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According to this Official Letter, for the goods and services purchased with electronic invoices, the Company has to use electronic invoices (not conversed invoices) as a basic to record reasonable expense for CIT purpose.
According to Clause 1, Article 12, Circular No.32/2011/TT-BTC, electronic invoices are only allowed to be conversed into paper invoices for the purpose of proving the origin of goods circulated on the road and storage.
According to Article 12, Circular No. 219/2013/TT-BTC, in case the invoices which were issued with incorrect VAT rate have not yet been corrected by the Company, when the Tax Authorities inspects and finds out, it shall be handled as below:
a) For the seller: If the VAT rate on the invoices is higher than the prescribed rate by tax law, the seller have to declare and pay VAT with the VAT rate in invoices; in the opposite case, the rate prescribed bytax law will be applied.
b) For the buyer: If the VAT rate in invoices is lower than the prescribed rate by tax law, the buyer deducts the input VAT with the rate written on invoices; in the opposite case, the buyer is entitled to deduct the input VAT with the rate prescribed by tax law. In case the seller has declared and paid tax with VAT rate in the invoices, the buyer is entitled to deduct the input VAT with rate written on the invoices as long as it is certified by Tax Office which directly manages the seller.
According to this Official Letter, in case the seller issued the invoices with incorrect VAT rate to the buyer, if the Tax Office which directly manages the seller have confirmed that the seller have paid VAT under rate written on the invoices, the buyer is entitled to deduct the such VAT as a deducitible input VAT.
According to this Official Letter, when the Company provides services to parent company, and the contract is agreed that the parent company will advance the service fee to get a cash discount, this cash discount shall be subject to FCT, even when the service fee is paid by offsetting method.
FCT liability in this case is 5% of the turnover subject to CIT (no VAT liability).
Pursuant to Point c, Clause 4, Article 2 of Export and Import Duties Law No.107/2016/QH13, goods transferred between EPEs are exempted from export and import tax.
Accordingly, in case the EPE transfers machinery, equipment to its branch that is not EPE (according to the branch registration certificate), export and import tax is not exempted according to the above regulation.
According to Article 4, Circular 186/2010/TT-BTC, foreign investors can remit profits to abroad on condition that: completed financial obligations in Vietnam, submitted audited financial statements, submitted CIT finalization declarations and informed before remitting profits.
In which, the Notification of profit remittance abroad must comply with the form issued in Circular No.186/2010/TT-BTC and specify clearly the amount of the remitted profits of each year, in the case of remitting accumulated profits of many years.