Revisions to the Enforcement Rules following 2024 Tax Laws Changes
Following comprehensive amendments to several tax laws enacted in December 2024, the Ministry of Economy and Finance (MOEF) announced proposed revisions to the Enforcement Rules of these tax laws on February 26, 2025. These proposed amendments were promulgated and became effective on March 21, 2025.
Below is a summary of the key amendments applicable to foreign-invested companies.
· Interest rate applied to national taxes and customs duty refunds adjusted from 3.5% to 3.1% annually.
· To accelerate depreciation, the useful life of R&D machinery and equipment is reduced from five to three years.
· When filing an amended corporate income tax return due to an adjustment of arm’s length pricing, documents supporting the transfer pricing method shall be additionally submitted. These documents include detailed business activities of the parties involved, financial statements, tax returns, and materials that demonstrate the calculation method used to determine the arm's length price.
· The scope of temporary departures counted as periods of residence upon determining resident status under the Individual Income Tax Law (“IITL”) has been explicitly specified. These include short-term tourism, medical treatment, attendance at family events (e.g., weddings and funerals), business trips, training programs, and other business or work-related purposes.