| No. | Official dispatch | Details | Date of issuance |
|---|---|---|---|
| Invoice | |||
| 1 | Official Letter No. 2846/CTĐLA-TTHT from the Tax Department of Đắk Lắk Province regarding invoice issuance for profits distributed under a business cooperation contract | In the case where Party A signs a contract with Party B (the contract complies with legal regulations on business cooperation) to share business results in the form of post-CIT profits, and it is agreed that Party A will act as the representative responsible for issuing invoices, recording revenue and expenses, and determining post-CIT profits to be distributed to each participating party, Party B, upon receiving the profit share from Party A, issues a receipt while Party A prepares expenditure documents based on the purpose of the payment in accordance with regulations. | September 26, 2024 |
| 2 | Official Letter No. 3052/CTAGI-TTHT from the Tax Department of An Giang Province regarding electronic invoices for exported goods | The timing for issuing value-added tax (VAT) invoices for exported goods (which is also the time for determining taxable revenue) is after the export procedures are completed and the customs declaration has been confirmed as finalized. This means the time of completion of customs procedures allowing the goods to be exported (cleared). | November 4, 2024 |
| 3 | Official Letter No. 1442/CCT-TTTBTK from the Tax Department of Nam Định Province regarding the preparation of purchase records for goods and services without invoices | If a company purchases goods or services from an individual whose annual revenue exceeds 100 million VND, it is not permitted to prepare a purchase record for goods and services (using Form No. 01/TNDN attached to Circular No. 78/2014/TT-BTC) to include such purchases as expenses. To include these goods and services as expenses, the individual must be a business household or individual business. If the business household or individual business pays taxes under the declaration method, they must use e-invoices with a tax authority code when selling goods or providing services. If the business household or individual business pays taxes under the presumptive tax method but requires an invoice for customers, the tax authority will issue an e-invoice with a tax code for each occurrence. Before the issuance of such e-invoices, the business household or individual business must declare and pay taxes for the corresponding transactions. | November 13, 2024 |
| Value-Added Tax (VAT) | |||
| 4 | Official Letter No. 5071/TCT-KK from the General Department of Taxation regarding VAT refunds for investment projects | For input VAT of investment projects managed directly by the company, which is not eligible for a refund but meets the conditions for deduction, the company is allowed to carry forward the input VAT of goods and services incurred during the investment phase (that has not been refunded) for continued deduction. This amount can be offset against the VAT payable from business and production activities managed directly by the company and currently declared to the Tax Department. | November 7, 2024 |
| Tax Violation Handling | |||
| 5 | Official Letter No. 5107/TCT-QLN from the General Department of Taxation regarding issues with enforcement measures | If a third party is holding money or other assets of the entity subject to enforcement, they are required to pay the owed tax on behalf of the entity under enforcement. If the entity under enforcement is subject to the enforcement measure of suspending invoice use, the issuance of invoices for each individual occurrence is carried out in accordance with Point d, Clause 4, Article 34 of Decree No. 126/2020/NĐ-CP. Specifically, the tax authority allows the taxpayer to use invoices for each individual occurrence, provided that at least 18% of the revenue on the issued invoice (including the amount paid by the third party on behalf of the entity under enforcement) is paid into the state budget. If the conditions for the tax authority to issue electronic invoices with a tax authority code for each individual occurrence are met, the procedures will follow the regulations specified in Clause 2, Article 13 of Decree No. 123/2020/NĐ-CP. | November 8, 2024 |
| 6 | Official Letter No. 5142/TCT-QLN from the General Department of Taxation regarding the handling of tax arrears | In cases where taxpayers have had their tax arrears frozen in accordance with the Law on Tax Administration No. 38/2019/QH14, and subsequently pay the full amount of the tax arrears into the state budget, the taxpayers are no longer considered in debt to the state budget and therefore are no longer eligible for the freezing of tax arrears. | November 11, 2024 |
| Personal Income Tax (PIT) | |||
| 7 | Official Letter No. 5758/CTKHH-TTHT from the Tax Department of Khánh Hòa Province regarding issues in declaring personal income tax (PIT) for foreign experts | Expenses paid by the company for foreign experts, which are received as income, are considered taxable PIT income from salaries, wages, and similar forms of remuneration, whether monetary or non-monetary. However, the cost of round-trip airfare paid by the employer (or reimbursed) for foreign employees returning home once a year is excluded from taxable PIT income. The company must clearly determine whether the foreign expert is subject to PIT as a resident or non-resident individual with taxable income to properly calculate PIT withholding and declaration: · If the foreign expert is a resident individual subject to PIT and does not sign a labor contract, the company must withhold PIT at the rate of 10% of the total income paid if the amount is 2 million VND or more per payment. · If the foreign expert is a non-resident individual subject to PIT and does not sign a labor contract, the company must withhold PIT at the rate of 20% of the total taxable income paid. The company is required to declare PIT on a monthly/quarterly basis (Form No. 05/KK-TNCN along with annexes) and finalize PIT (Form No. 05/QTT-TNCN along with annexes) for the above expenses in accordance with Clause 3, Article 19 of Circular No. 80/2021/TT-BTC. The forms are specified in Appendix II: List of Tax Declaration Forms (Issued with Circular No. 80/2021/TT-BTC). | August 12, 2024 |
