I. Tax policy
Regulations on high-tech zones
On February 1, 2024, the Government issued Decree 10/2024/ND-CP regulating high-tech zones.
Agency in charge of establishing and expanding high-tech zones:
– Science and technology
– Ministry of Agriculture and Rural Development
Establishment order and procedures:
- The Provincial People’s Committee prepares documents according to regulations and sends them to the agency in charge of establishing and expanding the high-tech park
- Within 05 working days from the date of receiving complete dossiers for establishment and expansion of high-tech zones according to regulations, the presiding agency shall send dossiers and documents to seek opinions from competent state agencies. relate to;
- Within 20 working days from the date of receipt of the written opinion and accompanying documents, the consulted agency is responsible for sending written opinions on the content within the scope and field. their state management to the agency for comments;
- Within 05 working days from the date of receiving complete written comments, the agency in charge of the application for establishment and expansion of the high-tech zone will evaluate and synthesize the dossier according to the corresponding provisions in Clause 3 of this Article applies to the establishment and expansion of high-tech zones.
- Within 05 working days from the date of receipt of the application for establishment and expansion of the high-tech park, which has been edited and supplemented as required (if any), the agency in charge of the establishment, Expansion of high-tech zones prepare documents according to regulations and submit them to the Prime Minister for consideration and decision on establishment and expansion of high-tech zones.
Capital sources for investment in construction and development of high-tech zones:
– Investment capital for construction and development of high-tech zones includes: capital from the state budget; investment capital from organizations, individuals and other legal capital sources.
– The State prioritizes support for development investment capital from the state budget, official development assistance (ODA), credit support, preferential credit interest rate compensation and other supports according to regulations. of the law to prepare for investment, site clearance, and construction of technical infrastructure systems, social infrastructure, and infrastructure serving the development of science and technology in high-tech zones.
– The State encourages investors, organizations and individuals to invest in building technical infrastructure systems, social infrastructure, and infrastructure serving the development of science and technology in technology parks. high in the form of business investment projects, investment in the public-private partnership mode, socialization and other forms according to the provisions of law; Voluntarily advance capital to serve compensation, support, resettlement and site clearance for high-tech zones.
High-tech zones are investment incentive areas, enjoying investment incentives applicable to areas with particularly difficult socio-economic conditions according to the provisions of investment law.
This Decree takes effect from March 25, 2024.
Conditions for exemption of corporate income tax and personal income tax in Ho Chi Minh City according to Decree 11/2024/ND-CP
On February 2, 2024, the Government issued Decree 11/2024/ND-CP regulating corporate income tax exemption and personal income tax exemption in Ho Chi Minh City as follows:
Exemption from corporate income tax
– Innovative startups, science and technology organizations, innovation centers and intermediary organizations supporting innovative startups (collectively referred to as enterprises) with income from startup activities Innovative businesses arising in Ho Chi Minh City are exempt from corporate income tax on this income.
The tax exemption period is 05 years from the time the enterprise incurs corporate income tax payable from innovative start-up activities arising in Ho Chi Minh City during Resolution No. 98/ 2023/QH15 takes effect. After Resolution No. 98/2023/QH15 expires, the tax exemption period as prescribed in this clause has not ended, the enterprise will continue to implement it until the tax exemption period ends.
In case an enterprise is in the exemption period or is subject to corporate income tax exemption under exemption conditions other than those prescribed in this Decree, it can choose to enjoy tax exemption under other tax exemption conditions or tax exemption according to regulations. specified in this Decree for the remaining time.
– During the time Resolution No. 98/2023/QH15 is in effect, organizations that have income from transferring capital and the right to contribute capital to creative startups in Ho Chi Minh City are exempt from tax. corporate income for this income.
Income from capital transfer and capital contribution rights specified in this Clause is income earned from transferring part or all of the capital and capital contribution rights to creative start-up enterprises in Ho Chi Minh City ( including cases of business sale), except income from transfer of stocks, bonds, fund certificates and other securities according to regulations.
Exemption from personal income tax
– During the time Resolution No. 98/2023/QH15 takes effect, individuals with income from transferring capital contributions and the right to contribute capital to creative start-up enterprises in Ho Chi Minh City are exempt from tax. personal income for this income.
This Decree takes effect from the date of signing.
