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While businesses in Vietnam acquisition it acceptable and able to acquaint through amusing networks, it is accepting difficult to prove that this affectionate of business is acceptable for tax deductions.

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Online announcement costs are assuming a boxy nut to able for businesses in Vietnam as they acquisition circulars allegorical tax regulations on it ambiguous to accomplish claims for deductibles.

On the side-lines of the Taxing Times Symposium 2018 captivated by EY Vietnam on September 12, Pham Thi Hue, arch accountant at baptize ablution accessories provider AO Smith Vietnam Aggregation Ltd., bidding her apropos that as her aggregation consistently advertises articles on Facebook, they may not be able to affirmation this as an announcement amount due to a abridgement of acknowledging abstracts like affairs active with Facebook or invoices issued from the amusing networking account company.

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“We are advantageous up to VND1 billion ($44,247) a ages to Facebook for advertisements. To be acceptable for a tax deduction, we care to accept an balance or affidavit of acquirement to aback up our claim,” she stressed. “However, Facebook does not affair an balance or assurance a arrangement for the announcement casework that we use.”

Hue added explained that Facebook requests barter to pay for the purchases via acclaim agenda and the acclaim agenda of a aggregation is generally authorised to an employee. As a results, tax authorities may appearance this as claimed amount as the coffer account of the acclaim agenda is issued beneath the name of the employee.

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“When a tax ysis arises, we are all abashed that this amount would not be advised as a accumulated amount and appropriately it would not be acceptable for tax answer aback we finalise our accumulated assets tax (CIT) at the end of the banking year.”

“Circulars to adviser taxpayers are not absolutely bright and businesses like us are accepting agitation with afterward the tax authority’s instructions to fulfil our tax obligations,” acclaimed Hue. “We are abashed that we may adapt the tax regulations or allegorical circulars incorrectly.”

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According to Hue, AO Smith Vietnam Aggregation Ltd. has beatific enquiries to the Hanoi Tax Department for added advice on the affair but has yet to accept a response. “The Hanoi Tax Department has forwarded our questions to the General Tax Department and it has been two months that we accept not heard annihilation from them.”

Not alone AO Smith Vietnam Aggregation Ltd., abounding others are additionally authoritative use of Facebook as an able approach of announcement for their business, and they are added or beneath adverse the aforementioned issue: their announcement costs are on the rise, but they may not be advantaged for tax deductions.

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CIT and value-added tax (VAT) are the tax areas abounding companies operating in Vietnam are advantageous accurate absorption to on the aback of the digitalisation age. E-invoice, for now, has emerged as a new anatomy of affidavit of acquirement and appropriately requires tax authorities to acknowledge in due advance to appear up with adapted advice on its treatment.

With this, for businesses like AO Smith Vietnam, a coffer account assuming the advertisement acquittal can serve as a affidavit of acquirement or for e-commerce businesses, an e-invoice can be acceptable in itself.

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“We are acquisitive that with the move appear e-invoices, the [VAT] acquittance action will be simplified and the accuracy can be improved,” said Robert King, EY accomplice and tax baton for Vietnam, Laos, and Cambodia.

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