Công văn 3158/TCT-PCCS

Official Dispatch No. 3158/TCT-PCCS of August 25, 2006, On documents for accounting of administration expenses of parent companies

Nội dung toàn văn Official Dispatch No. 3158/TCT-PCCS, On documents for accounting of administrati


MINISTRY OF FINANCE
GENERAL DEPARTMENT OF TAXATION
-------

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
---------

No. 3158/TCT-PCCS
On documents for accounting of administration expenses of parent companies

Hanoi, August 25, 2006

 

To: Provincial/municipal Tax Departments

The General Department of Taxation has received a number of requests for guidance on documents for accounting of administration expenses allocated by foreign companies to their permanent establishments in Vietnam. Concerning this matter, the General Department of Taxation would like to provide the following guidance:

Point 13, Section III, Part B of the Ministry of Finance’s Circular No. 128/2003/TT-BTC of December 22, 2003, guiding business income tax (BIT), stipulates: When determining its income liable to BIT, a Vietnam-based permanent establishment may account as its expenditure business administration expenses allocated to it by its foreign parent company according to the ratio of its turnover to the total turnover of the foreign company, including turnovers of permanent establishments in other countries. Vietnam-based permanent establishments of foreign companies that have not yet applied the regulations on accounting, invoices and accounting documents and pay BIT by the declaration method may not account as their reasonable expenditures business administration expenses allocated by their foreign patent companies.

Point 4, Section I, Part A of Circular No. 128/2003/TT-BTC stipulates: Permanent establishments means business establishments through which foreign companies conduct part or the whole of their income-earning business operation in Vietnam, mainly in the forms specified at this Point.

Under the above guidance, foreign-invested enterprises operating in Vietnam are independent legal entities and not regarded as permanent establishments of foreign companies. Therefore, business administration expenses allocated by foreign parent companies to Vietnam-based foreign-invested enterprises shall not be accounted as reasonable expenditures for determination of those enterprises’ incomes liable to BIT.

For cases where business administration expenses allocated by a foreign parent company to its Vietnam-based permanent establishment (defined at Point 4, Section I, Part A of Circular No. 128/2003/TT-BTC) this Vietnam-based permanent establishment must produce dossiers and documents to prove the reasonability of those expenses which have been identified according to regulations, including:

- The foreign company’s financial statement already audited by an independent audit company, clearly indicating its turnover and its Vietnam-based permanent establishment’s turnover, its administration expenses and administration expenses allocated by the parent company to its Vietnam-based permanent establishment.

- The foreign company’s written regulation on the mechanism of allocation of administration expenses to its permanent establishments in other countries.

- The foreign company’s written certification of or notice on the allocation of administration expenses to its Vietnam-based permanent establishment.

The General Department of Taxation would like to give the above guidance to provincial/municipal Tax Departments for information and compliance.

 

 

FOR THE GENERAL DIRECTOR OF TAXATION
DEPUTY GENERAL DIRECTOR




Pham Duy Khuong

 

Đã xem:

Đánh giá:  
 

Thuộc tính Công văn 3158/TCT-PCCS

Loại văn bảnCông văn
Số hiệu3158/TCT-PCCS
Cơ quan ban hành
Người ký
Ngày ban hành25/08/2006
Ngày hiệu lực25/08/2006
Ngày công báo...
Số công báo
Lĩnh vựcKế toán - Kiểm toán
Tình trạng hiệu lựcKhông xác định
Cập nhật16 năm trước
Yêu cầu cập nhật văn bản này

Download Công văn 3158/TCT-PCCS

Lược đồ Official Dispatch No. 3158/TCT-PCCS, On documents for accounting of administrati


Văn bản bị sửa đổi, bổ sung

    Văn bản sửa đổi, bổ sung

      Văn bản bị đính chính

        Văn bản được hướng dẫn

          Văn bản đính chính

            Văn bản bị thay thế

              Văn bản hiện thời

              Official Dispatch No. 3158/TCT-PCCS, On documents for accounting of administrati
              Loại văn bảnCông văn
              Số hiệu3158/TCT-PCCS
              Cơ quan ban hànhTổng cục Thuế
              Người kýPhạm Duy Khương
              Ngày ban hành25/08/2006
              Ngày hiệu lực25/08/2006
              Ngày công báo...
              Số công báo
              Lĩnh vựcKế toán - Kiểm toán
              Tình trạng hiệu lựcKhông xác định
              Cập nhật16 năm trước

              Văn bản thay thế

                Văn bản được căn cứ

                  Văn bản hợp nhất

                    Văn bản gốc Official Dispatch No. 3158/TCT-PCCS, On documents for accounting of administrati

                    Lịch sử hiệu lực Official Dispatch No. 3158/TCT-PCCS, On documents for accounting of administrati

                    • 25/08/2006

                      Văn bản được ban hành

                      Trạng thái: Chưa có hiệu lực

                    • 25/08/2006

                      Văn bản có hiệu lực

                      Trạng thái: Có hiệu lực