top of page

December 2023 News Summary

I. Resolution No. 107/2023/QH15 about applycation of top-up corporate income tax according to global anti-base erosion rules


Issued by: National Assembly

Issued date: 29 November 2023. Effective date: 01 January 2024


On 29 November 2023, The National Assembly of Vietnam has passed Resolution No. 107/2023/QH15 (“Resolution No.107”) regulating top-up tax in conformity with the set of Global Minimum Tax Regulations of OECD Inclusive Framework on Base Erosion and Profit Shifting Project, of which Vietnam is a member.


Accordingly, there are some of highlights points as following:


1. Global minimum taxpayers


Minimum effective level of taxation of 15% applies to taxpayers who are subsidiary companies of multinational groups with revenue in the consolidated financial statements of the parent company of at least EUR 750 million in at least 02 out of the 04 consecutive years preceding the equivalent financial year, except for 07 subjects specified in the Resolution.


2. Regulation on Qualified domestic minimum top-up taxes (QDMTT)


This regulation applies to all consolidated entities or groups of consolidated entities of multinational corporations engaged in production and business activities in Vietnam during the fiscal year.


In cases where consolidated entities or groups of consolidated entities in Vietnam have income according to the Global Minimum Tax Regulation and actual tax rates in Vietnam below the minimum effective level of taxation, the qualified domestic minimum top-up taxes in Vietnam is determined as follows:


The qualified domestic minimum top-up taxes = (Top-up tax rate x Profit subject to top-up tax) + Adjusted top-up tax for the current year (if any) The qualified domestic minimum top-up taxes will be determined as zero in a fiscal year if the consolidated entities or groups of consolidated entities during the fiscal year simultaneously meet the criteria of average revenue below EUR 10 million and average income below EUR 1 million or incur loss.


3. Regulation on Income inclusion rules (IIR)


The supreme parent company, a partially-owned parent company, and an intermediate parent company in Vietnam currently holding direct or indirect ownership rights over consolidated entities subject to low tax rates abroad at any time during the fiscal year must declare and pay taxes according to the regulation on income inclusion rules through the allocation of taxes from the top-up tax according to the Global Minimum Tax Regulation of consolidated entities subject to low tax rates abroad during the fiscal year.


Total top-up taxes in a country = (Top-up tax rate x Top-up taxable profit) + Adjusted top-up tax amount for the current year (if any) - Qualified minimum domestic top-up tax amount (if any).


The additional tax amount in a country will be determined as zero in a fiscal year if the consolidated entities or groups of consolidated entities during the fiscal year simultaneously meet the criteria of average revenue below EUR 10 million and average income below EUR 1 million or incur loss.


4. Declaration, tax payment and management


  • For the regulation on qualified domestic minimum top-up taxes: The deadline for submitting the Declaration and paying Top-up Corporate Income Tax is no later than 12 months after the end of the fiscal year.

  • For the regulation on income inclusion rules The deadline for submitting the Declaration and paying Top-up Corporate Income Tax is no later than 18 months after the end of the fiscal year for the first year of application for multinational groups; and no later than 15 months after the end of the fiscal year for subsequent years.

  • The constituent unit in Vietnam or the designated unit as announced (in cases where there are multiple constituent units in Vietnam) of the multinational corporation is responsible for declaring and submitting additional corporate income tax in accordance with the regulations on global minimum tax.


II. Decree Noamending and supplementing some articles of Decree No.129/2022/ND-CP promulgating Vietnam's special preferential import tariff schedule for implementation of the regional comprehensive economic partnership agreement (RCEP) in the period 2022 – 2027


Issued by: The Government

Issued date: 01 December 2023. Effective date: 01 December 2023


Accordingly, an additional 02 countries are subject to preferential import tax rates under the Regional Comprehensive Economic Partnership Agreement (hereinafter referred to as RCEP rate), including:


  • Republic of the Union of Myanmar: Applying RCEP rate in the year 2022 (from 04 March 2022 to 31 December 2022) and the year 2023 (from 01 January 2023 to 31 December 2023);

  • Republic of the Philippines: Applying RCEP rate in the year 2023 (from 02 June 2023 to 31 December 2023).


