I.VALUE – ADDED TAX (VAT)

1.Recover VAT refund for exported goods and services

On January 8, 2025, the General Department of Taxation issued Official Dispatch No. 99/TCT-CS responding to Official Dispatch No. 1222/CT-TTKT dated January 17, 2024 of Lang Son Provincial Tax Department on VAT as follows:

In case the Tax Department has refunded tax on exported goods and services without non-cash payment documents, the Tax Department will recover the refunded VAT amount without non-cash payment documents. in accordance with the provisions of the VAT Law and tax administration law.

2.VAT policy for investment projects and exported goods and services

On January 10, 2025, the General Department of Taxation issued Official Dispatch No. 147/TCT-CS responding to Document No. 149/TCTCCTTHC dated December 24, 2024 of the Prime Minister’s Administrative Procedure Reform Working Group transferring The content of reflections and recommendations of the Vietnam Association of Seafood Exporters and Producers on value-added tax (VAT) mechanisms, policies and administrative procedures are as follows:

Business establishments that have registered their business and registered to pay value added tax according to the deduction method (including newly established business establishments from investment projects) have new investment projects (including Investment projects are divided into many investment phases or investment items) according to the provisions of the Investment Law, are in the investment phase, have input value added tax on goods and services developed. arising during the accumulated investment period have not been fully deducted from 300 million VND or more is subject to consideration for value added tax refund. Dossier requesting VAT refund for investment projects shall comply with the provisions of Clause 2, Article 28 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance (amended and supplemented). supplemented in Circular No. 13/2023/TT-BTC).

In case a business establishment is not subject to VAT refund for an investment project, but has exported goods and services, if there is input VAT on investment, construction, or financing activities, fixed assets serving the production and trading of exported goods and services, business establishments can synthesize the input VAT amount of investment, construction, and fixed assets to determine the tax amount. VAT is refunded for exported goods and services stipulated in Decree 146/2017/ND-CP dated December 15, 2017 of the Government, Circular No. 25/2018/TT-BTC dated March 16, 2018 of the Ministry of Finance.

3.Deduction and refund of input VAT on exported goods and services

On January 10, 2025, the General Department of Taxation issued Official Dispatch No. 151/TCT-CS responding to Official Dispatch No. 6082/CTBTH-TTKT2 dated October 25, 2024 of Binh Thuan Provincial Tax Department on VAT as follows:

In case an enterprise has exporting goods abroad to a party having a related transaction, if the enterprise meets the conditions for deduction and refund of input tax on exported goods according to the provisions of VAT law. and meet the conditions of documents and procedures according to the provisions of tax administration law, the Tax Department will process VAT refund according to regulations and authority.

4.VAT policy

On January 15, 2025, the General Department of Taxation issued Official Letter No. 219/TCT-CS responding to Document No. 8330/CV-TCKT dated December 2, 2024 of Vietnam Electric Cable Joint Stock Company (CADIVI) regarding VAT policy is as follows:

On May 24, 2024, the General Department of Taxation issued official dispatch No. 2203/TCT-CS responding to Hai Phong City Tax Department and Vietnam Electric Cable Joint Stock Company regarding VAT policy, accordingly, wires and cables Electrolytic infusion in group 27320 is not subject to reduction of VAT rate from 10% to 8% from July 1, 2023 until the end of this date. December 31, 2023.

5.VAT policy for new investment projects

On January 17, 2025, the General Department of Taxation issued Official Dispatch No. 267/TCT-CS responding to Official Dispatch No. 7832/CT-TTKT1 dated August 27, 2024 of Thanh Hoa Provincial Tax Department on VAT policy as follows:

Pursuant to the above regulations, in case Thien Nam Garment Co., Ltd. has a new investment project (investment project is divided into many investment categories), is in the investment phase, and has an initial value added tax amount. of goods and services arising during the investment phase, after offsetting the value added tax payable on ongoing production and business activities (if any), if the value added tax amount is The accumulated input of the investment project has not been fully deducted from 300 million VND or more will receive a refund of value added tax.

It is recommended that Thanh Hoa Provincial Tax Department, based on the above regulations, based on the tax refund request dossier and specific tax refund period, determine the exact time the project officially comes into operation and the amount of value added tax. input of goods and services arising during the investment phase for consideration and handling according to regulations and authority.

6.VAT policy for real estate business activities

On January 17, 2025, the General Department of Taxation issued Official Dispatch No. 269/TCT-CS responding to Official Dispatch No. 8887/CT-TTKT2 dated October 3, 2024 of Thanh Hoa Provincial Tax Department on VAT policy as follows:

In the case of the transfer contract of the entire Aeon Mall Thanh Hoa Commercial Center project between the two-member Central South City Co., Ltd. and AEONMALL Vietnam Co., Ltd. signed on August 7, 2024 based on the Law on Business. Real estate business on November 28, 2023 is a real estate business activity and is subject to VAT according to regulations.

