– Pursuant to Clause 10, Article 3 of Decree No. 65/2013/ND-CP dated June 27, 2013 of the Government stipulating personal income taxable income from receiving gifts is as follows:
“10. Incomes from receiving gifts being securities, capital in economic organizations , business establishments, real estate and other assets are subject to registration of ownership or registration of use.
– Pursuant to Clause 10, Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance guiding the implementation of the Law on Personal Income Tax, the Law amending and supplementing a number of articles of the Law on on Personal Income Tax and Decree No. 65/2013/ND-CP of the Government detailing a number of articles of the Law on Personal Income Tax and the Law amending and supplementing a number of articles of the Law on Personal Income Tax guiding Taxable income from receiving gifts is as follows:
“Article 2. Taxable incomes
According to the provisions of Article 3 of the Law on Personal Income Tax and Article 3 of Decree No. 65/2013/ND-CP, incomes subject to personal income tax include:
10. Income from receiving gifts.
Income from receiving gifts is an individual’s income received from domestic and foreign organizations and individuals, specifically as follows:
a) For the receipt of gifts being securities, including: stocks, stock options, bonds, bills, fund certificates and other types of securities in accordance with the Law on Securities; shares of individuals in a joint-stock company in accordance with the Law on Enterprises.
b) For the receipt of gifts being capital in economic organizations and business establishments, including capital in limited liability companies, cooperatives, partnerships, business cooperation contracts, capital in private enterprises, individual’s business establishments, capital in associations, funds permitted to be established in accordance with law, or the entire business establishment if it is a private enterprise, or an individual’s business establishment.
c) For the receipt of gifts being real estate, including: land use rights; the right to use land with assets attached to the land; house ownership, including off-the-plan houses; infrastructure and construction works attached to the land; including off-the-plan construction works; land lease rights; water surface lease rights; other incomes received from inheritance being real estate in any form; excluding income from gifts being real estate guided at Point d , Clause 1, Article 3 of this Circular.
d) For the receipt of gifts being other assets of which ownership or use rights must be registered with state management agencies, such as cars; motorcycles, mopeds; ships, including barges, canoes, tugs and pushers; boats, including yachts; airplanes; hunting rifles, sport guns.”
Pursuant to Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the implementation of the Law on VAT and Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on VAT.
+ Clause 3, Article 7 guides the tax calculation price as follows:
“3. For products, goods and services (including purchased from outside or self-manufactured by business establishments) used for exchange, donation, gifting, giving, or paying instead of salary, is the VAT calculation price of goods and services of the same or equivalent type at the time of arising of these activities.”
+ Article 8 stipulates the time of VAT determination as follows:
“Article 8. Time to determine VAT
1. For the sale of goods, it is the time when the ownership or the right to use the goods is transferred to the buyer, regardless of whether the money has been collected or not.
– Pursuant to current regulations on goods sale and service provision invoices.
Based on the above provisions, in case the Company has a program to give gifts to customers and employees in accordance with the provisions of law, please refer to the following implementation:
1. Regarding invoices:
– In case the Company pays VAT by the deduction method and buys gifts to give to customers and employees, the Company must issue a VAT invoice on which must fully write the criteria and calculate VAT as the invoice for selling goods and services to customers.
– In case the Company buys gift vouchers (goods vouchers) from suppliers to give to customers and employees, the gift vouchers are valued like money, when giving gift vouchers to customers and employees, the Company does not have to issue VAT invoices.
– In case the Company gives gifts as goods to customers and employees but customers and employees do not take invoices, the Company must still issue invoices and clearly state “the buyer does not take invoices” as prescribed.
2. Regarding Personal Income Tax:
– In case the Company gives gifts (goods, gift vouchers) to individual customers, if the gift received by the individual customer is not the property subject to registration of ownership and right of use in accordance with the provisions of the law and not in the items specified in Clause 10, Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance mentioned above, they are not subject to personal income tax from receiving gifts.