Question:
I have established a company with its headquarters in Ho Chi Minh City. Now, my company has opened a branch in Binh Duong, registered as a dependent accounting unit. Does the branch of my company have its own round seal, and is it allowed to issue and issue invoices for the branch? What taxes does the branch with its headquarters in Binh Duong need to declare and pay? When the company transfers goods to the Binh Duong branch, should invoices be issued, or is it acceptable to use internal delivery and transport vouchers?
Answer:
Based on Circular No. 156/2013/TT-BTC dated November 6, 2013, of the Ministry of Finance guiding the implementation of certain provisions of the Tax Management Law.
Based on Circular No. 39/2014/TT-BTC dated March 31, 2014, of the Ministry of Finance guiding invoices and documents for the sale of goods and provision of services.
In the case where the company has its main office in Ho Chi Minh City and a dependent accounting unit in Binh Duong:
• Regarding the seal of the branch, it is recommended that the company contact the Binh Duong Provincial Police for specific guidance.
• Regarding invoices, the branch should contact the Binh Duong Provincial Tax Department to notify the issuance of invoices for the branch as stipulated in Article 3, Clause 1 of Circular No. 37/2017/TT-BTC of the Ministry of Finance.
• Regarding tax declaration and payment: The branch must declare business license tax, value-added tax (VAT), and other applicable taxes (if any) to the local Tax Department directly responsible for the branch.
Regarding corporate income tax (CIT), the company should declare and pay CIT centrally in Ho Chi Minh City. In the case where the branch is a production unit dependent accounting unit, the company must allocate CIT as specified in Clause 7, Article 12 of Circular No. 156/2013/TT-BTC of the Ministry of Finance and pay it to the local Tax Department directly responsible for the branch.
When the company transfers goods to the branch for sale, both the company and the branch must follow the guidance in Section 2.6 of Appendix 4 accompanying Circular No. 39/2014/TT-BTC of the Ministry of Finance.