For goods imported from the Republic of the Union of Myanmar that have registered customs declaration from 04 March 2022, and for goods imported from the Republic of the Philippines that have registered customs declaration from 02 June 2023 to before 01 December 2023, if they meet all the conditions to enjoy the RCEP rate as prescribed and have paid taxes at a higher rate, the customs authorities will process the overpayment in accordance with the law on tax administration.


III. Circular No.13/2023/TT-BKHDT guiding the implementation of the sustainable-private business support program for the period from 2022-2025


Issued by: The Ministry of Planning and Investment

Issued date: 12 December 2023. Effective date: 27 January 2024


The prime ministry of Planning and Investment issued Decree No. 13/2023/TT-BKHDT providing guidance on the organizational mechanism for implementing the "Sustainable Private Sector Business Support Program for the period 2022-2025," in accordance with Decision No. 167/QD-TTg of 2022


1. Consultation Support


Accordingly, support in terms of the consultation includes: Consulting on research, selection, interpretation, and technology transfer; intellectual property ownership consulting; consultation on digital transformation solutions; building and implementing prescribed quality management systems; consulting on perfecting new products; consulting on searching for information, communication,…etc. Small and medium-sized sustainable businesses choose support content suitable for their needs and are supported according to the corresponding provisions in Article 11, Article 22, and Article 25 of Decree No. 80/2021/ND-CP.


Consultation on financial access, investment capital mobilization; consultation on personnel, production, sales, marketing, internal management, consulting on strategy building, production model transformation, sustainable business direction, and other related contents to the production and business activities of enterprises: Support is provided according to the prescribed criteria for small and medium-sized enterprises owned by women, small and medium-sized enterprises employing a large number of female workers, and small and medium-sized social enterprises as stipulated in Clause 2, Article 13 of Decree No. 80/2021/ND-CP.


2. Technical Support


Small and medium-sized sustainable businesses select technology support content that aligns with their specific needs and receive assistance according to the content and criteria specified in Articles 22 and 25 of Decree No. 80/2021/ND-CP, as follows:


  • Support for inspection, calibration, and quality measurement of products and services; assistance in testing sustainable business products (including trials for new products), refining products (including improvements to new products), and sustainable business models; support for costs related to inspection, appraisal, and certification of product and goods quality; certification expenses for quality management systems.

  • Support for the costs of testing measurement tool samples; expenses related to inspection, calibration, and testing of measurement tools; costs for providing quantitative seals for packaging that are suitable for measurement technical requirements.

  • Support for certification expenses for products that meet technical standards; assistance with costs associated with ordering facilities, institutes, and schools to conduct research and testing for the development of products and services; support for expenses related to renting or purchasing digital transformation solutions.


3. Support for Trade Promotion and Market Expansion


Small and medium-sized sustainable businesses choose support content that aligns with their needs and receive assistance based on the corresponding content and criteria stipulated in Articles 22 and 25 of Decree No. 80/2021/ND-CP, as follows:


  • Support for maintaining accounts on electronic commerce platforms.

  • Support for the expenses related to renting venues, designing and setting up booths, transporting displayed products, travel costs, and accommodation and meals for representatives participating in domestic and international trade promotion exhibitions.


IV. Official letter No.5435/TCT-CS from general department of taxation guidelines on determining the value added tax (VAT) rate of goods and services


Issued by: General Department of Taxation

Issued date: 04 December 2023


In response to the challenges faced by businesses regarding the Value-Added Tax (VAT) issue, the General Department of Taxation has issued an official letter providing guidance with the following opinions::


For companies declaring taxes using the VAT deductible method on the sale of goods and services to buyers, the company needs to reconcile the goods and services it produces and trades with the categories of goods and services specified in Appendices I, II, III issued under Decree No. 44/2023/ND-CP, as follows:


  • In the case of companies engaged in construction and installation activities with acceptance, handover dates, completion of construction, and installation volumes determined from 01 July 2023, to 31 December 2023, regardless of whether they have received payment or not, they are eligible for VAT reduction as specified in Decree No. 44/2023/ND-CP.

  • For companies engaged in the production and business of goods and services, applying a VAT rate of 10% and not listed in the list of goods and services ineligible for VAT reduction specified in the above appendices, they qualify for VAT reduction according to Decree No. 44/2023/ND-CP from 01 July 2023, to 31 December 2023.