II.PERSONAL INCOME TAX

How to determine the book value of capital contribution in a limited liability company as a basis for calculating personal income tax

On January 14, 2025, the General Department of Taxation issued Official Dispatch No. 194/TCT-DNNCN responding to Official Dispatch No. 3217/CTPHY-NVDTPC dated October 29, 2024 of Phu Yen Provincial Tax Department requesting guidance on how to determine prices. The accounting book value of the capital contribution in a limited liability company as a basis for calculating personal income tax is as follows:

Pursuant to Point b, Clause 1, Article 16 of Circular No. 111/2013/TT-BTC dated August 15, 2013; Sections 18 and 29 Standard No. 01 General accounting standards issued and announced according to Decision No. 165/2002/QD-BTC dated December 31, 2002 of the Minister of Finance; Clauses 27 and 34, Article 4 of Law on Enterprises No. 59/2020/QH14 dated June 17, 2020, income for calculating personal income tax for income from inheritance of capital contributions in LLCs (two or more members) is determined based on the accounting book value on the company’s Balance Sheet at the time of preparing the most recent Balance Sheet according to the provisions of law on accounting before the time of registration of ownership of shares. capital. The book value on the Company’s Balance Sheet is determined on the difference between total assets minus liabilities, by subtracting the codes reflecting the assets on the Balance Sheet. number reflecting liabilities on the balance sheet (Code 100 + Code 200 – Code 300).

III.CORPORATE INCOME TAX

1.Corporate income tax policy for real estate transfer activities each time it arises

On January 7, 2025, the General Department of Taxation issued Official Dispatch No. 72/TCT-CS responding to Official Dispatch No. 3022/CTBPH-HKDCN dated September 6, 2024 of the Tax Department of Binh Phuoc Province on questions about corporate income tax declaration dossiers. from real estate transfer each time it arises in the case of Levahomes Real Estate Joint Stock Company as follows:

Pursuant to Points dd and e Clause 4 and Point b Clause 6 Article 8 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government regulating taxes declared monthly, quarterly, and year, declare each time a tax liability arises and declare each time a tax liability arises and declare tax finalization: In case the Company declares CIT according to the revenue and expense method with real estate transfer activities, it is not required to submit a CIT declaration from real estate transfer each time it arises (form 02/TNDN). ) but only have to declare the CIT finalization declaration (form 03/TNDN) and temporarily pay CIT quarterly (taxpayers who declare CIT according to the ratio-to-revenue method must submit the tax declaration). CIT for real estate transfer activities each time they arise).

According to the guidance in Joint Circular No. 88/2016/TTLT/BTC-BTNMT, “Income tax declaration from real estate transfer” is not a mandatory document component when determining financial obligations for real estate transfer activities.

Therefore, the regulations on CIT declaration in Decree No. 126/2020/ND-CP do not affect the dossier to determine the financial obligations of taxpayers according to the instructions in Joint Circular No. 88/2016/TTLT/ BTC-BTNMT mentioned above.

2.Corporate income tax policy related to capital transfer activities

On January 7, 2025, the General Department of Taxation issued Official Dispatch No. 73/TCT-CS responding to Official Dispatch No. 8125/CTDAN-TTKT2 dated October 17, 2024 of the Da Nang City Tax Department on problems related to tax operations. Capital transfer activities of Keengold Enterprises Co., Ltd. are as follows:

In cases where an enterprise has a transfer contract that does not stipulate the payment price or the tax authority has a basis to determine the payment price inconsistent with the market price, the tax authority has the right to inspect and set the transfer price. .

Pursuant to item a, clause 2, Article 14 of Circular No. 78/2014/TT-BTC, the transfer price needs to be determined at the time of transfer. Therefore, it is recommended that the Tax Department, based on contracts, records and relevant documents, apply appropriate methods of determining enterprise value, based on legal regulations on tax administration to determine the price. transfer for capital transfer activities of Keengold Enterprises Company Limited. In case the transfer price determination by the tax authority is not appropriate, it will be based on the appraisal price of professional valuation organizations with authority to determine the transfer price at the time of transfer in accordance with regulations.

3.Related to determining corporate income tax incentives

On January 8, 2025, the General Department of Taxation issued Official Dispatch No. 96/TCT-CS responding to Official Dispatch No. 2603/UBND-KTTH dated November 6, 2024 of the People’s Committee of Gia Lai province on determining incentives Corporate income tax for farm rental activities in Gia Lai province is as follows:

The law on corporate income tax stipulates that income of enterprises from farming, raising livestock, cultivating and processing agricultural and aquatic products in areas with extremely difficult socio-economic conditions is exempted. corporate income tax; Income from new investment projects implemented in extremely difficult social areas will enjoy a tax rate of 10% for 15 years, tax exemption for 4 years and a 50% reduction in corporate income tax payable for the next 9 years.

In case an enterprise does not properly implement the project’s objectives (an animal husbandry project) in the issued Investment Registration Certificate or Investment Policy Decision, the enterprise will not be entitled to corporate income tax incentives. business for income from farm rental activities mentioned above.

