No. Official Dispatch Content Date of Issuance
Value-Added Tax (VAT)
1 Official Dispatch No. 13145/BTC-CST from the Ministry of Finance on the Draft Decree Regulating the 2% VAT Reduction Policy On November 30, 2024, the National Assembly passed a resolution to continue reducing the value-added tax (VAT) rate by 2%. To ensure the issuance and enforcement of the Decree guiding the VAT reduction policy from January 1, 2025, the Ministry of Finance has undertaken research to draft the Decree outlining the 2% VAT reduction policy in accordance with the Law on Promulgation of Legal Documents. Attached to this Official Dispatch is the draft Decree regulating the 2% VAT reduction policy. December 3, 2024
2 Official Dispatch No. 3832/CTTNI-TTHT from the Tax Department of Tay Ninh Province Regarding Charter Capital Contribution by Foreign Investors In cases where investors contribute capital in foreign currency, the actual amount of contributed capital is determined based on the amount of foreign currency actually contributed. Bank fees are not considered part of the charter capital contribution. The company is not eligible for VAT refunds on investment projects if the registered charter capital for the project is not fully contributed as stipulated by law. November 27, 2024
Corporate Income Tax (CIT)
3 Official Dispatch No. 8195/CTBGI-TTHT from the Tax Department of Bac Giang Province Regarding Corporate Income Tax Offsets In cases where a company has an investment project eligible for corporate income tax incentives due to meeting the conditions for investment incentive sectors, if the tax-incentivized business activities incur losses while other business activities of the company generate profits, the company is allowed to offset the taxable income of profitable activities, as selected by the company, in accordance with Clause 9, Article 18 of Circular No. 78/2014/TT-BTC. If the company discovers errors or omissions in previously submitted tax declarations, it is allowed to file supplementary tax declarations in accordance with Article 47 of the Tax Administration Law No. 38/2019/QH14 and Clause 4, Article 7 of Decree No. 126/2020/ND-CP. November 27, 2024
Invoice
4 Official Dispatch No. 2928/CTVPH-TTHT from the Tax Department of Vinh Phuc Province Regarding Policies on Conditions for Non-Cash Payment Deductions In cases where a company incurs expenses for purchasing goods, services, raw materials, assets, or expenses for client entertainment and business trips, such expenses are eligible for VAT input tax deduction if they meet the principles and conditions for deduction as stipulated in Articles 14 and 15 of Circular No. 219/2013/TT-BTC. These expenses are also deductible when determining taxable corporate income if they satisfy the conditions specified in Article 4 of Circular No. 96/2016/TT-BTC dated June 22, 2015, from the Ministry of Finance. If the company pays suppliers for goods, services, raw materials, assets, client entertainment, or business trip expenses through an employee's personal bank account or credit card, and then reimburses the employee from the company's bank account registered with the Tax Authority, the following applies:
  • Expenses for goods, services, raw materials, assets, and client entertainment are considered non-cash payments if the company authorizes individuals to make payments via bank accounts, and such authorization is specified in a written agreement in accordance with Point c, Clause 6, Article 3 of Circular No. 119/2014/TT-BTC issued by the Ministry of Finance.
  • Expenses incurred for business trips are considered non-cash payments if the company has an official decision or document authorizing the employee to undertake the business trip and the company's financial or internal regulations permit the employee to pay for business trip expenses using a bank account or credit card owned by the individual.
 December 5, 2024
5 Official Dispatch No. 3152/CTHNA-TTHT from the Tax Department of Ha Nam Province Regarding Invoice Issuance Guidance In cases where an e-invoice with or without a tax authority code has been issued to the buyer, but the buyer returns the goods due to non-compliance with specifications or quality issues, the company (seller) must issue an invoice to adjust or replace the original invoice in accordance with Clause 1, Article 4, and Clause 2, Article 19 of Decree No. 123/2020/ND-CP. Based on the adjusted or replacement invoice, the seller and buyer are required to submit supplementary tax declarations as stipulated in Article 47 of the Tax Administration Law No. 38/2019/QH14. December 4, 2024
6 Official Dispatch No. 23242/CTBRV-TTHT from the Tax Department of Ba Ria - Vung Tau Province Regarding the Timing of Invoice Issuance for Exported Goods The timing for issuing a value-added tax (VAT) invoice for exported goods is after the completion of export procedures, as stipulated in Point c, Clause 3, Article 13 of Decree No. 123/2020/ND-CP dated October 19, 2020, issued by the Government. The determination of exported goods shall be carried out in accordance with Clause 33, Article 1 of Circular No. 39/2018/TT-BTC dated April 20, 2018, from the Ministry of Finance. December 4, 2024
7 Official Dispatch No. 3840/CTTNI-TTHT from the Tax Department of Tay Ninh Province Regarding Tax and Invoice Policies for Project Transfers In the case of project transfers, tax declarations and payments must be made in accordance with the cited regulations. If assets are contributed as capital by organizations or individuals conducting business in Vietnam to establish a company, invoices are not required to be issued. November 27, 2024
Personal Income Tax (PIT), Corporate Income Tax (CIT)
8 Official Dispatch No. 30305/CTBDU-TTHT from the Tax Department of Binh Duong Province Regarding Expense Determination for Workplace Accident Compensation If compensation payments made by the company to workplace accident victims are determined as deductible expenses, they must meet the conditions stipulated in Articles 38 and 45 of the 2015 Law on Occupational Safety and Hygiene and Article 4 of Circular No. 96/2015/TT-BTC. Additionally, such payments are exempt from PIT under Clause 1.n, Article 3 of Circular No. 111/2013/TT-BTC. If welfare-related support payments are made directly to employees in accordance with Point 2.30, Clause 2, Article 4 of Circular No. 96/2015/TT-BTC and are accompanied by sufficient invoices and documents, the total amount of such payments must not exceed the average monthly salary actually paid during the tax year. These payments must also be clearly stipulated in the company's financial regulations and collective labor agreements, specifying eligibility conditions and benefit levels. If these conditions are met in line with Clause 1, Article 4 of Circular No. 96/2015/TT-BTC, the company can include these payments as deductible expenses when determining taxable CIT income. Furthermore, they are not considered taxable PIT income if aligned with taxable CIT income guidelines under the relevant legal documents implementing the CIT Law. November 28, 2024

