This newsletter specializes in updating information about accounting, value-added tax (VAT), personal income tax, corporate income tax, contractor tax, etc. for accountants.
| No. | Official dispatch | Details | Date of issuance |
| Invoice | |||
| 1 | Official Dispatch 4415/CTLAN-TTHT of Long An Provincial Tax Department on Contractor Tax Policy and Invoices for Returned Imported Goods | · In the case where the Company declares VAT using the deduction method, imports raw materials from abroad but they do not meet quality standards and are returned as agreed, when exporting the returned goods, the Company has carried out export procedures with the Customs authority and issued a VAT invoice for the returned goods as prescribed in Article 8 of Decree No. 123/2020/ND-CP.
· In the case where the Company purchases raw materials from abroad based on a contract and agreement between the Company and a foreign organization, and the delivery point of the goods is within the territory of Vietnam, the foreign organization is subject to the application of Circular No. 103/2014/TT-BTC, specifically: o VAT: implemented according to the guidance in Article 6 and Article 12 of Circular No. 103/2014/TT-BTC. o Corporate Income Tax (CIT): implemented according to the guidance in Article 7 and Article 13 of Circular No. 103/2014/TT-BTC. |
October 4, 2024 |
| 2 | Official Dispatch 4862/CTCTH-TTHT of Can Tho Provincial Tax Department on preventing and handling the sale of invoices in cyberspace | Prohibited acts: Using illegal invoices, illegal use of invoices…
Sanctions for violations of tax and invoice regulations: The act of using illegal invoices or illegal use of invoices can be subject to a fine from 20 to 50 million VND. Sanctions for tax evasion are specified in Article 17 of Decree No. 125/2020/ND-CP. In addition, the act of tax evasion may also be subject to criminal prosecution as prescribed in Article 200 of the Criminal Code No. 100/2015/QH13. Responsibilities of sellers and buyers when conducting transactions of goods and services: · Seller’s responsibilities: Generate electronic invoices for the sale of goods and provision of services to send to the tax authority for code assignment and be responsible before the law for the legality and accuracy of electronic invoices… · Buyer’s responsibilities: Provide accurate information necessary for the seller to issue invoices, use invoices for the right purpose… |
October 29, 2024 |
| 3 | Official Dispatch 3644/CTTGI-TTHT of Tien Giang Provincial Tax Department on supplementary declaration when the buyer returns goods | In the case where the Company makes adjustments to incorrect invoices as prescribed in Article 19 of Decree No. 123/2020/ND-CP, it must make a supplementary declaration for each tax declaration with errors or omissions as prescribed in Article 47 of the Law on Tax Administration No. 38/2019/QH14 and Clause 4, Article 7 of Decree No. 126/2020/ND-CP. | November 4, 2024 |
| 4 | Official Dispatch 5010/CTCTH-TTHT of Can Tho Provincial Tax Department on issuing invoices for donated or gifted goods | In the case where there are expenses incurred for giving/gifting/donating advertising signs or advertising panels to customers, invoices must be issued to the customers according to the provisions of Article 4 of Decree No. 123/ND-CP of the Government, and the value-added tax must be declared and paid according to regulations. | November 7, 2024 |
| 5 | Official Dispatch 4991/TCT-CS of the General Department of Taxation on tax policy for sales discounts and commercial discounts | In principle, for commercial discounts based on the quantity or turnover of goods and services, the discount amount for the goods sold is adjusted on the invoice for the sale of goods and services of the last purchase or the next period. In the case where the discount amount is determined at the end of the sales discount program (period), an adjusted invoice is issued together with a list of invoice numbers to be adjusted, the amount, and the adjusted tax amount. Based on the adjusted invoice, the seller and the buyer declare adjustments to revenue and tax accordingly.
Therefore, in the case where the Company incurs sales discounts and commercial discounts as agreed in the Framework Contract, the appendix to the contract, and the signed sales contracts, and the Company has complete documentation and ensures the legality and accuracy of the documents proving the implementation of sales discounts and commercial discounts, the Company shall issue an adjusted invoice in accordance with the law on invoices for the sale of goods. Based on the adjusted invoice issued, the Company shall declare adjustments to sales revenue as prescribed. |
November 5, 2024 |
| Personal Income Tax | |||
| 6 | Official Dispatch 8315/CTDAN-TTHT of Da Nang City Tax Department guiding on personal income tax from winnings and welfare expenses for employees | In the case where employees receive cash or in-kind awards for participating in prize-winning contests or other forms of winning organized by the Company, if determined as income from winnings, the prize value exceeding 10 million VND that the individual receives, without deducting any expenses, is considered taxable personal income (PIT). The Company must withhold PIT before paying the prize to the winning individual.
