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According to the presentation of the Company, for sales activities at NghiSon Cement Company, the date of issue and the date of signing on the E-Invoices commonly are the same day. However, sales activities for three consecutive day and night shifts were conducted in relation with the performance of the E-Invoice software of VNPT, so there wouldbe a few invoices of which the approval date was after the issue date. The reason for such mismatch was that when issuing the E-Invoices and sending them to the buyer before 24h, the buyer made the electronic signature on the received E-Invoices and sent them to the seller with theelectronic signature of both the buyer and the seller through the intermediary organization's system providing E-Invoice solutions after 00:00 in the following day.
Based on the provisions of the law on creating, issuing and using the E-Invoice and models of sales activities of the Company in the process of business operation and tax declaration, the General Department of Taxation agrees with the proposal of the Company that the date of determining the obligation to declare and pay taxes as well as record the transactions as prescribed is based on the date of issuing the E-Invoice.
According to this Official Letter, if the enterprise submits report on using invoice in the 1st quarter of 2018 but previously, they has registered the time of starting to use the invoice from the 2nd quarter of 2018, it is not required to submit the invoice report for the 1st quarterin this case.
Accordingly, the company is not sanctioned for not submitting the 1st quarter invoice report.
Transitional processed goods are eligible for 0% VAT as prescribed in Circular 219/2013/TT-BTC if they meet the conditions for transitional processing contracts under the law of foreign trade management and are provided with sufficient documents as the following:
+ Export processing contracts and contract supplements (if any) signed with foreign parties, clearly stating the party receiving goods in Vietnam
+ The VAT invoices clearly stating the processing price and the quantity of processed goods as well as the name of the receiving party as designated by the foreign party.
+ The transfer form of transitional processed goods shall be fully certified by both the deliverer and recipient of the processed goodsand certified by the customs office managing the transitional processing contracts.
Bank payment vouchers.
If one of the above documents is in sufficent, transitional processed goods will be charged VAT as domestic consumption goods.
According to Article 43 of Decree 69/2018/ND- CP, “transitional processing” is considered as:
+ Processed goodsof this contract are used as processing materials for other processing contracts in Vietnam.
+ The goods is processed in the previous stage is transferred to the next stages to complete one kind of finished goods.
Different from previous years, from 10/07/2018, employees working in economic zoneshave to pay 100% of PIT, and are not allowed to reduce 50% of PIT amount as Decree No. 82/2018/ND-CP has abandoned this article.
Therefore, in 2018, employees working in economic zones are only entitled to reduce PIT from 01/01/2018 to 09/07/2018, the reduction is no longer allowed for the period after.
Reduced PIT in 2018 is computed as below:
Reduced PIT = Total PIT payable in year x [(Taxable income in economic zones from 01/01/2018 to 09/07/2018)/(Total taxable income in year)] x 50%
* Total PIT payable in year: is determined on taxable income from wages and remunerationsearned in the tax year.
* Total taxable income in year: is taxable income from wages and remunerationsincluding incomes inside and outside economic zones (if any).
If the employees of a Branch received gifts fromthe Branch and the gifts are stocks, capital contributions, real estates or properties requested to register ownership (cars, motorbikes, ships, etc.), the Branch has to deduct PIT when presenting gifts.
On the contrary, if the gifts are other kinds of goods, the Branch does not need to deduct PIT.
In case the Company has tangible fixed assets that are self-built or formed from capital construction by contractor method, it gets ready to use but have not yet been finalized, the enterprises shall record the primary price by the provisional price and adjust after the settlement of completed works.
The depreciation of fixed assets is performed from the date that the Company records the increase of fixed assets under current regulations on the enterprise accounting system.
In case foreign banks associate with Vietnamese Bank to provide bank transfer service to enterprises in Vietnam abroad, the remittance fee received by foreign banks is subject to FCT.
Vietnamese banks are responsible for deducting and paying FCT in this case
In case the Company signs a contract with a company in Japan (without a permanent establishment in Vietnam) to purchase software copyright with an intermediary containing the software (USB) in accordance with the law, the income from software copyright, transferring USB transfer of Japanese company is subject to FCT in Vietnam. The company is responsible for declaring, deducting and paying FCT for company in Japan as follows:
- VAT: software copyright is not subject to VAT. VAT of USB transfer activities containing software is rated 2%.
- CIT: In case the contract can separate the value of software copyright and the value of transferring USB containing software, the rate (%) of CIT for USB is 1%, for software copyright value is 10%.
According to Article 30 of Decree 07/2016/ND-CP, foreign R.O. are only allowed to communicate, market research, trade promotion and not be permitted to conduct business activities in Vietnam so they do not have legal income from business to transfer into Vietnam dong account of the R.O.
Therefore, overseas companies may not assign Vietnamese companies to pay for goods or service to the R.O.'s account, including accounts in Vietnam Dong or foreign currency accounts.