PROCEDURE FOR APPLICATION OF APA BEFORE SUPPLYING OFFICIAL DOCUMENTS

PROCEDURE FOR APPLICATION OF APA BEFORE SUPPLYING OFFICIAL DOCUMENTS

Step 1. Taxpayers who are subject to APA have plans to apply APA, extend APA, convert APA form or accept tax authorities’ recommendations, make a dossier and send it to the General Department of Taxation. Profile components include:

  • Application for APA consultation using form No. 1/APA-TV.
  • The document describes the information for consultation as follows:
  • Name and address of the taxpayer expected to submit the APA dossier and the names and addresses of the parties to the related party transaction;
  • The proposed type of APA; the names of the countries or territories involved in the case of a bilateral or multilateral APA application;
  • Description of related transactions within the APA scope, related transactions outside the scope of APA (if any) and explanation of reasons for choosing transactions to apply APA as well as reasons for excluding related transactions. other results;
  • The size of the associated transaction value;
  • Expected time to apply APA;
  • Analysis of functions, assets and risks incurred in the course of business by taxpayers and related parties participating in transactions within the scope of APA;
  • The proposed method of determining market price includes the contents of comparative analysis, comparative data, calculation method, standard market price range, and material adjustments (if any);
  • Substantial assumptions that have a material and significant effect on the APA eligibility requirements;
  • General information on the scope and general operation scale of the enterprise and associated transactions of the taxpayer; information on the activities of economic groups and related parties related to the proposed transaction under the scope of application of APA;
  • Information summarizing the main contents of the results of tax inspections conducted at the taxpayer’s office;
  • APAs on similar related transactions signed or proposed with foreign tax authorities (if any);
  • The opinion of the relevant foreign tax authority (if any);
  • Official submission time, contact method;
  • Other issues affecting APA implementation.
  • Number of dossiers: 01 (set)
  • The time limit for settlement is 30 working days from the date of completion of document’s’ application.

Step 2. The General Department of Taxation receiving

  • In case the dossier is submitted directly at the tax office, the tax official shall receive and stamp the receipt of the dossier, record the time of receipt of the dossier, record the number of documents in the dossier, and record them in the tax authority’s clerk’s book.
  • In case the dossier is sent by post, the tax official shall stamp the date of receipt of the dossier and record it in the tax office’s correspondence book.

Step 3. The General Department of Taxation organizes a consultation meeting, based on the conclusion in the APA consultation minutes and the conditions of the tax industry, the General Department of Taxation shall send a written reply to the taxpayer about the approval or (reason) does not allow taxpayers to file a formal APA application.

 

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VIETNAMESE GENERAL DEPARTMENT OF TAX COMMENTS SOME CONTENTS OF THE PRESS AND PUBLIC OPINION ABOUT THE PROVISIONS 40/2021/TT-BTC

VIETNAMESE GENERAL DEPARTMENT OF TAX COMMENTS SOME CONTENTS OF THE PRESS AND PUBLIC OPINION ABOUT THE PROVISIONS 40/2021/TT-BTC

Circular 40/2021/TT-BTC is guiding VAT, PIT and tax management for business households and individuals. Accordingly, from August 1, 2021, types subject to VAT 5% and PIT 2% include accommodation services, postal services, brokerage services, legal consulting services, tax and customs administrative services…

In case an individual has both leased property and has other business activities, according to regulations, the revenue level of 100 million VND/year or less to determine the object not to pay  personal income tax is the total business revenue including other business activities.

According to http://www.gdt.gov.vn/

Documentary Editorial Board, DBRC,

Dong Du International Accounting & Legal Consulting Group Vietnam

Southeast Asia Business Consulting Network

(www.japanvietnam.com.vn)                                                                  #setting up company in Vietnam#Outsourcing accounting & tax #legalconsulting #coaching#humanresources#investigating market and goods.

