From April 20, new regulations on special consumption tax deductions apply

This is one of the new provisions regarding the deduction of special consumption tax already paid at the import stage as stipulated in Circular 20/2017/TT-BTC (Circular 20) issued by the Ministry of Finance on March 6, 2017, amending and supplementing Clause 2, Article 8 of Circular 195/2015/TT-BTC dated November 24, 2015.

Circular 20 stipulates: Taxpayers of special consumption tax (SCT) on imported goods subject to SCT are allowed to deduct the amount of SCT already paid at the import stage when determining the amount of SCT payable for domestic sales.

The deductible SCT amount corresponds to the amount of SCT on the imported goods subject to SCT sold domestically and can only be deducted up to the corresponding amount of SCT calculated at the domestic sales stage.

For the non-deductible SCT amount, taxpayers may account for it as an expense for calculating corporate income tax.

The Circular also clearly specifies the conditions for SCT deduction applicable in specific cases:

For cases of importing materials subject to SCT for the production of goods subject to SCT and cases of importing goods subject to SCT, the documents used as the basis for SCT deduction are the SCT payment documents at the import stage.

In cases where the exact amount of SCT paid (or has been paid) for the materials corresponding to the products consumed in the period cannot be accurately determined, the previous period’s data may be used to calculate the deductible SCT amount, which will be adjusted based on actual figures at the end of the quarter or year.

In all cases, the maximum deductible SCT amount must not exceed the SCT amount calculated for the materials according to the economic and technical standards of the product. The manufacturing facility must register the economic and technical standards of the product with the tax authority directly managing the facility.

Circular 20/2017/TT-BTC takes effect from April 20, 2017.

Source: Infonet.vn

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