Global

Details

  • Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 6/27/2013

Vietnam - Depreciation of warehouses, offices on leased land 

June 27: The Vietnam tax authorities issued an official letter providing guidance on depreciation of warehouses and offices located on leased land for corporate income tax purposes.

The guidance states that the conditions and procedures stipulated in Circular 123/2013/TT-BTC apply when determining 2012 corporate tax liability for land lease contracts signed prior to the effective date of that circular. The circular provides more favorable compliance requirements than under a previous circular. For example:


  • The land contract is not required to be notarized.
  • The lease term is not required to be shorter than the depreciation period of the fixed assets.

Other recent tax guidance items in Vietnam include or concern:


  • Expenses in relation to road construction of an enterprise
  • Amendment to some items of Circular 06/2012/TT-BTC providing guidelines on implementing certain articles of the value added tax (VAT) law
  • VAT applicable to real estate transfer activities
  • Individual (personal) income tax exemption applicable to foreign experts and employees working for foreign non-governmental aid projects in Vietnam

Read a June 2013 report [PDF 463 KB] prepared by the KPMG member firm in Vietnam: Technical Update (June 2013)




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