| Contractor Tax | |||
| 8 | Official Letter No. 28331/CTBDU-TTHT from the Tax Department of Bình Dương Province regarding contractor tax | If the company imports goods from the seller under Incoterms delivery terms where the seller bears the risks related to the goods until they enter Vietnamese territory, the seller is subject to contractor tax as stipulated in Article 1 of Circular No. 103/2014/TT-BTC. If the seller fails to meet any of the conditions specified in Article 8, Section 2, Chapter II of Circular No. 103/2014/TT-BTC, the company is required to declare and pay contractor tax on behalf of the seller following the guidance in Articles 12 and 13, Section 3, Chapter II of Circular No. 103/2014/TT-BTC. | October 31, 2024 |
| Corporate Income Tax (CIT) | |||
| 9 | Official Letter No. 28365/CTBDU-TTHT from the Tax Department of Bình Dương Province regarding green tree planting expenses | If a company engaged in business and production activities in an industrial zone incurs expenses for planting trees within the factory premises, as required by the Industrial Zone Management Board for the purpose of maintaining environmental cleanliness and creating a fresh and airy atmosphere, such expenses are deductible. Specifically, expenses related to tree planting that serve the company's production and business activities and meet the above conditions are eligible for VAT input deduction and can be included as deductible expenses when calculating corporate income tax (CIT) according to regulations. | October 31, 2024 |
| Export and Import Procedures | |||
| 10 | Official Letter No. 5517/TCHQ-TXNK from the General Department of Customs regarding issues with supplementary declarations after tax refunds | When completing export procedures for products manufactured from imported goods intended for production and business purposes, taxpayers must declare on the export declaration form that the exported products were produced from previously imported goods. When applying for a tax refund, taxpayers are required to provide detailed declarations specifying which import declarations the exported products were produced from, the quantity of materials and supplies used, the actual consumption rates, etc., in accordance with Form No. 10 of Appendix VII issued with Decree No. 18/2021/NĐ-CP. Additionally, all relevant documents must be submitted as required to serve as the basis for the customs authority to review and process the import tax refund. | October 8, 2024 |
Invoice
September 26, 2024: Official Letter No. 2846/CTĐLA-TTHT from the Tax Department of Đắk Lắk Province regarding invoice issuance for profits distributed under a business cooperation contract
In the case where Party A signs a contract with Party B (the contract complies with legal regulations on business cooperation) to share business results in the form of post-CIT profits, and it is agreed that Party A will act as the representative responsible for issuing invoices, recording revenue and expenses, and determining post-CIT profits to be distributed to each participating party, Party B, upon receiving the profit share from Party A, issues a receipt while Party A prepares expenditure documents based on the purpose of the payment in accordance with regulations.
November 4, 2024: Official Letter No. 3052/CTAGI-TTHT from the Tax Department of An Giang Province regarding electronic invoices for exported goods
The timing for issuing value-added tax (VAT) invoices for exported goods (which is also the time for determining taxable revenue) is after the export procedures are completed and the customs declaration has been confirmed as finalized. This means the time of completion of customs procedures allowing the goods to be exported (cleared).
November 13, 2024: Official Letter No. 1442/CCT-TTTBTK from the Tax Department of Nam Định Province regarding the preparation of purchase records for goods and services without invoices
If a company purchases goods or services from an individual whose annual revenue exceeds 100 million VND, it is not permitted to prepare a purchase record for goods and services (using Form No. 01/TNDN attached to Circular No. 78/2014/TT-BTC) to include such purchases as expenses. To include these goods and services as expenses, the individual must be a business household or individual business. If the business household or individual business pays taxes under the declaration method, they must use e-invoices with a tax authority code when selling goods or providing services. If the business household or individual business pays taxes under the presumptive tax method but requires an invoice for customers, the tax authority will issue an e-invoice with a tax code for each occurrence. Before the issuance of such e-invoices, the business household or individual business must declare and pay taxes for the corresponding transactions.
