On February 05, 2016, the Ministry of Finance issued the Circular No. 21/2016/TT-BTC guiding on declaration of value added tax and priorities of enterprise income tax as stipulated under the Decree No. 111/2015/ND-CP dated November 03, 2015 on development of supporting industries.
Accordingly, for tax payers being organizations manufacturing supporting industry products on the list of products of supporting industries prioritized for development in the territory of Vietnam, tax payers shall declare value-added tax by quarter for income of supporting industry products on the list of products of supporting industries prioritized for development (regardless of income being under 50 billion dong or more). The form of declaration of value-added tax is also applied in the case that if income of tax payers come from both income of supporting industry products on the list of products of supporting industries prioritized for development and income of other business operation, tax payers shall also declare value-added tax by quarter. If not declaring by quarter, tax payers may declare value-added tax by month and notify to the tax department as stipulated under the law on tax management.
Particularly, tax payers being individuals that have income arising from supporting industry products on the list of products of supporting industries prioritized for development shall declare value-added tax by year and submit value-added tax by quarter. If paying tax by each time arising income of supporting industry products on the list of products of supporting industries prioritized for development, tax payers shall declare and submit value-added tax by each arising time or may declare and submit value-added tax by month.
This Circular takes effect from April 01, 2016. Incentives of enterprise income tax as stipulated under this Circular shall apply for the period of enterprise income tax from 2015.