The company is in the capital construction investment phase and has not yet started production and business activities and incurs interest on bank deposits, which can be offset against loan interest if the interest income from deposits and payments is This loan interest is eligible for capitalization
On January 23, 2024, the Tax Department of Vinh Phuc Province issued Official Dispatch No. 169/CTVPH-TTHT guiding deposit interest income during the investment period as follows: In case the Company’s new investment project is in the During the capital construction investment phase, not yet put into production and business activities, if the Company incurs bank deposit interest income, it will be offset between deposit interest income and loan interest payments (if any). ) if these deposit interest revenues and loan interest payments are eligible for capitalization according to the provisions of accounting law. In case the resulting deposit interest income is higher than the loan interest expense according to regulations, after compensation, the remaining difference is recorded as a decrease in the investment value and is not included in the operating income.
Do not calculate late tax payment interest for goods and services paid for with state budget capital but not yet paid.
On January 22, 2024, the General Department of Taxation issued Official Dispatch No. 269/TCT-QLN on not calculating late payment interest as follows: Taxpayers supplying goods and services are paid with state budget capital. but not yet paid, no late payment interest will be charged. The tax debt amount excluding late payment interest at each time does not exceed the unpaid state budget amount. The time for not calculating late payment interest is from the date the unit using the state budget must pay the taxpayer but has not yet paid to the date the unit using the state budget makes payment to the taxpayer.
II. Value Added Tax (“VAT”)
1) Upon the payment due date of the contract or export contract appendix, if payment documents cannot be provided, the refunded tax will be recovered.
On January 19, 2024, the General Department of Taxation issued Official Dispatch No. 257/TCT-CS on tax policy as follows: In case of payment due date of the contract or export contract appendix of the Company but the Company does not Providing payment documents does not ensure the conditions for VAT deduction and refund. The Tax Department recovers the refunded tax amount and handles it in accordance with the provisions of the VAT Law and the Tax Administration Law.
2) VAT policy when merging businesses.
On January 22, 2024, Hanoi Tax Department issued Official Dispatch No. 4267/CTHN-TTHT on VAT policy when merging businesses as follows:
A company (hereinafter referred to as the merged company) can merge into another company (hereinafter referred to as the merging company) by transferring all assets, rights, obligations and legal interests. to the merged company, and at the same time terminate the existence of the merged company.
After the merging company registers its business, the merged company ceases to exist; The merged company enjoys the legal rights and benefits and is responsible for the obligations, unpaid debts, labor contracts and other property obligations of the merged company. The merging companies naturally inherit all legal rights, obligations, and interests of the merged companies according to the merger contract as prescribed in Article 201 of the Law on Enterprises No. 59/2020/QH14.
In case the Company pays value-added tax according to the deduction method and has input value-added tax that has not been fully deducted, it will receive a refund of value-added tax when carrying out business merger according to the provisions of Article 1 Circular No. 130/2016/TT-BTC.
3) Issue invoices for internal consumption.
On January 8, 2024, Binh Duong Provincial Tax Department issued Official Dispatch No. 207/CTBDU-TTHT guiding the issuance of internal consumption invoices as follows: In case the Company purchases goods to serve consumption activities, For internal use, invoices must be made according to the provisions of Clause 1, Article 4 of Decree No. 123/2020/ND-CP and must fully record the content as prescribed in Article 10 of Decree No. 123/2020/ND-CP . In case goods are transferred internally to continue the Company’s production process, invoices will not be issued.
III. Corporate income tax (“CIT”)
1) The act of not paying or underpaying temporary corporate income tax is not subject to administrative penalties for understatement of tax.
On January 17, 2024, the General Department of Taxation issued Official Dispatch No. 230/TCT-KK on late payment interest for corporate income tax as follows:
Corporate income tax is a type of annual settlement declaration and temporary tax payment quarterly. According to the provisions of the Law on Tax Administration and guiding documents, taxpayers are not obliged to declare or submit quarterly corporate income tax declarations. Taxpayers must determine for themselves the amount of quarterly corporate income tax temporarily paid. The temporarily paid corporate income tax amount declared on the annual tax finalization declaration is the actual tax amount paid by the taxpayer; The act of not paying or underpaying temporarily paid corporate income tax is not subject to administrative penalties for under-declaring tax prescribed in Article 16 of Decree No. 125/2020/ND-CP dated October 19, 2020.
2) Import tax arrears and environmental protection tax (not subject to fraud or tax evasion) are deductible expenses when determining income subject to corporate income tax.
