CIT policy:

a) Inheriting incentives on conversion
A company that re-registers, changes its investor name, converts its legal form and transfers all capital contributions, rights and obligations of its foreign investor, and continues to meet the CIT incentive conditions applicable before the conversion, may inherit the CIT incentives under its investment licence for the remaining period.

b) CIT incentives for income from agricultural processing
Where a company's income qualifies as income from processing in the agricultural sector in an area that is not an area with difficult or especially difficult socio-economic conditions, the 15% rate applies from 2015.

Where an enterprise is entitled to different incentives for the same income in the same period, it may choose the most favourable incentive.

Tax policy:

Provisions for investment losses: In principle, provisions made in accordance with the Ministry of Finance's guidance are deductible for CIT purposes. Under clause 2, Article 5 of Circular 48/2019/TT-BTC, investments in domestic economic organizations (other than securities investments) are subject to the rules on investment loss provisions. Under Article 84 of Civil Code No. 91/2015/QH13 and clause 1, Article 44 of Enterprise Law No. 59/2020/QH14, a branch is a dependent unit of a legal entity and is not itself a legal entity. Capital allocated by a company to its branch is therefore not covered by clause 2, Article 5 of Circular 48/2019/TT-BTC, and no investment loss provision may be made.

Loss carry-forward: current CIT regulations provide for loss carry-forward on conversion, merger or consolidation, but not for carrying forward the losses of a dissolved independently accounting branch into the company's taxable income.

PIT policy:

+ Where an individual signing an insurance agency management contract is not an individual business and is not covered by Article 2 of Circular 40/2021/TT-BTC, and the company signs a labour contract with the individual under Article 13 of the Labour Code, the individual's income is employment income under point c, clause 2, Article 2 of Circular 111/2013/TT-BTC.

+ Where the individual is an individual business, the income is business income, and the individual declares and pays tax under Circular 40/2021/TT-BTC if business income exceeds VND 100 million per year.

Investment incentives:

Where a company leases a factory for production but the lessor does not yet meet the conditions for leasing factories, under Article 4 of Circular 96/2015/TT-BTC dated 22 June 2015 (amending Article 6 of Circular 78/2014/TT-BTC), the factory rent or depreciation of the factory as a fixed asset (if depreciated) does not yet have a sufficient basis to be deductible for CIT purposes.

VAT declaration:

Where a company switches to centralized accounting at its head office, issues output VAT invoices directly for the production and business of its branches in provinces other than the head office province (except units managing business cooperation contracts), and fully meets the input VAT deduction conditions for all branch activities, it may declare VAT centrally at the head office and allocate it to the localities where production takes place.

Where a branch sells directly using invoices registered with its own tax office and fully accounts for output and input VAT, the branch declares and pays VAT to its directly managing tax office.

Where a company manages a business cooperation contract with an organization without establishing a separate legal entity, it must declare VAT separately for that contract as agreed in the contract.