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In principle, in case the Branch (in Bac Ninh province) is a dependent unit of the Company (headquartered in Binh Duong province) has activities entitled to corporate income tax incentives for income from the implementation of new investment projects in Bac Ninh province, then:

Social Insurance of Vietnam requires social insurance of provinces and centrally run cities to implement a number of contents to reduce the amount of late payment to the lowest level, notably:

Accordingly, in case the Company has construction activities (construction activities are determined in accordance with the provisions of the law on the national economic system and the provisions of the specialized law) in another province where the Company has its head office, the Company shall conduct centralized accounting at the head office in accordance with the provisions of Clause 2, Clause 4, Article 11 of Decree No. 126/2020/ND-CP, declare tax returns, calculate taxes and submit tax returns to the direct tax administration department and allocate the tax payable to each province where the business activities are conducted in accordance with the provisions of Clause 1, Article 12 of Circular 80/2021/ND-CP.

In 2020, the Company incurred expenses such as salary, wages and allowances payable to employees; Accrued amounts payable to suppliers but the deadline for submitting the annual tax finalization dossier has not yet been implemented , these expenses are not deducted when determining the CIT taxable income.

Pursuant to Decree No. 145/2020/ND-CP dated December 14, 2020 of the Government detailing and guiding the implementation of a number of articles of the Labor Code on labor conditions and labor relations (referred to as Decree No. 145/2020/ND-CP); Department of Labor, War Invalids and Social Affairs of Ho Chi Minh City guides the implementation of the 2022 labor report, as follows:

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: