Corporate Income Tax (“CIT”) Entertainment expenses without sufficient evidence documents are non-deductible when calculating CIT and are deemed income when calculating personal income tax (PIT) On 6 April 2021, Hai Duong Tax Office issued Official Letter No. 2138/CTHHU-TTHT regarding entertainment expenses as follows: Entertainment expenses are not salaries or salary-in-kinds, thus in case an employee is given a fixed payment by the Company to pay entertainment expenses that are without invoices and evidence documents, the expenses shall not be deductible when calculating CIT. In case the employee who receives the fixed payment cannot prove that he/she uses the payment to...



Tax management Decree 31/2021/ND-CP defines preferential invesment categories, conditions and investment incentive policies On 26 March 2021, the Government issued Decree No. 31/2021/ND-CP guiding some articles of the Law on Investment. According to the Decree, new categories have been released, such as: List of prohibited industries and conditional investments applied to foreign investors (Appendix I) List of industries with investment incentives and special investment incentives (Appendix II) List of geographical areas eligible for investment incentives and special investment incentives (Appendix III) The Decree comes into force since the signing date and replaces Decree No. 118/2015/ND-CP dated 12 November 2015, Decree No....



Tax finalization for the year 2020 On 1st March 2021, Ha Nam Tax Department issued Official Letter No. 546/CT-TTHT providing some information about tax finalization for the year 2020 as follows: Deadlines for submitting CIT (Corporate Income Tax) finalization dossier: For companies having the same fiscal year with calendar year: the deadline for submitting the dossier is 31 March 2021. For companies having a different fiscal year with calendar year: Deadline is the last day of the 3rd month since the fiscal year-end. Some notes for CIT finalization Companies should determine and declare sufficiently the information in finalization form No....



Tax administration                                                    On 26th January 2021, Bac Ninh Tax Department issued Official Letter No. 110/CTBNI-TTHT guiding VAT, PIT returns, and invoice report. According to the OL, companies having a total revenue in the preceding year (i.e. 2020) more than VND 50 billion shall declare VAT and PIT monthly. Such companies shall submit invoice report and PIT receipt quarterly. In case they are high tax risk entities, they must submit the reports monthly.   PIT on commission Official Letter No. 164/CTBNI-TTHT issued by Bac Ninh Tax Department dated 3rd February 2021 handles a specific case in which a company hires a foreigner...



Tax administration Circular No. 105/2020/TT-BTC (Circular 105) guiding the implementation of the Law on Tax Administration No. 38/2019/QH14 and Decree No. 126/2020/ND-CP On 03rd December 2020, the Ministry of Finance has issued Circular No. 105/2020/TT-BTC to guide the implementation of the Law on Tax Administration No. 38/2019/QH14 and Decree No. 126/2020/ND-CP detailing the implementation of the Law on Tax Administration about tax registration. Circular 105 replaces Circular No. 95/2016/TT-BTC dated 28th June 2016 and Article 9 of Circular No. 156/2013/TT-BTC dated 06th November 2013 issued by the Ministry of Finance. This Circular comes into force on 17th January 2021. Taxpayers...



Tax administration Official Letter guiding Decree No. 125/2020/ND-CP (Decree 125) on administrative penalties applied for taxes and invoices On 12th November 2020, the General Department of Taxation issued Official Letter No. 4818/TCT-PC (OL 4818) which clarifies some new regulations in Decree 125, such as: Scope, subjects of the administrative penalties for violation in taxes and invoices; interpretation for some phrases using in the administrative penalties for violation in taxes and invoices; sanctioning principles for organizations or individuals commits multiple administrative violations; mitigating factors, aggravating factors; time limits for imposition of tax and invoice-related administrative violations; principles of determination of penalties...



Tax administration Regulation on invoices On 19th October 2020, the Government issued Decree No. 123/2020/ND-CP which details some important points about e-invoices as follows: – The regulation of compulsory use of e-invoices according to Clause 2 and Clause 4, Article 35, Decree No. 119/2018/ND-CP dated 12th September 2018 shall be revoked. – Decree No. 51/2010/NĐ-CP (Decree 51) remains in force until 30th June 2022. Therefore, companies shall continue to use paper invoices according to regulations of Circular No. 39/2014/TT-BTC or e-invoices as per the guidance of Circular No. 32/2011/TT-BTC. – For companies established from 19th October 2020 to 30th June...



Corporate Income Tax (CIT) Regulations in details about 30% CIT reduction for fiscal year 2020 On 25th September 2020, the Government issued Decree No. 114/2020/ND-CP which gives details for the Resolution No. 116/2020/QH14 by the National Assembly about CIT payable of year 2020, with the following contents: – CIT payable in the fiscal year 2020 by companies whose total revenue in 2020 does not exceed VND 200 billion shall be reduced by 30%. – The total revenue which is the basis for determination of eligibility for CIT reduction is the total revenue in the fiscal year 2020, including revenue from...



Tax administration Deadline for using e-invoices On 19th August 2020, Bac Ninh Department of Taxation issued Official Letter No. 2543/CT-TTHT about the deadline for using e-invoices with the following contents: According to Circular No. 68/2019/TT-BTC dated 30th September 2019 of the Ministry of Finance, “From 01st November 2020, enterprises, business organizations, other organizations, household businesses and individual businesses must apply to use e-invoices.” According to the Law on Tax Administration No. 38/2019/QH14 dated 01st July 2020, “Regulations on electronic documents and invoices of this Law come into force from 01st July 2022; organizations and individuals are recommended to apply these...

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