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Can additional taxes be included in reasonable expenses?

Sun, 17 Mar 2019 13:04:19 PM GMT + 7    Print   Email   Share:

(Chinhphu.vn) – The Dia Sinh Joint Stock Company (in Ho Chi Minh City) specializes in importing printing materials. By checking the data of declarations from 2012-2017, the Company incorrectly declared the HS codes of the plates printed offset and surmounted  themselves as paying the import tax and the additional import value on September 15, 2017.

On September 19, 2017, Ho Chi Minh City Customs Department decided to inspect the Company and issue a decision on imposing a tax .

On September 19, 2017, the Ho Chi Minh City Customs Department decided to inspect the company and issued a decision on imposing tax.

Through the receiving and responding system, to businesses' recommendations, the Dia Sinh Joint Stock Company proposed to answer the VAT amount of additional import goods deducted for input?

Can the additional import tax from 2012-2017 be included in reasonable expenses when determining the cost of CIT calculation? If it is included in the tax calculation cost, should it be included in each year for the period of 2012-2017, or is it taken once at the time of the customs authority's imposing tax decision?

Regarding this issue, The General Department of Taxation - Ministry of Finance has the following opinions:

In Clause 6, Article 14 of the Circular No. 219/2013 / TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the implementation of the VAT Law and Decree No. 209/2013 / ND-CP dated December 18, 2013. The Government shall detail and guide the implementation of a number of articles of the Law on VAT:

 “6. The VAT amount already paid under the imposing tax decision of the customs office shall be fully deducted, except where the customs office imposes a fine on tax fraud or evasion”.

In Article 4 of the Circular No. 96/2015 / TT-BTC dated June 22, 2015 of the Ministry of Finance guiding the CIT applicable to the Decree No. 12/2015 / ND-CP dated February 12, 2015 of the Government that has stipulated detailing the implementation of the Law amending and supplementing a number of articles of tax laws and amending and supplementing a number of articles of tax decrees as well as amending and supplementing a number of articles of the Circular No. 78/2014 / TT -BTC dated on June 18, 2014, the Circular No. 119/2014 / TT-BTC dated August 25, 2014, the Circular No. 151/2014 / TT-BTC dated October 10, 2014 of the Ministry of Finance; instructing, amending and supplementing Article 6 of the Circular No. 78/2014 / TT-BTC (amended and supplemented in Clause 2, Article 6 of the Circular No. 119/2014 / TT-BTC and Article 1 of the Circular No. 151 / 2014 / TT-BTC) as follows:

 “Article 6. Deductible and non-deductible expenses when calculating taxable income

1. Except for the non-deductible expenses prescribed in Clause 2 of this Article, every expense is deductible if all of these following conditions are satisfied:

 a) The actual expense incurred is related to the enterprise’s business operation.

b) There are sufficient and valid invoices and proof for the expense under the regulations of the law.

 c) There is proof of non-cash payment for each invoice for purchase of goods/ services of VND 20 million or over (including VAT).

The proof of non-cash payment must comply with regulations of law on VAT.

In case of a purchase of goods and services that are worth VND 20 million or over according to the invoice which is yet to be paid for by the enterprise when the expense is accounted for, such expense will be deductible when calculating taxable income. If the enterprise does not have proof of non-cash payment, the company must remove the value of goods/services without proof of non-cash payment from expenses in the tax period in which cash payment is made (even when the tax authority and other authorities have issued a decision on tax inspection of the tax period in which such expense is incurred).

The invoices for goods and services paid in cash before the effective date of the Circular No. 78/2014/TT-BTC shall not be adjusted under the regulations of this Point”.

Regulations on additional declaration of tax declaration dossiers

In Clause 5, Article 10 of the Circular No. 156/2013 / TT-BTC dated November 6, 2013 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration; The Law amending and supplementing a number of articles of the Law on Tax Administration and the Decree No. 83/2013 / ND-CP dated July 22, 2013 of the Government stipulating:

 “5. Adjustment to declaration:

a) The taxpayer that finds errors in the submitted tax declaration after the deadline shall be allowed to make an adjustment to the declaration.

Where terminal declarations are submitted annually: if the annual terminal declaration is not submitted, the taxpayer may make adjustments to the erroneous monthly or quarterly declarations, and provide the adjusted information in the terminal declaration. If the terminal declaration has been submitted, only adjustment to the terminal declaration is required. If the adjustment to the terminal declaration leads to a reduction of the tax payable, adjustments to monthly and quarterly declarations may be made and late payment interest shall be recalculated (if any).

The adjusted declaration may be submitted to the tax authority on any working days regardless of the next deadline, as long as it is submitted before the tax authority or a competent authority announces a decision on tax inspection at the taxpayer’s premises. When a decision on tax inspection has been issued:

- Adjustments may be made if the errors in the submitted declarations are not relevant to the inspected periods and operations, and late payment interest shall be paid.

- Adjustments may be made if the errors in the submitted declarations are relevant to the inspected periods but are not relevant to inspected operations, and late payment interest shall be paid.

- Adjustments may be made if the errors that are relevant to the inspected periods and operations lead to an increase in the amount of tax payable or a decrease in the amount of tax refunded or reduced, or a decrease in the amount of overpaid tax. The taxpayer shall incur the penalties as if such mistakes are discovered by the tax authority or competent authority.

If the tax authority or a competent authority has issued a decision to settle the increase or decrease in deductible VAT, the taxpayer shall adjust the tax declaration of the period during which the decision is received (no additional declaration is required)”.

Based on the above provisions, the General Department of Taxation requests the company to contact the tax office to directly manage and provide sufficient and specific documents and related documents for instructions to follow the regulations determined.

 

  • By : Online Newspaper of the Government / Translator: HaiYen-Bizic

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