DECREE NO. 64/2024/ND-CP ON EXTENDING THE DEADLINE FOR PAYING TAXES AND LAND RENT IN 2024
Issued by: Gorverment
Issued date: 17 June 2024
Effective date: 17 June 2024
Expiration date: 31 December 2024
On 17 June 2024, the Government issued Decree No. 64/2024/NĐ-CP, which regulates the extension of deadlines for value-added tax (VAT), corporate income tax (CIT), personal income tax (PIT), and land rental payments.
Accordingly, enterprises and organizations eligible for extension under Article 3 of this Decree shall declare and submit their value-added tax returns monthly or quarterly as required by current laws, but are not required to pay any additional value-added tax amounts that arise beyond those declared on the submitted tax returns.
Regarding the extension of the deadline for payment
Extension Procedures:
Taxpayers who directly declare and pay taxes to the tax authority eligible for extension shall submit a Request for Extension of Tax and Land Rental Payment for the first time or as a replacement in case of any discrepancies discovered (either electronically or by sending a paper copy directly to the tax authority or through postal services) using the form provided in the Appendix accompanying this Decree, to the directly managing tax authority once for all taxes and land rental payments accrued during the extended tax periods, along with the submission of monthly (or quarterly) tax returns as required by tax management laws, or no later than 30 September 2024.
DECREE NO. 65/2024/ND-CP ON EXTENDING THE DEADLINE FOR PAYING SPECIAL CONSUMPTION TAX FOR AUTOMOBILES PRODUCED AND ASSEMBLED DOMESTICALLY IN 2024
Issued by: Gorverment
Issued date: 17 June 2024
Effective date: 17 June 2024
Expiration date: 31 December 2024
On 17 June 2024, the Government issued Decree No. 65/2024/NĐ-CP regulating the extension of the deadline for paying special consumption tax payment for domestically manufactured or assembled automobiles, applicable to enterprises engaged in automobile production or assembly within Vietnam.
Tax period eligible for extension
the Government extends the tax payment deadline for the tax periods of May, June, July, August, and September 2024,
The deadline for payment after being extended
The latest deadline for payment is 20 November 2024.
Extension Procedures
Taxpayers eligible for extension must submit a Request for Extension of Special Consumption Tax Payment Deadline (either electronically or by sending a paper copy directly to the tax authority or through postal services) using the form provided in the Appendix accompanying this Decree, to the directly managing tax authority once for all extended periods, along with the submission of special consumption tax returns according to regulations, or no later than 20 November 2024.
OFFICIAL LETTER NO. 2677/TCT-CS REGARDING ELIGIBILITY FOR DECLARING AND DEDUCTING VAT WHEN MAKING PAYMENTS WITHOUT CASH THROUGH MOBILE PAYMENT SUPPORT SERVICES
Issued by: General Department of Taxation
Issued date: 24 June 2024
On 24 June 2024, General Department of Taxation issued Official Letter No. 2677/TCT-CS in response to DKSH Vietnam Co., Ltd (“DKSH Co.”) 's letters no. 0211224/DKSH-GDT and no. 011224/DKSH-GDT dated 4 January 2024, regarding invoices and payment documents as follows:
Pursuant to clause 3, Article 15 of Circular No. 219/2013/TT-BTC (as amended and supplemented by Circular No. 26/2015/TT-BTC) regarding the conditions for input value-added tax deduction for payment documents via banks, according to the General Department of Taxation:
In case where DKSH Co. uses the payment method provided by Smart Net Trading Service Joint Stock Company (“Smart Net Co.”), which has been licensed by the State Bank to provide electronic wallet payment services in accordance with the legal regulations on non-cash payments, the form is as follows:
The buyer transfers money from their bank account or payment application to the account of the intermediary partner that is Smart Net Co. through the SmartPay payment support service, which is an application on a smart device or smartphone.
Smart Net Co. transfers the entire received amount to the account of DKSH Co. at ANZ Bank, in accordance with the intermediary payment service license issued by the State Bank of Vietnam.
The above payment method is determined to meet the conditions for bank payment in terms of declaring and deducting VAT.
