On 23th December 2019, Hanoi City Tax Department issued Official Letter No. 95772/CT-TTHT. Whereby:
In case the Company builds or buys houses outside industrial parks for workers working in industrial parks, if these houses meet the provisions of law on house design standards for workers in industrial parks, VAT of these houses shall be totally deducted as guided in Clause 1, Article 14 of Circular No. 219/2013/TT-BTC of 31st December 2013 of Ministry of Finance.
In case the Company builds houses for foreign experts who are not employees of the Company (did not sign labor contracts with the Company) other than the aforementioned case, input VAT of building houses is not deductible.
