VIETNAM TAX & CUSTOMS Taxes NEWSLETTER
Highlight in this issue:VIETNAMTAX & CUSTOMSNEWSLETTER01. Tax Administration03. Personal Income Tax06. Trade and Customs Draft Circular on tax administration Draft Circular on the application of riskmanagement in tax administration The affiliated branch is not required for taxre-registration when changing theaccounting method Declaration the new family circumstancededuction level on the PIT finalization Form05-QTT/TNCN Guidance for online submission of PITfinalization dossier Deadline for PIT finalization filing Decree No. 18/2021/ND-CP amending,supplementing Decree No. 134/2016/NDCP to implement the Law on Export-ImportTaxes Application of anti-dumping duty on sugarimported from Thailand Clarification of some customs issues toimplement the Law on Tax AdministrationNo. 38/2019/QH14 and Decree No.126/2020/ND-CP Declaring origin of goods on exportdeclaration Guidance on the implementation of DecreeNo. 128/2020/ND-CP on penalties forcustoms administrative violations Customs duty treatment of raw materials,components etc. imported to producefinished goods for export, and where theirmanufacture of the finished productinvolves outsourcing of some productionactivities Application of cumulation rule in theEuropean Union - Vietnam Free TradeAgreement for fabrics originating in SouthKorea Guidance on proof of origin under theEuropean Union - Vietnam Free TradeAgreementMarch 202104. Value Added Tax02. Corporate Income Tax Note on a gift of insurance fee forcustomers Provisions for unemployment allowance isnon-deductible expense Issuing invoices under invoice suspensionenforcement Responses about CIT finalization of thegeneral department of taxationFor reference only, not for distribution or sale 2021 Deloitte Vietnam Tax Advisory Company Limited Branches in different province continuedirect VAT declaration in 2021 Deduction of VAT on gifts Treatment for invoices with blurred letters05. Foreign ContractorWithholding Tax Income from material liquidation of foreignoutsoucer Income from international logistics andforwarding services The transfer of outsourcing contracts inVietnam is subject to Foreign ContractorWithholding Tax Income from project managementconsulting services Foreign Contractor Withholding Tax onservices related to software
Tax & Customs Newsletter March 2021 Page 2DRAFT CIRCULARSDraft Circular on tax administrationTax AdministrationRecently, the Ministry of Finance has beenseeking comments from relevantministries, business organizations andenterprises on the Draft Circular guiding anumber of articles of the Law on TaxAdministration No. 38/2019/QH13 andDecree No. 126/2020/ND-CP of theGovernment.The Draft Circular regulates the contentsof tax declaration, tax calculation, taxdistribution; handling tax, late paymentinterest, and fines; tax exemption andreduction; tax inspection; taxadministration for e-commerce business,digital-based business, etc., which areexpected to have significant impacts ontax compliance of businesses.Contact usWebsite: deloitte.com/vnEmail: deloittevietnam@deloitte.comFor reference only, not for distribution or saleNotably, the Ministry of Finance issued aruling to guide that until the aboveCircular is issued and takes effect, for thecontents not specified in the Law on TaxAdministration No. 38/2019/QH13 andDecree No. 126/2020/ND-CP, thetaxpayers continue applying the currentcirculars until being replaced orsupplemented, such asCircular No. 156/2013/TT-BTC,Circular No. 92/2015/TT-BTC,Circular No. 130/2016/TT-BTC,Circular No. 26/2015/TT-BTC, etc.(referred in Official Letter No. 1938/BTCTCT dated 26 February 2021 of theMinistry of Finance)GUIDANCE RULINGSDeloitte Vietnam has published a Tax Alertdated 17 March 2021 to update onnotable contents of this Draft Circular.You can access our website for reference.