4.Corporate income tax policy related to investment incentives for secondary investors

On January 21, 2025, the General Department of Taxation issued Official Dispatch No. 330/TCT-CS responding to Official Dispatch No. 1274/CTSTR-NVDTPC dated October 28, 2024 of the Tax Department of Soc Trang province on questions about investment incentives for with secondary investors in Tran De Industrial Park, Soc Trang province of Ha Thanh Concrete Joint Stock Company as follows:

The current law on corporate income tax does not provide for corporate income tax incentives for investment projects in industrial parks at the level applicable to investment projects in areas with difficult socio-economic conditions. Tran De Industrial Park is located in Tran De district, Soc Trang province if determined to be a particularly difficult socio-economic area according to the list of investment incentive areas issued with Decree No. 218/2013/ND -CP and Decree No. 31/2020/ND-CP dated March 26, 2021 guiding the Investment Law. Accordingly, according to the provisions of Clause 3, Article 19 of Decree No. 218/2013/ND-CP: “During the same period of time, if an enterprise enjoys many different tax incentives for the same income, the enterprise can choose to apply the most beneficial tax incentive.” The Company has the right to choose to apply Apply the most beneficial preferential rates for income from investment projects in extremely difficult socio-economic areas if the investment incentive conditions are actually met.

In case the Company has income from construction investment projects and industrial park infrastructure business, it belongs to income from real estate transfer as prescribed in Article 13 of Decree No. 218/2013/ND-CP dated December 26, 2013 of the Government, they are not eligible for corporate income tax incentives.

IV.TAX POLICY

1.Regarding the payment of corporate income tax for tuition fees subsidized from the state budget

On January 7, 2025, the General Department of Taxation issued Official Dispatch No. 74/TCT-CS responding to Official Dispatch No. 2030/CTTTH-TTKT1 dated November 22, 2024 of the Tax Department of Thua Thien Hue Province on payment of corporate income tax for Tuition fees are subsidized from the state budget as follows:

1.1Regarding the use of invoices and documents

In case Hue Academy of Music is a public service unit that receives funding for tuition exemptions and reductions from the State Treasury, it is recorded into the institution’s tuition collection account and can be used autonomously. According to the actual number of subjects receiving compensation and current regulations on financial autonomy, it is necessary to base on the estimate withdrawal documents approved by the State Treasury according to the provisions of item b, Article 21 of the Decree. determine number 81/2021/ND-CP dated August 27, 2021 as documents for accounting and revenue recognition according to regulations.

The tuition exemption and reduction allowance is essentially a state tuition support payment on behalf of pupils and students, so it is not subject to VAT as prescribed in Clause 13, Article 4, Chapter I of Circular No. 219/ 2013/TT-BTC mentioned above.

1.2About corporate income tax policy

On November 28, 2017, the Government Office issued Notice No. 551/TB-VPCP announcing the conclusion 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 Enterprises must pay in the tax period equal to taxable income multiplied by (x) the 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.

Pursuant to the provisions of legal documents on tax and implementing the opinions of the Government Leaders in Document No. 551/TB-VPCP dated November 28, 2017 of the Government Office, on tax policies for With public service units in the field of education and training, the Ministry of Finance has issued guiding documents: Official dispatch No. 11391/BTC-TCT dated September 18, 2020 sent to the Inspectorate. State Audit and the Ministry of Education and Training, official dispatch No. 7616/BTC-TCT dated July 12, 2021 sent to the People’s Committee of Thua Thien Hue province, official dispatch No. 13387/BTC-CST dated December 4, 2023 sent Vietnam Academy of Agriculture. The General Department of Taxation has issued dispatch No. 3002/TCT-CS dated July 28, 2020 to the Tax Department of Binh Phuoc province and to the Tax Departments of provinces and centrally run cities on corporate income tax policy for public service units. established in the fields of health and education.

2.Related to determining personal income taxable income from real estate transfer of households and individuals

On January 17, 2025, the General Department of Taxation issued Official Dispatch No. 299/TCT-CS guiding the determination of personal income taxable income from real estate transfers of households and individuals as follows:

Based on the above regulations, in case a household or individual transfers land use rights (no assets attached to the land), the income subject to personal income tax is calculated according to the land price in the land price list.

In case a household or individual transfers real estate (land use rights and assets attached to land), the income subject to personal income tax is determined as the transfer price each time according to the provisions of the documents. Current law on personal income tax (Personal Income Tax Law, Decree No. 12/2015/ND-CP, Circular No. 92/2015/TT-BTC).

3.Foreign contractor tax policy

On January 17, 2025, the General Department of Taxation issued Official Dispatch No. 302/TCT-CS responding to Official Dispatch No. 3658/CTHTI-TTKT1 dated November 13, 2024 of the Tax Department of Ha Tinh Province on foreign contractor tax policy. as follows:

In case the Goods Supply Contract is signed between the Vietnamese Party and the Foreign Contractor under the DDU and DAP delivery terms under which the seller is responsible for transporting the goods to the delivery location designated by the buyer and If the contract does not include the provision of any services in Vietnam such as installation, testing, warranty, maintenance… (including cases where the accompanying service is free), the contract is only subject to tax. value added to goods at the import stage and apply the rate Corporate income tax is 1% of taxable revenue.