Starting from February 2018, many new policies in the field of Taxation will come into effect. Among them, the following 04 policies are the most notable:
Article table of contents
1. VAT Refund for Imported Goods Subsequently Exported
Decree 146/2017/ND-CP issued on December 15, 2017, to amend and supplement certain articles of Decree 100/2016/ND-CP and Decree 12/2015/ND-CP.
Clause 2, Article 1 stipulates that business establishments with exported goods and services in the following cases are entitled to a VAT refund:
- Imported goods subsequently exported to a non-tariff zone;- Imported goods subsequently exported abroad, with an uncredited input VAT amount of 300 million VND or more;- Both exported goods and domestically consumed goods, with an uncredited input VAT amount of exported goods from 300 million VND or more.
Decree 146/2017/ND-CP takes effect from February 1, 2018.
2. Amendment of Regulations on Non-subject VAT for Exported Natural Resources and Minerals
This is also an important content addressed in Decree 146/2017/ND-CP. The specific content is as follows:
Exported natural resources and minerals are not subject to VAT if they fall into one of the following two cases:
- Exported products are natural resources and minerals that are extracted but not processed into other products;- Exported products are goods processed directly from main raw materials of natural resources and minerals with a total value of natural resources and minerals plus energy costs accounting for 51% or more of the product’s production cost, except in the following cases:
- Exported products processed from TNKS that have been processed into other products and then further processed into exported products;- Products directly exploited and processed by business establishments (CSKD) or purchased for processing or leased to other establishments for processing into exported products;- Exported products processed from main raw materials that are not TNKS (TNKS have been processed into other products)..jpg)
3. Changes to Non-deductible Expenses when Calculating Corporate Income Tax
Article 2 of Decree 146/2017/ND-CP has amended the regulations on the portion of expenses contributed to social welfare funds that are not deductible when calculating corporate income tax:
- The portion that exceeds 3 million VND/person/month for voluntary pension fund contributions, voluntary pension insurance, and life insurance for employees (previous regulation was the portion exceeding 1 million VND/person/month);- The portion that exceeds the legal regulations on social insurance and health insurance for social welfare funds (mandatory supplementary pension insurance), health insurance fund, and unemployment insurance fund for employees.
Note that the two above-mentioned expenses are deductible only if they meet the following conditions:
- Do not exceed the prescribed limit;- The expenses must be specifically stated in one of the following documents: Labor contract; Collective labor agreement; Financial regulations of the Company, Corporation, Group; Reward regulations.
4. Guidance on Tax Declaration and Invoice Reporting for Casino Enterprises
The tax declaration and invoice, voucher reporting of casino enterprises are guided in Article 5 of Circular 146/2017/TT-BTC. To be specific:
- Enterprises shall declare and pay taxes as per the regulations of the Law on Tax Administration, the Law on Value-Added Tax, the Law on Special Consumption Tax, the Law on Corporate Income Tax, and guiding documents;- Enterprises shall register and notify the sample of the documents specified in Article 3 of Circular 146 with the tax management authority and must submit reports on the usage of invoices and vouchers according to the legal regulations on invoice management.
Circular 146/2017/TT-BTC officially comes into effect from February 12, 2018.
