Recommendations on some problems when implementing the Circular 39 / TT-BTC
Wed, 31 Oct 2018 19:04:00 | Print | Email Share:
Name of recommendations: Recommendations on some problems when implementing the Circular 39 / TT-BTC
Status: Responded
Recommended by units: The Vina Hai Phong Doosan Heavy Industry Co., Ltd
Official letter: 1860/PTM - VP, dated: 2018-08-24
Recommended contents:
- Firstly: Regarding the implementation of the report on final settlement of import - export - stock of exported products manufactured from NL & RV imported for export production (SXXK) and processing by year as stated in Article 60 of the Circular No. 38 / TT-BTC and amended in the Circular No. 39 / TT-BTC, our company encountered some problems when exporting accounting data to serve the report according to the Form 15a / BCQT-NVL / GSQL, this lead to be unable to implement in accordance with the norms stipulated in the circular. The specific problems are as follows:
- For finished products manufactured from imported raw materials. At present, the Doosan Vina Haiphong Company recognizes that the revenue and expense of accounting standard No.15 - Construction contract (recording revenue, expenses according to schedule and plan).
Accordingly, revenue is recognized in % of completion based on actual costs incurred during the period. Together with recording such sales, it is very difficult for the company to track the finished product by volume.
- On the other hand, the company's export products are single-unit, large-scale products and have been transferred through many years, so Doanan does not have a finished product management process that delivers each part to customers according to the progress immediately after production (do not monitor account No 155). The completion according to the progress, the accounting will record revenue according to the value of the contract without tracking the completed quantity. The completed quantity will be declared on the basis of the completed value and unit price specified in the contract by the import and export department.
Therefore, with the business characteristics of the Vina Haiphong Doosan Company, we can not make the final statement for the product type SXXK and processing according to the number of accounting.
- Secondly: Regarding the plan to handle surplus NVL after termination of the processing contract.
To execute the contract we have the following materials: Processing import (supplies customer level), input self-supply (materials purchased by the company from abroad) and domestic (materials buy in the water).
At the end of the project, due to some reasons such as changes in the drawings, the source of input materials for self-supply surplus. Our company wants to use this material for export production projects. What procedures do we need to continue to use these materials properly without paying taxes?
Responded by units: The General Department of Taxation – The Ministry of Finance
Official letter: 5605/TCHQ - PC, dated: 2018-09-26
Responded contents:
- For products with production cycles of more than one year (similar to the shipbuilding sector), at the time of reporting according to the form No. 15a / BCQT-SP / GSQL. Raw materials and materials are transferred completely according to each stage, the tempo shall be reflected according to the form No. 15 / QL-GSQ / GSQL issued together with the Circular No. 39/2018 / TT-BTC dated April 20, 2018 of the Ministry of Finance).
- At Point a, Point e, Clause 1, Article 10 of the Decree No. 134/2016 / ND-CP dated September 1, 2016
- Goods imported for processing and processing products exported under processing contracts shall be exempt from export and import tax according to the provisions of Clause 6, Article 16 of the Law on Import and Export Tax, including:
1. a) Raw materials, semi-finished products, supplies (including supplies for packaging or packaging for export products), directly imported components constituting export products or directly involved in the process. Processing of exported goods but not directly transformed into goods, including cases where the processors themselves import raw materials, supplies and components for the performance of processing contracts.
e)...
When ending the time limit for performance of the processing contract, the unused goods shall be re-exported. In case of non-re-export, tax declaration and payment must be made according to regulations.
Pursuant to the above provisions and Clause 42, Article 1 of the Circular No. 39/2018 / TT-BTC dated April 20, 2018, for self-supplied materials and supplies already imported under the forms of processing for supply. For processing contracts, they shall be exempt from import tax for imported raw materials and supplies provided by themselves for processing contracts but surplus to change their use purposes, the processing of surplus raw materials and materials for processing shall be effected as follows: Vietnamese market; export to foreign countries; transferring to other processing contracts in Vietnam; donated in Vietnam; destroyed in Vietnam.
Pursuant to Clause 12, Article 1 of Decree No. 59/2018 / ND-CP dated April 20, 2015, amending and supplementing Clause 5, Article 25 of the Decree No. 08/2015 / ND-CP dated January 21, 2015 to declare goods for use purposes as follows:
"Goods being raw materials, supplies and components imported for processing, production of export goods and goods temporarily imported for re-export which have been released or cleared but then changed their use purposes It must declare new customs declarations. Policies on management of export and import goods; The tax policy applicable to export and import goods shall be implemented at the time of registration of new customs declarations except for cases where the export or import goods administration policy has been fully implemented at the time of original registration of declarations".
Pursuant to Clause 12, Article 1 of the Decree No. 59/2018 / ND-CP dated April 20, 2015, amending and supplementing Clause 5, Article 25 of the Decree No. 08/2015 / ND-CP dated January 21, 2015 to declare goods for use purposes as follows:
"Goods being raw materials, supplies and components imported for processing, production of goods and goods imported for re-export which have been released or cleared but changed their use purposes It must declare new customs declarations. Policies on management of export and import goods; The tax policy applicable to export and import of goods will be implemented at the time of registration of customs declarations except for cases where the export or import of the goods administration policy has been fully implemented at the time of registration of original declarations”.
"Goods being raw materials, supplies and components imported for processing, production of export goods and goods temporarily imported for re-export which have been released or cleared but then changed their use purposes It must declare new customs declarations. Policies on management of export and import goods; The tax policy applicable to export and import goods shall be implemented at the time of registration of new customs declarations except for cases where the export or import goods administration policy has been fully implemented at the time of initial registration of declarations".
We request the company to implement the above provisions.
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