Our Vietnam legal update #171 would lead you on 03 legal issues:
I. Consideration of reduction of imported goods
General Department of Customs issued Offical Letter No. 3234/TCHQ-TXNK dated 25 June 2021 on consideration of whether to accept a discount on the shipment of imported X-ray Machines under the Goods Sale Contract with the following contents:
- A confirmation of a special discount from a partner due to a change in applicable terms for certain consignment is not a declaration of a discount under the general sales policy for all buyers. Therefore, there is no basis to ensure 0 independence and objectivity in the sale and purchase transaction with the discount applied.
- If the contract of sale of goods is the official purchase agreement between the two parties but not specifying the conditions how to receive discounts. This contract does not have enough grounds to specifically determine the reason for the reduction in the sale price of goods.
II. Tax policies related to investment projects and activities
The Tax Department of Binh Duong Province issued Official Letter No. 11235/CTBDU-THTT dated 7 July 2021 to guide on the tax policies related to investment projects and activities. The contents are as follow:
- In case an operating business establishment is subject to VAT by the deduction method and has an investment project in the same province/city that is in the investment stage, the business establishment shall make a separate declaration for that investment project. In addition, business establishments must transfer input VAT of investment projects to offset the VAT declaration of production and business activities being carried out.
- Regarding income from expansion investment activities, it is determined according to the ratio between the cost of fixed assets newly invested and put into use for production/business to the total cost of fixed assets of the enterprise.
III. Tax policy on capital transfer activities
The Tax Department of Binh Duong Province issued Official Letter No. 11236/CTBDU-THTT dated 7 July 2021 to guide on the tax policies related to investment projects and activities. The contents are as follow:
- If having a capital transfer, the enterprise which performs the transfer will not be subjected to VAT but must pay CIT in accordance with the law.
- Organizations and individuals receiving capital transfers are responsible for determining, declaring, withholding, and paying CIT on behalf of foreign organizations in accordance with the law.
Maybe you are interested in reading other updates: July 2021 (Part 3) | July 2021 (Part 2) | July 2021 (Part 1) | June 2021 (Part 4) | June 2021 (Part 3) | June 2021 (Part 2) | June 2021 (Part 1) | May 2021 (Part 4) | May 2021 (Part 3) | May 2021 (Part 2)