Grant_Thornton_Tax_Alert__2009_CIT_Finalization
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Grant Thornton Vietnam is a member firm within Grant Thornton International Ltd. ('Grant Thornton Int ernational'). Grant Thornton International and the member firms are not a worldwide partnership. Services are deliver ed by the member firms independently. 26 March 2010 GT Client Alert 11 Areas for your consideration … in the 11 th hour Dear Readers, We trust you all now are reviewing your Corporate Income Tax (“CIT”) for 2009 as the 31 st March deadline for submission of the annual corporate tax return is fast approaching. Since 2009 is the first year of implementation of the new law on CIT with many changes relating to tax incentives, non-deductible expenses and tax administration, you will no doubt be devoting significant time and attention to this year’s tax return. To assist you in this 11th hour, Grant Thornton Vietnam has summarized some key areas that you may wish to consider before finalising the return. 1. Other sources of income should not be given tax incentives. 2. Tax incentives for business expansion are no longer available. 3. Tax exemptions or reductions are limited by the new three year rule. 4. Tax reductions were available for small and medium enterprises (“SMEs”) for 2009. 5. For cars with 9 seats or less, depreciation deductions are limited. 6. Salary expenses which are not defined in labor contracts and school fee of employees’ children are generally non-deductible. 7. Provisions of contingency funds in excess of 17% of the salary fund are non- deductible. 8. Generally, expenses of advertising, promotion (A&P) exceeding 10% of total deductible expenses are non-deductible. 9. Losses from revaluation of payables in foreign currencies are now deductible if conditions are met. 10. Provisional payments of CIT for branches are now required for all manufacturing enterprises.
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Transcript of Grant_Thornton_Tax_Alert__2009_CIT_Finalization
8/7/2019 Grant_Thornton_Tax_Alert__2009_CIT_Finalization
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Grant Thornton Vietnam is a member firm within Grant Thornton International Ltd. ('Grant Thornton International'). Grant ThorntonInternational and the member firms are not a worldwide partnership. Services are delivered by the member firms independently.
26 March 2010
GT Client Alert
11 Areas for your consideration … inthe 11th hour
Dear Readers,
We trust you all now are reviewing your Corporate Income Tax (“CIT”) for 2009 as the 31st March deadline for submission of the annual corporate tax return is fast approaching.
Since 2009 is the first year of implementation of the new law on CIT with many changesrelating to tax incentives, non-deductible expenses and tax administration, you will no doubtbe devoting significant time and attention to this year’s tax return. To assist you in this 11thhour, Grant Thornton Vietnam has summarized some key areas that you may wish toconsider before finalising the return.
1. Other sources of income should not be given tax incentives.
2. Tax incentives for business expansion are no longer available.
3. Tax exemptions or reductions are limited by the new three year rule.
4. Tax reductions were available for small and medium enterprises (“SMEs”) for 2009.
5. For cars with 9 seats or less, depreciation deductions are limited.
6. Salary expenses which are not defined in labor contracts and school fee of employees’children are generally non-deductible.
7. Provisions of contingency funds in excess of 17% of the salary fund are non-deductible.
8.
Generally, expenses of advertising, promotion (A&P) exceeding 10% of totaldeductible expenses are non-deductible.
9. Losses from revaluation of payables in foreign currencies are now deductible if conditions are met.
10. Provisional payments of CIT for branches are now required for all manufacturing enterprises.
8/7/2019 Grant_Thornton_Tax_Alert__2009_CIT_Finalization
http://slidepdf.com/reader/full/grantthorntontaxalert2009citfinalization 2/2
Grant Thornton Vietnam is a member firm within Grant Thornton International Ltd. ('Grant Thornton International'). Grant ThorntonInternational and the member firms are not a worldwide partnership. Services are delivered by the member firms independently.
11. Aside from these, it is worth noting that if you have any transactions with relatedparties, you are also required to file the Transfer Pricing Declaration (Form GCN01/TNDN) as required under Circular 117 (due date for this form is the same as theCIT return).
Generally, the following information needs to be declared in the Form:
• Identification of related parties;• Details of transactions with related parties; and
• Method used for pricing between related parties.
We hope that these brief checklist reminders have proved useful to you. Should you haveany questions please do not hesitate to contact our team.
Contact Details:Kenneth Atkinson Ronald Parks Managing Partner Partner, Tax Services T: +84 8 3910 9100 T: +84 8 3910 9120
E: [email protected] E: [email protected]
Grant Thornton (Vietnam) Ltd. 28th Floor, Saigon Trade Center37 Ton Duc Thang StreetDistrict 1, Ho Chi Minh City Vietnam
