DECREE 12/2015/NĐ-CP DATED 12 FEBRUARY 2015 OF GOVERNMENT IN GUIDANCE OF LAW OF ADDING, REVISING ARTICLES OF TAX LAW
On 12 Feb 2015, Government just issued Decree 12/2015/NĐ-CP guiding implementation for Law of adding, revising some articles of tax law and adding, revising some articles of Decrees of tax including: CIT, PIT, VAT, natural resource tax, Law on tax administration. In which, some additions, revisions should be noted as follows:
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For CIT
Besides these additions, revisions of tax incentives, tax exemption, the deductible expenses and nondeductible expenses clearly stated: enterprises have sufficient charter capital arising borrowing interest to invest in other enterprises, these expenses are included in deductible expenses when determining taxable income.
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For PIT
The main items were amended and supplemented including: tax-exempt income; income from business, from salaries and wages, from the transfer of securities, from the transfer of real estate, from prizes and responsible for withholding, declaring, disclosing information the organization, which are guided as follows:
For income from salaries and wages of individual signing labor contract more 3 months, income payers are temporarily withheld by partly progressive tariff.
For income from salaries and wages of individual signing labor contract less 3 months, income payers are temporarily withheld at the rate of 10% to the paying to individuals. The income level as basis to withhold, temporarily withholding is specified by Ministry of Finance.
Enterprises where individuals have the transferred contribution capital are responsible for requiring them to provide proofs to have completed tax obligations before doing procedures to change the list of contributors or shareholders. Where no personal documents evidencing complete tax obligations, the enterprises where individuals transfer capital are responsible for paying tax on behalf of these individuals.
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For VAT
Feeds of cattle, poultry, seafood and other pet food being nontaxable subjects including: the types of products processed or unprocessed such as bran, pulp in all kinds, fish flour, bone flour, shrimp flour, different foods used for cattle, poultry, seafood and other pets, livestock additives (such as premix, the active ingredient).
Amounts of input VAT on goods and services, fixed assets serving for production of feeds of cattle, poultry, seafood and pet food for other domestic consumption are not declared and deducted that are included in deductible expenses when determining CIT, excluding value-added tax on goods and services, fixed assets purchased before 01 Jan 2015 meeting conditions of deduction, refund.
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For Law on tax administration
Some additions, revisions should be noted:
In case, the revenue, expenses, taxable income generated in foreign currencies, they must convert foreign currencies into Vietnam dong at the actual exchange rate. MOF would guide the conversion of foreign currencies into Vietnam dong. For exports & imports goods, the exchange rate of tax calculation is followed under paragraph 3 of Article 21 of Decree No. 08/2015 / ND-CP.
Taxpayers (including organizations and individual) trading in the restaurant, hotel, supermarket and a number of goods and services using the ECR system, installed payment software system to sell goods, then make a connection with the tax authorities to submit information to the tax authorities according to the schedule on the tax authorities.
This Decree takes effects from Law of adding, revising some articles of tax laws on 26 Nov 2014 effective (dated 01 Jan 2015)
