Tax and Legal Update for May 2021
May 2021 | KPMG in Vietnam
Dear valued customers, KPMG would like to share the very recent update on the tax and legal legislation and notable treatments introduced by the tax authorities for your reference. Our update for May would cover the following matters:
1. Tax Update
- Revenue generated by branches is included into the revenue cap calculation to determine taxpayers eligible for 30% CIT reduction for fiscal year 2020
- Support payment received from a business partner to become their agency within a specific period must be taxed as a lump-sum amount
- Criteria for high technology company
- Supplementary VAT declaration to adjust the amount of the proposed VAT refund is allowed only if the VAT return of the next VAT declaration period and the application of VAT refund have not been submitted to the tax authorities
- Strict review and monitoring of VAT refund for ‘high risk’ companies
- Land compensation and clearance expenses must be offset against the land rental on a project basis
- Late implemented projects must pay land rental for the delayed period
- Some tax circulars are still valid while the guiding circular to Decree 126/2020/ND-CP is not available
- Circular 19/2021/TT-BTC dated 18 March 2021 of the Ministry of Finance guiding on electronic transaction in the tax field
2. Legal Update
- Shares/capital contribution acquisition falling out of “economic concentration in form of enterprise acquisition”
- Draft decree on management of medical devices
- Draft circular on pilot program for direct power purchase agreement (“DPPA”) between renewable energy generation companies and energy consumers
Explore further to learn more about how KPMG can help:
Tax and Legal Alerts: Keep up to date with our Tax & Legal Alerts for the latest changes to tax and legal laws relating to your business, the market and professional activities.
Other editions:
— Tax Audit Support Program 2021 (Vietnamese)
— 2020 Year-end Tax Finalisation Compliance (PDF)
— Global Mobility Services (English, Vietnamese)
— Legal Immigration & Employment (English, Vietnamese)
— International Tax Advisory (PDF)
— Transfer Pricing in Vietnam (PDF)
— Future-Ready with KPMG: Partnering for Success (English, Vietnamese)
— Future-Ready with KPMG: Partnering for Growth (English, Vietnamese)
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