(Official Letter No. 1914/BTC-TCT dated 25February 2021, Official Letter No.1938/BTC-TCT dated 26 February 2021issued by the Ministry of Finance)Draft Circular on the application ofrisk management in taxadministrationThe Ministry of Finance has recentlyissued an Official Letter to seek commentsof relevant ministries, agencies andorganizations on the Draft Circular on theapplication of risk management in taxadministration.The Draft Circular comprehensivelyregulates the application of riskmanagement in all tax administrationfunctions, e.g. tax registration; taxdeclaration; tax debt management andenforcement of tax administrativedecisions; tax refund; tax audit; taxinspection; invoices management andother tax administration functions.The Draft also publics the criteria forassessment of taxpayers’ compliance withthe tax law, criteria for classification oftaxpayer's risk level, which are applicableto businesses and individuals. Thereby,the taxpayers can make self-assessmentof their compliance level to improve thevoluntary compliance.In addition, the Draft regulates a numberof cases for key supervision by Taxauthorities to apply appropriate taxmanagement measures, which aretaxpayers with signs such as havingbanking transactions showing suspicioussigns; the legal representative isprosecuted for tax violations; there aresigns of high tax risks under key topics,etc.(Official Letter No. 2543/BTC-TCT dated 12March 2021 issued by the Ministry ofFinance)The affiliated branch is not requiredfor tax re-registration when changingthe accounting methodIn case a branch of the company(13-digit tax code) converts theaccounting method from independentmethod to dependent method, thebranch is required to change theinformation of tax registration only, noneed to implement the tax re-registration.In case the company's branch convertsthe accounting method from independentmethod to dependent method, at the endof the fiscal year when making CorporateIncome Tax (“CIT”) declaration, thecompany shall centralize the CITdeclaration at the head office, includingthe tax incurred by the branch.(Official Letter No. 6268/CTHN-TTHTdated 01 March 2021 issued by Hanoi TaxDepartment)
Tax & Customs Newsletter March 2021 Page 3GUIDANCE RULINGSCorporate Income TaxGUIDANCE RULINGSNote on a gift of insurance fee forcustomersProvisions for unemploymentallowance is non-deductible expenseIssuing invoices under invoicesuspension enforcementIn case the enterprise promotes its sales inthe form of giving "life insurance package"to customers (other than their employees,and the program was registered with theDepartment of Industry and Trade), andthe contracting party’s name is thecustomer’s name and invoice is issued tocustomer instead of the enterprise,accordingly the incurred insurance fee isnot deductible for CIT purpose.Provisions for unemployment allowanceare not deductible expenses upondetermining CIT taxable income becausethey do not fall into the cases of provisionsunder the guidance of the Ministry ofFinance.The act of using sale invoices, while theTax authority has an enforcement decisionby notifying that invoices are no longervalid, is considered the act of using illegalinvoices. Accordingly, the Tax authoritiescan collect incurred tax amount (if any)due to illegal use of invoices. In particular:As for the customer receiving theinsurance package as gift, the incomeearned is not subject to Personal IncomeTax (“PIT”) pursuant to prevailingregulation.(Official Letter No. 153/TCT-CS dated 14January 2021 issued by the GeneralDepartment of Taxation)(According to other rulings, actualpayment in line with Labor Code is stillallowed for deduction when calculating CITtaxable income).(Official Letter No. 1276/CTHN-TTHT dated09 February 2021 issued by Ho Chi MinhCity Tax Department) Such invoices are no longer valid, bothsellers and buyers will be imposedadministrative penalty for using illegalinvoices; Buyers are not allowed to credit inputValue Added Tax (“VAT”) and includedeductible expenses upon CITcalculation; Sellers and buyers must issue minutesto recall invoices that have beenimproperly issued.After the enforcement decision expires orceases to be effective, through verificationof Tax authorities’ determination of actualsale and purchase of goods or services, Taxauthorities shall guide sellers to issueinvoices, sellers and buyers then shallconduct tax declaration according toregulations.Contact usWebsite: deloitte.com/vnEmail: deloittevietnam@deloitte.comFor reference only, not for distribution or sale(Official Letter No. 6371/CTHN-TTHT dated02 March 2021 issued by Hanoi TaxDepartment)
