I. VALUE-ADDED TAX (VAT)

• VAT Refund for New Investment Projects

On December 20, 2024, the General Department of Taxation issued Official Dispatch No. 6141/TCT-KK, providing guidance on VAT policies as follows:

The investment project of Tac Cau Seafood Joint Stock Company is not eligible for a VAT refund for new investment projects as prescribed in Clause 3, Article 1 of Decree No. 49/2022/ND-CP dated July 29, 2022, by the Government.

• VAT Policies for Overseas Construction and Installation Activities

On December 30, 2024, the General Department of Taxation issued Official Dispatch No. 6361/TCT-CS responding to Official Dispatch No. 5433/H02-TDA dated November 11, 2024 of the Department of Construction and Barracks Management (Ministry of Public Security). Regarding VAT policy for construction and installation activities abroad as follows:

– Construction and installation activities in Laos are subject to a VAT rate of 0%.

– In case the Department of Construction and Barracks Management (Investor) signs a contract with a domestic contractor to purchase goods and materials for construction and installation of works in Laos and deliver the goods in Laos. According to the signed contract in Laos, the documentation procedures for domestic contractors selling goods to deduct or refund input VAT on exported goods shall comply with Clause 4, Article 17 of Circular No. 219/2013/TT-BTC day December 31, 2013 of the Ministry of Finance mentioned above.

II. PERSONAL INCOME TAX (PIT)

• Regarding the determination of personal income tax-free income of foreign experts

On December 6, 2024, the General Department of Taxation issued Official Dispatch No. 5720/TCT-DNNCN responding to Official Dispatch No. 3058/CTHPH-TTKT3 dated August 5, 2024 of Hai Phong City Tax Department on problems related to tax payment. Determine the tax-free income of foreign experts under the Kobelco Sankyu Japan Joint Venture as follows:

In case an expert implementing an ODA program or project of the Japanese Kobelco Sankyu Joint Venture meets the conditions to be a foreign expert as prescribed in Clause 5, Article 3, Chapter I of the Regulations on Foreign Experts implementing programs , ODA project (Issued together with Decision No. 119/2009/QD-TTg dated October 1, 2009 of the Prime Minister) and contract effective from date November 20, 2009, provide complete and valid documents according to the instructions in Article 4 of Joint Circular No. 12/2010/TTLT-BKHDT-BTC dated May 28, 2010 of the Ministry of Planning and Investment – Ministry of Finance. to be exempted from personal income tax for income from salaries and wages implementing ODA programs and projects.

• Personal income tax policy

On December 12, 2024, the General Department of Taxation issued Official Dispatch No. 5874/TCT-DNNCN responding to Official Dispatch No. 2410-219/CV/EVPC-TCT dated October 31, 2024 of Ebara Vietnam Pump Company Limited on the Determine the time to calculate income subject to personal income tax for individuals who are citizens of countries or territories that have signed a double taxation avoidance agreement with Vietnam as follows: after:

In case the taxpayer is a foreign worker (in countries and territories that have signed an Agreement with Vietnam on avoiding double taxation and preventing tax evasion for taxes levied on income), first arriving in Vietnam in February 2022 and qualifying as an individual residing in Vietnam when performing personal income tax finalization in 2022, the individual must compile global income from February 2022. 2022 to May December 2022 and simultaneously calculate family deductions for themselves from February 2022 to December 2022 (calculated in full monthly) and the individual is responsible for finalizing with the tax authority.

• Regarding calculating family deductions for dependents (NPT)

On December 18, 2024, the General Department of Taxation issued Official Letter No. 6068/TCT-DNNCN responding to Document No. 54737 dated October 29, 2024 of Mr. Vo Van Thang on calculating family deductions for NPTs who are father-in-law and mother-in-law when making personal income tax finalization in 2023 as follows:

In case Mr. Vo Van Thang has not yet calculated family deductions for dependents who are father-in-law and mother-in-law in the 2023 tax year, the deduction for dependents will be calculated from the month the care obligation arises when he makes the decision tax calculation and registration for deductions.