On December 20, 2203, the General Department of Taxation issued Official Dispatch No. 5824/TCT-CS guiding how to determine expenses deductible from corporate income tax as follows: Pursuant to Article 4 of Circular No. 96/2015/TT-BTC dated December 22 /6/2015 of the Ministry of Finance amending and supplementing Article 6 of Circular No. 78/2014/TT-BTC, arrears of import tax and environmental protection tax from August 17, 2018 2018 to 15 August 2023 of My Lan Joint Stock Company according to the decision of the customs authority (no penalty for fraud or tax evasion) is not included in the non-deductible expenses when determining income subject to corporate income tax. .
3) Companies established before 2014 but not yet put into operation, and on January 1, 2014, with an investment license or adjusted investment certificate, are entitled to corporate income tax incentives according to the provisions of Article 15, Article 15. 16 Decree No. 218/2013/ND-CP
On January 10, 2024, the General Department of Taxation issued Official Dispatch No. 116/TCT-CS guiding on corporate income tax policy as follows: In case the Company was established on December 28, 2007 to implement a housing investment project Steel machine. Accordingly, the steel factory investment project was granted an Investment License or Investment Certificate before January 1, 2014 but is in the investment process, has not yet come into operation, has not yet generated revenue and is If you issue a Certificate of Adjustment to an Investment License or an Adjusted Investment Certificate from January 1, 2014, you will enjoy corporate income tax incentives specified in Article 15 and Article 16 of Decree No. 218/2013/ ND-CP of the Government. The period of applying corporate income tax incentives for this investment project is determined from the time the steel factory project has revenue as prescribed in Decree No. 218/2013/ND-CP and other legal documents. instruction.
For income from warehouse rental activities arising in 2013 and steel product trading activities, raw materials trading arising in 2014 are commercial business activities not associated with investment activities of the project. Investment project of the Steel Factory, the Company is not entitled to corporate income tax incentives for income from warehouse rental activities, steel product trading activities, and raw and fuel trading activities.
IV. Customs
Amend and supplement regulations on risk management in customs operations
On January 29, 2024, the Minister of Finance issued Circular 06/2024/TT-BTC amending and supplementing a number of articles of Circular 81/2019/TT-BTC regulating risk management in operations customs operations.
Accordingly, adjusting ranks 7, 8, 9, Article 14. Classification of risk level of customs declarants as follows:
– Rank 7: The customs declarant has not had any export or import activities in the past 365 days from the date of assessment and has never been handled for violations in the customs and field sectors. others are sanctioned by customs authorities (instead of “no violation” as currently).
– Rank 8: The customs declarant has not had any export or import activities in the past 365 days from the date of assessment and has been handled for violations in the field of customs and customs. other areas sanctioned by the agency, except for the acts specified for Class 9 (instead of “handled for violations except for the acts specified for Class 9 in this Article” as currently).
– Rank 9: The customs declarant has not had any export or import activities in the past 365 days from the date of assessment and has been handled for one of the violations specified in Section I, Section II Appendix VI issued with Circular 06/2024/TT-BTC (instead of “customs declarants with export and import activities” as currently).
Adjust Levels 2, 3, 4 Article 10. Classification of the level of legal compliance for customs declarants as follows:
Level 2: Enterprises comply with a very high level. (instead of “high compliance” as currently)
Level 3: Enterprises comply with a high level. (instead of “average compliance” as currently)
Level 4: Enterprises comply with the average level. (instead of “low compliance” as currently)
Supplementing Article 15. Criteria for classifying the risk level of customs declarants, specifically as follows:
The risk level of customs declarants from Class 2 to Class 6 is classified according to the provisions of Article 15 of Decree No. 08/2015/ND-CP and the following regulations:
- Certificate of conformity to ISO 9001 International Standard.
- Results of inspection by the Customs authority on information related to conditions for establishment and recognition of port, warehouse and yard enterprises; Customs inspection results of port, warehouse and yard businesses in implementing regulations on customs supervision for exported, imported and transited goods.
- Frequency, nature, extent of violations and compliance with tax administration laws; quality measurement standards.
- Signs of risk, signs of violation of tax administration and tax laws.
- Cooperate with customs authorities in providing business information.
Circular 06/2024/TT-BTC takes effect from March 15, 2024. The content specified in Clause 4, Clause 5, Clause 6, Article 1 of Circular 06/2024/TT-BTC takes effect from July 15, 2025.