Tax & Customs Newsletter March 2021 Page 4RESPONSES ABOUT CITFINALIZATION OF THE GENERALDEPARTMENT OF TAXATIONCorporate Income TaxOn 11 March 2021, the GeneralDepartment of Taxation organized onlinesupport program addressing 2020 CITfinalization on the General Department ofTaxation’s website portal. Below arenotable points:Depreciation of fixed assets which aresuspended due to the impact ofCovid-19If enterprises had to put several fixedassets on hold for less than 09 months in2020 taxable period and resumed use ofsuch fixed assets thereafter, depreciationexpenses of such fixed assets duringsuspension are deductible for CIT purpose.Donation for Covid-19 prevention andcontrol activitiesThe Ministry of Finance is currentlysubmitting to the Government a DraftDecree guiding which donation expensefor prevention or control of Covid-19should be considered deductible expensesfor CIT purpose with related supportingdocuments.Contact usWebsite: deloitte.com/vnEmail: deloittevietnam@deloitte.comFor reference only, not for distribution or saleQuarantine expense for foreignexperts during the Covid-19 pandemicIf the labor contract clearly indicates thecompany’s obligation to payaccommodation expense for expatriates,then such expense paid to the quarantinefacilities shall be deductible for CITpurpose upon availability of supportingdocuments as prescribed in regulations.Salary expenses reimbursed toforeigner employees after quarantineperiod and prior to work permitissuanceIn case companies employing foreigners,who have yet obtained work permit inaccordance with the Labor Code, salaryexpenses paid to such employees prior towork permit issuance are not eligible forCIT deductibility.Previous year expenses, of whichsupporting documents are received infollowing yearIf invoices and documents, which arerelated to previous year, meets CITdeductibility conditions of that period,company can amend CIT declaration ofthat incurring period in accordance withregulations on CIT and tax administration.Declaration of carried-forwardinterest expenses from the previousyearWhen carrying-forward non-deductibleinterest expenses from previous year tofollowing years (within the 05-yearperiod), according to Point b, Clause 3,Article 16 of the Decree No.132/2020/NDCP on tax administration for enterpriseshaving related party transaction, taxpayerswill declare on Section IV, Appendix 01attached with the Decree No.132/2020/ND-CP and item [B11] – otheradjustments reducing profit before tax onCIT finalization form 03/TNDN.
Tax & Customs Newsletter March 2021 Page 5GUIDANCE RULINGSPersonal Income TaxDeclaration the new family circumstancededuction level on the PIT finalizationForm 05-QTT/TNCN For taxpayers who authorize the incomepaying organization to conduct PITfinalization on their behalves: the taxpayerscan adjust the deduction to the new level inaccordance with the new regulation whenperforming PIT finalization.For taxpayers who do not authorize theincome-paying organization to conduct PITfinalization on their behalves: for deductionsunder the old level before 01 July 2020, andat the time of PIT finalization, theorganization will not make adjustment to theamount deducted for the unauthorized cases(the organization is responsible to reflect theactual tax withheld amount during the year).In case of individual filing, they can apply thenew deduction level retroactively from 01January 2020.