Uni 29-10-2014 - Guidance on new contents of Circular 151/2014/TT-BTC implementing Decree 91/2014/NĐ-CP

MOF just issued Circular 151/2014/TT-BTC in guidance of implementing Decree 91/2014/NĐ-CP about amending, adding some articles of Decrees of tax.

There are some significant notes as follows:

1. Law on tax administration:

VAT

• Quarterly declaration for enterprises having total revenue of goods & services of the previous year less 50 billion VND (before less 20 billion VND)
• If enterprises newly start to run business, quarterly declaration will be applied( before monthly declaration)
• For first stable cycle is determined from 01 Oct 2014 until 31 Dec 2016. For enterprises declaring quarterly tax before this Circular effectiveness, the first stable cycle is determined until the end of 31 Dec 2016.

CIT

• Enterprises temporarily pay CIT quarterly but not have to submit quarterly temporary CIT declaration.
• Total temporary payment tax less than payable tax amounts as finalization from 20%, enterprises must be penalty for late payment for the differences from 20%.
• Dissolution, operation termination will not have to finalize with tax authority.

2.  For CIT:

• Guidance on determining 01 average month salary involving in benefits for employees to include in deductible expense.
• Guidance on conditions of CIT incentive conditions for registered investment project with implemented states and investment project entitled to tax incentive during 2009-2013 investing additional machinery, equipment.
• Guidance on determining socio-economic area with favorable conditions that new invested projects in industrial zone in this area is not entitled to tax incentive.
• Guidance on tax incentive for enterprises enjoying tax incentive with export ratio but stopping due to WTO commitment.

3. For VAT:

• Borrowers self-sell guaranteed assets with authorization of lenders to repay guaranteed loans and not be imposed VAT.
• Reject VAT declaration, deduction before 31 Dec annually for contract with payment time earlier  31 Dec.

4. For PIT:

• Not included PIT for housing benefits constructed by employers, freely providing for employees working in industrial zone; housing constructed by employees in economic zone, area with special difficult or  difficult social-economic conditions freely providing for employees.