Newsletter

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...

NEWSLETTER JANUARY 2020

2020-02-29
Newsletter

Corporate income tax (“CIT”) Investment project located at sub-division Tan Hong – Hoan Son and the expanded area of Que Vo Industrial Zone, Bac Ninh Province is not subject to CIT incentives According to Official Letter No.3143/CT-TTHT dated 24th December 2019 and Official Letter No. 3154 dated 26th December 2019 and Official Letter No. 146 dated 31st January 2020 issued by Bac Ninh Department of Taxation, the company which has investment project located in the subdivision Tan Hong – Hoan Son and the expanded area of Que Vo Industrial Zone, Bac Ninh Province is not subject to CIT incentives according...

NEWSLETTER DECEMBER 2019

2020-01-31
Newsletter

Labor Code No. 45/2019/QH14 On 20th November 2019, the National Assembly issued the Labor Code No.45/2019/QH14. We highlighted several prominent regulations as follows: Public holidays On Independence Day (2nd of September): employees shall be entitled to full 2-day off, can be on the previous or the next day of the 02nd of September. Labor contracts There will be only 2 types of labor contracts: indefinite-term labor contract and definite-term labor contract. The seasonal labor contract will have been revoked since the new Labor Code comes into force. Moreover, the new format of labor contract has been added: the labor contract...

NEWSLETTER NOVEMBER 2019

2019-12-26
Newsletter

Official Letter No. 88336/CT-TTHT (OL 88336) on welfare expense paid to employees by cash According to the OL 88336 issued on 25th November 2019 by Hanoi Department of Taxation, in case the company has the regulation to pay allowance for company trip directly to its employees by cash and such expenses meet the requirement of welfare expenses for employees as stated in Article 4 Circular No. 96/2015/TT-BTC dated 22nd June 2015 by the Ministry of Finance, and the total welfare expenses including this allowance of the company does not exceed average one-month salary in the tax year, the allowance shall...

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