Newsletter

Decree No. 139/2016/ND-CP on license fee

On 4^th October 2016, the Government issued Decree No. 139/2016/ND-CP, guiding license fee.

The level of license fee is regulated as follows:

– For organizations which do manufacturing, trading, or services:

+ VND 3,000,000/year for an organization that has charter capital or investment capital over VND 10 billion;

+ VND 2,000,000/year for an organization that has charter capital or investment capital equal to or less than VND 10 billion;

+ VND 1,000,000/year for a branch, representative offices, location of business, and other economic organizations.

– For individuals, group of individuals and households having production and business activities:

+VND 1,000,000/year if they have annual revenue more than VND 500 million.

+VND 500,000 /year if they have annual revenue from VND 300 million to VND 500 million.

+VND 300,000/year if they have annual revenue from VND 100 million to VND 300 million.

Decree 139 comes into force on 1^st January 2017.

Circular No. 173/2016/TT-BTC amending Clause 3, Article 15 of Circular No. 219/2013/TT-BTC about bank payment voucher

On 28^th October 2016, the Ministry of Finance issued Circular No. 173/2016/TT-BTC amending Clause 3, Article 15 of Circular No. 219/2013/TT-BTC about bank payment voucher.

According to the Circular, the condition for VAT deduction that bank accounts of buyers and sellers must be registered or notified to the tax authorities has been canceled.

Therefore, even if the bank accounts of buyers and sellers were not registered or notified to the tax authorities, in case all other requirements are met, the buyers can deduct input VAT as regulated.

Besides, when a buyer makes payment from its bank account to a seller’s bank account that is held by an owner of a private enterprise, or when a buyer makes payment from its account held by an owner of a private enterprise to a seller’s bank account, these bank accounts shall not need to be registered with the tax authority.

Circular 173/2016/TT-BTC comes into force on 15^th December 2016.

Official Letter No. 13959/BTC-TCHQ about the time of C/O submission

On 4^th October 2016, the Ministry of Finance issued Dispatch Letter No. 13959/BTC-TCHQ to provincial custom departments guiding the deadline to submit the Certificate of Origin (C/O) after importing point of time. According to the Letter, if custom declarants do not have C/O at the importing point of time, they need to note on the customs declaration and submit the C/O within 30 days from the date they register the declaration. During that time, the MFN (most favored nation) tax rate shall be applied. This regulation applies to all types of C/O except for form VK stated in the Free Trade Agreement between Vietnam and Korea. This regulation applies to customs declarations registered from 14^th September 2016.

Official Letter No. 15249/BTC-TCT on Value Added Tax (VAT) policy

On 26^th October 2016, the General Department of Taxation issued Official Letter No. 15249/BTC-TCT on VAT policy.

According to the Letter, although a seller has not registered bank account at the tax authority, a buyer can deduct input VAT when (i) a transaction of purchasing goods between the buyer and the seller is real; (ii) VAT invoice issued by the seller is eligible; (iii) the seller declares VAT as regulated, and (iv) Other requirements for VAT deduction are met. The tax authority shall impose an administrative penalty on the buyer/seller who did not register/inform bank accounts to the tax authority as regulated in Clause 2, Article 8 of Decree No. 129/2013/ND-CP dated 16^th October 2013 of the Government.

Official Letter No. 4569/TCT-DNL about issuing VAT invoices for goods/services giving to clients

On 3^rd October 2016, the General Department of Taxation issued Official Letter No. 4569/TCT-DNL about issuing VAT invoices for goods/services given to clients.

The company (Mobifone) gives goods to clients as a gift, does not meet the requirements of the law on commercial promotion, and the clients do not request for VAT invoices. In such case, at the end of a day, each sales unit of the company should issue one (1) invoice for all such transactions regardless of whether the promotion value is over or less than VND 200,000. The invoice shall be attached with a detailed list of goods given to each client. The company should write all necessary information on the invoice, as well as calculate, declare and pay output VAT.

In case the Company hires an event provider to hold a client meeting and the event provider takes responsibility to give gifts to clients, in which the value of gifts is included in the value of service contract, the event provider must issue VAT invoice for the total contract amount. In this case, the company does not need to issue VAT invoice for gifts given to clients.

Decision No. 2128/QD-BTC about online declaration for VAT and PIT

The Ministry of Finance issued Decision No. 2128/QD-BTC dated 4^th October 2016 about a trial program of online declaration for VAT and PIT applied to individuals who have a house for rent.

The Decision applies to:

– Individuals who have house for rent in Hanoi and Ho Chi Minh City;

– Under the management of Hanoi Tax Authority and HCMC Tax Authority; and

– Wish to declare taxes (PIT and VAT) online for house rent activity.

The timing for the trial program is from November 2016 to the end of December 2017.

Individuals who declare taxes online should meet the requirements to perform online tax transactions in according with Circular No. 110/2015/TT-BTC dated 28^th July 2015.

Decision 2128/QD-BTC comes into force from 04^th October 2016.

Answer from Vietnam Social Insurance Department about performance salary (KPI salary)

A company in Hanoi plans to set up sales department. The salary for sales staff is separated into 2 parts including basic salary and KPI salary. KPI salary is based on the efficiency of work volume in the month. The question is whether the company has to calculate social insurance based on KPI salary or not.

Vietnam Social Insurance Department issued an official letter about this question as follows:

According to Clause 1 and Clause 2, Article 30 of Circular No. 59/2015/TT-BLDTBXH dated 29^th December 2015 and Article 4 of Circular No. 47/2015/TT-BLDTBXH dated 16^th November 2015, KPI salary, which reflects the efficiency of work and is based on actual working days in month, is not included in salary to calculate social insurance as regulated.