1. Decree NO.44/2023/ND-CP stipulating value-addes tax reduction policy by resolution NO.101/2023/QH15
Issued by: National assembly. Issued date: 30/06/2023
Effective date: 01/07/2023 – 31/12/2023
On June 30, 2023, the Government issued Decree 44/2023/ND-CP stipulating the value-added tax reduction according to Resolution 101/2023/QH15.
Pursuant to Clause 2, Article 1 of Decree 44/2023/ND-CP, the VAT reduction is prescribed as follows:
For business units and establishments that calculate VAT by the deduction method: Apply the VAT rate of 8% for the group of goods and services eligible for tax reduction.
For business units, establishments and individuals that calculate VAT by the direct method: Apply a 20% reduction of the % rate to calculate VAT when issuing invoices for groups of goods and services eligible for tax reduction.
Basically, the Decree 44/2023/ND-CP has not changed much content compared to Decree 15/2022/ND-CP. Below is a summary of some significant amendments in the content of Decree 44:
Additional regulation for mined coal products for sale;
Modifying regulation on handling issued invoices and declaring according to the tax rate/% rate that has not been reduced;
Remove regulation related to invoices printed in the form of pre-printed tickets with par value;
Remove the regulations on expenses related to supporting and funding activities for Covid-19 prevention and control activities.
In addition, Decree 44/2023/ND-CP mainly amends some HS codes to be consistent with the HS codes according to the List of Vietnam's exports and imports issued together with Circular 31/2022/TT-BTC.
2. Decision NO.970/QD-TCT promulgating the tax inspection process
Issued by: General Department of Taxation. Issued date: 14/07/2023
Effective date: 14/07/2023
From July 14, 2023, the tax inspection was conducted according to Decision No. 970/QD-TCT of the General Department of Taxation, according to which, some notable changes include:
- Selection of taxpayers for tax inspection:
Selected through analysis and assessment of tax compliance and risk classification of taxpayers (not less than 90%): Selecting taxpayers for planned tax examinations at the taxpayer's premises based on risk rankings from high to low, without duplication with taxpayers already selected for audit, and considering taxpayers who have not been audited for more than five years.
Random selection (no more than 10%): selection of taxpayers to be included in the inspection plan at the taxpayer's office by the planning department, utilizing radom selection functionality or the random selection support features of planning applications.
- Unscheduled tax inspection:
Examine taxpayers according to denunciations;
Examine taxpayers under the direction of the head of the tax authority or at the direction of the head of the superior tax authority;
Inspection at the request of the taxpayer (dividing, splitting, merging, consolidating, converting the type of enterprise, dissolution, termination of operation, equitization, invalidation of tax identification number, relocation of location leads to a change in the tax authority);
Inspection before tax refund;
Proposed inspection after inspection at the tax office;
- Other unexpected tax inspection cases.
3. Decree 42/2023/ND-CP increase pension, social insurance and monthly allowance
Issued by: The Government. Issued date: 29/06/2023
Effective date: 14/08/2023
Decree 42/2023/ND-CP regulating pensions, social insurance allowances and monthly allowances has the following notable contents:
3.1. Subjects eligible to increase pension, social insurance allowance, monthly allowance
a) Cadres, officials, public employees and workers (including those contributing social insurance voluntarily and retired people transferred from Social Insurance Fund of farmers of Nghe An province as prescribed in the Prime Minister’s Decision No. 41/2009/QD-TTg dated March 16, 2009); military personnel, police officers and cipher officers who are receiving monthly retirement pensions.
b) Cadres of communes, wards and commune-level towns prescribed in Decree No. 92/2009/ND-CP, Decree No. 121/2003/ND-CP and Decree No. 09/1998/ND-CP who are receiving monthly retirement pensions and benefits.
c) Those who are receiving monthly work-capacity loss allowance as per the law; those who are on monthly benefits as prescribed in Decision No. 91/2000/QD-TTg dated August 04, 2000 and Decision No. 613/QD-TTg dated May 06, 2010 of the Prime Minister; workers in the rubber-manufacturing industry on monthly benefits as prescribed in the Decision No. 206-CP dated May 30, 1979 of the Government.
d) Cadres of communes who are on monthly benefits as prescribed in Decision No. 130/CP dated June 20, 1975 of Government Council and Decision No. 111-HDBT dated October 13, 1981 of Council of Ministers.
đ) Military personnel who is on monthly benefits as prescribed in Decision No. 142/2018/QD-TTg dated October 27, 2008 (amended by the Prime Minister’s Decision No. 38/2010/QD-TTg dated May 06, 2010).
e) Police officers who are receiving monthly benefits as prescribed in the Prime Minister’s Decision No. 53/2010/QD-TTg dated August 20, 2010.
g) Military personnel, police officers and cipher officers who are receiving the same salaries as the military personnel and police officers on monthly benefits as prescribed in the Prime Minister’s Decision No. 62/2011/QD-TTg dated November 09, 2011.
h) Persons who are receiving monthly occupational accident and disease allowances.
i) People who have been receiving monthly death benefits before January 01, 1995.
3.2. Time and rate of adjustment
- Adjustment Time: from 01/07/2023
- Adjustment level:
The subjects have been adjusted according to Decree 108/2021/ND-CP: an increase of 12.5% on their pension, social insurance allowance and monthly allowance of June 2023 .
The subjects which have not been adjusted according to Decree 108/2021/ND-CP: an increase of 20.8% on their pension, social insurance allowance and monthly allowance of June 2023 .
