Home
Contact us
Map
Main services
Circular No. 09/2011/TT-BTC dated January 21, 2011 of the Ministry of Finance guiding value-added tax and enterprise income tax on insurance business
27/04/2011
Share |

THE MINISTRY OF FINANCE


          ------

     No. 09/2011/TT-BTC

SOCIALIST REPUBLIC OF VIET NAM
    Independence-Freedom-Happiness
                ---------------

     Hanoi, January 21, 2011

 

Circular

guiding value-added tax and enterprise income tax on insurance business

 Pursuant to June 3, 2008 Value-Added Tax Law No. 13/2008/QH12 and guiding documents;

 Pursuant to June 3, 2008 Enterprise Income Tax Law No. 14/2008/QH12 and guiding documents;

 Pursuant to November 19, 2006 Tax Administration Law No. 78/2006/QH11 and guiding documents;

 Pursuant to December 9, 2000 Insurance Business Law No. 24/2000/QH10 and guiding documents;

Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

 The Ministry of Finance provides guidance on value-added tax (VAT) and enterprise income tax (EIT) on insurance business as follows:

 

 Chapter I

 

GENERAL PROVISIONS

 

Article 1. Scope of regulation

 

This Circular provides for guidance on VAT and EIT on insurance business.

 

Article 2. Subjects of application

 

Insurance enterprises, insurance brokerage enterprises and reinsurance enterprises operating under the Insurance Business Law; organizations operating as insurance agents and other insurance organizations that meet the conditions prescribed in the Insurance Business Law (below collectively referred to as insurance enterprises).

 

Chapter II

 

VALUE-ADDED TAX

 

Article 3. VAT-liable objects

 

Except services not liable to VAT specified in Article 4 of this Circular, insurance services and other goods and services provided by entities specified in Article 2 of this Circular shall be liable to VAT, including:

 

- Non-life insurance and non-life insurance consultancy and brokerage services;

 

- Assessment, indemnity examination and third party’s refund-claiming agency services;

 

- Other goods and services liable to VAT under the VAT law which arise during the operation process of companies engaged in insurance activities.

 

Article 4. Objects not liable to VAT

 

1. Life insurance, health insurance and human accident insurance within life insurance coverages; student insurance; seafarer and crewmember accident insurance;  human accident insurance (covering also accident insurance, life-cum-hospitalization insurance); passenger accident insurance; tourist insurance; insurance for drivers, assistant drivers and people onboard vehicles; sterilization operation insurance; post-operation hospitalization insurance; personal life insurance; electricity user insurance; worker’s compensation insurance, health insurance and other insurance services related to humans and human healthcare;

 

2. Insurance for domestic animals, plants and other agricultural insurance services;

 

3. Reinsurance;

 

4. Insurance agent training;

 

5. Insurance for petroleum works and equipment and oil tankers bearing foreign nationalities which are hired by foreign petroleum contractors or sub-contractors for operation in Vietnam’s exclusive economic sea areas or contiguous sea areas subject to the common exploitation regime as agreed between Vietnam and foreign countries with adjacent or opposite seashores.

 

Article 5. VAT payers

 

VAT payers are insurance enterprises, insurance brokerage enterprises and other insurance organizations that deal in VAT-liable goods or services specified in Article 3 of this Circular.

 

Article 6. Tax calculation prices

 

1. For insurance services, the VAT calculation price is the VAT-exclusive original insurance premium, covering also surcharges and additional charges in addition to the service charges which an insurance enterprise is entitled to enjoy, excluding surcharges and compulsory appropriations it has to remit into the state budget.

 

- In case the insurance premium is inclusive of VAT, the VAT calculation price is determined as follows: VAT calculation = price VAT-inclusive insurance premium 1 + VAT rate (10%)

 

- For insurance policies, applications or certificates which contain an agreement on periodical collection of premiums, the VAT calculation price is the insurance premium amount paid periodically; for those with an agreement on lump-sum payment of insurance premiums, the VAT calculation price is the VAT-exclusive premium amount already paid in lump sum.

 

- For coinsurance policies, the VAT calculation price is the VAT-exclusive original insurance premium apportioned to each coinsurance enterprise by the coinsurance rate. In case coinsurance enterprises agree to authorize an enterprise to collect insurance premiums, the VAT calculation price applicable to the authorized enterprise is the VAT-exclusive original insurance premium of the whole value of the insurance policy.