  • In the case of companies engaged in the production and business of goods and services listed in the appendix and not eligible for VAT reduction as specified in the above appendices, they are not eligible for VAT reduction.


If a company produces and trades multiple types of goods and services with different VAT rates, it must declare VAT for each type according to the specified VAT rates. If the company cannot determine the applicable VAT rate, it must calculate and pay tax at the highest VAT rate applicable to the goods and services it produces and trades.


V. Official letter No.13870/BTC-TCHQ 2023 on the use of documents replacement of sales invoices for export processing enterprises


Issued by: The Ministry of Finance

Issued Date: 18 December 2023


On 18 December 2023, regarding customs procedures for exported and imported goods on the spot, the Ministry of Finance issued Official Letter No. 13870/BTC-TCHQ providing guidelines for submitting documents instead of sales invoices for exporting enterprises and enterprises within the non-tariff zones selling goods domestically as follows::


1. For on-site export procedures


Customs declarants who have not been able to issue a sales invoice because they have not completed the transfer of ownership or rights to use the goods to the buyer according to the provisions of Decree No. 123/2020/ND-CP must submit the ‘Delivery and internal transfer note’ (scan copy) instead of sales invoice through the electronic customs data processing system for the General Department of Customs.


2. For on-site import procedures


The customs declarant carries out customs procedures according to the provisions of Clause 58, Article 1 of Circular No. 39/2018/TT-BTC and submits documents with sales invoices with the note " For organizations/individuals in free trade zones" through the customs electronic data processing system for the General Department of Customs.


VI. Official letter No.6372/TCHQ-GSQL 2023 on implementation of Circular 33/2023/TT-BTC, related to regulations on determination of origin of imported and exported goods


Issued by: The General Department of Customs

Issued Date: 11 December 2023


The General Department of Customs provides guidance to ensure units uniformly implement regulations in Circular No. 33/2023/TT-BTC as follows:


1. The submission of documents certifying the origin of goods


Regarding the subject: Goods listed in the Appendix V of Circular No. 33/2023/TT-BTC are considered as items posing risks to public safety, community health, or environmental hygiene. Therefore, it is mandatory to submit documents certifying the origin of the goods. In cases where such documentation is not available, the goods will not be cleared through customs.


2. Checking and comparing information about C/O


  • In case the C/O is issued on the National Single Window Portal, ASEAN Single Window or the website notified by the competent authority of the exporting country, the General Department of Customs will base on the information on the C/O declared on the customs declaration to compare and check the validity of the C/O, do not require the customs declarant to submit the C/O.

  • In case the website notified by the competent authority of the exporting country does not have sufficient information about the C/O so that the General Department of Customs has sufficient basis to determine the validity of the C/O, then the General Department of Customs, in addition to comparing and checking information about C/O on the website, must also compare and check C/O in the form of electronic data or paper documents converted to electronic documents. (scan copy), documents in the customs dossier and results of physical inspection of goods (if any) to determine the validity of the C/O


3. Procedures for refusing documents certifying the origin of goods in the CPTPP Agreement


  • In case the General Department of Customs has sufficient grounds to determine that the document is invalid: Refuse immediately at the time of customs clearance.

  • In case the General Department of Customs does not have enough basis for refusal at the time of customs clearance:


Step 1: Carry out verification procedures as prescribed in Article 19 of Circular No. 33/2023/TT-BTC.


Step 2: Receive verification results if the proof of origin of the goods is not eligible for incentives.


Step 3: The General Department of Customs notifies the exporter or producer or the competent authority of the exporting country to provide and supplement additional information related to the origin of goods within a maximum of 90 from the date of notification.


Step 4: If the information provided is not appropriate, perform the rejection procedure according to regulations.


4. Verify the validity of the certificate of origin for imported coal products to determine whether the goods are eligible to apply special preferential tax rates under the Free Trade Agreement


During the process of waiting for verification results, in case the General Department of Customs checks the certificate of origin of goods issued on the National Single Window Portal, ASEAN Single Window, or on the website according to the agency's notice, competent department of the exporting country, or has been submitted to the General Department of Customs by the customs declarant through the Electronic Customs Data Processing System that meets the minimum information as prescribed in Clause 3, Article 15 of the Circular. No. 33/2023/TT-BTC, imported goods must apply preferential import tax rates or normal tax rates and be cleared according to regulations.


