Lease accoungting: According to IFRS 16 (International Financial Reporting Standards 16), a new area of lease accounting will soon replace the current one (IAS 17).

Increase in the amount of base salary: According to Decree No. 72/2018/ND-CP, a new adjustment of the basic salary involving human resources groups such as armed forces, officials and public servants have been introduced. Under the new Decree, it is significantly noted that the general minimum salary per moth will be increased to 1,390,000 VND from the previously 1,300,000. Decree No,72 takes affect from July 1st 2018.

The rights of foreign invested enterprises in export and import activities: According to the Official Letter 1282/GSQL-GQ2, the implementation of foreign invested enterprises’ export/ import rights are specifically guided. As a results, the above mentioned rights can be exercised for goods which are not requested trading business license provided that all registration procedures have already been fulfilled complying with Vietnamese Law (Investment and Enterprises).

New update on corporate income tax (“CIT”) regarding accrued bonus: On March 5th 2018, Ho Chi Minh city Tax Department issued the Official Letter 1703/CT-TTHT. Accordingly, in case a company gives out accrued bonus for its staff in fiscal year 2017, yet only paid in December 2018, then such bonus shall be deductible in 2018 (fiscal year).

New update on tax policy for capital transfer: According to Official Letter 1474/CT-TTHT issued by HCMC Tax Department on February 22th 2019, capital transfer activities are further guided. Under the new policy, in case a Vietnamese enterprise has capital transfers activities in another organization, the amount transferring is not subject to Value Added Tax (VAT). On the other hand, a financial invoice is requested for such transaction.

New policy on CIT incentives regarding businesses in conditional sectors: On May 25th 2018, the General Department of Tax issued Official Letter 1994/TCT-CS. Accordingly, if an enterprise can meet all the requirements necessary to operate business in the conditional sectors, it is possible to receive tax incentives.

New policy on CIT incentives regarding new investment project executing part of the production process:  On April 27th 2019, Hanoi Tax Department issued Official Letter 24758/CT-TTHT. Accordingly, in case a branch is set up by an organization with the aim to carry out an investment project, responsibility for only part of the production process. Moreover, the finished product is fulfilled and soled by its head quarter to its end user. The new official letter states that the branch is considered as a dependent accounting unit, no need separate accounting record. In other words, such investment project is regarded as an expansion from the organization’s original project.

New policy regarding PIT of staff who win lucky draw provided by the company: On May 18th 2018, any employee having additional income due to the winning of lucky draw organized by the company, such income might be determined as income from winning prize or wage and salary income, thus subjecting to different of personal income tax (PIT). Such determination is carried out by the tax department based on the financial policy of the company as well as the characteristics of the event.

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