Legal News December, 2017

Legal News December, 2017

UPDATED NEWS_DDICG111217

  1. Latest import and export tariffs in 2018

The Government issued Decree No. 125/2017/ND-CP amending and supplementing Decree No. 122/2016/ND-CP, which promulgated new import and export tariffs.

Decree No. 125/2017/ND-CP will come into effect from 01/01/2018. Particularly, the contents of the tax preference programs prescribed in Article 7a shall be implemented right from the date the decree is promulgated (16/11/2017) to 31/12/2022.

  1. Simplify the application dossier for maternity benefits

This is a remarkable issue in Resolution 125/NQ-CP on simplifying administrative procedures, civil papers related to population management under the management of Vietnam Social Insurance.

Accordingly, the application dossier for maternity benefits for female employee has dropped the request to submit copies of the following papers:

– Birth certificate of the child;

– Death certificate of the child in case of death;

– The mother’s death certificate in case the mother dies after giving birth.

In addition, the dossier for movement settlement procedure from one province to another for the recipient of pension funds, monthly social insurance benefits and waiting for receiving pension fund, monthly benefits has dropped the request to submit following papers:

– Copy of family register at new residence;

– Copy of identity card/passport.

Resolution No. 125/NQ-CP came into full force on 29/11/2017.

Legal News November, 2017

Legal News November, 2017

UPDATED NEWS_DDICG061117 – Tax treatment for scrap and surplus materials of processing contracts.

On October 26, 2017 the Ministry of Finance issued Official Letter No. 14475/BTC-TCHQ to response for the problem about tax treatment on scrap and surplus materials, surplus tools of processing contracts in case of tranferring for domestic consumption, as follows:

  • Before 01/09/2016: For surplus materials and surplus supplies imported for processing not more than 3% of the total quantity of materials and supplies actually imported, when selling or consuming domestically, is necessary to go through customs procedures for transfering the purpose of using. However, it must be declared and paid tax to the inland tax offices according to the provisions of tax law.
  • From 01/09/2016 up to now: Scrap, waste products, surplus materials and surplus supplies imported for processing do not exceed 3% of the total quantity of each material and supplies imported under the processing contract, are exempted from import tax when consuming them domestically, but it must be declared and paid other taxes (if any) to the customs office.
  • In case of scrap, surplus materials and surplus supplies imported for processing do not exceed 3% of the total quantity of each material and supplies imported under the processing contract for domestic consumption from 01/09/2016 to the date of this document is issued, the enterprise that declared and paid tax with the local tax authority, does not require to declare and adjust

UPDATED NEWS_DDICG061117 – Personal Income Tax preference for foreigners

On October 18, 2017 the Hanoi Tax Department issued Official Letter No. 68151 / CT-TTHT to guide to calculate the personal income tax (PIT) for foreigners. Whereby:

  • In the case of foreign specialists being non-resident individuals, the company shall deduct PIT at the rate of 20% for the income from the gross pay (including effective wages paid after completion labor contract). Non-resident individuals do not have to declare tax finalization. In cases of the companies temporarily deducted PIT based on Progressive tax tariff, now they re-determined to be non-resident individuals, they shall make additional declarations in replacement of the PIT declaration forms under the guidance in Clause 5, Article 10 of Circular No.156/2013/TT-BTC.
  • In the case of foreign specialists being resident individuals, the company has to deduct PIT based on Progressive tax tariff. Foreign resident individuals who terminate their contracts in Vietnam must declare their finances before leaving the country.
  • In case individuals have not finalized PIT upon immigrating and they authorize the company to do that. The company shall settle the PIT on behalf of the individual within 45 days from the date the individual leaves the country.
  • After the individual had finalized the PIT and also had been no longer a resident under PIT law, if the company incurs a payment relative to effective wages to the individual, the company shall deduct 20% of income before paying for individuals.
Legal News October, 2017

Legal News October, 2017

UPDATED NEWS_DDICG131017 – Remove form 06/GTGT in case of registering or changing the VAT calculation method

September 19th 2017, The Ministry of Finance issued Circular 93/2017/TT-BTC to guide VAT registration. Whereby:

  • Enterprises don’t have to submit 06/GTGT form when:
  • Changing the VAT calculation method.
  • Registering to apply VAT deduction method for new established enterprise or enterprise have revenue is under 1 billion.
  • Determining VAT calculation method will be based on VAT record submited by the enterprise:
  • If the enterprise register to apply deduction method, use 01/GTGT, 02/GTGT forms.
  • If the enterprise register to apply direct method, use 03/GTGT, 04/GTGT forms

Details of document, please see and download here.

UPDATED NEWS_DDICG201017 – The Ministry of Finance has issued 05 consolidated document of the circulars about tax.

  • Consolidated document No. 05/VBHN-BTC in 2016 about the law on personal income tax.
  • Consolidated document No. 11/VBHN-BTC in 2017 about the law on corporate income tax.
  • Consolidated document No. 12/VBHN-BTC in 2017 about the law on special consumption tax.
  • Consolidated document No. 13/VBHN-BTC in 2017 about the law on value added tax.
  • Consolidated document No. 14/VBHN-BTC in 2017 about the law on tax administration.