Newsletter

Personal income tax (“PIT”) policy on gift

On 12 July 2024, Hanoi Tax Department issued Official Letter No. 40757/CTHN-TTHT as follows:

In case employees are given gift by a company in the form of gift vouchers and tangible gift (these are paid according to the company’s welfare policy), these are considered as monetary or non-monetary benefit other than salary or wages paid by the employer according to the provision of Clause 2, Article 2 of Circular No. 111/2013/TT-BTC dated 15 August 2013 of the Ministry of Finance (Circular 111).

The time to determine taxable income is when the company pays income to taxpayers as prescribed in Point b, Clause 2, Article 8 of Circular 111.

In case the company has declared and paid tax for individual and then finds out that the tax declaration submitted to the tax authority is incorrect or incomplete, the company shall make adjustment declarations according to the provision in Article 47 of the Law on Tax Administration No. 38/2019/QH14 and Clause 4, Article 7 of Decree No. 126/2020/ND-CP dated 19 October 2020 of the Government.

Corporate Income Tax (“CIT”) incentive for supporting industrial product

On 26 July 2024, the General Department of Taxation issued Official Letter No. 3219/TCT-CS as follows:

In case a company’s expansion investment project is enjoying incentive under conditions other than the preferential condition for supporting industrial product, the expansion investment project will continue to enjoy CIT incentive under the conditions of the project manufacturing supporting industrial product for the remaining period from the tax period in which the competent authority issues the certificate of incentives for manufacturing supporting industrial products.