29 July 2021
The Tax Department of Binh Duong Province issued Official Letter No. 11235/CTBDU-THTT dated 7 July 2021 to guide on the tax policies related to investment projects and activities. The contents are as follow:
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In case an operating business establishment is subject to VAT by the deduction method and has an investment project in the same province/city that is in the investment stage, the business establishment shall make a separate declaration for that investment project. In addition, business establishments must transfer input VAT of investment projects to offset the VAT declaration of production and business activities being carried out.
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Regarding income from expansion investment activities, it is determined according to the ratio between the cost of fixed assets newly invested and put into use for production/business to the total cost of fixed assets of the enterprise.
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