I. Tax policy

1. Tax policy and registration fees for vehicles without documents transferring vehicle ownership

On May 10, 2024, the General Department of Taxation issued Official Dispatch No. 1978/TCT-CS guiding tax policies and registration fees for vehicles without documents transferring vehicle ownership as follows:

The police agency is responsible for the legal records of the vehicle and the vehicle owner, receiving and revoking the Vehicle Registration Certificate, keeping the vehicle’s legal records and issuing the Certificate of Registration Revocation, Vehicle license plate as prescribed in Circular No. 24/2023/TT-BCA mentioned above. Therefore, if the police agency allows vehicle registration in cases where ownership has been transferred to many organizations or individuals, the tax agency will collect the registration fee according to regulations

For cases where an organization sells cars to individuals but does not issue sales invoices to customers, the Tax Department where the property owner registers ownership and use rights is responsible for directing the Management Branches tax on vehicle sellers (in cases where the vehicle sale organization and the buyer are located in the same province) or a written request to the local tax authority where the vehicle sale organization is located (in the case of vehicle sales organizations). The selling organization and the buyer are not located in the same province) carry out inspections on car selling organizations, based on the unit’s accounting books, documents and records, comparing them with the provisions of tax law. to calculate and collect value added tax and corporate income tax; At the same time, request the car sales organization to issue invoices to car buyers in accordance with the provisions of law. The local tax authority that receives the request to verify the operating status of the car sales organization is responsible for responding to the tax authority requesting verification within no later than 05 working days from the date of receipt of the document request.

In case the tax authority where the car sales organization is located determines that the business has fled, dissolved, or gone bankrupt, the car user now registers the right to own and use the car, but there is no invoice in the file purchasing goods according to regulations, the issuance of invoices each time they arise will comply with the provisions of Decree No.123/2020/ND-CP dated October 19, 2020 of the Government regulating invoices documents.

2. Tax policy on transfer of contributed capital

On May 15, 2024, Binh Duong Provincial Tax Department issued Official Dispatch No. 12683/CTBDU-TTHT guiding on tax policy for capital contribution transfer activities as follows:

In case the capital transferor and capital transferee are both foreign individuals not present in Vietnam, when capital transfer activities arise, the Company is responsible for withholding and declaring and paying personal income tax on behalf of foreign individuals not present in Vietnam according to the instructions in Article 11 and Article 20 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance.

Regarding income from capital transfer activities that are subject to tax exemption and tax reduction according to the Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Republic of Korea on double taxation avoidance and prevention Tax evasion is carried out by the Company according to the instructions in document No. 14710/CTBDU-TTHT dated July 14, 2023 of the Tax Department of Binh Duong province

3. Tax policy on sample goods without collection of money

On May 17, 2024, Binh Duong Provincial Tax Department issued Official Letter No. 13042/CTBDU-TTHT guiding on tax policy for sample goods without collection of money. As follows:

In case the Company has a program to give samples of goods to customers without collecting money, if the Company follows the provisions of commercial law, then when exporting goods, the Company must issue a VAT invoice on the invoice stating the name and Quantity of goods, clearly stating that the goods are exported as sample goods…, the tax price is determined to be zero (0). In case of failure to comply with the provisions of commercial law, when exporting goods, the Company must issue an invoice to declare and pay VAT according to the provisions of Clause 5, Article 7 of Circular No. 219/2013/TT-BTC. and Clause 1, Article 4 of Decree No. 123/2020/ND-CP.

The Company is included in deductible expenses when determining taxable income for corporate income tax for payments to give samples to customers if it meets the conditions specified in Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance.

4. Tax policy on transportation cost support

On May 17, 2024, Hanoi Tax Department issued Official Dispatch No. 28812/CTHN-TTHT guiding on tax policy for transportation cost support as follows:

– Regarding invoices: In case the Company provides transportation support to the buyer to promote the consumption of the Company’s products, when receiving the support money, the buyer will issue an invoice for the added value of delivery to the Company and declare and pay value-added tax according to regulations.

– Regarding deductible costs: The transportation cost support is prepared by both parties in a debt clearing record as a basis for deduction from the value of purchased goods and is specifically specified in the contract/contract appendix, a list and record confirming the cost of transportation support between the two parties, the company can count it as deductible costs when determining income subject to corporate income tax if it meets the conditions specified in Article 4 of Circular No. 96. /2015/TT-BTC dated June 22, 2015 of the Ministry of Finance.

5. Tax policy on invoicing, tax declaration and payment and tax incentives of export processing enterprises for receiving support money from the parent company

On May 24, 2024, Binh Duong Provincial Tax Department issued Official Dispatch No. 14201/CTBDU-TTHT guiding on tax policies for invoicing, tax declaration and payment and tax incentives of export processing enterprises for export processing enterprises. The operation of receiving support money from the parent company. As follows:

In case the Company receives support money from the Parent Company in Japan, it is not required to declare and pay VAT according to the provisions of Clause 1, Article 5 of Circular 219/2013/TT-BTC above. When receiving support money, the Company prepares collection documents according to regulations.

