No 30% CIT reduction this year without 2019 revenue

By KPMG
Thu, July 28, 2022 | 2:51 pm GMT+7
Photo courtesy of TMF Group, a multinational professional services firm in the Netherlands.

Photo courtesy of TMF Group, a multinational professional services firm in the Netherlands.

Our company was established in August 2019 and did not generate revenue in that first year of operation. In 2021, we generated a revenue of VND190 billion ($8.13 million). Could we apply a 30% CIT reduction for 2021 in line with Decree 92/2021/ND-CP?

In accordance with the provision of Decree 92/2021/ND-CP, enterprises with revenue not exceeding VND200 billion in 2021 and a decrease in revenue compared to 2019 will be eligible for a 30% CIT reduction in 2021.

Recently, the General Department of Taxation (GDT) further clarified that 30% CIT reduction for 2021 will not be available if taxpayers have no revenue generated in 2019 (i.e. there is no benchmark to determine revenue decrease for 2021).

We understand that tax authorities will not sell paper-based PIT withholding certificates from July 1, 2022. Instead, taxpayers need to use e-certificates in accordance with the provision of Decree 123/2020/ND-CP. Do we have to destroy all remaining paper-based PIT withholding certificates and report to tax authorities from July 1, 2022?

In accordance with the provision of Decree 123/2020/ND-CP, tax authorities will no longer sell paper-based PIT withholding certificates. Instead, taxpayers could create e-certificates with their own software in line with Decree 123.

During the transitional period where the e-certificate is not available, taxpayers can create the certificate on their own. Residual certificates purchased from tax authorities could still be used after July 1, 2022.

Our company holds export revenue from overseas goods sales though sometimes our monthly revenue derives fully from domestic sales. Can we apply a VAT refund for the month without export sales?

Under current regulations, taxpayers holding export revenues could claim an input VAT refund not exceeding 10% of export sales. In case your company has no export sales in certain months, input VAT incurred in these month will not eligible for a VAT refund.

* Please email [email protected] if you have questions on tax issues.

Comments (0)
  • Read More
S Korean-backed JV raises shipbuilding investment in central Vietnam to over $351 mln

S Korean-backed JV raises shipbuilding investment in central Vietnam to over $351 mln

The ship repair and building project by HD Hyundai Vietnam Shipbuilding Co., Ltd. in the central province of Khanh Hoa has seen its investment capital increase by nearly $60.85 million to over $351 million.

Investing - Thu, August 14, 2025 | 9:44 am GMT+7

Vietnam's 'aloe vera king' records 64% profit growth in H1

Vietnam's 'aloe vera king' records 64% profit growth in H1

By mastering its raw material supply and optimizing factory operations, “Aloe vera king” GC Food JSC posted after-tax profits of VND52 billion ($1.97 million) in the first half of the year, up 64% from the same period in 2024.

Companies - Thu, August 14, 2025 | 8:29 am GMT+7

VinFast maintains strong sales with over 11,000 EVs sold for third consecutive month

VinFast maintains strong sales with over 11,000 EVs sold for third consecutive month

Vietnamese electric vehicle (EV) maker VinFast sold 11,479 EVs in July in the domestic market, raising its year-to-date total to 79,048 units.

Companies - Wed, August 13, 2025 | 10:27 pm GMT+7

Vietnam PM backs CT Group’s stronger push into advanced technology development

Vietnam PM backs CT Group’s stronger push into advanced technology development

Prime Minister Pham Minh Chinh has expressed his strong support for CT Group’s advanced technology development initiatives, praising the conglomerate’s focused investment in cutting-edge innovations that align with Vietnam’s development priorities.

Companies - Wed, August 13, 2025 | 10:23 pm GMT+7

Trump trade mayhem to steepen yield curve and weaken US dollar

Trump trade mayhem to steepen yield curve and weaken US dollar

Longer-term prospects for greenback are weak due to de-dollarisation, as countries adjust supply chains and trade away from the U.S., writes Heng Koon How, head of markets strategy at Singaporean bank UOB.

Consulting - Wed, August 13, 2025 | 4:58 pm GMT+7

Vietnamese, S Korean leaders witness exchange of major cooperation documents

Vietnamese, S Korean leaders witness exchange of major cooperation documents

Vietnam's Party chief To Lam and South Korea's Prime Minister Kim Min-seok on Tuesday witnessed the exchange of dozens of cooperation documents between the two countries in Seoul.

