Value added tax - FCT
Receiving sponsorship money to perform advertising services for the sponsor must declare and calculate VAT and corporate income tax
On June 14, 2023, the Hanoi Tax Department issued Official Dispatch No. 41474/CTHN-TTHT providing guidance on tax policies when receiving sponsorship money as follows: In case of receiving sponsorship money to perform services for the sponsor such as advertising must declare and pay VAT and corporate income tax according to the provisions of Clause 1, Article 5 of Circular No. 219/2013/TT-BTC, Article 5 of Circular No. 78/2014/TT-BTC .
Taxpayers who have registered to use e-invoices will not be fined if they do not submit report on use of invoices from July 1, 2022
On June 9, 2023, the General Department of Taxation issued Official Dispatch No. 2330/TCT-CS providing guidance on e-invoices as follows: In case the taxpayer has registered to use e-invoices and the tax authority has accepted receiving registration to use e-invoices, from July 1, 2022, Circular No. 39/2014/TT-BTC expires, there is no basis for the Tax Department to prepare a dossier to sanction administrative violations for reports on use of invoice for June 2022 and the second quarter of 2022 submitted after July 1, 2022.
E-invoice inspection
On June 14, 2023, the General Department of Taxation issued Official Dispatch No. 2392/TCT-QLRR on invoice inspection as follows: The General Department of Taxation has built functions on the e-invoice application to meet the requirements for controlling e-invoices, preventing the issue of false invoices. Some main functions are as follows:
+ The system automatically controls the total value of goods sold on issued invoices compared to the threshold value of input goods calculated as K times the total value of inventory and total value of purchased goods.
+ The warning system operates according to parameter.
On that basis, cases where taxpayers exceed the threshold will be warned and put on the management list. Use the function to look up the warning list of taxpayers to review and identify cases subject to stopping using invoices according to regulations. Tax authorities use existing functions when deploying e-invoice software to notify stop/continue using invoices (meeting regulations in Article 16, Decree No. 123/2020/ND-CP).
Warehouse rental for export processing enterprises that are not eligible for the 0% VAT rate
On May 22, 2023, the Tax Department of Bac Ninh Province issued Official Dispatch No. 1790/CTBNI-TTHT guiding on VAT rates for services provided to export processing enterprises (EPEs) as follows: In case the company provides warehouse rental services for EPEs are not subject to the 0% tax rate as prescribed in Clause 3, Article 9 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance ( has been amended and supplemented in Article 1 of Circular No. 130/2016/TT-BTC dated August 12, 2016 of the Ministry of Finance).
Personal income tax - PIT
Declare personal income tax for employees
On June 30, 2023, the General Department of Taxation issued Official Dispatch No. 45194/CTHN-TTHT guiding personal income tax declaration for employees as follows: In case the company's branch is declaring tax and calculating tax at the tax agency directly managing, directly signing contracts, paying income from salaries and wages and making tax deductions for employees working at business locations in other provinces, then Branches are not subject to personal income tax allocation according to the provisions of Article 19 of Circular No. 80/2021/TT-BTC of the Ministry of Finance. The branch performs tax declaration and calculates personal income tax for employees at the directly managed tax agency in accordance with the provisions of law.
Deduction of personal income tax for royalties
On June 30, 2023, Hanoi Tax Department issued Official Dispatch No. 45192/CTHN-TTHT guiding the deduction of personal income tax for royalties as follows: In case the Company pays money royalties for published works for authors who are collaborators of the Company according to the provisions of law on royalties, the above remuneration is determined to be income from salaries and wages according to regulations at Point c, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance. The company is responsible for deducting tax at the rate of 10% for income from two million (2,000,000) VND/time or more before paying to the author.
Corporate income tax - CIT
Determine the bill of exchange discount and late payment interest in the formula for calculating total interest expense
On June 19, 2023, the Hanoi Tax Department issued Official Dispatch No. 42369/CTHN-TTHT guiding the determination of bill of exchange discount and late payment interest in the formula for calculating total loan interest expenses as follows: In case an enterprise has a related transaction and generates income from deferred payment interest, the income from deferred payment interest is not deposit interest or loan interest arising in the period as prescribed in Clause 3 Article 16 Decree 132/2020/ND-CP.
Corporate income tax incentives for investment projects producing supporting industrial products
On June 26, 2023, the Hanoi Tax Department issued Official Dispatch No. 43860/CTHN-TTHT guiding on corporate income tax incentives for investment projects producing supporting industrial products as follows:
– In case the Company has an investment project to expand operations in the field of manufacturing products on the List of supporting industrial products prioritized for development, implemented from January 1, 2015, meeting one of the prescribed criteria. In Clause 4, Article 10 of Circular No. 96/2015/TT-BTC, if the project is granted a Certificate of incentives for production of supporting industrial products by a competent authority according to regulations, the income from project implementation is Apply the tax exemption and tax reduction period for the additional income brought about by expanded investment (not entitled to preferential tax rates) equal to the tax exemption and tax reduction period applied to the investment project. newly producing supporting industrial products (tax exemption for 4 years, 50% reduction of tax payable for the next 9 years) according to the provisions of Clause 16, Article 1 of Decree No. 12/2015/ND-CP dated February 12 /2015 of the Government.
– In case the company's expansion investment project has not applied CIT incentives since the Investment Certificate was granted, the company's income from the above expansion investment project will enjoy the entire tax exemption period, tax reduction according to regulations from the tax period for which the Certificate of incentives for production of supporting industrial products is issued.
– Corporate income tax incentives only apply to businesses that implement accounting, invoices, and vouchers and pay corporate income tax as declared. Enterprises self-determine tax incentive conditions, preferential tax rates, tax exemption periods, tax reductions, and losses deducted (-) from taxable income for self-declaration and self-finalization of taxes with tax authorities.
Depreciation costs of fixed assets for lease when calculating corporate income tax
On June 26, 2023, the Hanoi Tax Department issued Official Dispatch No. 43861/CTHN-TTHT guiding the depreciation costs of leased fixed assets when calculating corporate income tax as follows:
– For the value of land use rights: Long-term land use rights are not depreciated and allocated to deductible expenses when determining income subject to corporate income tax.
– For buildings and infrastructure: The company is allowed to depreciate and include deductible expenses when determining income subject to corporate income tax if it meets the conditions specified in Article 4 of Circular No. 96/2015/TT-BTC of the Ministry of Finance.
Salary costs paid to employees during the rotating leave period are specifically stated in the company's regulations and are included in the reasonable costs of the business.
On June 20, 2023, Ninh Binh Provincial Tax Department issued Official Dispatch No. 2914/CTNBI-TTHT providing guidance on corporate income tax as follows: In case the Company encounters difficulties in the production and business process, the Company Paying salaries to employees during rotating leave periods (meeting the conditions prescribed by the Labor Code) at a rate of 70-90% of the basic salary, which is specifically stated in the regulations of the Labor Code. company, that expense is included in deductible expenses when determining income subject to corporate income tax.
