Legal News January, 2018

Legal News January, 2018


Decree No. 146/2017/ND-CP amending the regulations on VAT and CIT

The content of this Decree includes:

  1. Amending and supplying regulations on objects not liable to VAT on export products such as natural resources and minerals not yet processed into other products.
  2. Amending, supplementing the regulations on VAT refund as follows:
  • Business establishments have imported goods then export to the non-tariff area or exported to outside of Vietnam, which have input VAT is equal or more than 300 million VND within month or quarter, VAT shall be reimbursed on a monthly or quarterly basis.
  • Business establishments will not reimburse VAT in cases good imported for exported after do not export in the geographical areas of customs operation in accordance with the customs legislation.
  1. Amending and supplementing the regulations on non-deductible expenses upon determination of taxable incomes to calculate CIT, as follows:
  • Expenditures in excess of 3 million VND/month/person for deduction of voluntary retirement, voluntary retirement insurance, and life insurance for employees are non-deductible expenses when determining taxable income to calculate CIT.

This Decree takes effect on February 1, 2018.


Legal News November, 2017

Legal News November, 2017

UPDATED NEWS_DDICG061117 – Tax treatment for scrap and surplus materials of processing contracts.

On October 26, 2017 the Ministry of Finance issued Official Letter No. 14475/BTC-TCHQ to response for the problem about tax treatment on scrap and surplus materials, surplus tools of processing contracts in case of tranferring for domestic consumption, as follows:

  • Before 01/09/2016: For surplus materials and surplus supplies imported for processing not more than 3% of the total quantity of materials and supplies actually imported, when selling or consuming domestically, is necessary to go through customs procedures for transfering the purpose of using. However, it must be declared and paid tax to the inland tax offices according to the provisions of tax law.
  • From 01/09/2016 up to now: Scrap, waste products, surplus materials and surplus supplies imported for processing do not exceed 3% of the total quantity of each material and supplies imported under the processing contract, are exempted from import tax when consuming them domestically, but it must be declared and paid other taxes (if any) to the customs office.
  • In case of scrap, surplus materials and surplus supplies imported for processing do not exceed 3% of the total quantity of each material and supplies imported under the processing contract for domestic consumption from 01/09/2016 to the date of this document is issued, the enterprise that declared and paid tax with the local tax authority, does not require to declare and adjust

UPDATED NEWS_DDICG061117 – Personal Income Tax preference for foreigners

On October 18, 2017 the Hanoi Tax Department issued Official Letter No. 68151 / CT-TTHT to guide to calculate the personal income tax (PIT) for foreigners. Whereby:

  • In the case of foreign specialists being non-resident individuals, the company shall deduct PIT at the rate of 20% for the income from the gross pay (including effective wages paid after completion labor contract). Non-resident individuals do not have to declare tax finalization. In cases of the companies temporarily deducted PIT based on Progressive tax tariff, now they re-determined to be non-resident individuals, they shall make additional declarations in replacement of the PIT declaration forms under the guidance in Clause 5, Article 10 of Circular No.156/2013/TT-BTC.
  • In the case of foreign specialists being resident individuals, the company has to deduct PIT based on Progressive tax tariff. Foreign resident individuals who terminate their contracts in Vietnam must declare their finances before leaving the country.
  • In case individuals have not finalized PIT upon immigrating and they authorize the company to do that. The company shall settle the PIT on behalf of the individual within 45 days from the date the individual leaves the country.
  • After the individual had finalized the PIT and also had been no longer a resident under PIT law, if the company incurs a payment relative to effective wages to the individual, the company shall deduct 20% of income before paying for individuals.
Legal News October, 2017

Legal News October, 2017

UPDATED NEWS_DDICG131017 – Remove form 06/GTGT in case of registering or changing the VAT calculation method

September 19th 2017, The Ministry of Finance issued Circular 93/2017/TT-BTC to guide VAT registration. Whereby:

  • Enterprises don’t have to submit 06/GTGT form when:
  • Changing the VAT calculation method.
  • Registering to apply VAT deduction method for new established enterprise or enterprise have revenue is under 1 billion.
  • Determining VAT calculation method will be based on VAT record submited by the enterprise:
  • If the enterprise register to apply deduction method, use 01/GTGT, 02/GTGT forms.
  • If the enterprise register to apply direct method, use 03/GTGT, 04/GTGT forms

Details of document, please see and download here.

UPDATED NEWS_DDICG201017 – The Ministry of Finance has issued 05 consolidated document of the circulars about tax.

  • Consolidated document No. 05/VBHN-BTC in 2016 about the law on personal income tax.
  • Consolidated document No. 11/VBHN-BTC in 2017 about the law on corporate income tax.
  • Consolidated document No. 12/VBHN-BTC in 2017 about the law on special consumption tax.
  • Consolidated document No. 13/VBHN-BTC in 2017 about the law on value added tax.
  • Consolidated document No. 14/VBHN-BTC in 2017 about the law on tax administration.