1. Value-Added Tax (VAT)

Official Letter No. 3801/CTLAN-TTHT dated 23/08/2024 from Ho Chi Minh City Tax Department

• Expenses for gifting mooncakes: Input VAT is deductible if valid invoices are presented.
• Invoice requirements: The invoice must state the company’s name, purpose of purchase, and detailed information such as invoice number and issue date.
• Documentation requirements: The company must keep supporting documentation to substantiate these expenses for future tax inspections, including payment receipts if applicable.

Official Letter No. 3855/TCT-KK dated 29/08/2024

• VAT refund declaration for investment projects: Detailed instructions for procedures and necessary documents for VAT refunds for investment projects.
• Project completion date: Used as a basis to calculate the refundable VAT.
• Supporting documents: Include invoices, contracts, and acceptance reports related to investment expenses.

Official Letter No. 3187/CTBDI-TTHT dated 30/08/2024

• Export samples: Even without collecting payment, invoices must be issued and output VAT declared.
• Transparency in declarations: Detailed records of goods, export purpose, and shipping method help facilitate tax audits.

Official Letter No. 3879/TCT-KK dated 30/08/2024

• Supplementary tax declarations: Companies must file additional tax returns to qualify for VAT refunds.
• Separating input VAT: Clearly distinguish input VAT on exports versus domestic sales.
• Consequences of errors: Misreporting can lead to back taxes and penalties, so companies should review declarations carefully.

Official Letter No. 969/CTVLO-TTHT dated 09/09/2024

• Utility invoice VAT deduction: Input VAT is deductible if the invoice is in the company’s name and paid via bank transfer.
• Payment requirements: Bank transfers are mandatory to substantiate the legitimacy and minimize risks during inspections.

2. Personal Income Tax (PIT)

Official Letter No. 3505/TCT-DNNCN dated 09/08/2024

• Exemption on the sale of sole residential property: Individuals are exempt from PIT on the sale of their only residential property if all legal conditions are met.
• Proof of ownership: Documentation like the land use certificate or sales contract is required to qualify for the exemption.

Official Letter No. 7183/CTHDU-TTHT dated 16/08/2024

• Annual PIT finalization for foreign workers: Detailed instructions on how to declare and finalize PIT for foreign employees in Vietnam.
• Necessary documents: Companies must provide complete records of income, employment contracts, and wage statements.

3. Corporate Income Tax (CIT)

Official Letter No. 5714/CTBGI-TTHT dated 12/08/2024

• Adding industries in industrial zones: Companies remain eligible for CIT incentives if legal requirements are met.
• Reviewing incentive conditions: Companies must verify conditions like minimum investment level and job creation to ensure eligibility.

Official Letter No. 3684/TCT-CS dated 22/08/2024

• Tax policy for new investment projects: Guidance on the tax benefits and obligations for new investment projects, including tax incentives and reporting of incurred losses.
• Tax declaration documents: Accurate preparation of financial reports and other relevant documents is necessary to avoid errors in tax filing.

Official Letter No. 44614/CTHN-TTHT dated 05/08/2024

• Tax declarations on asset liquidation: Companies must fulfill their tax obligations for liquidated assets.
• Required documentation: Liquidation records must include meeting minutes, liquidation contracts, and supporting documentation for the transactions.

4. New Circulars, Decrees, Laws, and Drafts Issued in August 2024

Circular No. 75/2024/TT-BTC dated 10/08/2024

• Regulations on the management and use of public assets: This circular guides government agencies on the transparent management of public assets.
• Detailed procedures for asset registration, declaration, and valuation provide a foundation for managing state assets effectively.

Decree No. 58/2024/NĐ-CP dated 15/08/2024

• Tax incentives for innovative startups: Decree introduces tax benefits for technology and innovation-focused startups to drive high-tech growth in Vietnam.
• Detailed policies on reduced tax rates and exemptions for qualifying innovative startups.

Amendment to the Public Investment Law No. 27/2024/QH15 issued on 20/08/2024

• Additional provisions for public investment in priority areas: This amendment encourages infrastructure development in economically disadvantaged areas.
• Regulations on capital allocation and project approval criteria in key economic regions.

Draft Circular on Electronic Invoice Management (expected in September 2024)

• Streamlined electronic invoicing processes: The draft proposes simplified rules for issuing, storing, and managing electronic invoices.
• Additional guidance on linking company invoice systems with the tax authority to enhance monitoring and reduce fraud.

This newsletter is not only a useful reference document for businesses but also reflects the Tax Department’s commitment to building a transparent and fair tax environment. For more detailed information or specific advice regarding your situation, please contact our tax experts. We are always ready to assist you with the most suitable solutions!