 

2. For assessment, indemnity examination and third party’s refundclaiming agents and agents handling goods eligible for 100% indemnity for remuneration or commission, the VAT calculation price is the VATexclusive remuneration or commission amount (not yet deducted to pay any expenses) collected by the concerned insurance enterprise.

 

3. For insurance brokerage enterprises, the VAT calculation price is the VAT-exclusive insurance brokerage commission amount minus the reduced amount of insurance brokerage commission (if any).

 

4. For other VAT-liable goods and services, their tax calculation prices comply with the VAT Law and current guiding documents.

 

Article 7. Tax rates

 

1. The tax rate of 0% applies to insurance services, including insurance services, insurance brokerage services and assessment, indemnity examination, third party’s refund-claiming and 100% indemnity-eligible goods handling agency services, provided to enterprises located in nontariff zones or overseas organizations and individuals. Overseas organizations are foreign organizations without permanent establishments in Vietnam which are not VAT payers in Vietnam. Overseas individuals are foreigners who do not reside in Vietnam or Vietnamese who reside abroad or stay outside Vietnam during the time of service provision.

Provisions on permanent establishments and non-residents specified in this Clause comply with the law on enterprise income tax and the law on personal income tax.

 

2. The tax rate of 10% applies to insurance business activities not specified in Article 4; and Clause 1, Article 7, of this Circular.

 

3. For business activities other than the above-said insurance business activities, VAT rates prescribed for each specific type of goods or service in the VAT Law and guiding documents apply.

 

Article 8. Tax calculation methods

 

1. Insurance enterprises shall pay VAT by the tax credit method as currently prescribed, specifically:

 

Payable

Output

To-be-credited input

=

-

 

VAT amount

 VAT amount

 VAT amount

 

Of which:

 

a/ The output VAT amount is equal to (=) the tax calculation price of VAT-liable goods or service sold in the tax period multiplied by (x) the corresponding tax rate.

 

The time of VAT determination is the time when insurance enterprises’ liabilities toward insurance buyers arise under the Insurance Business Law, regardless whether insurance premiums have been paid or not or the time when insurance enterprises issue sale invoices.

 

b/ The service and goods sale revenues for which VAT has been calculated at the original insurance stage are not subject to VAT under this Circular, including:

 

- Revenues from reinsurance ceding indemnity and other indemnities (if any).

 

- Reinsurance ceding commission and other reinsurance ceding turnovers. - Revenues from refund paid by a third party.

 

c/ Insurance enterprises may credit input VAT on goods and services purchased for use in VAT-liable insurance business activities which are reflected in purchase VAT invoices under the VAT Law and guiding documents. Some cases are specified as follows:

 

- For goods and services purchased for payment of indemnities or other expenses related to an insurance policy, each enterprise shall declare and credit input VAT for VAT invoices bearing its name, address and tax identification number and conduct cost accounting under regulations. As for indemnities and other common expenses (inclusive of VAT) paid by the authorized enterprise, input VAT shall be declared and credited by such enterprise, if it is impossible to separate invoices for each coinsurance enterprise.

 

- For goods and services purchased and used for dealing in both VATliable goods and services and VAT-free goods and services, enterprises may only credit input VAT on goods and services used for dealing in VAT-liable ones. In case the to-be-credited input VAT amount cannot be separately accounted, it shall be calculated based on the proportion (%) of the VAT-liable goods and service sale turnover to the total turnover earned in the period, of which:

 

+ The VAT-liable turnover is the turnover from VAT-liable objects, covering also revenues for which VAT has been calculated at the original insurance stage, such as agent commission, brokerage commission, reinsurance ceding commission and other turnovers not subject to VAT declaration and payment.

 

+ The total turnover earned in the period is the total turnover earned by the enterprise in the period, excluding revenues accounted as expenditure reduction such as revenues from reinsurance ceding indemnities or refund of a third party.

 

- Input VAT amounts of fixed assets used for production or trading of both VAT-liable goods and services and VAT-free ones shall be wholly credited, except houses used as working offices and special-use equipment to serve operation of reinsurance enterprises and life insurance enterprises.

 

 - In case an insurance enterprise authorizes insurance buyers to repair their assets and undersign repair service invoices, it may still declare and credit input VAT for these invoices on the condition that:

 

+ It has issued to each insurance buyer a letter of authorization, clearly stating the name of the authorized person, his/her identity card number or business registration code, address and the serial number of the insurance policy, enclosed with invoices issued by repair establishments.

