Monthly newsletter in October 2020
Updating legal documents on accounting, tax, labor, and other related fields for customers.
Tax policy for depreciation expense of fixed assets suspended due to Covid-19 pandemic, Official Letter No. 12452/BTC-TCT dated October 9, 2020 issued by Ministry of Finance
Based on current regulations, for seasonal production fixed assets are suspended less than 9 months, would be depreciated and considered as deductible expenses for CIT purpose (Clause 2.2, Article 4, Circular 96/2015/TT-BTC).
Policy on invoices, documents, Decree No. 123/2020/NĐ-CP dated October 19, 2020 issued by Government
It is noteworthy that Decree 51/2010/NĐ-CP and Decree 04/2014/NĐ-CP on paper invoices and e-invoices continue to be effective until the end of June 30, 2022.
New regulations sanctioning administrative violations of tax and invoices, Decree No. 125/2020/ND-CP dated October 19th 2020 of the Government
Under the new decree, the maximum fine in the tax sector is still 200 millions (for organizations) and 100 millions (for individuals), in the invoices sector is still 100 millions (for organizations) and 50 millions (for individuals).
CIT policy on expenses for foreign experts, Official Letter No. 10185/CT-TTHT dated October 16, 2020 issued by Dong Nai Tax Department
If the above amounts are specified the conditions and the rate to be entitled in one of the documents: Labour contract, Financial regulations, Collective labour agreement as prescribed at Point b, Clause 2.6 of Article 4 Circular 96/2015 / TT-BTC, these expenses are determined as deductible expenses when determining taxable income of CIT.
Official Letter No. 2950/BHXH-BT dated September 17, 2020 issued by Vietnam Social Department, additional guidance on declaring report on employees situation and list of participation in social insurance (SI) and health insurance (HI), unemployment insurance (UI) (form D02-LT)
Implementation of Decision No. 1040/QĐ-BHXH dated August 18, 2020 issued by Vietnam Social Security on promulgating the form of a report on employees situation and a list of participation in SI, HI, and UI (form D02-LT); Vietnam Social Security provides additional guidance to fill out columns (25), (26), and (27) (form D02-LT) as follows:
Decree No. 114/2020 / ND-CP dated September 25th 2020 issued by the Government about Guidance on application to the policy for reducing 30% CIT in 2020.
Decree No. 114/2020 / ND-CP dated September 25th 2020 issued by the Government detailing the implementation of Resolution No. 116/2020/QH14 of the National Assembly about Guidance on application to the policy for reducing 30% CIT in 2020.
Guidance on PIT finalization for current income
Official Letter No. 82635 / CT-TTHT dated 11/9/2020 of Hanoi Tax Department about Guidance on PIT finalization for current income. The regulation only accept to be exempted annual PIT return for an person who has average monthly current income in a year not exceeded 10 millions VND and was withheld 10%
Guidance on issuing invoices for providing services.
Official Letter No. 3711/TCT-CS dated September 08th, 2020 issued by General Department of Taxation about Guidance on issuing invoices for providing services. According to the regulations, issuing date for providing service is the date of completion of the service regardless whether the money has been collected or not.
Guidance on declaring FCT for foreign business individuals.
Official Letter No. 79916/CT-THTT dated August 31st, 2020 issued by Hanoi City Tax Department about Guidance on declaring FCT for foreign business individuals.
Policy of incentives of corporate income tax and depreciation cost of fixed assets
Official Letter No. 2717/CT-THTT dated September 11th, 2020 issued by Bac Ninh Tax Department about Guidance on incentives of corporate income tax and depreciation cost of fixed assets.
Official Letter No. 80747/CT-TTHT dated September 3rd 2020 of Hanoi Tax Department about Guidance on issuing VAT invoices for goods used for donation to oversea.
In case the company dismantles the server system that is being used to transfer to Thailand for an another company in the same group. The company makes a non-commercial export declaration for customs clearance and does not receive payment from overseas.
