This Circular is to detail some changes of the policies on enterprise income tax (EIT), value added tax (VAT) and personal income tax (PIT) in Decree No. 91/2014/ND-CP . Regarding EIT, this Circular amends, supplements some articles as follows

Regarding depreciation for fixed assets, this Circular allows to depreciate the whole value (rather than the limit of VND 1.6 billion) of cars used for display and test drive by car dealers. The determination of the accumulated depreciation of the fixed assets is calculated according to “regulations on management, use, and depreciation of fixed assets” rather than according to “the accounting regulation and regime” as previously.

- Allowing to account expenditures for the employees’ welfare at the maximum level of not over the average salary of one month

- Amending subjects of application in Clause 14, Article 7 of Circular No. 78/2014/TT-BTC by removing such cases as the equitization, arrangement, restructuring of the enterprises whose charter capital is wholly held by the state when accounting differences from the revaluation of assets into other incomes

- Extending the duration of EIT exemption from 1 to 3 years for the income derived from the execution of the contract on scientific research and technological development specified in Clause 3, Article 8 of Circular No. 78/2014/TT-BTC

Supplementing point e and point g to Clause 5, Article 18 of Circular No. 78/2014/TT-BTC allowing the consideration of the incentive enjoyment for projects conducted under schedule.

- Supplementing Clause 8 to Article 23 of Circular No. 78/2014/TT-BTC defining the selection of EIT incentive for garment – textile projects arose within the period of 2007 - 2012

Some provisions on VAT provided in Circular No. 219/2013/TT-BTC are amended from Article 8 to Article 10. The provision on PIT provided in Circular No. 111/2013/TT-BTC are amended from Article 11 to Article 13

The tax declaration and management according to Circular No. 156/2013/TT-BTC are also amended from Article 14 to Article 21. The noticeable point is that enterprises making annual financial statements are exempted from the submission of quarterly EIT declaration; they just calculate the payable EIT and pay it before 30th of a following month

This Circular takes effect from November 15, 2014. Except that regulations in Chapter I of this Circular shall be applied to the EIT period from 2014. To replace such forms as Form No. 02/TNDN, 03/TNDN, 03-5/TNDN, 04/TNDN, 02-1/TD-TNDN enclosed with Circular No. 156/2013/TT-BTC by the new equivalent Forms enclosed herewith.