3. Official Letter No. 4707/TCT-CS on compulsory use of new electronic invoices when directly requested by tax authorities
On 18 November 2019, the General Department of Taxation issued Official Letter No. 4707/TCT-CS on electronic invoices to some local tax departments.
Accordingly, the Government's Decree No. 119/2018/ND-CP in 12 September 2018, takes effect from 1 November 2018. During the transition period from 1 November 2018 to 31 October 2020, if the tax authority has not notified the enterprises about the conversion to use electronic invoices according to Decree No. 119/2018/ND-CP, they can still use invoices according to the old regulations under Decree No. 51/2010/ND-CP and circulars, documents guiding the implementation.
As such, enterprises only have to convert to use electronic invoices in accordance with Decree No. 119/2018/ND-CP when required by the tax authorities during this transition period.
It should be noted that when an enterprise issue invoices in the old form, they must issue those invoices at the correct time as prescribed in Clause 2, Article 16 of Circular No. 39/2014/TT-BTC with full of compulsory contents (including electric signature) as per Article 6, Circular No. 32/2011/TT-BTC.
In case the enterprise has converted to a new electronic invoice form, the enterprise must make invoice in time and with all compulsory contents as prescribed at Point e, Clause 1, Article 3 and Article 4 of Circular No. 68/2019/TT-BTC.
4. Official Letter No. 4641/TCT-DNNCN on Personal Income Tax for overtime salary in excess of the prescribed cap level
On 12 November 2019, the General Department of Taxation issued Official Letter No. 4641/TCT-DNNCN on Personal Income Tax for overtime wages that exceed the cap for overtime hours.
According to the current regulations, overtime salaries are exempt from PIT, however, only for the difference that is higher than the normal daily salary for overtime hours which is not exceeding the legal limit. When calculating overtime, the number of overtime hours allowed to be calculated according to the labor law should be determined: Maximum 200 hours per year; in special cases, it shall not exceed 300 hours in a year as prescribed in the Labor Code 2012. The case of overtime exceeding the above permitted limit is considered as violation of the law.
Accordingly, if the Company allows employees to work overtime within the limit of 200 or 300 hours/year, the total difference in overtime salary that is higher than the daily salary is exempted from PIT. Thus, it can be understood that hours exceeding the limit prescribed by the labor law will be subject to PIT.