Table of Contents
1. Value-Added Tax (VAT)
- Official Dispatch No. 3918/CTBNI-TTHT: VAT policy for export processing enterprises (August 14, 2024)
- Official Dispatch No. 1858/CTVPH-TTHT: VAT on liquidation of apartments (August 22, 2024)
- Official Dispatch No. 23945/CTBDU-TTHT: Timing of issuing export invoices for export processing enterprises (August 26, 2024)
- Official Dispatch No. 3813/TCT-CS: VAT policies during the investment phase of enterprises (August 28, 2024)
- Official Dispatch No. 3187/CTBDI-TTHT: VAT for unpaid export samples (August 30, 2024)
- Official Dispatch No. 2341/CTHNA-TTHT: VAT reduction for processing companies (September 4, 2024)
- Official Dispatch No. 3038/CTTGI-TTHT: VAT deduction for household business lease services (September 9, 2024)
- Official Dispatch No. 968/CTVLO-TTHT: VAT deduction for damaged goods (September 9, 2024)
- Official Dispatch No. 7875/CTHDU-TTHT: VAT for investment projects (September 12, 2024)
2. Personal Income Tax (PIT)
- Official Dispatch No. 3108/CTBDI-TTHT: Family deduction for dependents during PIT finalization (August 26, 2024)
- Official Dispatch No. 6121/CTBGI-TTHT: Expenses for work permits and temporary residence cards for foreign workers (August 28, 2024)
- Official Dispatch No. 25952/CTBDU-TTHT: VAT and PIT for promotional goods (September 26, 2024)
3. Corporate Income Tax (CIT)
- Official Dispatch No. 24126/CTBDU-TTHT: Tax incentives for Tata Coffee Company’s expanded investment (August 28, 2024)
- Official Dispatch No. 3930/TCT-CS: Loan interest costs under Business Cooperation Contracts (BCC) (September 6, 2024)
- Official Dispatch No. 4106/TCT-CS: CIT incentives for software production (September 17, 2024)
- Official Dispatch No. 4102/TCT-CS: Tax declaration for sponsorships (September 17, 2024)
4. Corporate Mergers and Other Policies
- Official Dispatch No. 3872/TCT-CS: VAT and CIT in corporate merger activities (August 30, 2024)
- Official Dispatch No. 3874/TCT-TTKT: Handling of personal information-related petitions (August 30, 2024)
- Official Dispatch No. 3642/CTBDI-TTHT: VAT and interest on savings deposits (October 7, 2024)
5. Circulars, Decrees, Laws, and Drafts – September 2024
Detailed Content of the Newsletter
1. Value-Added Tax (VAT)
- Official Dispatch No. 3918/CTBNI-TTHT dated August 14, 2024
- VAT for export processing enterprises during the construction phase: Enterprises are entitled to a 0% VAT rate on goods and services during the construction phase if they meet the stipulated conditions.
- Conditions for application: Transactions must comply with Circular No. 219/2013/TT-BTC requirements for non-tariff zones.
- Customs authority liaison: Enterprises are advised to contact the customs authority for necessary procedures.
- Official Dispatch No. 1858/CTVPH-TTHT dated August 22, 2024
- VAT on liquidation of apartments: Apartments sold outside the non-tariff zone are subject to a 10% VAT rate.
- Separate tax declaration: Enterprises must maintain separate accounting records and declare VAT specifically for apartment liquidation activities.
- Invoice usage regulations: VAT invoices must comply with Decree No. 123/2020/ND-CP.
- Official Dispatch No. 23945/CTBDU-TTHT dated August 26, 2024
- Timing of issuing export invoices: E-invoices must be issued upon the transfer of ownership or use rights of goods to the buyer.
- Independent of payment: The issuance of invoices is not dependent on payment receipt.
- Official Dispatch No. 3813/TCT-CS dated August 28, 2024
- VAT during the investment phase: Enterprises with investment projects may claim VAT refunds for taxes incurred during the investment phase if separate VAT declarations are submitted for each project.
- Refund conditions: Tax declarations for Quarters 1-3 of 2023 must be fully submitted.
