Uni 12-04-2018 - Guidance on Decree 146/2017/ND-CP - revising, adding Circular 78/2014-TT-BTC and 111/2013/TT-BTC

On 16 Mar 2018, MOF issued Circular 25/2018/TT-BTC guiding Decree 146/2017/NĐ-CP dated 15/12/2017 of Government revising, adding some articles of Circular 78/2014/TT-BTC and Circular 111/2013/TT-BTC. Some contents as follows:

1. The value of the natural resources and minerals used for processing of export products is determined as follows::

• Natural resources and minerals directly exploited and put into processing do not include expenses for transportation of natural resources and minerals from the place of exploitation to the processing place
• Natural resources and minerals purchased for further processing do not include the cost of transportation of natural resources and minerals from the place of purchase to the processing place.
• In the case of the first year of exporting the products, the ratio of the value of the natural resources and the cost of energy to the production costs of the product shall be determined in accordance with the investment plan; In case of no investment plan, the actual value of the exported products shall be determined.

2. Refund of VAT on exported goods and services:

• Business establishments which have imported goods then export them to non-tariff areas; Imported goods then exported to foreign countries are entitled to VAT refund if they have input value added tax not yet deducted from 300 million dong or more.

3. Guiding some non-deductible expenses as follows::

• Where an enterprise transfers a part of its capital or transfers a whole of another enterprise, if it transfers its assets, the transferee enterprise shall only be allowed to make depreciation of fixed assets into deductible expenses according to the value remaining on the books of account at the transfer business.
• The deduction for voluntary retirement, voluntary retirement insurance and life insurance for laborers shall not exceed VND 3 million / month / person and must be specified in terms of entitlement and benefit level. in one of the following documents: labor contract; Collective labor agreement; Financial regulations of the company, corporation, group; The bonus rules shall be prescribed by the chairman of the Managing Board, the general director or the director according to the financial regulations of the company or corporation.

Circular 25/2018 / TT-BTC takes effect from 01/05/2018.