(Summary of answers from the GeneralDepartment of Taxation about the 2020 PITfinalization)Contact usWebsite: deloitte.com/vnEmail: deloittevietnam@deloitte.comFor reference only, not for distribution or saleGuidance for online submission of PITfinalization dossierIn order to facilitate taxpayers not to sendhard copies to Tax authorities, to conduct taxfiling anywhere and anytime, to save time andcost; the General Department of Taxation hascompleted upgrading the application systemto receive tax returns for individuals via theInternet. To submit PIT returns online,individual taxpayers are required to haveelectronic tax transaction account. There arethree methods to register an account asbelow: Method 1: Register via the National PublicService Portal (https://dichvucong.gov.vn) Method 2: Taxpayers register online onthe tax website(https://canhan.gdt.gov.vn) and godirectly to the Tax authority for approvaland activation of account. Method 3: Taxpayer comes to registerdirectly at the tax office by submitting thedeclaration form 01/ĐK-TDT (Enclosedwith the Circular No. 110/2015 /TT-BTC)(Official Letter No. 535/TCT-DNNCN guidingonline receiving tax return form No. 02/QTTTNCN issued by the General Department ofTaxation)Deadline for PIT finalization filing Company filing: No later than the last dayof the third month from the end of thecalendar year Individual filing: No later than the last dayof the fourth month from the end of thecalendar yearIn case the deadline for submission of taxfinalization dossiers coincides with theweekend or holidays, the deadline forsubmission of tax finalization dossiers shallbe the following working day.(Official Letter 636/TCT-DNNCN issued by theGeneral Department of Taxation)
Tax & Customs Newsletter March 2021 Page 6Value Added TaxGUIDANCE RULINGSVĂN BẢN HƯỚNG DẪNVĂN BẢN HƯỚNG DẪNBranches in different provincecontinue direct VAT declaration in2021Deduction of VAT on giftsTreatment for invoices with blurredlettersAccording to the new regulations in Clause2, Article 11, Decree No. 126/2020/ND-CP,enterprises will declare VAT at theheadquarter for all dependent branches indifferent province, including brancheshaving direct sales.Nevertheless, according to the transitionalprovision in Article 43, Decree No.126/2020/ND-CP and the decision toprolong the period of the State budgetstability in Clause 5, Article 1, ResolutionNo. 122/2020/QH14, in 2021, brancheswill continue the direct VAT declaration tolocal Tax authorities and might select todeclare tax monthly or quarterly for theentire calendar year according to Clause 2,Article 9, Decree No. 126/2020/ND-CP.According to Clause 2, Article 11, DecreeNo. 126/2020/ND-CP, from 2022, branchesin different province will cease direct VATdeclaration, while the enterprise shallcollectively declare VAT at the Taxauthority managing headquarter.Contact usWebsite: deloitte.com/vnEmail: deloittevietnam@deloitte.comFor reference only, not for distribution or sale(Official Letter No. 6146/CTHN-TTHT dated01 March 2021 issued by Hanoi TaxDepartment)If a company imports non-commercialgoods (gifts from a foreign businesspartner) to serve the VAT-taxablebusiness, the input VAT amount of suchgoods settled upon importation will becreditable according to Article 14,Circular No. 219/2013/TT-BTC.(Official Letter No. 6147/CTHN-TTHTdated 01 March 2021 issued by Hanoi TaxDepartment)The second invoice copy (forcustomers), if damaged or blurredduring the storage process, must becorrected in accordance with Clause 2,Article 24, Circular No. 39/2014/TT-BTC.Accordingly, the seller and the buyerare required to prepare a minutes onthis incident. Such minutes must clearlystate the month in which the firstinvoice copy is declared and include thesignature (and full name) of the legalrepresentative and seal (if any).Afterwards, the seller shall scan the firstinvoice copy, sign and seal, then deliverto the buyer for the accountingdocuments storage and tax declarationpurposes.Buyers and sellers are responsible forthe accuracy of the damaged secondinvoice copy.(Official Letter No. 7432/CTHN-TTHTdated 12 March 2021 issued by HanoiTax Department)VĂN BẢN HƯỚNG DẪN