DECLARATION AND PAYMENT OF PERSONAL INCOME TAX OF E-COMMERCE TRADING PLATFORMS

DECLARATION AND PAYMENT OF PERSONAL INCOME TAX OF E-COMMERCE TRADING PLATFORMS

On June 1, 2021, the Ministry of Finance issued Circular No. 40/2021/TT-BTC. The provisions in the circular have supported business individuals to correctly, fully and promptly declare their personal income tax obligations, opening a new direction for business individuals to authorize or make agreements with E-commerce trading floor in making declarations on behalf of business individuals in performing obligations to the state.

http://www.gdt.gov.vn/

Documentary Editorial Board, DBRC,

Dong Du International Accounting & Legal Consulting Group Vietnam

Southeast Asia Business Consulting Network

(www.japanvietnam.com.vn)

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Businesses need to pay attention to the value-added tax refund regulations so as not to be penalized for late payment

Businesses need to pay attention to the value-added tax refund regulations so as not to be penalized for late payment

Pursuant to Article 9 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance stipulating the conditions for applying the 0% tax rate to exported goods is that there must be proof of payment for goods exported through the bank and other documents as prescribed by law (this case of enterprises is fully entitled to input VAT).

For returned export goods, foreign customers do not make payments to business establishments in Vietnam. Therefore, business establishments do not have documents of payment for exported goods via banks. And no payment has been made to satisfy the conditions for applying the 0% tax rate to the returned exported goods (this case is not eligible for VAT refund).

Therefore, if exported goods are returned by foreign customers and imported back home, such goods are no longer exported goods and are not eligible for VAT refund for exported goods under the provisions of the current law.

According to http://www.gdt.gov.vn/wps.

Documentary Editorial Board, DBRC, Dong Du International Accounting & Legal Consulting Group Vietnam

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Corporate income tax incentives for projects producing supporting industry productsập doanh nghiệp đối với dự án sản xuất sản phẩm công nghiệp hỗ trợ

Corporate income tax incentives for projects producing supporting industry productsập doanh nghiệp đối với dự án sản xuất sản phẩm công nghiệp hỗ trợ

According to Decree No. 57/2021/ND-CP adds point g, Clause 2, Article 20 of Decree No. 218/2013/ND-CP, the enterprises which have projects to produce supporting industrial products on the list of products in supporting industries prioritized for development and implemented before January 1, 2015, may enjoy tax incentives.

In case the above project has not or has been fully enjoyed or is receiving CIT incentives, enterprises will continue to enjoy CIT incentives under the condition that the project produces supporting industrial products for the remaining time.

The tax exemption & reduction period according to the supporting industry product production project does not include the tax exemption or reduction period which already enjoyed incentives under other preferential conditions.

The taxpayer can make a written request to the tax authority directly managing the reduction of the payable CIT amount declared or inspected by the competent authority and the corresponding late payment interest. (If any).

Decree No. 57/2021/ND-CP takes effect from the date of signing and promulgation June 4, 2021.

According to http://www.gdt.gov.vn/wps.

Documentary Editorial Board, DBRC, Dong Du International Accounting & Legal Consulting Group Vietnam

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Note about quarterly registration  & finalization of personal income tax report

Note about quarterly registration & finalization of personal income tax report

In order to reduce administrative procedures for taxpayers, if the enterprise has no employees and does not generate income, it is not required to declare and submit a monthly (or quarterly) personal income tax return to the agency of tax office. Is this legal or not?

Based on the article 7, article 8 of Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government, tax declaration dossiers are tax declarations and relevant legal documents where payable taxes are determined from taxpayer's tax liability with the State budget, shall be drawn up by the taxpayer and sent to the tax administration agency.

In case that organizations and individuals do not generate income, they are not required to make personal income tax finalization declarations. However, there is no regulation that in case organizations and individuals do not generate income, they are not required to declare and submit monthly (or quarterly) personal income tax declarations to the tax office.

According to https://nangluccanhtranh.chinhphu.vn/
Edited by DBRC, Dong Du International Accounting & Legal Consulting Group
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