OFFICIAL LETTER NO. 15719/CTBDU-TTHT REGARDING VALUE-ADDED TAX INVOICE ISSUANCE RELATED TO INSURANCE FEE REDUCTIONS
Issued by: Binh Duong Province Department of Taxation
Issued date: 13 June 2024
On 13 June 2024, Binh Duong Province Department of Taxation issued Official Letter No. 15719/CTBDU-TTHT in response to inquiries from Grand Wood (Vietnam) One Member Company Limited regarding value-added tax (“VAT”) invoice issuance related to insurance fee reductions.
Pursuant to Articles 3, 4, 10, and 12 of Decree No. 123/2020/NĐ-CP dated 19 October 2020, issued by the Government on invoices, records, and point e Article 9 of Circular No. 09/2011/TT-BTC dated 21 January 2011, issued by the Ministry of Finance providing guidance on goods and service sale and purchase invoices and vouchers in cases of refund of insurance premiums and reduction of insurance brokerage commissions.
In case, the insurance company supports the part of the fire protection equipment fees, the company must issue invoices in accordance with the provisions of clause 1, Article 4 of Decree No. 123/2020/NĐ-CP. The form and content of electronic invoices must comply with the regulations stipulated in Articles 10 and 12 of Decree No. 123/2020/NĐ-CP.
The Company buys insurance, but the insurance company is required to reduce premiums for force majeure reasons or as agreed, upon the expiration of the insurance term, if no loss is incurred or the incurred loss is below the ratio specified in the insurance application, insurance premiums will be partially reduced, the Company processes in accordance with the provisions of point d, clause 2, Article 9 of Circular No. 09/2011/TT-BTC. The form and content of electronic invoices must comply with the regulations stipulated in Articles 10 and 12 of Decree No. 123/2020/NĐ-CP.
Specifically, pursuant to point e, clause 2, Article 9 of Circular No. 09/2011/TT-BTC regarding cases of refund of insurance premiums and reduction of insurance brokerage commissions:
“Article 9. Goods and service sale and purchase invoices and vouchers
e) For cases of refund of insurance premiums and reduction of insurance brokerage commissions:
In case the insurance buyer is a business organization, when refunding insurance premiums (partially or wholly), the insurance enterprise shall request such insurance buyer to issue a VAT invoice, clearly stating the insurance premiums refunded by the insurance company, the VAT amount and reasons for the refund. Such invoices shall serve as a basis for the insurance enterprise to adjust its sale turnover and output VAT and for the insurance buyer to adjust its insurance purchase expenses and the VAT amount already declared or credited.”
OFFICIAL LETTER NO. 2775/CTQNG-TTHT REGARDING PERSONAL INCOME TAX DECLARATION ON INVESTMENT CAPITAL IN RELATION TO INCOME RECEIVED AS STOCK DIVIDENDS, BONUS SHARES FOR EXISTING SHAREHOLDERS
Issued by: Quang Ngai Province Department of Taxation
Issued date: 4 June 2024
On 4 June 2023, Quang Ngai Department of Taxation issued Official Letter No. 2775/CTQNG-TTHT to highlight certain points regarding the declaration of personal income tax (“PIT”) on investment capital in relation to income received as stock dividends, bonus shares for existing shareholders, as follows:
For individuals who receive dividends in the form of securities, individuals who are existing shareholders receiving bonuses in the form of securities:
From 01 January 2023, the organization shall declare and pay tax on their behalf on the income from capital investment when they transfer the same type of securities as follows:
- For securities traded through stock exchanges, the organization that declares and pays tax on behalf of the individuals shall be the securities company or commercial bank where the individual’s depository account is opened or the fund management company where the individual’s portfolio is registered.
- For securities that are not traded through stock exchanges:
+ If the securities belong to a public company and are registered at a securities depository, the securities company or commercial bank where the individual’s depository account is opened shall declare and pay tax on behalf of the individuals;
+ If the securities do not belong to a public company but the issuer authorizes a joint stock company to manage the list of shareholders, that securities company shall declare and pay tax on behalf of the individuals.