Subjects whose benefits, after being adjusted according to the two levels above, remain below 3,000,000 Vietnamese dong per month, will be further adjusted as follows:
+ An increase of 300,000 VND/person/month for those with less than 2,700,000 VND/person/month.
+ Increase to 3,000,000 VND/person/month for those who earn from 2,700,000 VND/person/month to less than 3,000,000 VND/person/month.
4. Official letter 3446/TCHQ-GSQL on determination of declaration time of export revenue
Issued by: General Department of Customs. Issued date:July 03, 2023
In order to answer the questions about the determination of the time to declare export revenue of Hanoi Tax Department, on July 3, 2023, the General Department of Customs issued Official Letter 3446/TCHQ-GSQL with specific comments as follows:
According to the provisions of Article 53 of Circular 38/2015/TT-BTC as amended and supplemented in Clause 33, Article 1 of Circular 39/2018/TT-BTC of the Ministry of Finance, after the goods are cleared and it is determined that they have actually been exported, the new consignments are considered to have completed the prescribed export procedures and are eligible to use the returns for further procedures.
The return is cleared after completing the customs procedures and the customs declarant has fulfilled the tax obligation as prescribed in Article 37 of the Law on Customs, Clause 2, Article 32 of Decree 08/2015/ND-CP dated May 21, 2015 of the Government and Article 34 of Circular 38/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance and according to the customs procedures.
The determination of the actual export status of goods included in the export declaration is carried out under supervision by the customs authority according to the provisions of Article 53 of Circular 38/2015/TT-BTC as amended and supplemented in Clause 33 of Article 1 Circular 39/2018/TT-BTC of the Ministry of Finance.
5. Official letter 3431/TCHQ-TXNK instructions for implementation of decree NO.44/2023/ND-CP on Value-added tax (VAT) reduction policy
Issued by: General Department of Customs. Issued date: June 30, 2023
On June 30, 2023, the General Department of Customs issued Official Letter 3431/TCHQ-TXNK to guide the Customs Departments of provinces and cities to implement a number of contents related to the value-added tax reduction policy as follows:
a) Customs officers at the Customs Department, the affiliated Sub-Departments, and the declarant who carry out customs procedures in the area under the management of the customs authorities should pay attention to the following contents.:
- VAT reduction policy:
Some of the following groups of goods will not be eligible for tax reduction from 10% to 8%: telecommunications, information technology, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, products and goods subject to excise tax, comply with the provisions of Clause 1, Article 1 of Decree No. 44/2023/ND -CP.
Items not eligible for VAT reduction are specified in Appendix I, II and III issued together with Decree No. 44/2023/ND-CP.
- List of goods not eligible for VAT reduction:
For HS codes in column (10) Appendix I, column (10) Part A and column (4) Part B Appendix III: they are only forreference purposes. The determination of HS codes for actually imported goods shall comply with the provisions on goods classification in the Customs Law and legal documents guiding the implementation of the Customs Law.
The lines marked with (*) in column (10) Appendix I, column (10) Part A and column (4) Part B Appendix III, HS code is declared according to actual imported goods.
b) Instructions for declaring on the VNACCS/VCIS system (Customs Departments of provinces and cities are responsible for guiding customs declarants)
- Select the correct code VB205 to declare the VAT rate of 8%: Code VB205 does not apply to the following cases: subject exempt from VAT, subject to VAT at rates of 0%, 5% and 10% (according to the Law on VAT).
- The reduction of VAT rate from 10% to 8%, declaring code VB205 only applies to customs returns registered from 0:00' on July 1, 2023 (corresponding to the item "Registration date" on the customs return).
In case the customs return is registered before 0:00' on July 1, 2023 (with the item "Registration date" on the customs return less than 0:00' of the effective date of the Decree), not applicable VAT rate 8% (declare code VB205).
6. Official letter 51359/CTHN-TTHT instrctuons on thue use of electronic invoices in export processing zones when liquidationg assets
Issued by: Hanoi Tax Department. Issued date: July 17, 2023
To guidingthe issues of using invoices when liquidating used assets for businesses, the Hanoi Tax Department has issued the official letter with the following content:
According to:
Article 44 of the Law on Tax Administration No. 38/2019/QH14 dated June 13, 2019 of the National Assembly;
Clause 1 Article 8 and Clause 1 Article 9 of Decree 126/2020/ND-CP dated October 19, 2020 of the Government detailing a number of articles of the Law on Tax Administration;
Article 26, Clause 2 Article 8, Clause 2 Article 13 of the Government's Decree No. 35/2022/ND-CP dated May 28, 2022 on management of industrial parks and economic zones;
In case the company is an export processing enterprise liquidating fixed assets in the form of selling to the domestic market, at the time of sale or liquidation to the domestic market, the policy on management of exported and imported goods shall not be applied, except for goods subject to management according to conditions, standards, and specialized inspection that have not yet been carried out upon import; goods under the management of a license must be approved in writing by the import licensing agency as prescribed in Article 26 of Decree No. 35/2022/ND-CP.
The company declares tax by the direct method on added value as prescribed in Clause 2 Article 13 of Circular No. 219/2013/TT-BTC. Regarding the submission of VAT declaration dossiers, the Company complies with the provisions of Article 44 of the Law on Tax Administration No. 38/2019/QH14, Articles 8 and 9 of Decree 126/2020/ND-CP.
In case the Company is an export processing enterprise liquidating fixed assets in the form of selling to the domestic marketand the Company has registered to issue sales invoices, the Company shall use the Sales Invoice according to the provisions of Clause 2 Article 8 of Decree No. 123/2020/ND-CP dated on October 19, 2020 of the Government.
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