• Credited or refunded input value-added tax; corporate income tax;
• The portion of business management expenses allocated by a foreign enterprise to its resident
establishment in Vietnam which exceeds the level calculated by the allocation method stipulated
by law;
• The portion of expenses which exceeds the level stipulated by law for establishment of contingency
reserves;
• The portion of expenses for raw materials, supplies, fuel, power and goods which exceeds the
wear and tear levels formulated by the enterprise and notified by it to the tax office and actual
ex-warehouse prices;
• The portion of interest payments on loans for production and/or business to an entity which is
neither a credit institution nor an economic institution which exceeds 150 percent of the basic
interest rate as published by the State Bank of Vietnam at the time of the loan;
• Incorrect depreciation of fixed assets;
• Incorrect amounts advanced for expenses; and
• Items of financial aid, except that for education and health care to overcome the consequences
of a natural disaster or to build a charitable home for poor people.
Carrying losses forward
Business establishments that suffer losses after tax finalization are entitled to carry forward those
losses to future taxable income for a maximum period of five years.
Tax payment
Enterprises must pay tax in the localities where they are headquartered. For an enterprise that has
a dependent cost-accounting production establishment (including a processing and assembly
establishment) operating in a province or city other than where it is headquartered, the tax amount
shall be calculated and paid in both the locality where the enterprise is headquartered and the locality
where its production establishment is based. The amount of CIT payable to the province or city
where a dependent cost-accounting production establishment is based is the payable CIT amount
in a period multiplied by the ratio between expenses incurred by the production establishment
and the total expenses incurred by the enterprise.
Tax, Accounting, and Audit in Vietnam 2014-2015 - 13