Vietnam 2016 May Technical Update Issue/3 | KPMG | VN

Vietnam 2016 May Technical Update/ Issue 3

Vietnam 2016 May Technical Update Issue/3

According to official letter No. 5181/BTC-TCT dated 15 April 2016 of the Ministry of Finance, the policy on CIT incentives for income from processing of agricultural and fishery produce will be implemented.

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1) Corporate Income Tax (“CIT”)

  • Determination of CIT incentives for income from processing of agricultural and fishery produce;
  • Determination of CIT incentives prior to 2014 for a company that was granted two investment certificates to develop two separate projects;
  • Income from transfer of collateral real estate is considered income from
    real estate transfer and the collateral amount paid to banks is not allowed to be deducted.

2) Value Added Tax (“VAT”)

  • Transfer of project to a subsidiary requires the preparation of price
    evaluation minutes and a VAT invoice in relation to the difference received from the project transfer;
  • VAT element of FCT claw-back is not creditable

3) Personal Income Tax (“PIT”)

  • Centralisation of PIT declaration at the bank headquarters;
  • Non-resident taxpayers who overpaid PIT due to change of tax residence
    status will be entitled to a PIT refund

4) Import and Export Duty

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