Contacts

According to Official Letter 3214/CT-TTHT issued on 01 April 2019 by Ho Chi Minh City (“HCMC”) Tax Department, expenses for renovation and repair of fixed assets during the lease period shall be fully recognised or allocated over a period of up to 3 years. In case of termination prior to the lease expiry, the unallocated expenses (if any) shall be written-off and considered as Coporate Income Tax (“CIT”) deductible expenses.
According to Official Letter 4506/CT-TTHT issued on 08 May 2019 and Official Letter 4231/CT-TTHT issued on 03 May 2019 by HCMC Tax Department, the sale of RO’s fixed assets shall be exempt from VAT declaration and payment. Accordingly, the tax authorities shall not issue individual tax invoices for these cases.
On 22 May 2019, HCMC Tax Department issued Official Letter 4952/CT–TTHT providing guidelines on loss carryforward, in case the enterprise change its’ fiscal year. Accordingly, the conversion year is considered one (01) financial year in the loss-carryforward duration of up to 5 years.
According to Official Letter 6117/CT-TTHT issued on 14 June 2019 by HCMC Tax Department, if the enterprise reverse the unused ScTD fund within 05 year from the making provision date, the interest on the additional CIT payable shall not be charged. After five years duration, if the enterprise’s fund utilization is less than 70% or misused it, additional CIT and interest shall be charged as per regulations.
On 09 August 2019, Hanoi Tax Department issued Official Letter 63376/CT-TTHT on VAT rate of goods purchased from export processing enterprises ("EPEs") and then deliver directly to foreign customer. Accordingly, if the enterprise does not make an import declaration, instead assigns the EPEs to carry out the customs procedures and deliver the goods directly to foreign customer, the goods shall be subject to the VAT rate of 0%.
On 01 August 2019, General Department of Tax issued Official letter 3002/TCT-DNL providing further guidance on interest deductibility that was previously introduced by Decree 20. According to the official letter:
On 12 August 2019, the General Department of Taxation (GDT) issued Official Letter 3200/TCT-KK guiding the tax administration procedure for the business location which is not located in the same province of the enterprise or branch with notable points as below:
The guidance in this Official Letter will be applied from 12 August 2019 until the amendment of Circular 95/2016/TT-BTC.
We do trust the above points are notable and sufficient, but should you have any question or need a deeper discussion on this issue, please do not hesitate to contact us.
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