Tax & Customs Newsletter March 2021 Page 7Foreign ContractorWithholding TaxGUIDANCE RULINGSVĂN BẢN HƯỚNG DẪNVĂN BẢN HƯỚNG DẪNIncome from material liquidation offoreign outsoucerIncome from international logisticsand forwarding servicesThe transfer of outsourcingcontracts in Vietnam is subject toFCWTUpon receiving materials for processingactivity for overseas parent company, incase the Vietnamese subsidiary detecteditems which are damaged, unusable, andnotified to the parent company thenbeing authorized to dispose the defectivematerial and sells the waste to a localenterprise:If a foreign company earns income frominternational forwarding and logisticsservices from abroad to Vietnam(inbound transaction), then such incomeis not subject to Vietnam FCWT. Since the income from the scrap saleare paid directly by local buyingenterprises to parent company, thesubsidiary only delivers the goods anddoes not receive money, thus shouldrecord no income;The local company who purchase thescrap is responsible to withhold andpay Foreign Contractor WithholdingTax (“FCWT”) on behalf of the parentcompany in accordance with CircularNo. 103/2014/TT- BTC.(Official Letter No. 356/CTBNI-TTHT dated16 March 2021 issued by Bac Ninh TaxDepartment)Contact usWebsite: deloitte.com/vnEmail: deloittevietnam@deloitte.comFor reference only, not for distribution or saleIf a foreign company earns income frominternational forwarding and logisticsservices from Vietnam to abroad(outbound transaction), then suchincome would be subject to VietnamFCWT as follows: CIT: 2% on taxable income; VAT: 0% (if qualified as internaltransportation according to Article 9,Circular No. 219/2013/TT-BTC); 3% (ifnot qualified VAT 0% condition) ontaxable income.(Official Letter No. 5335/CTHN-TTHTdated 19 February 2021 issued by HanoiTax Department)In case a foreign company (A) signs acontract to transfer the components,finished products and semi-finishedproducts under outsourcing contractwith the Vietnamese company toanother foreign company (B), as well astransferring the assembly andinspection contract to company B; thiswould be considered as income fromthe sale of assets, transfer of assemblycontracts in Vietnam. Therefore, suchincome of company A would be subjectto FCWT in accordance with CircularNo. 103/2014/TT-BTC.(Official Letter No. 71/TCT-CS dated 08January 2021 issued by the GeneralDepartment of Taxation)VĂN BẢN HƯỚNG DẪN
Tax & Customs Newsletter March 2021 Page 8GUIDANCE RULINGS (cont.)Foreign ContractorWithholding TaxIncome from project managementconsulting servicesIn case the Vietnamese company signs acontract with a foreign contractor to performconsultancy service on management andoperation, the foreign contractor is subjectto FCWT in accordance with Clause 1, Article1, Circular No. 103/2014/TT-BTC. Contact usWebsite: deloitte.com/vnEmail: deloittevietnam@deloitte.comFor reference only, not for distribution or saleIf the contract price is inclusive of tax, thetax payable will be calculated on “taxableincome” times VAT rate of 5%, then CITrate of 5%;VAT taxable income is the total revenuefrom the provision of services, servicesassociated with the goods subject to VATreceived by the foreign contractor,excluding taxes payable, includingexpenses paid on behalf of the foreigncontractor by Vietnamese party (if any);CIT taxable income is the total turnoverexcluding VAT received by the foreigncontractor, excluding taxes payable,including expenses paid on behalf of theforeign contractor by Vietnamese party (ifany).(Official Letter No. 3722/CTHN-TTHT dated28 January 2021 issued by Hanoi TaxDepartment regarding FCWT)VĂN BẢN HƯỚNG DẪNFCWT on services related to softwareIn case foreign company earns income fromproviding software-related services toenterprises in Vietnam, such income wouldbe subject to FCWT in accordance withCircular No. 103/2014/TT-BTC. In particular: If these services are software service,such income would be VAT exempt andsubject to 10% CIT; If these services are not softwareservice, such income would be subjectto 5% VAT and 5% CIT. In addition, income arising from theservice of providing email domain will besubject to 5% VAT and 5% CIT; Determination of whether the service issoftware service will be based on DecreeNo. 71/2007/ND-CP.(Official Letter No. 3454/CT-TTHT dated 27January 2021 issued by Hanoi TaxDepartment)
