Newsletter

Value Added Tax (“VAT”)

Reduction of VAT by 2% from 1 January 2024 to 30 June 2024

On 29 November 2023, the National Assembly approved the Resolution No. 110/2023/QH15 with the notable content as follows: Reducing 2% of VAT rate for the group of goods and services specified in Point a, Section 1.1 Clause 1, Article 3 of Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the socio-economic recovery and development program during the period from 1 January 2024 to 30 June 2024.

The reduction of VAT by 2% shall apply to goods that are applying 10% VAT (which will be reduced to 8%), except for the following goods categories: Telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products and those subject to special sales tax.

Corporate income tax (“CIT”)

Corporate income tax incentives in csae the project is transferred to a new investor

On 7 December 2023, Hai Duong Tax Department issued Official Letter No. 16554/CTHDU-TTHT responding to corporate income tax incentives: In case a company is applying corporate income tax incentives as a newly established enterprise from an investment projects (it only applies to the income from production and business activities that meet the investment incentive conditions stated in the first enterprise’s business registration certificate), if the Company is engaged in production and business activities, then there is a change in the business registration certificate, however, that change does not change the satisfaction of tax incentive conditions according to regulations (here, the old investor transfers the project to the new investor), the Company will continue to receive tax incentives for the remaining period.