In case the Company receives money from the Parent Company in Japan to perform services for the Parent Company such as repair, warranty, promotion, advertising, it must declare and pay taxes according to regulations.

If the support amount the Company receives from the Parent Company in Japan is not tax-exempt income as prescribed in Clause 7, Article 8 of Circular 78/2014/TT-BTC, it is determined as other income. according to the provisions of Clause 15, Article 7 of Circular 78/2014/TT-BTC mentioned above. Taxable income in the tax period includes income from production and trading of goods, services and other income.

Regarding enjoying corporate income tax incentives, if the support amount the Company receives from the Parent Company does not belong to the income specified in Clause 1, Article 10 of Circular No. 96/2015/TT-BTC dated June 22/ 2015 is eligible for corporate income tax incentives.

6. Instructions for transferring profits abroad

May 24, 2024, Hai Duong Provincial Tax Department issued Official Letter No. 4646/CTBDU-TTHT guiding on transferring profits abroad as follows:

Foreign investors are allowed to transfer profits abroad at the end of the fiscal year or at the end of direct investment activities in Vietnam after the enterprise in which the foreign investor invested has fulfilled its obligations finance to the State of Vietnam in accordance with the law ,has submitted audited financial statements and corporate income tax finalization declaration to the direct tax administration agency and fully fulfilled its obligations services according to the provisions of the Law on Tax Administration and its guiding documents.

Foreign investors are not allowed to transfer abroad the profits distributed or earned from direct investment activities in Vietnam in the year in which profits arise in case the investor’s financial statements are reflected in financial statements of the enterprise, but foreign investors in the year of profit generation still have accumulated losses after carrying forward losses according to the provisions of law on corporate income tax.

Foreign investors must notify the transfer of profits abroad according to the provisions of Article 5 of Circular No. 186/2010/TT-BTC.

II. Value Added Tax (“VAT”)

Prepare invoices for business capital contribution activities

On May 16, 2024, the Da Nang City Tax Department issued Official Dispatch No. 4371/CTDAN-TTHT guiding on making invoices for business capital contribution activities as follows:

In case the Company contributes capital with assets (with all invoices and documents as prescribed) to establish a business, the Company does not have to declare and pay value added tax. Assets contributed as capital to the enterprise must include: minutes of capital contribution for production and business, joint venture and association contracts; minutes of asset valuation of the Council for capital contribution delivery and receipt of capital contributors (or valuation document of an organization with valuation function as prescribed by law), accompanied by a set of documents on the origin of assets , according to the instructions in Clause 7, Article 5 of Circular No. 219/2013/TT-BTC of the Ministry of Finance.

In case the Company performs construction works, installs construction items… and uses the value of this volume to contribute capital to another enterprise, this activity is subject to VAT according to the instructions in Article 2 of Circular No. 219/2013/TT-BTC of the Ministry of Finance; The company must issue invoices according to the provisions of Clause 1, Article 4 of Decree No. 123/2020/ND-CP of the Government.

III. Personal income tax (“PIT”)

1. Benefits for dead foreign workers

On June 11, 2024, Binh Duong Provincial Tax Department issued Official Dispatch No. 15464/CTBDU-TTHT guiding on tax policy for benefits for deceased foreign workers as follows:

In case the deceased employee’s relatives receive special support from the Company, if this income meets the regulations in Clause 5, Article 11 of Circular 92/2015/TT-BTC dated June 15, 2015 and in accordance with the level of determining income subject to corporate income tax according to Point 2.30, Clause 2, Article 4 of Circular No. 96/2015/TT-BTC mentioned above, it is not included in the employee’s personal income taxable income and is calculated. deductible expenses when determining income subject to corporate income tax.

In case at the time of personal income tax finalization, the employee has died and the company has issued a personal income tax deduction voucher, the legal heir of the deceased employee shall submit the personal income tax finalization declaration dossier to the tax agency where the employee is located. Residents as prescribed in item b.2, point b, clause 8, Article 11 of Decree 126/2020/ND-CP dated October 19, 2020 of the Government.

2. Expenditures of a welfare nature

On May 24, 2024, Binh Dinh City Tax Department issued Official Dispatch No. 1837/CTBDI-TTHT providing guidance on tax policy for welfare expenses. As follows:

In case the Company’s Development Investment Fund has to pay benefits to employees from the salary fund of full-time managers and employees; The remuneration fund of the Management Board and Supervisory Board is:

–The implemented salary fund is the total amount of actual salary paid for that settlement year up to the deadline for submitting the settlement dossier according to regulations; The remuneration fund of the Management Board and Supervisory Board is not a salary fund, so it is not included in the implemented salary fund when considering conditions for direct welfare payments to employees.

– Expenditures for employees at the unit: “expenditures for visiting and supporting managers and employees in treatment of diseases, accidents, and illnesses; Expenses for visiting and supporting families of managers and workers affected by natural disasters, enemy sabotage, accidents, and illnesses; filial piety and wedding expenses for the manager, employee and the manager’s or employee’s family; allowance for female workers giving birth; vacation expenses for managers and employees; Reward expenses for children of managers and employees who have good academic achievements; spending on meetings at the beginning of the new year; spending on June 1, Mid-Autumn Festival for children of managers and workers; spending on holidays during the year for managers and employees. ” is defined as monetary or non-monetary benefits other than salaries and wages paid by the employer that taxpayers enjoy in any form, so they should be included in taxable income when calculating personal income tax.

