Uni 08-10-2014 - New guidance of Circular 103/2014/TT-BTC of FCT

According to Official letter No. 4280/TCT-CS about new contents of Circular No. 103/2014/TT-BTC, some spotlights should be noted:

1. FCT for foreign organizations, individuals supplying, distributing goods in Viet Nam

Ratio % of CIT to revenue for supplying, distributing goods, materials, machineries, equipment is 1%

Before this time: not stipulated

2. Non-application entities

Goods delivery at the foreign or Vietnam entrance gates enclosed with warranty conditions is responsible and obligated for sellers, besides, there are no services performing in Vietnam and FCT non-application.

Before this time: Supplying goods enclosed with warranty service in Vietnam must pay FCT.

3. CIT
4. VAT  calculation for tax declaration under direct method

VAT is calculated by (=) assessable revenue multiplying (x) ratio %  to calculate VAT of revenue.

Before this time: VAT is calculated by (=) assessable revenue multiplying (x) VAT ratio % of revenue multiplying (x) VAT tax rate.

5. Ratio % to calculate VAT, Ratio % to calculate CIT to assessable revenue when declaring VAT under direct method

Clear guidance in case of foreign contractors signing contracts with foreign sub-contractors to pay VAT under direct method.

Clear guidance for FCT of construction, installation including materials or machineries or separating each activity value and non- separating each activity value.

6. VAT for foreign contractors, foreign sub-contractors supplying services, goods to find, explore, develop and explore oil fields, gas
7. Adding regulations of determining CIT assessable revenue for treasury bills
8. CIT for compensation amounts from contract breaching