- Official Dispatch No. 3187/CTBDI-TTHT dated August 30, 2024
- VAT for unpaid export samples: Exported samples without payment still require VAT invoices and tax declarations similar to domestic goods consumption.
- Invoice preparation: Enterprises must issue VAT invoices for exported samples.
- Official Dispatch No. 2341/CTHNA-TTHT dated September 4, 2024
- VAT reduction for processing companies: Processed products not included in Appendices I, II, III of Decree No. 72/2024/ND-CP are subject to an 8% VAT rate.
- Application period: Effective from July 1, 2024, to December 31, 2024.
2. Personal Income Tax (PIT)
- Official Dispatch No. 3108/CTBDI-TTHT dated August 26, 2024
- Family deduction for dependents during PIT finalization: Late registration of dependents will not be eligible for deductions for the 2023 PIT finalization year.
- Conditions for application: Dependents must be registered before finalization to qualify for deductions.
- Consequences of late registration: Late registration may result in forfeiting family deduction benefits for the year.
- Official Dispatch No. 6121/CTBGI-TTHT dated August 28, 2024
- Expenses for work permits and residence cards for foreign workers: Costs for work permits are non-taxable under PIT, but expenses for residence cards and visas are taxable income.
- Tax exemption conditions: Only expenses directly related to work conditions in Vietnam are tax-exempt.
3. Corporate Income Tax (CIT)
- Official Dispatch No. 24126/CTBDU-TTHT dated August 28, 2024
- Tax incentives for expanded investment: Enterprises may choose between reduced tax rates or tax exemptions for additional income from expanded investments.
- Incentive conditions: Projects must fall within sectors or regions eligible for incentives under Decree No. 218/2013/ND-CP.
- Official Dispatch No. 3930/TCT-CS dated September 6, 2024
- Loan interest costs under BCC: Taxable revenue is calculated after deducting reasonable costs related to BCCs.
- Taxable income regulations: Accurate determination of total revenue under the BCC is required.
- Official Dispatch No. 4106/TCT-CS dated September 17, 2024
- CIT incentives for software production: New investment projects meeting conditions for software production are eligible for tax incentives under CIT Law.
- Application conditions: Projects must be included in the list of software products issued with Circular No. 09/2013/TT-BTTTT.
4. Corporate Mergers and Other Policies
- Official Dispatch No. 3872/TCT-CS dated August 30, 2024
- VAT and CIT in corporate mergers: Asset transfers during mergers are exempt from VAT but require complete documentation of asset origins.
- Asset revaluation: Assets must be revalued per regulations before the merger.
- Official Dispatch No. 3874/TCT-TTKT dated August 30, 2024
- Handling personal information-related petitions: Provincial tax departments are instructed to review cases of false salary cost declarations for audits.
- Petition process: Clear content and compliance with prescribed procedures are required for consideration.
- Official Dispatch No. 3642/CTBDI-TTHT dated October 7, 2024
- VAT and savings interest: Interest from bank deposits is classified as other financial income and is VAT-exempt.
- VAT input allocation: Financial income from savings interest does not require VAT input allocation.
5. Circulars, Decrees, and Drafts – September 2024
- Circular No. 76/2024/TT-BTC dated September 12, 2024
- Detailed guidance on PIT and CIT declarations, payments, and finalization, including provisions for tax exemptions and adjustments.
- Specific rules on legitimate tax deductions for businesses and individuals.
- Decree No. 59/2024/ND-CP dated September 18, 2024
- Tax, land, and investment incentives for green industrial parks to promote sustainable development.
- Criteria and licensing procedures for green industrial parks.
- Law No. 28/2024/QH15 Amending the Environmental Protection Law dated September 25, 2024
- New requirements for Environmental Impact Assessments (EIA) to ensure project quality and environmental monitoring.
- Support for circular economy initiatives with financial and technical assistance for businesses.
- Draft Decree on Tax Administrative Procedure Reforms (expected October 2024)
- Simplified tax declaration and payment procedures with digital technology integration.
- Enhanced tax and financial data connectivity for better tax management.
This newsletter serves as a useful reference for enterprises and reflects the Tax Department’s commitment to creating a transparent and fair tax environment. For detailed information or specific advice, contact our tax experts. We are always ready to support you with the most suitable solutions!