These welfare expenses, if meeting all the conditions guided in Clause 1 and Point 2.30, Clause 2, Article 6 of Circular No. 78/2014/TT-BTC (as amended and supplemented above), are deductible when determining corporate income tax (CIT) taxable income. |
October 28, 2024 |
| 7 | Official Dispatch 4982/TCT-DNNCN of the General Department of Taxation on personal income tax policy for non-executive remuneration of members of the Board of Directors at another enterprise | Regarding non-executive remuneration of members of the Board of Directors at another enterprise, in principle, the organization or individual directly paying the income is responsible for declaring and withholding the tax payable on the income of the taxpayer before paying the income. | November 4, 2024 |
| 8 | Official Dispatch 7144/CTBTH-TTHT of Binh Thuan Provincial Tax Department on tax declaration for interest payments to foreign individuals residing and working abroad | In the case where the Company incurs interest payments on loans under a loan agreement with foreign individuals who are residing and working abroad, these non-resident individuals are subject to Personal Income Tax (PIT). At the same time, the interest received from lending to the Company is considered PIT taxable income from investment.
Regarding the declaration and withholding of PIT for the capital investment income of the above-mentioned non-resident individuals, the Company must declare, withhold, and pay PIT. |
November 5, 2024 |
| Guidance on tax declaration and payment | |||
| 9 | Official Dispatch 8478/CTNDI-HKDCN of Nam Dinh Provincial Tax Department on tax administration for households and individuals conducting business in 2025 | · License tax rates for business households:
o Revenue over 500 million VND/year: 1 million VND/year. o Revenue from 300 to 500 million VND/year: 500,000 VND/year. o Revenue from 100 to 300 million VND/year: 300,000 VND/year. · Guidance on tax declaration and payment for business households and individuals paying taxes under the prescribed method. · Guidance on tax declaration and payment for business households and individuals paying taxes under the declaration method. |
November 1, 2024 |
| Value-Added Tax | |||
| 10 | Official Dispatch 2815/CTHNA-TTHT of Ha Nam Provincial Tax Department on the value-added tax rate for service provision | The Company is permitted to establish and operate a bonded warehouse. When providing services related to the bonded warehouse, the Company shall determine Value-Added Tax (VAT) in accordance with the following principles:
· In the case where the Company provides services performed within the bonded warehouse (including import-export services, customs supervision, goods delivery and receipt services at the warehouse, loading and unloading of goods at the warehouse, and goods storage services within the bonded warehouse) to export processing enterprises, these services are subject to a VAT rate of 0%. · In the case where the Company provides transportation services to export processing enterprises, if this activity qualifies as international transportation services, a VAT rate of 0% shall be applied. · In the case where the Company provides domestic transportation services to export processing enterprises, a VAT rate of 10% shall be applied. |
November 4, 2024 |
| 11 | Official Dispatch 2521/CTVPH-TTHT of Vinh Phuc Provincial Tax Department on Value Added Tax and Corporate Income Tax policies for dependent accounting branches | In the case where a dependent accounting branch (hereinafter referred to as the “Branch”) of the Company directly sells goods and uses invoices registered by the Branch or by the Company with the tax authority managing the Branch, and fully accounts for output and input Value Added Tax (VAT), the Branch shall declare and pay VAT to the tax authority that directly manages the Branch.
Regarding VAT refund for exported goods, the Company shall comply with the provisions of Article 2 of Circular No. 25/2018/TT-BTC of the Ministry of Finance. The remaining deductible VAT amount (if any) of the Branch shall not be aggregated with the remaining deductible VAT amount of the Company when the Company requests a VAT refund from the managing tax authority. |
November 5, 2024 |
| Corporate Income Tax | |||
| 12 | Official Dispatch 4632/CTLAN-TTHT of Long An Provincial Tax Department on the quarterly provisional payment of Corporate Income Tax | Regarding Corporate Income Tax (CIT), provisional payment is made quarterly, with the deadline for tax payment no later than the 30th of the first month of the following quarter. The Company must self-determine the amount of quarterly provisional CIT payable (including the provisional allocation of CIT to the provincial-level locality where the dependent unit, business location, or real estate transferred is located, which is different from where the taxpayer’s head office is located). The amount of tax already provisionally paid can be deducted from the amount payable according to the annual tax finalization. | October 18, 2024 |