IV. Corporate income tax (“CIT”)

1. Determine deductible costs and deductible input VAT for consumables exceeding the norm

On May 16, 2024, the General Department of Taxation issued Official Dispatch No. 2087/TCT-CS guiding tax policies in handling taxes on raw materials, materials, fuel, energy, and goods (“consumer supplies”). loss”) exceeds the norm as follows:

VAT: In principle, the amount of input VAT on the amount of raw materials, materials, energy, and goods lost in excess of the limit cannot be declared and deducted.

In case raw materials, materials, fuel, energy, and goods have been issued norms by the State, the input VAT amount on the quantity of raw materials, materials, fuel, energy, and goods lost Exceeding the limit is not deductible. For norms of each raw material, material, fuel, energy, and commodity, it is based on relevant legal documents corresponding to each industry and field.

Corporate income tax: In principle, when determining taxable income for raw materials, materials, fuel, energy, and goods, the enterprise must build and manage its own consumption norms for raw materials and materials, fuel, energy, goods used in production and business.

In case some raw materials, materials, fuel, and goods have been issued by the State with consumption norms, they shall comply with the norms issued by the State.

2. Corporate income tax incentives for additional occupations

On May 20, 2024, the General Department of Taxation issued Official Dispatch No. 2133/TCT-CS guiding tax policies for corporate income tax incentives in cases of additional professions as follows:

In case the Company’s warehouse project does not meet the conditions for investment phasing, it will not be entitled to corporate income tax incentives according to the regulations on investment phasing specified in Clause 7, Article 1 of Decree No. 91/ 2014/ND-CP and Clause 3, Article 10 of Circular No. 96/2015/TT-BTC.

Regarding corporate income tax incentives for investment projects to develop active investment projects to expand production scale, increase capacity, innovate production technology (expansion investment) implemented according to the provisions of Clause 8, Article 1 of Law No. 32/2013/QH13.

If during the course of operations, the Company adds trades and business activities of a commercial nature without increasing capital or making expansion investment activities to increase assets, then the income from the trades and activities will be Additional activities do not enjoy corporate income tax incentives.

3. Corporate income tax incentives for expansion investment projects

On June 3, 2024, the General Department of Taxation issued Official Dispatch No. 2327/TCT-CS guiding tax policies on determining corporate income tax incentives for investment projects. As follows:

In case an enterprise has an investment project and is granted an Investment Certificate, but this investment project inherits the assets, business location, business lines, and uses old machinery and equipment of the ongoing project operating to continue production and business activities, this project is not determined to be a new investment project according to tax laws.

4. Payment in securities is not considered non-cash payment

On May 16, 2024, the General Department of Taxation issued Official Dispatch No. 2086/TCT-CS on tax policy for payments in securities as follows:

In case the Company’s shareholders make payments to the Company’s suppliers with securities of individuals through the Securities Company, it is not subject to other non-cash payment cases guided in Clause 4. Article 15 of Circular No. 219/2013/TT-BTC (amended and supplemented in Circular No. 26/2015/TT-BTC) of the Ministry of Finance.

5. Payment documents for visas for foreign employees

On June 10, 2024, Binh Duong Provincial Tax Department issued Official Dispatch No. 15380/CTBDU-TTHT guiding on payment documents for visas for foreign employees as follows:

In case the Company has electronic visa application activities for foreigners, proceed on the government’s online visa issuance websites and make payment of visa application fees to service providers, if the expense This document meets the actual conditions related to the production and business activities of the enterprise, has enough legal invoices and documents (in case the seller does not provide invoices, there must be documents proving as follows: : confirmation from the Government website, electronic visa results,…) and payment documents according to the provisions of law on VAT and corporate income tax are included in deductible expenses when determining taxable income.

In case documents and documents proving expenses related to the above transactions are presented in the form of electronic information or data, these information data must be accurate and reliable enough. integrity of information. This electronic information and data is stored, accessible and usable in complete form when necessary according to the provisions of the Law on Electronic Transactions No. 20/2023/QH15 dated June 22, 2023.

6. Foreign contractor tax (“FCT”)

On May 31, 2024, Hanoi Tax Department issued Official Dispatch No. 32968/CTHN-TTHT guiding on tax policy for foreign contractor tax as follows:

In case a foreign contractor or foreign subcontractor has income arising in Vietnam on the basis of a contract “making a feasibility study report and site documents” with an organization in Vietnam, the foreign contractor shall, foreign subcontractors are subject to tax obligations imposed on foreign contractors according to Clause 1, Article 1 of Circular 103/2014/TT-BTC.

In case the foreign contractor or foreign subcontractor does not meet one of the conditions stated in Article 8, Section 2, Chapter II of Circular 103/2014/TT-BTC, the Vietnamese party shall deduct and pay tax on behalf of the Contractor. Foreign contractors and foreign subcontractors according to the instructions in Article 12 and Article 13 of Circular 103/2014/TT-BTC above.