Tax & Customs Newsletter March 2021 Page 9Trade and CustomsNEW REGULATIONSVĂN BẢN HƯỚNG DẪNDecree No. 18/2021/ND-CPamending, supplementing DecreeNo. 134/2016/ND-CP to implementthe Law on Export-Import Taxes The Government issued, on 11 March2021, Decree No. 18/2021/ND-CP("Decree 18") to amend and supplementDecree No. 134/2016/ND-CP toimplement the Law on Export-Importtaxes. Decree 18 will officially take effectfrom 25 April 2021. Contact usWebsite: deloitte.com/vnEmail: deloittevietnam@deloitte.comFor reference only, not for distribution or saleSupplementary provisions on thetariff rate applied to on-spot importand export goods (Article 3);The duty exemption basis for goodsimported in re-processing cases isnow specified (Article 10);Supplementary provisions on dutyexemption basis for goods that areimported for export production butsent out for processing; dutyexemption basis for specific on-spotexport and import cases (Article 12);Supplementary provisions on theconditions for customs inspection,supervision and duty treatment toexport processing enterprises (Article28a); The provisions on the supervision ofthe Customs authority and finalizationreport on the usage of duty-freeimported goods under a Master Listhave been supplemented (Article 31); Enhanced provisions for the dutyrefund of imported goods that haveto re-exported (Article 34).The changes to Decree 134 are farreaching but the key revisions to itsarticles, are listed below: The duty exemption basis, for goodsthat are imported to form fixed assetsof those enjoying investmentincentives, have been supplemented(Article 14);(Decree No. 18/2021/ND-CP dated 11March 2021 issued by the Government –The Alert on this Decree has beenreleased by Deloitte Vietnam at link)Application of anti-dumping duty onsugar imported from ThailandThe Ministry of Industry and Trade hasissued Decision No. 477/QD-BCT dated 09February 2021 on the implementation ofanti-dumping measures on sugar importedfrom the Kingdom of Thailand.According to the Decision, anti-dumpingduty and temporary countervailing duty areimposed on several sugar cane products,classified under HS code 1701.13.00;1701.14.00 and 1701.99.10, 1701.99.90;1701.91.00 and 1702.90.91 that areimported into Vietnam and originated fromthe Kingdom of Thailand (case code: AD13AS01).The Decision takes effect 7 days after theissuance date.(Decision No. 477/QD-BCT dated 09February 2021 issued by the Ministry ofIndustry and Trade)
Trade and CustomsGUIDANCE RULINGSVĂN BẢN HƯỚNG DẪNVĂN BẢN HƯỚNG DẪNClarification of some customs issuesto implement the Law on TaxAdministration No. 38/2019/QH14and Decree No. 126/2020/ND-CP3. Positive inventory gaps of the duty-freeimported raw materials and supplies are stillused for manufacturing and processing exports– How to justifyDeclaring origin of goods on exportdeclaration1. Tax imposition and handling of falsedeclarations If the manufactured/processed goods havebeen exported: the enterprise is required toprovide relevant accounting documents. If the raw materials and supplies causingpositive inventory gaps are still in stock: theenterprise is required to prepare a writtencommitment stating that those materials andsupplies shall be properly used and recordedin the in-out-balance report of the followingyear. Contact usWebsite: deloitte.com/vnEmail: deloittevietnam@deloitte.comFor reference only, not for distribution or saleTax imposition: if the taxpayer fails toaccurately or fully declare informationrelated to the determination of taxobligations, the taxpayer will be subjectto tax imposition as prescribed.Handling violation: the wording of aviolation record shall simultaneouslyinclude these follow phrases:"inaccurate, incomplete, falsedeclaration" to serve as a basis for taximposition and handling ofadministrative violations as prescribed. If the cause of the inventory gaps isdetermined due to the wrong declaration ofenterprise, tax imposition shall be appliedbased on the specified violation.2. Revision of the Customs finalizationreport4. Duty treatment for goods under HS codeanalysis