III.CORPORATE INCOME TAX (CIT)

• CIT Incentives for Investment Projects

On December 20, 2024, the General Department of Taxation issued Official Dispatch No. 6138/TCT-CS responding to Official Dispatch No. 5752/CT-TTKT3 dated August 19, 2024 of the Tax Department of Lao Cai province related to policy problems. CIT is as follows:

In Document No. 85/SKH-TD dated January 15, 2021 of the Department of Planning and Investment of Lao Cai province on providing opinions on determining incentives for the Sa Pa town clean water supply system construction project ,Sa Pa district, Lao Cai province (Capacity 15,000 m3/day and night) invested in accordance with the law on investment, not subject to the issuance of investment registration certificate according to regulations.

In case Boo Sa Pa Clean Water Joint Stock Company was established to implement the project to build a clean water supply system in Sa Pa Town, it is not excluded as prescribed in Point 5b, Clause 3, Article 10 of Circular No. 96 /2015/TT-BTC dated June 22, 2015 of the Ministry of Finance and meets the conditions for investment incentives, Boo Sa Pa Clean Water Joint Stock Company is entitled to corporate income tax incentives based on actual conditions.

• Corporate income tax policy on costs of implementing measures to reduce greenhouse gas emissions

On December 20, 2024, the General Department of Taxation issued Official Letter No. 6135/TCT-CS responding to Document No. 2085/PLX-TCKT dated August 28, 2024 of Vietnam Petroleum Group on corporate income tax policy. The cost of implementing measures to reduce greenhouse gas emissions is as follows:

Expenditures through afforestation development are not included in deductible expenses when determining income subject to corporate income tax because the expenses are not related to production and business activities of Vietnam Petroleum Group.

Expenditures through funding for health and education associated with social security activities if they meet the conditions are expenditures for financing health and education specified at Point 2.22, Point 2.23, Article 4 of Circular No. 96 /2015/TT-BTC are included in deductible expenses when determining income subject to corporate income tax.

• Related to the allocation and temporary payment of corporate income tax

On December 31, 2024, the General Department of Taxation issued Official Dispatch No. 6367/TCT-KK responding to Official Dispatch No. 03/2024/CPV-CV dated October 28, 2024 of C.P Vietnam Livestock Joint Stock Company on the Allocate and temporarily pay corporate income tax (CIT) in 2021 to local Tax Departments as follows:

Regarding determining the amount of temporary CIT payment for the 2021 tax period, as of the effective date of Decree No. 91/2022/ND-CP, the Company will base on the amount of CIT temporarily paid in the first 3 quarters of the period. calculate tax in 2021 to apply the provision of temporary payment of corporate income tax in Clause 1, Article 2 of Decree No. 91/2022/ND-CP.

The calculation of late payment interest for the temporarily underpaid CIT amount is according to the prescribed ratio determined by the directly managing tax agency for the entire tax amount payable by the Company (including the tax amount payable in the local area receive allocation) according to the provisions of Point k, Clause 1, Article 5 of Circular No. 80/2021/TT-BTC.

IV. TAX POLICY

• Related to business individuals and business households practicing real estate brokerage

On December 2, 2024, the General Department of Taxation issued Official Dispatch No. 5621/TCT-CS responding to Ms. Vu Thi Nhat’s petition sent on September 20, 2024 related to business individuals and business households practicing Real estate brokers as follows:

Based on the above regulations, in case business households or individual businesses have income from real estate brokerage activities, declare and pay taxes according to regulations on business households and individual businesses practicing independently. If the business household or individual business has been granted a real estate brokerage practice certificate, has business registration according to the law on registration and has tax registration.

In case business households or individuals violate tax registration procedures, tax declaration and tax payment procedures, they will be penalized according to regulations.