Value-Added Tax (VAT)

December 3, 2024: Official Dispatch No. 13145/BTC-CST from the Ministry of Finance on the Draft Decree Regulating the 2% VAT Reduction Policy

On November 30, 2024, the National Assembly passed a resolution to continue reducing the value-added tax (VAT) rate by 2%. To ensure the issuance and enforcement of the Decree guiding the VAT reduction policy from January 1, 2025, the Ministry of Finance has undertaken research to draft the Decree outlining the 2% VAT reduction policy in accordance with the Law on Promulgation of Legal Documents.

Attached to this Official Dispatch is the draft Decree regulating the 2% VAT reduction policy.

November 27, 2024: Official Dispatch No. 3832/CTTNI-TTHT from the Tax Department of Tay Ninh Province Regarding Charter Capital Contribution by Foreign Investors

In cases where investors contribute capital in foreign currency, the actual amount of contributed capital is determined based on the amount of foreign currency actually contributed. Bank fees are not considered part of the charter capital contribution.

The company is not eligible for VAT refunds on investment projects if the registered charter capital for the project is not fully contributed as stipulated by law.

Corporate Income Tax (CIT)

November 27, 2024: Official Dispatch No. 8195/CTBGI-TTHT from the Tax Department of Bac Giang Province Regarding Corporate Income Tax Offsets

In cases where a company has an investment project eligible for corporate income tax incentives due to meeting the conditions for investment incentive sectors, if the tax-incentivized business activities incur losses while other business activities of the company generate profits, the company is allowed to offset the taxable income of profitable activities, as selected by the company, in accordance with Clause 9, Article 18 of Circular No. 78/2014/TT-BTC.

