Vietnam - Tax Policies Related To Investment Projects And Activities.
Legal News & Analysis - Asia Pacific - Vietnam - Tax
29 July 2021
The Tax Department of Binh Duong Province issued Official Letter No. 11235/CTBDU-THTT dated 7 July 2021 to guide on the tax policies related to investment projects and activities. The contents are as follow:
In case an operating business establishment is subject to VAT by the deduction method and has an investment project in the same province/city that is in the investment stage, the business establishment shall make a separate declaration for that investment project. In addition, business establishments must transfer input VAT of investment projects to offset the VAT declaration of production and business activities being carried out.
Regarding income from expansion investment activities, it is determined according to the ratio between the cost of fixed assets newly invested and put into use for production/business to the total cost of fixed assets of the enterprise.