• Corporate income tax policy for public service units in the health sector.

On December 3, 2024, the General Department of Taxation issued Official Dispatch No. 5634/TCT-CS responding to Official Dispatch No. 1828/CTTTH-TTKT1 dated October 24, 2024 of the Tax Department of Thua Thien Hue Province on corporate income tax policy for taxpayers. Public service units in the health sector are as follows:

On November 28, 2017, the Government Office issued Notice No. 551/TB-VPCP announcing the concluding opinions of the Government Leaders on tax policy for public service units in the fields of health and education. education and training: “(1). Taxes for public service units comply with the provisions of tax law.“

Pursuant to the legal regulations on corporate income tax, in principle, a public service unit with business activities in goods and services with income subject to corporate income tax can determine revenue, costs, and income, then the income tax amount will be determined. Enterprises must pay in the period equal to taxable income (x) at tax rate; In cases where these units can account for revenue but cannot determine costs and income of business activities, they shall declare and pay corporate income tax calculated at a percentage of revenue from sales of goods and services according to the law. stipulated in Article 11 of Decree No. 218/2013/ND-CP dated December 26, 2013 of the Government. For the field of health and medical examination and treatment, this rate is 2%.

• About VAT policy

On December 17, 2024, the General Department of Taxation issued Official Dispatch No. 6007/TCT-CS on VAT policy as follows:

In case the Tax Department determines that “foreign traders are present in Vietnam”, goods from domestic enterprises (Vietnamese enterprises) are exported to foreign traders and foreign traders designate delivery in Vietnam. Nam is not determined as on-site exported goods according to the provisions of Point c, Clause 1, Article 35 of Decree No. 08/2015/ND-CP, and the 0% VAT rate is not applied. In case a domestic enterprise delivers goods to an export processing enterprise as designated by a foreign trader, the Tax Department is requested to determine whether it meets the conditions of the contract and bank payment documents to apply the tax rate 0% according to regulations.

• Related to determining subjects subject to natural resources tax and environmental protection fees

On December 17, 2024, the General Department of Taxation issued Official Dispatch No. 6039/TCT-CS responding to Official Dispatch No. 8571/CTQNI-TTHT dated September 12, 2024 of the Tax Department of Quang Ninh Province on determining subjects subject to financial tax. Resources and environmental protection fees are as follows:

In case a mineral mining enterprise is subject to fees as prescribed in Article 2 of Decree No. 27/2023/ND-CP, it must declare and pay environmental protection fees for mineral exploitation according to regulations provisions of the law.

In case the state management agency in charge of minerals has confirmed that “porous sand” is not a mineral and is not subject to natural resources tax and environmental protection fees as prescribed in Article 2 of the Law on Natural Resources Tax and Article 2 of Decree No. 27/2023/ND-CP, “porous sand” is not subject to regulation by the Law on Natural Resources Tax and Decree No. 27/2023/ND-CP dated May 31, 2023 of the Government.

• Related to business cooperation contracts

On December 26, 2024, the General Department of Taxation issued Official Dispatch No. 6274/TCT-CS responding to Dispatch No. 03/NYD dated October 4, 2024 of NYD Line Company Limited on tax policy as follows:

The company issues value-added invoices to customers and declares value-added tax for the entire revenue of the business cooperation contract. When dividing revenue to individuals under a business cooperation contract, the Company is responsible for deducting personal income tax and declaring and paying tax on behalf of the individual at a percentage of the individual’s earned revenue corresponding to each industry. business lines specified in Appendix I issued with Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Ministry of Finance.

Regarding the inclusion of deductible expenses for payments to partners under business cooperation contracts, the Ministry of Finance has provided guidance in Official Dispatch No. 4597/BTC-TCT dated April 9, 2015 and Official Dispatch No. 18512/BTC-TCT dated December 27, 2016.

