In this issue

Invoicing

► Export invoice is no longer in use except for in-stock ones notified to tax authority by 1 June 2014
► Increase minimum charter capital condition of enterprise applying for self-printing invoices to VND15 billion
► Increase invoice management toward “high tax risk” enterprises
► No need to cross out blank space on self-printed invoices and customized invoices issued from computer

Corporate Income Tax (CIT)

    Time for recognizing export revenue
► Export revenue will be recognized at the time all the customs procedures are completed
     Offsetting overpaid CIT between headquarter and branch
► Overpaid CIT amount of the Company’s head quarter can be offset against the CIT payable of its branch located in different province
    Gifts given to clients for business operation
► Enterprises must record revenue regarding gifts given to clients for CIT purposes. The relevant gift expenses are deductible subject to 10% A&P cap
    Additional import duty deemed by custom authority
► Additional import duty (due to variance of stock count & custom declaration) deemed by custom authority shall be deductible to the enterprise

Value Added Tax (VAT)

    VATable price of bank’s gift card issuance
► VATable price for bank gift card will be card issuance fee only
    Scrap sales of export processing enterprise
► Domestic enterprise must declare and pay import VAT upon purchasing scrap from export processing enterprises
     Additional import VAT deemed by custom authority
► Additional import VAT on exceeding imported materials which is deemed by custom authority shall be creditable to enterprise