example: Enterprise A contributes 300 billion VND, including 100 billion VND for factory value and 200 billion VND in cash to establish a business. Then, enterprise A transfers the above capital contribution to enterprise B at the price of 500 billion VND, so the capital contribution of enterprise A at the time of transfer on the accounting books is 300 billion VND and the costs related to the capital transfer are 50 billion VND. The income to calculate income tax from capital transfer in this case is 150 billion VND (500 – 300 – 50).
2 Income from real estate transfer. CIT amount = Taxable income from real estate transfer multiplied by the 22% tax rate.
3 Income from investment project transfer; transfer of investment project participation rights; transfer of exploration, exploitation, and processing rights of minerals.  

CIT amount = Taxable income multiplied by the 20% tax rate

4 Income from ownership rights, asset use rights. Includes revenue from: all forms of copyright for ownership rights, asset use rights; intellectual property rights; technology transfer.

Income = total revenue – cost price – expenses

5 Income from leasing any form of assets. Income = Asset rental revenue – Expenses (depreciation, maintenance, repair, asset maintenance, renting assets for sublease or other related costs…)
6 Income from asset transfer, asset liquidation (except real estate), and other valuable papers. Income = Transfer and liquidation revenue – Remaining value of assets – Other expenses
7 Income from interest on deposits and interest on loans Including late payment interest, installment interest, credit guarantee fees and other fees in the loan contract.
8 Income from foreign currency sales activities Income = total proceeds from selling foreign currency – total purchase price of the amount of foreign currency sold.
9 Income from foreign exchange trading activities – The exchange rate difference arising during the period is not directly related to the revenue and expenses of the company’s core business operations

+  If a loss due to exchange rate differences occurs, it is accounted for as part of the cost of the business operations.

+  If a gain due to exchange rate differences occurs, it is accounted for as other income.

– The revaluation of foreign currency-denominated liabilities at the end of the financial year is not directly related to the revenue and expenses of the company’s main business operations

10 Previously written-off bad debts can now be collected
11 Payable debt whose creditor is unidentified
12 Income generated from previous years’ production and business activities was previously missed and has now been uncovered
13 Income from fines, compensation due to the partner’s breach of contract or bonuses for good performance of commitments – Revenue from fines and compensation due to the partner violating the contract.

Bonuses due to good performance of contractual commitments are lower than fines and compensation due to contract violations. (Not subject to fines for administrative violations as prescribed by law).

– In case the enterprise does not generate other income during the year, it will be deducted from income from production and business activities.

– Does not include fines and compensation recorded as a reduction in the value of the project during the investment phase.

14 Difference due to revaluation of assets
15 Gifts and gifts in money and in kind; income received in money or in kind from sponsorship sources; Income received from marketing support, cost support, payment discounts, promotional bonuses and other supports. The value of an object is determined by the value of equivalent goods or services at the time of receipt.
16 Income received from organizations and individuals under agreements and contracts in accordance with civil law when the enterprise transfers its old land position to relocate its production and business facilities after deducting related expenses. Regarding the money, assets, and material benefits that enterprises receive according to State policies and are approved by competent State agencies to relocate production facilities, they shall be managed and used in accordance with relevant laws and regulations.


17 Prepaid expenses – Not used or not fully used according to the provisioning period but the enterprise does not account for cost reduction adjustments;

– Construction warranty reserve refund.

18 Income related to the consumption of goods and provision of services is not included in revenue Fast ship clearance bonus, service bonus in the catering and hotel industry after deducting expenses to create that income.
19 Other income from the sale of scrap, waste generated during the production of products. If not eligible for CIT incentives, this income is counted as other income.
20 Refundable export tax, import tax for goods that have been exported or imported occurring within the year of CIT settlement shall be calculated as cost deductions in that year of settlement. If such amount arising in previous years of CIT finalization. Then it is included in other income of the settlement year in which the income arises.

– If this income is directly related to the sector of production and business currently enjoying CIT incentives, then it is eligible for incentives.

– If this income is not directly related to the sector of production and business enjoying CIT incentives, then it is included in other income.

21 Income from capital contribution activities, joint ventures, and economic cooperation within the country, distributed from pre-tax income.
22 In the case where the enterprise accepts additional capital-contributing members in accordance with the law, and the amount contributed by the new member exceeds the value of their capital contribution in the total charter capital of the enterprise. – This higher difference is determined to be owned by the enterprise. Supplements to business capital are not included in taxable income to calculate CIT of the enterprise receiving contributed capital.

–  This higher difference is divided among the old contributing members. This difference is the income of the old capital contributing members.

23 Other income as prescribed by law.

As analyzed above, the process of calculating CIT is not simply based on sales revenue and net profit. It also involves various types of income, including investment income, interest income, and other taxes and expenses.

Understanding all these income sources and how they are treated in the tax calculation process is an important part of keeping tax compliance and optimizing a company’s tax liabilities. This not only helps enterprises save money but also ensures that they follow current tax regulations. We hope that the information in this article has helped readers gain a better understanding of non-business income sources.

The article is based on laws applicable at the time noted as above and may no longer be appropriate at the time the reader approaches this article as the applicable laws and the specific cases that the reader may wish to apply may have changed. Therefore, the article is for referencing only.


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