Accounting and Tax Newsletter No. 03 – January 2025 

Corporate Income Tax

31/12/2024: Official Letter No. 6367/TCT-KK by the General Department of Taxation on provisional corporate income tax payment

The calculation of late payment interest on insufficient provisional corporate income tax payments, as determined by the directly managing tax authority, applies to the total tax payable by the company (including the tax payable at the allocated location) in accordance with Point k, Clause 1, Article 5 of Circular No. 80/2021/TT-BTC.

07/01/2025: Official Letter No. 73/TCT-CS by the General Department of Taxation on corporate income tax policies

In cases where an enterprise has a transfer contract that does not specify a payment price or when the tax authority has grounds to determine that the payment price is not in accordance with market value, the tax authority has the right to inspect and determine the transfer price.
The transfer price must be determined at the time of transfer. If the tax authority’s determined transfer price is deemed inappropriate, it shall be based on the valuation by professional valuation organizations with the authority to determine the transfer price at the time of transfer in accordance with regulations.

07/01/2025: Official Letter No. 72/TCT-CS by the General Department of Taxation on corporate income tax policies

In cases where a company declares corporate income tax (CIT) using the revenue-expense method and has real estate transfer activities, the company is not required to submit a CIT declaration for real estate transfers on a case-by-case basis (form 02/TNDN). Instead, it only needs to file an annual CIT finalization declaration (form 03/TNDN) and provisionally pay CIT quarterly (taxpayers declaring CIT by the percentage on revenue method are required to submit CIT declarations for real estate transfers on a case-by-case basis).

According to Joint Circular No. 88/2016/TTLT/BTC-BTNMT, the “Income Tax Declaration for Real Estate Transfers” is not a mandatory component of the financial obligation dossier for real estate transfer activities.

Therefore, the CIT declaration regulations in Decree No. 126/2020/NĐ-CP do not affect the financial obligation dossier of taxpayers as guided by Joint Circular No. 88/2016/TTLT/BTC-BTNMT.

Value-Added Tax (VAT)

03/01/2025: Official Letter No. 25/CTDNO-TTHT by the Dak Nong Tax Department on tax incentives and VAT refunds

Newly established businesses from investment projects or existing businesses subject to VAT under the deduction method, which have new investment projects as regulated by the Investment Law in the same province as their headquarters, and are in the investment phase with accumulated uncredited input VAT of goods and services amounting to at least 300 million VND, are eligible for VAT refunds if they meet the legal conditions for tax refunds. The dossier and procedures for VAT refunds are implemented in accordance with Article 7 of Decree No.

126/2020/NĐ-CP and Article 28 of Circular No. 80/2021/TT-BTC (as amended and supplemented by Article 2 of Circular No. 13/2023/TT-BTC dated February 28, 2023, by the Ministry of Finance).

08/01/2025: Official Letter No. 99/TCT-CS by the General Department of Taxation on VAT

In cases where the Tax Department has refunded VAT for exported goods and services that lack non-cash payment vouchers, the Tax Department must recover the refunded VAT amount that does not have the required non-cash payment vouchers in accordance with the provisions of the VAT Law and tax management regulations.

08/01/2025: Official Letter No. 19/CTTQU-TTHT by the Tuyen Quang Tax Department on VAT refunds for exported goods and services

If a company has both exported goods and services and goods and services consumed domestically, with accumulated uncredited input VAT of at least 300 million VND, it is eligible for VAT refunds for the input VAT of exported goods and services, provided all conditions for deduction and refund under the tax laws are met. The refundable VAT amount for exported goods and services is determined as follows:

• If the company separately accounts for the input VAT used for the production and business of exported goods and services, the refundable amount is the uncredited input VAT of at least 300 million VND and does not exceed 10% of the revenue from exported goods and services.
• If the company does not separately account for the input VAT, the input VAT of exported goods and services is determined based on the ratio of the revenue from exported goods and services to the total revenue from goods and services for the VAT declaration periods from the period following the last VAT refund period to the current refund request period and does not exceed 10% of the revenue from exported goods and services.

Personal Income Tax (PIT)

03/01/2025: Official Letter No. 49/CT-TTHT by the Thanh Hoa Tax Department on the place for submitting PIT finalization dossiers

In principle, taxable PIT income for finalization purposes is the total taxable income from salaries and wages from all sources of an individual during the year. Organizations and individuals paying income subject to PIT withholding must issue tax withholding certificates upon request by the individuals subject to withholding, except in cases where the individual authorizes tax finalization or the income-paying organization has ceased operations.

Amendment of Tax Declaration Dossiers

03/01/2025: Official Letter No. 26/CTCTH-TTHT by the Can Tho Tax Department on tax policy guidance

• If errors or omissions are detected in the tax declaration dossier submitted to the tax authority, taxpayers are allowed to amend the tax declaration dossier within 10 years from the deadline for submitting the declaration of the tax period with errors or omissions, as stipulated in Article 47 of the Tax Administration Law No. 38/2019/QH14, amended, supplemented, or annulled in some provisions by Clause 6, Article 6 of Law No. 56/2024/QH15.
• Tax declaration dossiers must comply with the guidance in Clause 4, Article 7 of Decree No. 126/2020/NĐ-CP.