Is the computer foreign language training center subject to VAT?

Is a business that is a computer foreign language training center eligible for corporate income tax incentives? Are computer foreign language training centers subject to VAT? What are the necessary procedures to implement tax exemption and reduction?

1. Is an enterprise that is a computer foreign language training center eligible for corporate income tax incentives?

(1) Pursuant to Clause 3, Article 11 of Circular 96/2015/TT-BTC stipulates as follows:

3. Amend and supplement point a Clause 3 Article 19 Circular No. 78/2014/TT-BTC as follows:

“3. Preferential tax rate of 10% throughout the operating period applies to:

a) The income of the enterprise from socialization activities in the fields of education – training, vocational training, health, culture, sports and environment, judicial appraisal (hereinafter referred to as the field of socialization).

The list of types, scale criteria, and standards of enterprises implementing socialization are implemented according to the list prescribed by the Prime Minister.”

Accordingly, preferential tax rates for businesses, specifically in the case of foreign language centers in the field of education and training, will apply a preferential tax rate of 10% specifically stipulated in Clause 3, Article 11 of Circular 96/2015/TT-BTC.

(2) Regarding the standards guided by Decision 1470/QD-TTg of 2016 on types, scale criteria, and standards of establishments implementing socialization in the field of education as follows;

Thus, if a British business meets the above conditions, it will enjoy a preferential corporate income tax rate of 10% throughout its operation period. The preferential tax rate application period specified in Article 19 of Circular 78/2014/TT-BTC, amended and supplemented by Clause 1, Clause 2, Clause 3, Clause 4, Clause 5 Article 11 Circular 96/2015/TT-BTC, Clause 3 Article 6 Circular 119/2014/TT-BTC is calculated continuously from the first year the enterprise has revenue from New investment projects enjoy tax incentives.

However, in order for businesses to enjoy tax incentives, they need to fully carry out the responsibilities of socialized enterprises specified in Article 16 of Decree 69/2008/ND-CP, detailed instructions in Section XII of Circular 135/2008/TT-BTC as follows: following:

– Socialization establishments must register with tax authorities when operating. Prepare quarterly and annual reports on professional activities to send to industry management agencies (operating licensing agencies). Report on financial activities to be sent to industry management agencies and financial agencies at the same level.

– Establishments implementing socialization must comply with the operating charter, ensuring professional conditions, human resources, and facilities according to the provisions of law to provide society with products and services that meet the requirements, standards of content and quality.

– Annually, agencies The establishment carrying out socialization must make its operations public and its financial performance public.

– The Board of Directors (or School Council) or Head (for establishments without a Board of Directors) of the establishment carrying out socialization must make it public according to the operating charter of the non-public establishment.

– In particular, it is necessary to publicize the contents as follows:

+ Publicize fees and charges.

+ Publicize the level of support and amount of state budget support for establishments implementing socialization.

+ Publicize contributions to the state budget of establishments implementing socialization.

– Established by organizations and individuals, they must register internally. Engage in professional activities with local competent state management agencies and operate in accordance with the law.

– Register activities with tax authorities as a basis for incentives or corporate income tax calculation.

– Responsible for organizing and implementing accounting and statistical work; Carry out annual audits and publicize audit results according to the provisions of law.

2. Are computer foreign language training centers subject to VAT?

According to the provisions of Clause 13, Article 4 of Circular 219/2013/TT-BTC, the British Information Technology Foreign Language Training Center will not be subject to VAT (VAT), specifically:

– Teaching and vocational training according to the provisions of law, including teaching foreign languages ​​and information technology; teaching dance, singing, painting, music, theater, circus, physical education and sports; Raising children and teaching other occupations to train and improve cultural qualifications and professional knowledge.

– In cases where teaching establishments at all levels from preschool to high school collect money for meals, transportation to pick up and drop off students, and other revenues in the form of collection and payment on behalf of them, then meals, transportation fees to pick up and drop off students, and these other revenues and expenses are also not subject to tax.

– Boarding income from pupils, students and trainees; Training activities (including the organization of exams and issuance of certificates in the training process) provided by training facilities are not subject to VAT. In case the training facility does not directly organize training but only organizes exams and issues certificates in the training process, the activities of organizing exams and issuing certificates are also not subject to tax. In case of providing examination and certification services that are not part of the training process, they are subject to VAT.

Example 7: Training center X is assigned by the competent authority to provide training to issue a practicing certificate as an insurance agent. Training Center X assigns training tasks to unit Y to perform, Training Center

Thus, his business is not subject to tax, so it is exempt from value added tax.

3. Necessary procedures for tax exemption and reduction

According to the provisions of Article 22 of Circular 78/2014/TT-BTC, it is stipulated as follows:

“Article 22. Procedures for implementing corporate income tax incentives

Enterprises themselves determine the conditions for tax incentives, preferential tax rates, tax exemption periods, tax reductions, and the amount of losses to be deducted (-) from taxable income to self-declar and self-settle taxes with the tax authority.

When examining and inspecting businesses, tax authorities must check the conditions for tax incentives, the amount of corporate income tax exempted, tax reduction, and the amount of losses. deducted from taxable income according to the actual conditions that the enterprise meets. In case an enterprise does not ensure the conditions for applying preferential tax rates and tax exemption or tax reduction periods, the tax authority will handle tax collection and sanction tax administrative violations according to regulations.”

Thus, regarding corporate income tax incentives, in principle, businesses will determine their own incentives and declare taxes according to that incentive, taking responsibility for determining this preferential regime, not There is a requirement to file documents to receive incentives.

Above is our consulting content related to tax incentives for the Information Technology Foreign Language Center that you are interested in.