Page 12 - VSIP-News-QIII-2014

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LEGAL UPDATES
2. Corporate income tax (“CIT”)
No revenue has to be declared for CIT purpose in respect of goods or services for internal use provided that the goods/
services relate to the business of the company.
3. Corporate income tax (“CIT”)
Vietnam tax residents who are citizens of countries which have double taxation agreements (DTA) with Vietnam are only
subject to PIT from the first month of arrival to the last month of departure. This is in contrast to the problematic current
rule where tax residents where resident threshold is met in the first year of arrival are taxable here from 1 January of the
year of arrival, which leads to the need for cumbersome foreign tax credit claims to avoid double taxation. Circular 119 is
however unclear on whether a DTA notification procedure is required to be attended to in this case.
(Soure: PwC)