The Taxation of Large Enterprises Department publishes a list of 39 foreign suppliers without permanent establishment in Vietnam that have e-commerce business activities, digital-based business activities and other services with organizations and individuals in Vietnam which have implemented tax registration in Vietnam.
Regarding CIT: In case the Company pays for support services for foreign laborers to extend or renew their visas to qualify for working in Vietnam, and if this payment is of a welfare nature for employees, it shall be included in the deductible cost when determining the taxable income of the enterprise if the total welfare nature expenditure does not exceed 01 month of average salary in the tax year of the enterprise specified in Clause 4, Article 3 of Circular 25/2018/TT-BTC and meets the conditions specified in Article 4 of Circular 96/2015/TT-BTC dated June 22, 2015.
1. In case the Company buys a lunar New Year gift for employees in December and gives it to employees on January 25 of the following year, this is the benefit that employees are entitled to. Therefore, this gift is included in taxable income when calculating personal income tax, the tax period is January, when employees receive gifts.
Accordingly, one of the noteworthy points is the amendment of the provision on the temporary payment of corporate income tax, specifically:
In case the Company incurs an adjustment invoice or a replacement invoice as prescribed in Clause 2, Article 19 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government, the Company shall make additional declaration for each tax declaration dossier with errors as prescribed in Article 47 of the Law on Tax Management No. 38/2019/QH14 dated June 13, 2019 of the National Assembly and Clause 4, Article 7 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government.
In case the Company has employees who are foreign experts to manage and administer the Company’s business activities from the office of the Parent Company in Japan. Periodically, the Company will assign employees to work in Vietnam, thereby incurring expenses such as return airfare, hotel fees during the working time in Vietnam, the Tax Department guides the PIT policy for these expenses as follows:
Accordingly, one of the noteworthy points of this Circular is that the borrower must register changes in foreign loans with the State Bank if any contents related to the loan are changed, except for the following cases:
• Change the time of withdrawal and repayment of principal within 10 working days compared to the plan confirmed by the State Bank;
• Change the address of the borrower but not the province or city where the borrower is headquartered;
In case the Company has its head office in Long An province, has a branch in Binh Dinh province as a dependent accounting business establishment located in another province or city with its head office and income entitled to corporate income tax incentives , then:
1. Regarding the declaration of final settlement of corporate income tax of the branch:
Declare separately for income entitled to corporate income tax incentives of Binh Dinh Branch according to the provisions of Point h, Clause 1, Article 11 of Decree 126/2020/ND-CP dated October 19, 2020 of the Government and Point c2, Clause 3, Article 17 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance.
In case the Company and its Suppliers apply e-invoicing according to the provisions of Decree No. 123/2020 /ND-CP, Circular No. 78/2021 /TT-BTC, the Company purchases goods of the Supplier and incurs economic operations to refund part of the purchased goods of the Supplier, the Company shall make e-invoicing to the Supplier: On the invoice stating the quantity of returned goods, the rate of return tax and the amount of VAT (positive amount).
Accordingly, the Ministry of Finance shall base on the provisions of Point a, Clause 6, Article 10 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government on the contents of invoices, instructed:
Particular types of goods and services such as electricity, water, telecommunication services, information technology services, television services, postal and courier services, banking, securities and insurance are sold in certain periods, on the invoice must specify the period of supply goods and services. For periodical export services, a list shall be used to list the goods and services sold with the invoice, and shall ensure:
FCT obligations: In Clause 4, Article 2 of Circular 103/2014/TT-BTC dated August 6, 2014 of the Ministry of Finance stipulates:
“Article 2. Entities not regulated by this Circular
In case the Company (declaring VAT payment by tax credit method) is an enterprise which is enjoying corporate income tax incentives due to meeting conditions of the locality, incurring costs related to the destruction of unused materials due to changes in production strategies, the Company shall carry out as follows:
