Tax Newsletter August 2022 updates the following key points
Tax policy on electronic personal income tax withholding documents
The General Department of Taxation guides the implementation of electronic PIT withholding vouchers, thereby allowing taxpayers to continue using vouchers purchased from tax authorities and the form of self-issuance. can be as follows:
- A withholding organization when using an electronic PIT withholding voucher is not required to register, notify its release, or transfer data electronically to the tax authority. using electronic vouchers to ensure the mandatory contents as prescribed in Clause 1, Article 32 of Decree No. 123/2020/ND-CP.
- During the time when electronic PIT withholding documents have not yet been deployed, organizations and enterprises can use PIT withholding vouchers in the form of self-issuance.
- From July 1, 2022, tax authorities will not continue to sell vouchers with PIT deductions printed by tax authorities. In case the tax agency's purchase deduction vouchers are still available, they will continue to use them. Instructions in Official Dispatch No. 2455/TCT-DNNCN dated 12/7/2022 of the General Department of Taxation.
Personal income tax policy for the case of payment to the collective without naming the individual
In case the Company pays a bonus to the collective without naming any individual (this bonus will be used by the collective and the individual receiving the award is only the person who is appointed to receive the award on behalf of the collective), the income This income is not included in the personal income taxable income of the individual receiving it, the Company is not required to deduct PIT for this payment. Instructions in Official Letter No. 35192/CTHN-TTHT dated July 19, 2022 of the Tax Department of Ho Chi Minh City. Hanoi.
Guidance on foreign contractor tax
- In case Facebook - a foreign contractor generates income in Vietnam on the basis of a contract signed by the contractor with the Vietnamese side, if the foreign contractor fails to meet one of the conditions in Article 8 of Circular No. 103 /2014/TT-BTC, the Vietnamese side pays tax on behalf of foreign contractors.
- In case the foreign contractor meets the conditions to declare directly to the tax agency as prescribed in Circular No. 103/2014/TT-BTC, the Vietnamese side is not required to deduct and pay on behalf of the foreign contractor. . Instructions in Official Letter No. 32111/CTHN-TTHT dated July 17, 2022 of the Tax Department of Ho Chi Minh City. Hanoi.
VAT rate for exporting molds and then borrowing them for production
In case the Company sells molds to overseas enterprises but does not deliver it to the buyer, it keeps it at the factory for production according to the mold sale and loan contract signed between the two parties. Goods that are not brought out of the territory of Vietnam and the customs authority does not open the export declaration with this mold sale because it does not meet the conditions of being exported goods according to the provisions of the law on customs, the operation shall not be carried out. The above export activities of the Company are not eligible for the 0% VAT rate because they do not meet the conditions in Clause 2, Article 9 of Circular No. 219/2013/TT-BTC. When issuing a mold sale invoice, the Company declares at the VAT rate of 10%.
. Instructions in Official Letter No. 2178/CTBNI-TTHT dated July 18, 2022 of the Tax Department of Bac Ninh province.
Guidance on making invoices for commercial activities (retail supermarkets, food services)
In case the Company has commercial business (retail supermarket) and service business (food service) under the model of a store system that sells directly to consumers (customers are mostly individuals) ) but the accounting of all business activities is done at the head office (the head office directly signs contracts for the purchase and sale of goods and services; invoices for sale of goods and services are issued by each store to customers. goods through the cash register system of each store in the name of the head office), if the cash register system connected to the computer has not yet met the conditions for data transfer connection with the tax authority, each goods sale transaction , provide food and drinks with printed Bills to customers, the data of the Voucher is stored on the system and customers do not need to receive electronic invoices, at the end of the day, the Company will base on the information from the Bill of Lading. To summarize and make electronic invoices for transactions of selling goods, providing food and drinks during the day, in case the customer requests to make an electronic invoice, the Company must issue an electronic invoice to the customer.
Instructions in Official Dispatch No. 2156/CTBNI-TTHT dated July 14, 2022 of the Tax Department of Bac Ninh province.
Contractor tax on the amount received from fines, compensation
The income from fines and compensations received by the foreign party (foreign contractor) is subject to contractor tax. Foreign contractors are not required to declare, calculate and pay VAT but must declare, calculate and pay CIT at the rate (%) of 2% CIT. The company declares and pays tax on behalf of foreign contractors according to form 01/NTNN issued together with Circular No. 80/2021/TTBT
Instructions in Official Dispatch No. 2191/CTBNI-TTHT dated July 19, 2022 of the Tax Department of Bac Ninh province.
Guidance on when to issue invoices for export activities and export entrustment
In case the company has export activities and entrusts the export of goods to foreign countries, the time of making VAT invoices is determined as follows: - For goods export entrustment activities, the time of making VAT invoices when the goods have been exported, certified by the customs authority, based on the collated documents, certified on the quantity and value of the goods actually exported by the entrusting establishment. The specific time is set by the entrusting establishment to complete the export procedures with the certification of the customs office.
- For the case of exporting goods to foreign countries, after completing the procedures for export goods, the company shall issue a VAT invoice. - Regarding the exchange rate of foreign currency to Vietnam dong when making VAT invoices for exported goods, comply with Clause 13c, Article 10 of Decree No. 123/2020/ND-CP.
Instructions in Official Letter No. 4076/CTBGI-TTHT dated 11/7/2022 of Tax Department of Bac Giang province.
Guidance on corporate income tax for outsourcing activities
In case in the process of processing, the Company has brought raw materials (delivered by the customer) to hire outside companies to process some stages, then transferred to the Company to continue to perfect the product and deliver to the customer. is a commercial outsourcing activity, the costs arising from outsourcing activities are expenses for Company 1's production activities. Therefore, the entire income from the Company's outsourcing activities is entitled to preferential treatment. CIT incentives by location.
Instructions in Official Letter No. 3902/CTBGI-TTHT dated June 30, 2022 of the Tax Department of Bac Giang province.
Guidance on the cost of corporate income tax for expenses to support employees outside the category of health insurance coverage
In case the Company incurs expenses to support the treatment of employees suffering from occupational accidents (expenses not included in the list covered by health insurance), this expense has all invoices and documents. legally prescribed; total expenditures of a welfare nature, directly paid to employees and not exceeding 01 month's average salary actually made in the tax year of the enterprise, shall be included in deductible expenses when calculating CIT. Instructions in Official Letter No. 7263/CTHDU-TTHT dated July 27, 2022 of the Tax Department of Hai Duong province. Guidance on payment of offsetting debts for exports In case of exported goods and services, payment is made in the form of clearing between the value of exported goods and services and the value of goods and services purchased from the foreign side. In addition, according to the provisions of Item c4, Point c, Clause 3, Article 16 of Circular No. 219/TT-BTC, the following documents are required:
- The method of payment for exported goods by goods must be specified in the export contract.
- Contracts to purchase goods and services from foreign parties.
- The customs declaration of imported goods shall be cleared for export goods and services.
- A written certification with the foreign party about the amount of clearing between exported goods and services and imported goods and services purchased from abroad. Instructions in Official Dispatch No. 12242/CTBDU-TTHT dated July 19, 2022 of the Tax Department of Binh Duong province.