in classification processIn case an enterprise self-detects errors inits finalization report and has madeamendments in accordance with theregulations, tax imposition shall not beundertaken by the Customs authority.For goods at importation which are subject tothe HS code analysis in classification procedure,while waiting for the results to determine theexact amount of duty payable, the enterprisewill have to pay import taxes to have itsshipment released but will not have to pay thelate payment interest. However, for otherimportations of the same good, that did not usethe HS code classification procedure, theenterprise will have to pay import taxes and latepayment interest (if any).However, if the Customs authority hasissued a tax imposition decision after theexamination of finalization report or thepost-clearance customs audit, it is notpossible for the enterprise to revise orsupplement the finalization report.(Official Letter No. 546/TCHQ-TXNK dated 02February 2021 issued by the General Departmentof Customs)For exported goods fulfilling the criteriafor Vietnamese origin in accordancewith the circulars guiding rules of originunder respective free trade agreements,the customs declarant can declareVietnamese origin in the box"description of the goods" on the exportdeclaration form. If the exported goods only undergominimal processing and assembly inVietnam and fail to satisfy the origincriteria, the customs declarant is notallowed to declare Vietnamese originon the export declaration form. For exported goods with foreignorigin (other than Vietnamese), thecustoms declarant shall follow thestructure: “description of goods #&(insert the origin country code)”when filling the box "description ofgoods" on the export declarationform.(Official Letter No. 1523/BTC-TCHQdated 18 February 2021 issued by theMinistry of Finance)Tax & Customs Newsletter March 2021 Page 10VĂN BẢN HƯỚNG DẪN
Tax & Customs Newsletter March 2021 Page 11GUIDANCE RULINGS (cont.)Trade and CustomsGuidance on the implementation ofDecree No. 128/2020/ND-CP onpenalties for customs administrativeviolations1. Penalty for the act “submission ofcustoms declarations before gatheringexport goods at the location notified tothe Customs authority”Point a, Clause 3, Article 7, Decree No.128/2020/ND-CP stipulates the penalty incase "Customs declarations are submittedbefore export goods arrive at the locationthat has been notified to the Customsauthority.”In cases where the exported goods arriveat a location where the location code hasnot been granted by the Customsauthority, the enterprise shall not subjectto penalty if the location has been notifiedthe Customs authority.2. Penalty for the act “failure to notifythe actual bill of materials (“BOM”) formanufactured products within theregulated timeline”Contact usWebsite: deloitte.com/vnEmail: deloittevietnam@deloitte.comFor reference only, not for distribution or saleThe violation is determined pursuant toClause 2, Article 55, Circular No.38/2015/TT-BTC and Clause 2, Article 60,Circular No. 38/2015/TT-BTC. Accordingly,the deadline for submission of BOM reporthas been clearly specified “at the time ofsubmitting the finalization reportaccording to Clause 2, Article 60 of thisCircular."3. Penalty for false declaration of quantity(of goods valued at over VND 10,000,000)Article 3, Law on Handling administrativeviolation stipulates that “Administrativepenalty is only imposed when anadministrative violation is committedaccording to the regulations”. Hence, apenalty shall not be applied if it is notprescribed in the regulations.4. Violations specified in Clause 3, Article 8versus those in Article 14Clause 3, Article 8, Decree No.128/2020/ND-CP applies to acts of violationthat does not lead to a shortage in payabletax amounts or an excessive amount ofduty exempted, reduced, refunded, notcollected or evaded.In case the act of violation results in dutiesevasion, it shall be penalized in accordancewith Article 14, Decree No. 128/2020/NDCP.5. Penalty for “false declarations of exportprocessing enterprises”Pursuant to Clause 4, Article 2, and Clause1, Article 4, Law on Import and Export TaxNo. 