In case of business cooperation organization with an individual who is a business household or an individual doing business according to the provisions of Clause 5, Article 51 of the Law on Tax Administration, and the individual has a line of business operating in the same line of business cooperation. For organizations, organizations and individuals shall make their own tax declaration corresponding to the actual results of business cooperation according to regulations.

• Related to corporate income tax incentives for farming and animal husbandry activities

On December 27, 2024, the General Department of Taxation issued Official Dispatch No. 6324/TCT-CS responding to Official Dispatch No. 2403/CTGLA-TTKT3 dated November 27, 2024 of Gia Lai Provincial Tax Department on problems with income tax incentives enterprise (CIT) as follows:

In case the Company’s income is determined to be income from farming and animal husbandry activities in areas with extremely difficult socio-economic conditions and the Company meets the conditions for application CIT incentives in Article 18 of Circular No. 78/2014/TT-BTC dated June 18, 2014, these incomes are eligible for CIT incentives as prescribed in Clause 1, Article 6 of Circular No. 96/2015/TT-BTC.

• Regarding corporate income tax incentives for new investment projects

On December 27, 2024, the General Department of Taxation issued official dispatch No. 6325/TCT-CS responding to document No. 2009/2024/CV dated September 27, 2024 of Lotes Vietnam Co., Ltd. guiding income tax policy enterprise (CIT) as follows:

In case Lotes Vietnam Co., Ltd. was granted an investment certificate on April 19, 2021, implementing the first investment project according to the investment certificate “Lotes Vietnam Factory Project” (Project 1) at Phuc Khanh Industrial Park. On August 17, 2021, the Company continued to be granted an investment certificate to implement the first investment project according to the investment certificate “Lotes Thai Thuy Vietnam Factory Project” (Project 2) in Phu Quoc Area. Lien Ha Thai Industrial Park, if: Project 2 of the Company meets the conditions for new investment projects according to the provisions of law on corporate income tax, it will enjoy corporate income tax incentives according to the investment category new investment based on real conditions.

• Related to the Customer Loyalty Program (VINCLUB) of Vingroup and its partners

On December 30, 2024, the General Department of Taxation issued official dispatch No. 6342/TCT-CS responding to document No. 330/2024/CV-VINGROUP dated August 1, 2024 and document No. 524/2024/CV-VINGROUP of Vingroup Corporation – Joint Stock Company (Group) regarding tax policy is as follows:

In case Vingroup Corporation – Joint Stock Company, VINCLUB Company, Member Companies of Vingroup Group and Partners participate in the VINCLUB Program (according to the list of Participation List that VINCLUB Joint Stock Company has notified to competent authority) to ensure compliance with the provisions of the 2005 Commercial Law and its guiding documents:

1. When collecting management fees from member companies of the Group and Partners participating in the VINCLUB Program, VINCLUB Company is responsible for preparing invoices according to the provisions of Decree No. 123/2020/ND-CP mentioned above. VAT rates are according to the provisions of value added tax law from time to time. VINCLUB Company and its partners are responsible for storing all records and documents related to the payment of management service fees to present to competent state agencies during inspection and examination.

For receipts and payments on behalf of VINCLUB Company related to the Customer Loyalty Program that are not related to the sale of goods or provision of services of VINCLUB Company, it shall comply with the provisions in Point d, Clause 7 Article 5 Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance.

