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Vietnam: Guidance clarifying corporate income tax, VAT, special consumption tax

Vietnam: Guidance clarifying corporate income tax, VAT

Guidance issued by the Ministry of Finance amplifies tax law provisions and rules with respect to corporate income tax, value added tax (VAT), and the “special consumption tax.”


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The guidance is referred to as “Circular 130” or Circular 130/2016/TT-BTC, and among its measures are the following clarifications:

  • There is a distinction between a “regular” investment activity in machinery and equipment and an “expansion” investment activity.
  • A formula applies to determine the ratio of exported natural resources and minerals that are not subject to VAT.
  • The VAT refund is available for companies with both domestic sales revenue and export sales.
  • Trading companies that import goods for export purposes are not allowed to apply for a VAT refund.
  • Actual contributed charter capital is determined on the submission date of the VAT refund application.
  • The value (taxable price) for the special consumption tax and credit are applied to all products manufactured domestically or imported from overseas, including all types of petroleum products.
  • For purposes of the special consumption tax regime, the value of goods sold to related trading companies will be the selling price, provided that this price is not 7% lower than the monthly average selling price for sales to unrelated trading companies. 


Read a September 2016 report [PDF 130 KB] prepared by the KPMG member firm in Vietnam

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