EY Vietnam_ Tax Update_ Apr 2015

Tax Updates
April 2015
April 2015
Tax Updates | Page 1
In this Issue
Circular 38/2015/TT-BTC (Circular 38) dated 25 March 2015
s providing detailed guidance on Customs procedures; Customs
supervision and inspection procedures; and Tax administration
on exported and imported goods.
Circular 39/2015/TT-BTC (Circular 39) dated 25 March 2015
regulating Customs valuation of exported and imported goods.
Circular 38 and 39 provide many significant changes with an aim to simplify and reform
administrative procedures in order to facilitate tax payers in customs declaration and customs
clearance practice.
Circular 38 and Circular 39 have abolished several previous Circulars in relation to Customs
procedure and Customs valuation. These two Circulars took effect since 1 April 2015.
Draft Circular guiding the implementation of Corporate Income
Tax (CIT) according to Law amending and supplementing some
articles of Tax Laws.
The draft Circular details regulations on tax deductibility and tax incentives stipulated in Law No.71
and Decree No. 12
April 2015
Tax Updates | Page 2
Circular 38/2015/TT-BTC (Circular 38) dated 25 March 2015 providing
detailed guidance on Customs procedures; Customs supervision and
inspection procedures; and Tax administration on exported and
imported goods
Circular 38 supplements a number of articles in relation to Customs supervision and inspection procedures
as well as removes some administrative procedures, which aims to facilitate the import and export
procedures and improve management of the Government. In this Issue, our update will focus on significant
changes which affect the import and export activities of the enterprises.
Below are some important changes on Customs supervision and inspection procedures:
►
There is more detailed guidance on risk management which shall be performed during the Customs
supervision and inspection procedures.
Those are consistently applied in Customs clearance and especially in classifying and rating
compliance level of enterprises, including:
►
►
►
Authorized Economic Operators (AEOs);
►
Conformable enterprises; and
►
Unconformable enterprises.
Rules on examination of dutiable value during the customs clearance process and price validation
procedures are included. Circular 38 provides guidance on some cases whereby customs authorities
are suspicious of dutiable value and corresponding treatments as follows:
►
If customs authorities have sufficient base to reject the declared value  if the enterprises agree
with the Customs Authority’s conclusion then they shall make revised declaration and be
imposed administrative penalties. Otherwise, the Customs Authorities still allow releasing the
imports and post-clearance audit shall be performed.
►
If customs authorities do not have sufficient base to reject the declared value, the Customs
Authorities still allow releasing the imports and proceeding price validation per request of
enterprises.
The Customs Authorities still accept minor differences which do not affect the authenticity of the
Certificate of Origin of the imported goods.
Regulations to be removed
►
Procedures for notification and revision of Bill of Material (BOM) in relation to processing and export
production scheme;
►
Procedures for notification of codes of raw materials and exported products; and
►
Procedures for liquidation on processing contracts basis.
April 2015
Tax Updates | Page 3
Circular 39/2015/TT-BTC (Circular 39) dated 25 March 2015 regulating
Customs valuation of exported and imported goods
Circular 39 details conditions where royalty/license fee is required to be added into the dutiable value of the
imported goods by providing specific examples. Those examples provide scenarios on the conditions of
royalty/license fee to be related to the imported goods and to be included in the dutiable value.
Draft Circular guiding the implementation of Corporate Income Tax (CIT)
according to Law amending and supplementing some articles of Tax
Laws
Below are some important changes under the draft Circular:
Simplifying administrative procedure related to loss of goods:
►
Enterprises are not required to submit the explanation letter related to natural disaster, epidemic, fire
or goods damaged due to expiry or change of natural biochemical process to the tax authority.
►
The local authority’s confirmation on loss due to natural disaster, epidemic, fire is also removed.
Requirement on CIT Deductible expenses
►
Guidance on calculation of non-deductible interest corresponding to un-contributed equity is detailed
►
Payment for health insurance and accident insurance are considered as welfare expenses and part
of one-month –salary cap.
Investment Expansion in the period 2009-2013
►
Concept of “regular addition of machinery and equipment” is introduced in order to distinguish from
2009-2013 investment expansion. Accordingly, If enterprises use capital sourced from
depreciation account for funding machines/equipment without any changes in its capital
(notwithstanding change in its original costs of fix assets), then this should be considered “regular
addition of machinery and equipment” rather than investment expansion.
April 2015
Tax Updates | Page 4
Contact
EY │Assurance │Tax│Transactions│Advisory
For more information on this Tax Update or our
Tax & Advisory Services of EY Vietnam please contact:
Hanoi Office
Huong Vu
huong.vu@vn.ey.com
Partner
Trang Pham
trang.pham@vn.ey.com
Partner
Japanese Business Service
Junichi Harada
junichi.harada@vn.ey.com
Manager
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All Rights Reserved.
Korean Business Service
Kyung Hoon Han
kyung.hoon.han@vn.ey.com
About EY
APAC No. 160000176
ED None
Manager
This material has been prepared for general informational purposes only
and is not intended to be relied upon as accounting, tax, or other
professional advice. Please refer to your advisors for specific advice.
ey.com
Ho Chi Minh Office
Christopher Butler
christopher.butler@vn.ey.com
Partner
Nhung Tran
nhung.tran@vn.ey.com
Partner
Thinh Xuan Than
thinh.xuan.than@vn.ey.com
Partner
Thy Thi Anh Huynh
thy.anh.huynh@vn.ey.com
Director
Japanese Business Service
Takahisa Onose
takahisa.onose@vn.ey.com
April 2015
Director
Tax Updates | Page 5