Official Letter No. 274/CTBNI-TTHT dated 03 February 2023: VAT on goods used as gifts

If a company purchase goods as gifts for employees and some sample goods for customers, such expense will be tax deductible if it meets the conditions as specified in clause 1, Article 4 and does not fall into the cases specified in clause 2, Article 4, Circular No. 96/2015/TT-BTC

Current CIT regulations do not provide guidance on treating the VAT not collected on gift invoices as deductible expense for CIT purpose.

Official Letter No. 423/CTLAN-TTHT dated 09 February 2023: Gift expenses without registration for promotion

If a company provides free goods at trade fairs and exhibitions (no money is collected, no goods are returned), or gives products as gifts to customers but does not register the promotion program with the Department of Industry and Trade, the expenses that meet all conditions of being actually related to the company’s production and business, and have sufficient invoices and documents, are deductible for CIT purposes under Article 4 Circular No. 96/2015/TT- BTC. (Long An Tax Department Official Letter No. 423/CTLAN-TTHT dated 09 February 2023)

Official Letter No. 3469/CTHN-TTHT dated 01 February 2023: PIT for gifts and bonuses to employees

• Payment on behalf for the training to improve qualifications and skills, suitable to the employee’s work, expertise and profession shall be exempted from PIT (point dd.6 clause 2 Article 2 Circular No. 111/2013/TT-BTC)
• Winning prizes in the contest of more over VND10 (ten) million must be PIT withheld in accordance with Article 25 point g clause 1 Circular No. 111/2013/TT-BTC
• Other than salary or wage (in cash or in kind), benefits must be PIT withheld in accordance with point b clause 1 of Article 25 of Circular No. 111/2013/TT-BTC
• It is not necessary to withhold PIT for gifts in kind that are not pay or wage in character and do not fall under the provisions of clause 10 Article 2 Circular No. 111/2013/TT-BTC.

Official Letter No. 4643/CTHN-TTHT dated 10 February 2023: No need to declare and pay WHT tax on behalf of foreign company in case they were self- declared in Vietnam

If the foreign supplier has registered, declared, and paid tax in Vietnam in accordance with the provisions of Articles 76 to 79 of Circular No. 80/2021/TT-BTC, the Vietnamese company does not have to withhold and pay Foreign Contractor Withholding Tax (“FCWT”) on behalf of foreign suppliers when purchasing goods or services.