Newsletter

NEWSLETTER JULY 2020

2020-08-24
Newsletter

Tax administration Draft Decree on 30% reduction of corporate income tax for 2020 This draft was isssued by the Government in order to detail the Resolution of the National Assembly about reducing corporate income tax (CIT). We highlighted some important points as follows: – In case companies have the total revenue from selling goods and services in year 2020 not over VND 200 billion, the total CIT payable for 2020 shall be reduced by 30%. – In case companies were established in October, November or December of 2019 and registered the first taxable year 2020 including months of 2019, the...

NEWSLETTER (Official Letter guiding Decree No. 68/2020/ND-CP)

2020-07-31
Newsletter

On 24th July 2020, the General Department of Taxation issued Official Letter No. 2835/TCT-TTKT (OL 2835), containing the instruction for Decree No. 68/2020/ND-CP (Decree 68), which adjusts and supplements for Clause 3, Article 8, Decree No. 20/2017/ND-CP about tax administration for companies having related party transactions. OL 2835 shows the guidelines for the implementation and effects of Decree 68 for CIT finalization of year 2019 and the retrospective treatment for years 2017 and 2018 as follows: 1. For CIT finalization of year 2019: – In case companies have the deadline for CIT finalization of 2019 on 31st March 2020 and...

NEWSLETTER JUNE 2020

2020-07-23
Newsletter

Tax administration Law on tax administration No. 38/2019/QH14 On 13th June 2019, the National Assembly issued the Law on Tax Administration No. 38/2019/QH14 with some highlighted adjustments as follows: a) Tax registration: Taxpayers must apply for tax registration and receive the tax code by tax office before starting their business activities or incurring tax payables to the state budget. b) Time for issuing tax registration certificate: Tax office shall issue tax registration certificates to the taxpayers within 03 working days from the date when they receive enough tax registration application from the taxpayers. c) Changes in deadline for submitting annual...

NEWSLETTER (CHANGES IN DEDUCTIBLE INTEREST EXPENSES)

2020-07-02
Newsletter

Change in deductible interest expenses (Decree 68) On 24 June 2020, the Government issued Decree No. 68/2020/ND-CP (Decree 68), which amends and supplements Clause 3, Article 8, Decree No. 20/2017/ND-CP, regulating tax treatments on related party transactions. The main contents are as follows: When calculating corporate income tax, the total deductible interest expense of a given year shall not exceed 30% of EBITDA (earnings before interest, tax, depreciation and amortization). Organizations and loans not subject to this Decree on deductible interest expenses include Credit instituions that follow the Law on credit institutions, Commercial insurance organizations that follow the Law on...

NEWSLETTER MAY 2020

2020-06-29
Newsletter

Tax administration Instructions for some contents of Decree No. 41/2020/ND-CP about extension for tax payment On 20th May 2020, the Ministry of Finance issued Official Letter No. 5977/BTC-TCT about the implementation of Decree No. 41/2020/ND-CP. The highlighted point in the OL is that the extended corporate income tax (CIT) payable shall not exceed 20% of the total CIT payable of the whole year based on the CIT finalization 2019. In case taxpayers declare and submit the supplemented CIT finalization which increases the CIT payable to the tax office before the extended deadline of CIT payment; or the tax office conducts...

NEWSLETTER APRIL 2020

2020-05-28
Newsletter

Foreign Contractor Tax (FCT) Consulting service via internet is subject to FCT On 03rd February 2020, Ho Chi Minh Department of Taxation issued Official Letter No. 801/CT-TTHT (OL 801), which handles the case that a company abroad provides logistics consulting service to the company in Vietnam via internet. This service is subject to FCT with VAT and CIT rate of 5% each (according to Article 12 and 13 of Circular No. 103/2014/TT-BTC). In case the service fee is paid in foreign currency, the fee for calculating FCT must be converted into Vietnamese Dong using selling rate at the commercial banks...

NEWSLETTER MARCH 2020

2020-04-28
Newsletter

Tax administration Payment deferral of tax and land rent On 08th April 2020, the Government issued Decree No. 41/2020/ND-CP (Decree 41) about tax and land rent deferral. Decree 41 includes regulation for the deferral of the payment for Value Added Tax (VAT), Corporate Income Tax (CIT), Perspnal Income Tax (PIT) and land rent for the following subjects: – Enterprises, organizations, households and individuals (tax payers) that are manufacturer in agriculture, forestry, aquaculture; Production and processing of food; textiles; garments; manufacture of leather and leather products; wood treatment and manufacture of products from wood, bamboo, rattan (except furniture); manufacture of products...

NEWSLETTER FEBRUARY 2020

2020-03-31
Newsletter

License fee exemption for the 1st year after establishment On 24th February 2020, the Government issued Decree No. 22/2020/ND-CP, which amends and supplements several articles of Decree No. 139/2016/ND-CP dated 14th October 2016 about license fee. The Decree has some highlighted contents as follows: Firstly, the cases for license fee exemption are supplemented by 3 cases: – Newly established companies shall be exempt from license fee for the 1st year. – Small and medium-sized companies inclusive of households shall be exempt from license fee in 3 years from the initial license date. – Public high school and public kindergarten. Secondly,...

NEWSLETTER (TAX SUPPORT IN FACE OF COVID-19)

2020-03-31
Newsletter

Official Letter No. 1307/TCT-CS on extend the deadline to pay tax and land lease On 27th March 2020, the General Department of Taxation issued OL 1307 with the following contents: On 26th March 2020, The Minister of Finance signed the Government’s report No. 3540/TTr-BTC on the Decree to extend the deadline to pay tax and land lease. The Decree guidelines for extension of payment Value added tax, Corporate income tax, Personal income tax, and land lease. Specifically, the draft Decree has main content as followings: Article 2. Subjects of application The enterprises, organizations, households, and individuals engaging in production activities...

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