Vietnam: Guidance on depreciation, corporate income tax incentives, input VAT

Vietnam: Guidance on depreciation, corporate income tax

The Ministry of Finance issued guidance and the General Department of Taxation issued "official letters" concerning:

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  • Depreciation for a fixed asset (a "complex building" that is used both for normal business activities and for leasing and sales purposes)
  • Interest income realized on late payments is not eligible for an exemption from corporate income tax that a company may enjoy
  • Determining the eligibility of a company to a corporate income tax incentive 
  • An increase in the base salary of government employees 
  • A decrease of the rate of contribution to labor accident and occupational diseases insurance and the government's agreement to reduce the unemployment insurance contribution rate
  • Input value added tax (VAT) when a branch uses a headquarter's bank accounts to settle payments
  • A VAT refund when a project management office of a foreign contractor dissolves and accumulated input VAT has not been fully credited
  • Excluding a trade discount from the taxable price for the "special consumption tax" calculation

 

Read an April 2017 report [PDF 325 KB] prepared by the KPMG member firm in Vietnam

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