From 1 February 2018, the imported goods for export having the input value added tax not yet deducted of VND 300 million or more will be subject to the value added tax refund on a monthly, quarterly basis; where the input value added tax not yet deducted within a month or quarter is less than VND 300 million, the amount may be deducted in the next month, quarter.
This provision is stipulated in Circular No. 25/2018/TT-BTC dated 16 March 2018 of the Ministry of Finance guiding Decree No. 146/2017/ND-CP dated 15 December 2017 of the Government and amending, supplementing a number of articles of Circular No. 78/2014 /TT-BTC dated 18 June 2014 of the Ministry of Finance, Circular No. 111/2013/TT-BTC dated 15 August 2013 of the Ministry of Finance (“Circular 25”) to comply with the amendments and supplements to Decree 146/2017 /ND-CP of the Government dated 1 February 2018.
Furthermore, under Circular 25, the maximum amount paid for voluntary programs for the employees of the enterprises will increase from VND 1,000,000 to VND 3,000,000, and satisfies the following conditions to be deductible from the corporate income taxable:
i. These expenditures must be specified in terms of eligibility and entitlement in one of the following documents: labor contract; collective labor agreement; financial regulations of the company, corporation, group; the reward regime will be prescribed by the chairman of the Managing Board, the general director or the director according to the financial regulations of the company or corporation; and
ii. Enterprises must fulfill compulsory insurance obligations for employees.
Circular 25 also details the tax refund for exported products originating from mineral resources, the depreciation cost of assets transferred upon business transfer and some other relevant regulations. Circular 25 takes effect on 1 May 2018.