107/2016/QH13; Clause 20, Article 4,Circular No. 219/2013/TT-BTC and DecreeNo. 209/2013/ND-CP, goods imported byan export processing enterprise areconsidered as goods brought into non-tariffzones and not subject to duty.Violations in non-tariff zones are morespecifically and directly specified in Pointb, Clause 2, Article 8 than in Clause 3,Article 8, Decree No. 128/2020/ND-CP.Therefore, in case the acts of violationare committed in non-tariff zones, Pointb, Clause 2, Article 8, Decree No.128/2020/ND-CP shall apply.6. Re-declaration documents in case ofexcessively/mistakenly delivered goodsIn the absence of documents, contracts,commercial invoices, bills of lading, etc.as regulated, confirming excessive ormistakenly delivered goods, then suchimported goods are not consideredlegitimate imports. Consequently, thepenalty prescribed in Clause 8, Article 11,Decree No. 128/2020/ND-CP isappropriate and ensures deterrence andprevention of violations.7. Penalties for negative/positiveinventory gap of which the cause is notidentifiedWhere the cause of the positive ornegative inventory gap has beenidentified by the Customs authority, theenterprise will be penalized based on theact of violation. If the reason for the gapor act of violation has not been identifiedby the Customs authority, no penalty wil
Circular No. 92/2015/TT-BTC, Circular No. 130/2016/TT-BTC, Circular No. 26/2015/TT-BTC, etc. (referred in Official Letter No. 1938/BTC-TCT dated 26 February 2021 of the Ministry of Finance) Deloitte Vietnam has published a Tax Alert dated 17 March 2021 to update on notable contents of this
1.iscover the three basic tax types—taxes on what you earn, taxes on D what you buy, and taxes on what you own. 2. Learn about 12 specific taxes, four within each main category—earn: individual income taxes, corporate income taxes, payroll taxes, and capital gains taxes; buy: sales taxes, gross receipts taxes, value-
The Zambian tax system broadly comprises income taxes, consumption taxes and trade taxes. These taxes are collected by the Zambia Revenue Authority (ZRA) which is the corporate body mandated to collect all taxes. Table 1: Broad tax categories in Zambia Tax category Type of tax Income taxes C
Taxes generate financial resources that governments us to provide public goods and redistribute income. Governments use five types of taxes: Income taxes Social security taxes Sales taxes Property taxes Excise tax Figure 9.5 shows the sources of tax revenues: Income taxes 51% (43%
charges (duties, taxes, or other debts owed Customs) in the event the charges are not paid by the broker. Therefore, if you pay by check, Customs charges may be paid with a separate check made payable to the U.S. Customs Service, which shall be delivered to Customs by the broker. Importers (Please see page 2) Lisa Ragan Customs Brokerage
2. Value Added Tax 3. Foreign Contractor Withholding Taxes 4. Special Sales Tax 5. Double Tax Agreements 6. Transfer Pricing 7. Personal Income Taxes 3 6 8 10 11 13 14 TAX RATES & CALCULATIONS The standard Corporate Income Tax (“CIT”) rate applicable to enterprises in Vietnam is 20% on
Other Indirect Taxes IEPS (Mexican Excise Tax) 16% Value Added Tax Relevant Import Considerations . Page 11 Mexico’s Energy Reform – Potential customs implications Import Taxes The permanent importation of gasolines and diesel into Mexico is subject to payment of various taxes and fees including import duties, CPF, VAT and excise
Ind. Income Taxes 1,698,353 13,180 49% Soc. Insurance Taxes 1,242,405 9,641 36% Corporate Taxes 216,194 1,678 6% Excise Taxes 98,669 766 3% Customs Duties/ Fees 69,469 539 2% Fed. Reserve Earning 48,783 379 1% Estate/Gift Taxes 19,295 150 1% Other Re
The U.S. Customs and Border Protection Form 7501 is the final presentation to U.S. Customs and Border Protection and includes the payment of duties and other U.S. Customs and Border Protection related charges. The U.S. Customs and Border Protection Form 7501 must be filed with U.S. Customs