If the company discovers errors or omissions in previously submitted tax declarations, it is allowed to file supplementary tax declarations in accordance with Article 47 of the Tax Administration Law

Invoice

December 5, 2024: Official Dispatch No. 2928/CTVPH-TTHT from the Tax Department of Vinh Phuc Province Regarding Policies on Conditions for Non-Cash Payment Deductions

In cases where a company incurs expenses for purchasing goods, services, raw materials, assets, or expenses for client entertainment and business trips, such expenses are eligible for VAT input tax deduction if they meet the principles and conditions for deduction as stipulated in Articles 14 and 15 of Circular No. 219/2013/TT-BTC. These expenses are also deductible when determining taxable corporate income if they satisfy the conditions specified in Article 4 of Circular No. 96/2016/TT-BTC dated June 22, 2015, from the Ministry of Finance.

If the company pays suppliers for goods, services, raw materials, assets, client entertainment, or business trip expenses through an employee’s personal bank account or credit card, and then reimburses the employee from the company’s bank account registered with the Tax Authority, the following applies:

  • Expenses for goods, services, raw materials, assets, and client entertainment are considered non-cash payments if the company authorizes individuals to make payments via bank accounts, and such authorization is specified in a written agreement in accordance with Point c, Clause 6, Article 3 of Circular No. 119/2014/TT-BTC issued by the Ministry of Finance.
  • Expenses incurred for business trips are considered non-cash payments if the company has an official decision or document authorizing the employee to undertake the business trip and the company’s financial or internal regulations permit the employee to pay for business trip expenses using a bank account or credit card owned by the individual.

December 4, 2024: Official Dispatch No. 3152/CTHNA-TTHT from the Tax Department of Ha Nam Province Regarding Invoice Issuance Guidance

In cases where an e-invoice with or without a tax authority code has been issued to the buyer, but the buyer returns the goods due to non-compliance with specifications or quality issues, the company (seller) must issue an invoice to adjust or replace the original invoice in accordance with Clause 1, Article 4, and Clause 2, Article 19 of Decree No. 123/2020/ND-CP.

Based on the adjusted or replacement invoice, the seller and buyer are required to submit supplementary tax declarations as stipulated in Article 47 of the Tax Administration Law No. 38/2019/QH14.

December 4, 2024: Official Dispatch No. 23242/CTBRV-TTHT from the Tax Department of Ba Ria – Vung Tau Province Regarding the Timing of Invoice Issuance for Exported Goods

The timing for issuing a value-added tax (VAT) invoice for exported goods is after the completion of export procedures, as stipulated in Point c, Clause 3, Article 13 of Decree No. 123/2020/ND-CP dated October 19, 2020, issued by the Government.

The determination of exported goods shall be carried out in accordance with Clause 33, Article 1 of Circular No. 39/2018/TT-BTC dated April 20, 2018, from the Ministry of Finance.

November 27, 2024: Official Dispatch No. 3840/CTTNI-TTHT from the Tax Department of Tay Ninh Province Regarding Tax and Invoice Policies for Project Transfers

In the case of project transfers, tax declarations and payments must be made in accordance with the cited regulations. If assets are contributed as capital by organizations or individuals conducting business in Vietnam to establish a company, invoices are not required to be issued.

Personal Income Tax (PIT), Corporate Income Tax (CIT)

November 28, 2024: Official Dispatch No. 30305/CTBDU-TTHT from the Tax Department of Binh Duong Province Regarding Expense Determination for Workplace Accident Compensation

If compensation payments made by the company to workplace accident victims are determined as deductible expenses, they must meet the conditions stipulated in Articles 38 and 45 of the 2015 Law on Occupational Safety and Hygiene and Article 4 of Circular No. 96/2015/TT-BTC. Additionally, such payments are exempt from PIT under Clause 1.n, Article 3 of Circular No. 111/2013/TT-BTC.

If welfare-related support payments are made directly to employees in accordance with Point 2.30, Clause 2, Article 4 of Circular No. 96/2015/TT-BTC and are accompanied by sufficient invoices and documents, the total amount of such payments must not exceed the average monthly salary actually paid during the tax year. These payments must also be clearly stipulated in the company’s financial regulations and collective labor agreements, specifying eligibility conditions and benefit levels. If these conditions are met in line with Clause 1, Article 4 of Circular No. 96/2015/TT-BTC, the company can include these payments as deductible expenses when determining taxable CIT income. Furthermore, they are not considered taxable PIT income if aligned with taxable CIT income guidelines under the relevant legal documents implementing the CIT Law.