Economy - Wed, August 13, 2025 | 4:12 pm GMT+7

Investment funds bullish on Vietnam bank stocks amid stable macro outlook

Investment funds bullish on Vietnam bank stocks amid stable macro outlook

With Vietnam’s macroeconomic environment showing signs of stability, bank stocks - a field often regarded as the “backbone” of the economy - have emerged as a top pick among investment funds.

Finance - Wed, August 13, 2025 | 3:14 pm GMT+7

Vietnam fertilizer major PVFCCo expands trade, diversifies supply

Vietnam fertilizer major PVFCCo expands trade, diversifies supply

Petrovietnam Fertilizer and Chemicals Corporation (PVFCCo or Phu My, HoSE: DPM), a subsidiary of state-owned Petrovietnam, said it is currently handling the shipment of 45,000 tons of granular urea to India - one of the world’s largest and most promising fertilizer markets.

Companies - Wed, August 13, 2025 | 2:26 pm GMT+7

Vietnam's Prime Minister calls on Qualcomm to expand core technology investment in semiconductor industry

Vietnam's Prime Minister calls on Qualcomm to expand core technology investment in semiconductor industry

Prime Minister Pham Minh Chinh has asked Qualcomm to expand its investment in Vietnam, especially in core technologies which have higher values in the semiconductor industry value chain.

Industries - Wed, August 13, 2025 | 2:02 pm GMT+7

Vietnam's 20% reciprocal tax rate positive compared to Southeast Asian peers: NaFoods exec

Vietnam's 20% reciprocal tax rate positive compared to Southeast Asian peers: NaFoods exec

The 20% reciprocal tax rate is favorable compared to other Southeast Asian countries with similar agricultural products like the Philippines, but strict control over the origin of Vietnamese goods is essential to avoid a 40% "transshipping" tariff, said Nguyen Manh Hung, chairman of NaFoods Group.

Economy - Wed, August 13, 2025 | 11:18 am GMT+7

Where do insurance stocks stand in the 'party' of Vietnam stock market rallies?

Where do insurance stocks stand in the 'party' of Vietnam stock market rallies?

Insurance stocks in Vietnam have largely moved sideways or posted only modest gains compared with the market’s rally, despite improving core business performance and a recovery in investment income.

Companies - Wed, August 13, 2025 | 8:50 am GMT+7

Vietnam cement firms see strong profits in Q2 amid oversupply pressure

Vietnam cement firms see strong profits in Q2 amid oversupply pressure

Vietnam's cement sector is witnessing a significant turnaround, as several companies report impressive profits amid ongoing competitive pressures from oversupply.

Companies - Wed, August 13, 2025 | 8:31 am GMT+7

Expert proposes solutions to reduce US tariff policy’s impact on Thai exports

Expert proposes solutions to reduce US tariff policy’s impact on Thai exports

The Thai Government should develop a national strategy to address circumvention and adjust production structures by adding value to agricultural and industrial products, aligning with global trends, according to an economist.

Southeast Asia - Wed, August 13, 2025 | 8:25 am GMT+7

Singapore raises 2025 economic growth forecast

Singapore raises 2025 economic growth forecast

Singapore's Ministry of Trade and Industry on Tuesday upgraded the country's GDP growth forecast for 2025 to 1.5-2.5%, up from 0-2% previously.

Southeast Asia - Wed, August 13, 2025 | 8:22 am GMT+7

Vietnam’s steel major Pomina narrows Q2 loss by 65% as plants remain idle

Vietnam’s steel major Pomina narrows Q2 loss by 65% as plants remain idle

Pomina, one of Vietnam’s leading steel producers, narrowed its second-quarter net loss by nearly 65% from a year earlier, as its idle plants left the company heavily reliant on processing services for revenue.

Companies - Wed, August 13, 2025 | 8:12 am GMT+7

Japan firms urge Vietnam to resolve hurdles in key infrastructure, energy projects

Japan firms urge Vietnam to resolve hurdles in key infrastructure, energy projects

Many Japanese companies have urged Vietnam to resolve lingering issues in several major infrastructure and energy projects as the country's third-largest foreign investor remains committed to strengthening cooperation with the Southeast Asian nation.

Industries - Tue, August 12, 2025 | 10:14 pm GMT+7