The Ministry of Finance (MoF) has recently released a comprehensive report summarizing, explaining, and incorporating feedback from various agencies, organizations, and individuals regarding the draft Circular guiding certain provisions of the Corporate Income Tax Law and the Decree detailing the implementation of the Corporate Income Tax Law.
One of the key topics that garnered significant attention is the regulation concerning the timing for determining taxable revenue for exported goods, as outlined in Article 6 of the draft.
However, this regulation has immediately received numerous responses regarding its clarity and applicability.
The Government Inspectorate of Vietnam (GIV) concerned that linking the timing to the transfer of ownership according to Incoterms is not entirely convincing.
Therefore, the GIV has suggested that the MoF clarify the application according to specific delivery conditions to avoid different interpretations in practice.
Similarly, the Department of Finance of Phu Tho province also proposed amending the aforementioned regulation.
The Tax Department of Thai Nguyen province has assessed that the draft Circular is not yet aligned with Clause 1, Article 15 of the Government's Decree No. 181/2025/ND-CP dated July 1, 2025, which details certain provisions of the Value-Added Tax Law.
The department recommended that the MoF adjust the draft to align with the law on value-added tax to ensure more consistent and transparent tax obligations for businesses.
Similarly, the tax departments of Quang Ngai and Hanoi suggested adjusting the regulation to align with the law on value-added tax. According to these two entities, the timing for recognizing taxable revenue for exported goods should be linked to the day the goods complete customs clearance procedures.
Based on the analyses and feedback mentioned above, the MoF has adjusted the draft to be more harmonious and easier to apply.
The finalized draft specifies that the timing for determining corporate income tax revenue for exported goods is the day of ownership transfer according to the export contract.
In cases where the export contract does not specify the timing of ownership transfer, the timing for determining corporate income tax revenue is self-determined by the seller but must not exceed the next working day after the goods are cleared through customs according to customs law.
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