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blue-check Some issues relating to declaration for deduction of EIT already paid outside Vietnam under an Agreement

Official letter No. 31912/CTHN-TTHT dated August 17th, 2021 of the Department of Taxation of Ha Noi city regarding enterprise income tax (EIT) policy
Posted: 27/8/2021 7:23:22 AM | Latest updated: 1/9/2021 1:21:23 PM (GMT+7) | LuatVietnam: 5282 | Vietlaw: 524
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In case a company earns income in a country that signed an Agreement on double taxation avoidance with Vietnam and the EIT has been paid in such country, the EIT already paid outside Vietnam shall be deducted from the tax payable in Vietnam if it meets the conditions at Article 48 of Circular No. 205/2013/TT-BTC.

In addition, it should note that the duration for considering the deduction of tax already paid overseas from the tax payable in Vietnam must not exceed 3 years before requesting for application of the Agreement on double taxation avoidance between Vietnam and other country unless otherwise provided in the Agreement on limitation of beneficial right (Article 6 of Circular No. 205/2013/TT-BTC ).

Regarding procedures for deduction of EIT already paid outside Vietnam from the tax payable in Vietnam, they shall be carried out according to Clause 4 Article 44 of Circular No. 156/2013/TT-BTCstatus1 .

With regard to EIT paid outside Vietnam that is deductible in the tax period, the company shall declare in Annex 03-4/TNDN issued together with Circular No. 156/2013/TT-BTCstatus1 and present it at the Entry C15 on the EIT return, using form No. 03/TNDN issued together with Circular No. 156/2013/TT-BTCstatus1 .

Ms Phuong Thao (VietlawOnline.com)
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Published Vietlaw's Newsletter No. 524
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