 

+ The credited input VAT amount corresponds to the liability of the insurance enterprise and must not be larger than the VAT amount written in the invoice.

 

+ The insurance buyer may not make VAT declaration and credit for invoices for which the insurance enterprise has made VAT declaration and credit.

 

2. Adjustment of input VAT credit:  An insurance enterprise must decrease or refund the input VAT amount already credited in case fixed assets, supplies or goods purchased for production or trading of VAT-liable goods and services for which input VAT has been credited are used for other purposes. The to-be-decreased or -refunded input VAT amount shall be calculated on the remaining value (exclusive of VAT) of fixed assets; for supplies and goods, the to-be-decreased or -refunded VAT amount is the total VAT amount already declared and credited upon their purchase.

 

Article 9. Goods and service sale and purchase invoices and vouchers

 

1. Insurance enterprises shall abide by relevant laws’ regulations on invoices and vouchers.

 

2. Specific cases are prescribed as follows:

 

a/ VAT-free services in Item b, Clause 1, Article 8 of this Circular:

 

- Insurance enterprises do not issue VAT invoices for every transaction.

 

- For reinsurance activities, it is required to comply with regulations on payment vouchers for reinsurance undertaking and ceding prescribed in the current accounting regime applicable to insurance enterprises. Directors of insurance enterprises and reinsurance enterprises shall take responsibility before law for the accuracy and truthfulness of these vouchers, which shall serve as a basis for insurance buyers to account their expenses.

 

b/ For cases of coinsurance:

 

- When collecting insurance premiums, each coinsurance enterprise shall issue VAT invoices to customers based on its received premium amount and declare and pay VAT according to regulations. In case a coinsurance enterprise is authorized to collect insurance premiums on behalf of others or there is only one enterprise undersigning the contract, regulations applicable to cases of authorized collection and payment guided in Item d, Clause 2, Article 9 of this Circular apply.

 

updating...
Older Documents
Online Support
Liên hệ bằng Yahoo! Messenger
If you need advice, please contact via Yahoo! Messenger to get online help.

Lawyer in Hanoi
Contact via Skype
You can use Skype to get online help
Skype Me™!
Search legal documents
Latest Documents
Advertising
Site Information

 
 
 