5. Regarding deduction from Certificate of Origin of goods


For a batch of goods covered by a common contract and commercial invoices but imported multiple times or in multiple shipments, the Certificate of Origin is utilized to generate a Debit Note for offsetting, as specified in Article 22 of Circular No. 33/2023/TT-BTC.


VII. Official letter No.8739/BCT-XNK 2023 on purchase of goods by foreign traders not present in Vietnam


Issued by: Ministry of Industry and Trade

Issued date: 07 December 2023


Responding to questions about goods trading activities of foreign traders not present in Vietnam, the Ministry of Industry and Trade has the following opinions:


1. Export and import rights of foreign traders not present in Vietnam


Subjects: According to Clause 3, Article 5 of the Law on Foreign Trade Management, foreign traders not present in Vietnam, other relevant organizations and individuals from countries and territories that are members of the World Trade Organization and countries that have bilateral agreements with Vietnam have the right to export and import according to the provisions of Vietnamese law and international treaties to which the Socialist Republic of Vietnam is a member.


According to Article 2 and Article 3 of Decree 09/2018/ND-CP regulating export rights and import rights:

  • Export right: is the right to buy goods in Vietnam for export, including the right to be named on the declaration of exported goods to carry out and be responsible for export-related procedures.

  • Right to import: is the right to import goods from foreign countries into Vietnam to sell to traders with the right to distribute those goods in Vietnam, including the right to be named on the declaration of imported goods to carry out and be responsible for import-related procedures.

  • Scope of implementation: can only be implemented within the scope of export and import rights as prescribed in Decree No. 90/2007/ND-CP and Decree No. 09/2018/ND-CP and needs to be granted a Certificate. Certificate of registration of export and import rights of foreign traders not present in Vietnam according to Decree No. 90/2007/ND-CP.


2. Processing goods in Vietnam


In case a foreign trader orders goods to be processed in Vietnam, this activity is carried out in accordance with the provisions of Section I, Chapter VI of the 2005 Commercial Law, Article 51 of the Law on Foreign Trade Management and Chapter V of Decree No. 69/ 2018/ND-CP.


VIII. Annoucement No.1089/TB-XNK on issuance of certificates of origin for form E, AI, AJ, AANZ, AHK, RCEP, S, VC, VJ, VN-CU and electronic CPTPP


Issued by: Agency of Foreign Trade - Ministry of Industry and Trade

Issued date: 21 December 2023. Effective date: 21/12/2023


Accordingly, to reform administrative procedures and create benefits for traders when applying for 11 C/O forms E, AI, AJ, AANZ, AHK, RCEP, S, VC, VJ, VN-CU and CPTPP, The Agency of Foreign Trade (Ministry of Industry and Trade) announced, specifically as follows:


1. From 01 January 2024, after being approved electronically on the eCoSys System, traders print the C/O in color (including front and back - Notes on the page) on white paper, A4 size according to ISO standards. For electronic C/O, the signature, stamp of the agency or organization issuing the C/O and QR code are integrated to verify authenticity.


2. Particularly for C/O form E and form AI issued for goods exported to the Thailand market, traders continue to follow the instructions in Notice 257/TB-BCT dated 10 October 2022 of the Ministry Industry and Trade on making Certificate of Origin on regular A4 paper.


Download PDF here!

December 2023 News Summary
.pdf
Download PDF • 121KB

23 views

Related Posts

See All

JUNE 2024 NEWS SUMMARY

DECREE NO. 64/2024/ND-CP ON EXTENDING THE DEADLINE FOR PAYING TAXES AND LAND RENT IN 2024 Issued by: Gorverment Issued date: 17 June 2024 Effective date: 17 June 2024 Expiration date: 31 December 2024

Comments


Newsletter

Bạn mong muốn nhận được tư vấn của đội ngũ chuyên gia RSM Việt Nam, vui lòng gửi câu hỏi tại đây

You have successfully submitted your registration information. Thank you.

bottom of page