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...



Official Letter No. 20527/CT-TTHT (OL 20527) about VAT policy   OL 20527 issued by Binh Duong Department of Taxation about VAT on 14th October 2019 handles the case that the company has income from acting as an agency to seek and introduce Vietnamese clients to foreign organizations or individuals. According to regulations stated in Circular No. 219/2013/TT-BTC dated 31st December 2013 by the Ministry of Finance: – In case the agency service is consumed abroad, and meets the requirement regulated in Clause 2, Article 9 of Circular 219, it is subject to VAT rate of 0%. – In case the...



Circular No. 68/2019/TT-BTC (Circular 68): guidelines on some regulations of Decree No. 119/2018/NĐ-CP (Decree 119) about e-invoice On 30th September 2019, the Ministry of Finance issued Circular 68, which gives guidelines on some articles of Decree 119 about e-invoice. We highlighted some prominent contents from this Circular as follows: From 1st November 2020, all business entities as well as individual businesspeople must apply e-invoice, instead of using paper invoice. The Circular states the list of information which are included in the e-invoice. Also, in some specific cases, one or several information of the e-invoice can be omitted. Time for issuing...



Circular No. 60/2019/TT-BTC (Circular 60) amending, supplementing several articles in Circular No. 39/2015/TT-BTC (Circular 39) about customs value of imported and exported goods On 30th August 2019, the Ministry of Finance issued Circular 60, which amends and supplements several articles of Circular 39 about customs value of imported and exported goods. In Circular 60, several new regulations about criteria to build up the list of risky companies in customs value are added. It also amends the regulations about principles and methods in determining the custom value for imported goods, methods in determining the transaction value for imported goods and custom...



Official Letter No. 1155/CT-TTHT (OL 1155): tax policies on maintenance fee of apartment According to OL 1155 issued by Bac Ninh Department of Taxation on 08th July 2019, a company purchased an apartment and uses it as a place of residence for its employees. As stated in the apartment purchase contract, the company has to pay a maintenance fee for the public area at 2% of the apartment price (according to the regulation of the Law on Housing). In this case, the maintenance fee is considered as deductible expense for CIT purpose. When receiving the maintenance fee, the apartment owner...



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 contents as follows: – Deadline for submitting PIT finalization dossiers is extended: Currently, the deadline for submitting the annual PIT finalization dossiers is the 90th day from the end of calendar year. However, as regulated at Clause 2, Article 44 of the Law on Tax Administration in 2019, this deadline for individuals who directly submit the PIT finalization dossiers to tax office is the last day of the 4th month from the end of the calendar year....



Official Letter No. 38359/CT-TTHT (OL 38359): VAT, CIT (FCT) rates for advertisement on Facebook, Google, CloudFlare OL 38359 dated 27th May 2019 by Hanoi Department of Taxation handles the following case: A company uses advertisement service on Facebook, Google, CloudFlare from oversea network to promote its business. Service fee is paid each time the company uses this service (many times per month) when the service suppliers send them the payment requests. In this case, the company has the responsibility to withhold, declare and pay foreign contractor tax (FCT) on behalf of the service suppliers (foreign contractors) before making payments with...



Official Letter No. 1285/TCT-DNNCN (OL 1285) about the determination of the reduced personal income tax (PIT) for individuals working in the economic zones in 2018 On 8 April 2019, the General Department of Taxation issued OL 1285 with the following content: According to Decree No. 82/2018/ND-CP dated 22 May 2018, the reduced PIT of individuals working in the economic zones, border-gate economic zones for the tax year of 2018 is calculated as follows: Reduced PIT   Total PIT payable in the year   Taxable income that individuals received from their works in the economic zones for the period from 01/01/2018...



Official Letter No. 4079/CT-TTHT (OL 4079): requirement to change depreciation method of fixed assets On 13th March 2019, Binh Duong Department of Taxation issued OL 4079, clarifying the requirement when a company changes the depreciation method of fixed assets as follows: The company itself determines the depreciation method and useful life of fixed assets and informs such information to the tax office before applying the chosen depreciation method. In case the company wants to change the depreciation method of fixed assets which are already in use, the company must explain the reason to change the depreciation method. The depreciation method of...

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