2. Sellers (member companies of Vingroup or partners participating in the VINCLUB Program according to the Participation List that VINCLUB Joint Stock Company has notified to competent authorities) when providing goods and services Services with or without accumulating points/focal points for customers are carried out as follows:
3. a) About VAT

a.1) In case a customer purchases goods or services without using the accumulated points to be deducted, the seller must record the full value of VAT calculation as the entire value of the goods and services provided (without deduction of accumulated value). points) on the VAT invoice. At the same time, the customer’s accumulated points are determined on the total value of goods and services provided (prices include VAT) and this accumulated point value is shown on optional content on the invoice. VAT delivered to customers according to the provisions of Clause 15, Article 10 of Decree No. 123/2020/ND-CP of the Government.

a.2) In case a customer purchases goods or services using the determined accumulated points, proceed as follows:

– In case the customer uses accumulated points to purchase goods and services under the Promotion Program to ensure compliance with the provisions of commercial law, the VAT calculation price shall comply with the provisions in Clause 22, Article 7 of Circular No. 219/2013/TT-BTC (in which the target value (the number of points accumulated by the customer to be deducted) is determined as the commercial discount for customers). The invoice (as prescribed in Article 10 of Decree No. 123/2020/ND-CP of the Government) must show the full value of the goods and services provided; customer focus value; VAT calculation price; corresponding VAT amount.

– In cases where customers use accumulated points to purchase goods and services that are not part of the Promotion Program, there will be no direct deduction on the selling price of goods and services; The value of goods and services subject to VAT is the value of goods and services provided without subtracting the value of accumulated points.

1. b) Regarding corporate income tax:

Revenue to calculate income subject to corporate income tax in all cases is the entire proceeds from the sale of goods/service provision, including subsidies, surcharges, and extras that the seller is entitled to according to the provisions of law on corporate income tax.

3. In case VINCLUB Company complies with the legal regulations on Promotion Programs, if it sells points to organizations and individuals (regardless of member companies of Vingroup, Partners or other independent customers), regardless of whether these organizations or individuals have used points to participate in the VINCLUB Program or not, VINCLUB Company will issue VAT invoices with a tax rate of 10% according to instructions. in Article 11 Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance.

Member companies of Vingroup, partners participating in the VINCLUB Program and VINCLUB Company are responsible for storing and tracking documents related to the Customer Loyalty Program for each participating Company. Participate in the Program such as: Point accumulation report which lists the number of points that member companies/partners participating in this Program have given to customers (converted into the corresponding amount of money),… and is responsible for presenting it at the request of the competent authority authority when conducting inspections and examinations.

V. OTHER

• Related to foreign contractor tax

On December 18, 2024, the General Department of Taxation issued Official Dispatch No. 6061/TCT-CS responding to Official Dispatch No. 4053/CTLAN-TTKT2 dated September 11, 2024 of Long An Provincial Tax Department on determining foreign contractor tax. In addition, payable in the case of TTC Duc Hue – Long An Electricity Joint Stock Company is as follows:

Long An Provincial Tax Department is requested to review the procedures and documents for tax exemption under the Agreement, in case foreign contractors are subject to the Double Taxation Avoidance Agreement and have submitted application documents. Apply the Agreement before the tax authority conducts the inspection. If the dossier is eligible for tax exemption under the Agreement, please request the Tax Department of Long An province to study and process the tax exemption dossier according to the law.

• Abolish all Circular No. 212/2015/TT-BTC dated December 31, 2015 of the Minister of Finance guiding corporate income tax policies on environmental protection activities specified in the Decree No. 19/2015/ND-CP dated February 14, 2015 of the Government detailing the implementation of a number of articles of the Law on Environmental Protection

On December 24, 2024, the Ministry of Finance issued Circular No. 87/2024/TT as follows:

Article 1. Abolish the entire Circular

Abolish all Circular No. 212/2015/TT-BTC dated December 31, 2015 of the Minister of Finance guiding corporate income tax policies on environmental protection activities specified in Decree No. 19 /2015/ND-CP dated February 14, 2015 of the Government detailing the implementation of a number of articles of the Law on Environmental Protection, from the date of Decree No. 08/2022/ND-CP dated January 10, 2022 of the Government detailing a number of articles of the Law on Environmental Protection in effect.

Article 2. Implementation provisions

1. This Circular takes effect from February 10, 2025.
2. Heads of units under the Ministry and relevant agencies are responsible for implementing this Circular./.