© Copyright: 2011 DRAGON LAW FIRM  - All rights reserved


Hotline: 1900. 599. 979

Mật ong nguyên chấtChuyên cung cấp sỉ và lẻ mật ong nguyên chất 100% tại TPHCM từ thiên nhiênDịch vụ điện hoa Hoa Tươi 360o với dịch vụ điện hoa chuyên nghiệp, giá hợp lý giúp bạn gởi đến người thân những bó hoa tươi đẹp nhấtShop hoa phong lan Hoa tươi 360o là shop hoa phong lan TPHCM chuyên cung cấp các loại hoa lan hồ điệp và địa lanHoa giỏ Hoa giỏ để bàn tạo cho không gian làm việc trở nên cực kỳ ấn tượng, được sử dụng trong các dịp như đám cưới, tặng sếp, sinh nhật....Hoa bó Hoa tươi 360o giúp bạn gởi đến bạn bè, người thân hoa bó chúc mừng sinh nhật, tốt nghiệp, hoa tặng sếp nam giá hợp lý, giao hoa miễn phí TP. HCMhoa chúc mừng Hoa tươi 360o chuyên điện hoa chúc mừng khai trương: kệ hoa khai trương, giỏ hoa khai trương... với giá hợp lý, giao hoa miễn phí trong TPHCMHoa chia buồn Hoa tươi 360o chuyên điện hoa chia buồn ở TPHCM với giá cả hợp lý, giao hoa miễn phí ở TPHCMHoa chúc mừng sự kiện Hoa chúc mừng sinh nhật, hoa chúc mừng sự kiện tặng bạn bè hoặc người thân những dịp trọng đại, giao hoa miễn phí nội thành TPHCMShop hoa cưới Hoa cưới đẹp giúp đám cưới của bạn thêm ý nghĩa. Gọi 1900 545 587 để được shop hoa cưới - Hoa tươi 360o tư vấn, giao hoa cưới miễn phí ở Bình Thạnh và tại TPHCMhoa tươi Shop Hoa tươi 360o với dịch vụ hoa tươi giúp bạn gởi đến người thân những bó hoa tươi đẹp - giá hợp lý, giao hoa miễn phí tại TPHCMĐặt quần áo đá banh Đặt quần áo bóng đá - Đặt quần áo đá banh ở TPHCM với chất lượng tốt, giá ưu đãi. Gọi 0903 009 041 để Đặt quần áo bóng đá - Đặt quần áo đá banhGiày Futsal PAN Thái LONI chuyên cung cấp các loại giày Futsal PAN Thái Lan giá rẻ trên toàn quốc. Gọi 0903 009 041 gặp MS. Nhi để đặt giày Futsal Pan Thái  giá rẻgiày đá banh cỏ tự nhiên LONI Sport chuyên cung cấp các loại giày đá banh cỏ tự nhiên giá rẻ với nhiêu mẫu mã đẹpGiày đá banh cỏ nhân tạo LONI SPORT kinh doanh sỉ và lẻ giày bóng đá, giày đá banh cỏ nhân tạo, giày futsal Pan Thái Lan với giá cạnh tranh kèm quà tặng hấp dẫngiày đá banh LONI SPORT kinh doanh sỉ và lẻ giày đá banh, giày bóng đá cỏ nhân tạo Fake1, giày futsal Pan Thái Lan với giá cạnh tranh kèm quà tặng hấp dẫnáo bóng đá - áo đá banh LONI Sport chuyên thiết kế và sản xuất quần áo đá banh, áo bóng đá ở TPHCM. Quý khách đặt áo đá banh vui lòng liên hệ: 0983 031 509 - 0903 009 041Shop quần áo đá banh - Shop bán đồ thể thao Shop bán đồ thể thao Loni Sport chuyên bán quần áo đá banh, phụ kiện thể thao như: giày đá banh, túi xách, vớ ...Gọi 0983 031 509 - 0903 009 041DỰ ÁN CĂN HỘ NEWTON RESIDENCE DỰ ÁN CĂN HỘ NEWTON RESIDENCE sẽ chính thức mở bán vào 30/2/2016. LH mua CĂN HỘ NEWTON RESIDENCE 0903414547-0933333188Thay mặt kính Ipad Thay mặt kính Ipad giá rẻ nhất TP. HCM, lấy liền có bảo hànhThay mặt kính Samsung Thay mặt kính Samsung giá rẻ nhất TP. HCM, lấy liền có bảo hànhthay mat kinh Iphone Thay mặt kính Iphone giá rẻ nhất TP. HCM, lấy liền có bảo hànhThay mặt kính Iphone 6S Thay mặt kính Iphone 6S giá rẻ nhất TP. HCM, đặc biệt chờ lấy liền. Nhận thay mắt kính Iphone 6S cho các cửa hàng Cọc khoan nhồi Nền Móng Đất Phương Nam chuyên thi công cọc khoan nhồi mini với phương pháp và thiết bị hiện đại, đội ngũ nhân viên chuyên nghiệp. Gọi ngay 0919 49 8080Phụ kiện nhà bếp Inox 304 Phụ kiện nhà bếp bằng Inox 304 do Hòa Bình Glass sản xuất và phân phối giúp cho các bà nội trợ nhanh chóng giải quyết vấn đề dầu mỡ vì dễ lau chùi, tiện lợi và nhanh chóngGương soi phòng tắm Gương soi phòng tắm do Hòa Bình Glass sản xuất từ nguyên liệu kính Guardian của Mỹ với nhiều mẫu mã phong phúPhụ kiện phòng tắm Hobig chuyên sản xuất và phân phối phụ kiện phòng tắm, liên hệ để có bảng giá sỉ phụ kiện phòng tắm phù hợp cho mọi nhàPhụ kiện nhà bếp Hòa Bình Glass chuyển sản xuất và phân phối phụ kiện nhà bếp. Liên hệ để có bảng giá phụ kiện nhà bếp cho đại lýthay mặt kính Iphone 6s Plus thay mặt kính Iphone 6s Plus giá rẻ nhất TP. HCM, đặc biệt chờ lấy liền và có bảo hành đầy đủ

Thám tử Văn phòng luật sư |   Luật sư bào chữaVietnam lawfirm |  Quảng cáo trực tuyến |  Thiết bị camera |  đại lý vé máy bay |  Thám tử hà nội | dịch vụ thám tử | Thám tử tại hà nội | thám tử sài gòn | thuê thám tử tại sài gòn | Thám tử tại sài gòn | Thám tử hải phòng | Thám tử | Thám tử tư |
quảng cáo facebook