From 31 December 2022, and earlier, individuals have not had their tax declared and paid on their behalf by the organizations (according to specific cases mentioned above shall declare and pay PIT themselves in accordance with PIT laws, be exempted from incur administrative penalties for late submission of tax declaration dossiers and imposition of late payment interest (if any) according to Clause 11 Article 16 of the Law on Tax Administration from 5 December 2020 to the end of 31 December 2022.
OFFICIAL LETTER NO. 5337/CTQNA-TTHT FROM THE QUANG NAM TAX DEPARTMENT REGARDING VAT ON MEDICAL SERVICES
Issued by: Quang Nam Tax department
Issued date: 21 June 2024
The Quang Nam Tax Department provides the following response to Tri Tam Medical Co., Ltd regarding VAT on medical services:
Determining VAT liability for medical services does not differentiate based on the source of payment, whether it is covered by health insurance or paid out-of-pocket by the patient. Specifically:
Medical services such as medical examinations, treatments, testing, and imaging for patients are not subject to VAT.
A 5% VAT rate applies to medicinal drugs. If the medical treatment package (as regulated by the Ministry of Health) includes the use of medicinal drugs, the revenue from these drugs within the treatment package is also not subject to VAT.
Trí Tâm Medical Co., Ltd should study the services specified in Clause 9, Article 4 of Circular 219/2013/TT-BTC and base on the actual provided services to determine the subjects to VAT in accordance with regulations.
OFFICIAL LETTER NO. 15380/CTBDU-TTHT FROM THE BINH DUONG TAX DEPARTMENT REGARDING PAYMENT DOCUMENTS FOR VISA PROCESSING FOR FOREIGN EMPLOYEES
Issued by: Binh Duong Tax department
Issued date: 4 June 2024
Binh Duong Tax Department provides the following response to Triumph International Vietnam Co., Ltd regarding payment documents for visa processing for foreign employees:
- In the case where the company applies for electronic visas for foreign employees via government visa issuance websites and pays the visa application fees to service providers, if these expenses meet the actual conditions related to the company's production and business activities, and have sufficient legal invoices and documents (if the seller does not provide an invoice, there must be documentation to prove it, such as confirmation from the government website, electronic visa results, etc.), and payment documents according to the regulations on VAT and corporate income tax, these expenses can be included as deductible expenses when determining taxable income.
In cases where the documentation and evidence proving the expenses related to the aforementioned transactions are in the form of electronic information and data, this information and data must ensure accuracy and reliability regarding the integrity of the information. These electronic information and data must be stored and accessible for use in a complete form as necessary, in accordance with the provisions of the Electronic Transactions Law No. 20/2023/QH15 dated June 22, 2023.
OFFICIAL LETTER NO. 15080/CTBDU-TTHT FROM THE BINH DUONG TAX DEPARTMENT REGARDING THE ISSUANCE OF INVOICES FOR GOODS TEMPORARILY IMPORTED FOR RE-EXPORT
Issued by: Binh Duong Tax department
Issued date: 03 June 2024
To address the issues raised by TOIN Vietnam Co., Ltd. regarding invoicing for temporary import for re-export and temporary export for re-import goods, the Binh Duong Tax Department issued official letter No. 15080/CTBDU-TTHT with the following guidelines:
According to Circular No. 219/2013/TT-BTC:
- Goods temporarily imported for re-export; goods temporarily exported for re-import are non-taxable VAT objects.
- The time of VAT determination is the time of transferring the ownership or the right to use the goods to the buyer.
- The date for determining export revenue for tax calculation is the date of customs clearance as confirmed on the customs declaration form.
Thus, if the company exports goods and subsequently receives damaged goods for repair for the customer:
Upon receiving the returned goods, the company issues an invoice to adjust the quantity of goods by the amount returned, with the total payment amount recorded as a negative value, thereby reducing revenue.
After repairing the goods, when the company re-exports them, it needs to issue an electronic invoice with the "tax rate" line marked as KCT (not subject to tax) and comply with the regulations on invoices, documentation, and the timing for determining export revenue as per current legal provisions.
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