1. CORPORATE INCOME TAX

Official Letter 1791/CT-TTHT dated 26/07/2018 of Long An Tax Department about CIT on promotional activity

If the Company organizes promotion events for production and business activities purpose with the total value of prizes and gifts less than 100 million dong from July 15^th, 2018, the Company don't have to inform the Department of Industry and Trade.

Dossiers for determining deductible expenses are the company's decisions on promotion events signed and stamped by the company's representatives, and invoices, documents related to this promotion events under regulations.

Regulations: Clause 2a, Article 17, Decree 81/2018/ND-CP

Official Letter No.53064/CT-TTHT dated July 31^st, 2018 of Hanoi Tax Department about CIT for IT projects in oversea

According to this Official Letter, in case the Company implements an investment project of IT server system in oversea, if the conditions for recording tangible fixed assets and / or intangible fixed assets is met and the Company has documents proving the ownership, which is recognized by the Authorities in Vietnam, the depreciation expenses for servers located in oversea and the costs of hiring services related to this server system will be deducted when calculating CIT.

Regulations:

+ Clause 1, Article 2, Circular 45/2013/TT-BTC.

+ Article 4, Circular 96/2015/TT-BTC.

2. PERSONAL INCOME TAX

Official Letter No.47484/CT-TTHT dated July 09^th, 2018 of Hanoi Tax Department about PIT of probationary salary

According to this Official Letter, after the probation contract is terminated, the Company decides to sign the labor contract for 3 months or more, the Company shall withhold the personal income tax according to the progressive tax table for the whole salary included probationary salary.

Conversely, if after the probationary period, the company does not sign labor contract, the salary will be deducted from the PIT for resident individuals at the rate of 10% (except the worker has the Commitment about low income).

For example: The company signed a probation contract with individual A from June 10^th, 2018 to August 09^th with the salary of 3 million / month including PIT. The Company's payroll period is from the 16^th to the 15^th of the following month and the Company pays for all employees on the 20^th. On July 20^th, 2018, the company deducts 10% PIT before paying income to individual A for the working period from June 10^th, 2018 to July 15^th, 2018. On August 20^th, 2018, if individual A has signed a labor contract with the Company, the Company will deduct the tax according to the progressive tax table for the working period from July 16^th, 2018 to Aug 15^th, 2018 (including probationary period from July 16, 2018 to August 09, 2018).