Tax Newsletter January 2021

IMPORT EXPORT DUTIES & CUSTOMS

1. New guidance on the declaration of goods being plant-derived products with name and description stipulated under both the nomenclature of medicinal herbs and nomenclature of plant-derived food.
2. Granting duty exemption for imported material serving export-manufacturing business with certain outsourced process.
3. Applying VAT on the import of outsourced products from EPE to domestic zone, even if 100% materials are supplied by the domestic contract owner.
4. Some guidance for the importation of medicine and medicinal ingredients.
5. No requirement on import license for houseware rubber gloves.
6. Supervising goods under intellectual property right infringement upon the GDC’s acceptance.

CORPORATE INCOME TAX (CIT)

1. Tuition fee for children of Vietnamese citizen, who is an employee of foreign company and assigned to work in Vietnam, will be taxed for PIT.
2. Expense to buy life insurance for clients is not deductible for CIT.
3. Expenses during production suspension due to Covid-19 pandemic shall be deductible for CIT.
4. The Government will accept contributed expenses to prevent and control Covid-19 as deductible expenses for CIT purpose.

FOREIGN CONTRACTOR TAX (“FCT”)

1. Sales of scrap on behalf of a foreign company are taxable for FCT purpose.