Value-Added Tax (VAT)
November 7, 2024: Official Letter No. 5071/TCT-KK from the General Department of Taxation regarding VAT refunds for investment projects
For input VAT of investment projects managed directly by the company, which is not eligible for a refund but meets the conditions for deduction, the company is allowed to carry forward the input VAT of goods and services incurred during the investment phase (that has not been refunded) for continued deduction. This amount can be offset against the VAT payable from business and production activities managed directly by the company and currently declared to the Tax Department.
Tax Violation Handling
November 8, 2024: Official Letter No. 5107/TCT-QLN from the General Department of Taxation regarding issues with enforcement measures
If a third party is holding money or other assets of the entity subject to enforcement, they are required to pay the owed tax on behalf of the entity under enforcement. If the entity under enforcement is subject to the enforcement measure of suspending invoice use, the issuance of invoices for each individual occurrence is carried out in accordance with Point d, Clause 4, Article 34 of Decree No. 126/2020/NĐ-CP. Specifically, the tax authority allows the taxpayer to use invoices for each individual occurrence, provided that at least 18% of the revenue on the issued invoice (including the amount paid by the third party on behalf of the entity under enforcement) is paid into the state budget. If the conditions for the tax authority to issue electronic invoices with a tax authority code for each individual occurrence are met, the procedures will follow the regulations specified in Clause 2, Article 13 of Decree No. 123/2020/NĐ-CP.
November 11, 2024: Official Letter No. 5142/TCT-QLN from the General Department of Taxation regarding the handling of tax arrears
In cases where taxpayers have had their tax arrears frozen in accordance with the Law on Tax Administration No. 38/2019/QH14, and subsequently pay the full amount of the tax arrears into the state budget, the taxpayers are no longer considered in debt to the state budget and therefore are no longer eligible for the freezing of tax arrears.
Personal Income Tax (PIT)
August 12, 2024: Official Letter No. 5758/CTKHH-TTHT from the Tax Department of Khánh Hòa Province regarding issues in declaring personal income tax (PIT) for foreign experts
Expenses paid by the company for foreign experts, which are received as income, are considered taxable PIT income from salaries, wages, and similar forms of remuneration, whether monetary or non-monetary. However, the cost of round-trip airfare paid by the employer (or reimbursed) for foreign employees returning home once a year is excluded from taxable PIT income. The company must clearly determine whether the foreign expert is subject to PIT as a resident or non-resident individual with taxable income to properly calculate PIT withholding and declaration: · If the foreign expert is a resident individual subject to PIT and does not sign a labor contract, the company must withhold PIT at the rate of 10% of the total income paid if the amount is 2 million VND or more per payment. · If the foreign expert is a non-resident individual subject to PIT and does not sign a labor contract, the company must withhold PIT at the rate of 20% of the total taxable income paid. The company is required to declare PIT on a monthly/quarterly basis (Form No. 05/KK-TNCN along with annexes) and finalize PIT (Form No. 05/QTT-TNCN along with annexes) for the above expenses in accordance with Clause 3, Article 19 of Circular No. 80/2021/TT-BTC. The forms are specified in Appendix II: List of Tax Declaration Forms (Issued with Circular No. 80/2021/TT-BTC).
Contractor Tax
October 31, 2024: Official Letter No. 28331/CTBDU-TTHT from the Tax Department of Bình Dương Province regarding contractor tax
If the company imports goods from the seller under Incoterms delivery terms where the seller bears the risks related to the goods until they enter Vietnamese territory, the seller is subject to contractor tax as stipulated in Article 1 of Circular No. 103/2014/TT-BTC. If the seller fails to meet any of the conditions specified in Article 8, Section 2, Chapter II of Circular No. 103/2014/TT-BTC, the company is required to declare and pay contractor tax on behalf of the seller following the guidance in Articles 12 and 13, Section 3, Chapter II of Circular No. 103/2014/TT-BTC.
Corporate Income Tax (CIT)
October 31, 2024: Official Letter No. 28365/CTBDU-TTHT from the Tax Department of Bình Dương Province regarding green tree planting expenses
Export and Import Procedures
October 8, 2024: Official Letter No. 5517/TCHQ-TXNK from the General Department of Customs regarding issues with supplementary declarations after tax refunds
When completing export procedures for products manufactured from imported goods intended for production and business purposes, taxpayers must declare on the export declaration form that the exported products were produced from previously imported goods. When applying for a tax refund, taxpayers are required to provide detailed declarations specifying which import declarations the exported products were produced from, the quantity of materials and supplies used, the actual consumption rates, etc., in accordance with Form No. 10 of Appendix VII issued with Decree No. 18/2021/NĐ-CP. Additionally, all relevant documents must be submitted as required to serve as the basis for the customs authority to review and process the import tax refund.