I. RESOLUTION NO. 81/NQ-CP ON PROPOSAL TO DEVELOP A DRAFT RESOLUTION OF THE NATIONAL ASSEMBLY ON VALUE ADDED TAX (VAT) REDUCTION
Issued by:the Government
Issued date: 28 May 2024
Effective date: 28 May 2024
On 28 May 2024, the Government issued Resolution No. 81/NQ-CP approving the proposal to develop a draft Resolution of the National Assembly on VAT reduction.
Accordingly, in order to stimulate consumer demand, boost production and business, contribute to economic recovery and development, the VAT rate will be reduced by 2% for groups of goods and services that are currently subject to the 10% tax rate in the last 6 months of 2024.
However, the reduction in VAT rates will not be applied to goods and services subject to excise duties as well as some of the following groups of goods and services: Telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metal production and production of prefabricated metal products, mining industry (excluding coal mining), coke production, refined petroleum, chemical production and chemical products.
The Resolution on VAT reduction is expected to be considered and approved by the National Assembly in the near future and will take effect from 1 July 2024 to 31 December 2024.
II. DECISION NO. 624/QD-BLDTBXH REGARDING THE ANNOUNCEMENT OF ADMINISTRATIVE PROCEDURES AMENDED AND SUPPLEMENTED IN THE FIELD OF OVERSEAS LABOR MANAGEMENT UNDER THE MANAGEMENT SCOPE OF THE MINISTRY OF LABOR - INVALIDS AND SOCIAL AFFAIRS
Issued by: Ministry of Labor - Invalids and Social Affairs
Issued date: 17 May 2024
Effective date: 17 May 2024
This decision amends and supplements Decision No. 58/QD-LDTBXH dated 26 January 2022, by the Minister of the Ministry of Labor - Invalids and Social Affairs on the announcement of new administrative procedures, amendments, supplements, abolishment in the field of Overseas Labor Management within the scope of state management functions of the Ministry of Labor - Invalids and Social Affairs.
The specific contents of each administrative procedure are as follows:
Procedure “Preparation of labor sources for enterprises providing services to send Vietnamese workers to work abroad under contracts”:
- Procedure execution sequence: Service enterprises submit documents to the Ministry of Labor - Invalids and Social Affairs. The Ministry of Labor responds within 5 working days.
- Implementation method: Directly, by post, or online.
- Document components: Include documents preparing labor sources, a copy of the request document from the receiving foreign party, and supporting documents.
- Number of application sets: 01 set.
- Processing time: 5 working days.
- Executing subjects: Enterprises providing services to send workers to work abroad under contracts.
- Processing authority: Ministry of Labor - Invalids and Social Affairs.
Procedure “Registration of labor supply contracts of enterprises providing services to send Vietnamese workers to work abroad under contracts”:
- Procedure execution sequence: Service enterprises submit documents to the Ministry of Labor - Invalids and Social Affairs. The Ministry of Labor responds within 5 working days.
- Implementation method: Directly, by post, or online.
- Document components: Include documents registering labor supply contracts, a copy of the contract, and supporting documents.
- Number of application sets: 01 set.
- Processing time: 5 working days.
- Executing subjects: Enterprises providing services to send workers to work abroad under contracts.
- Processing authority: Ministry of Labor
- Invalids and Social Affairs.
Both procedures are free of charge, with the same execution steps and processing authority. Specific conditions and requirements for implementation are stipulated in relevant regulations and laws.
III. CIRCULAR NO. 41/2024/TT-BTC AMENDING AND SUPPLEMENTING SOME PROVISIONS OF DECISION NO. 44/2017/TT-BTC AND DECISION NO. 152/2015/TT-BTC ON THE FRAMEWORK FOR CALCULATING RESOURCE TAX RATES FOR GROUPS, TYPES OF RESOURCE TAXES WITH SIMILAR PHYSICAL CHARACTERISTICS
Issued by: Ministry of Finance
Issued date: 20 May 2024
Effective date: 15 July 2024
Accordingly, the framework for calculating resource tax rates for groups, types of resource taxes with similar physical characteristics is regulated as follows:
1. Adjusting and supplementing the framework for calculating resource tax rates in the following cases:
- When the market price of resources fluctuates by more than 20% lower than the minimum price of the framework for calculating resource tax rates.
- When the market price of resources fluctuates by more than 20% higher than the maximum price of the framework for calculating resource tax rates.
- When new types of resources arise that have not been regulated in the framework for calculating resource tax rates.
2. In the case where the market price of resources fluctuates by more than 20% lower than the minimum price of the framework for calculating resource tax rates, the Provincial People's Committee is responsible for sending a written request to the Ministry of Finance to provide information along with specific proposals, documents, and explanatory plans as a basis for considering the adjustment of the framework for calculating resource tax rates. The Provincial People's Committee shall only issue the resource tax rate table or document regulating the adjustment of the resource tax rate table after the Ministry of Finance has adjusted the framework for calculating resource tax rates.
3. In the case where the market price of resources fluctuates lower but not more than 20% below the minimum price, or higher but not more than 20% above the maximum price of the framework for calculating resource tax rates, the Department of Finance shall coordinate with relevant agencies to determine and submit to the Provincial People's Committee for issuance of the resource tax rate table or document regulating the adjustment of the resource tax rate table.
IV. OFFICIAL LETTER NO. 1780/TCT-DNL REGARDING CONTINUED ENHANCEMENT OF INSPECTION AND SUPERVISION OF ELECTRONIC INVOICE IMPLEMENTATION FOR EACH RETAIL SALE OF PETROLEUM PRODUCTS.
Issued by:General Department of Taxation
Issued date: 26 April 2024
The General Department of Taxation issued Offcial Letter No. 1780/TCT-DNL providing information on enhancing inspection and supervision of electronic invoice implementation for each sale of petroleum products. To ensure continuity and substance in implementing regulations, the Tax Department proposed a specific plan to enhance inspection and supervision, including:
1. Inspection and Supervision
Continuing to promote the role of Inter-Agency Task Forces and Provincial People's Committees in inspecting retail petroleum product stores to ensure compliance with electronic invoice regulations and connection with tax authorities as stipulated by law.
2. Handling Violations
Strictly addressing any violations related to invoices and documentation in accordance with the regulations of the Tax Management Law and the Decree on invoices. Cases of violation will be dealt with or transferred to the police.
3. Propaganda and Support
Continuing to disseminate information and promote regulations regarding electronic invoices for retail petroleum businesses, while also supporting enterprises with automatic connection solutions and electronic invoicing implementation.
4. Assignment and Monitoring
Organizing specific assignments to control the issuance and use of electronic invoices at retail petroleum product stores. Continuous and rigorous monitoring and data analysis will be conducted to detect risks in tax management and invoice usage.
5. Effectiveness Evaluation
The Tax Department will evaluate the effectiveness of tax management for retail petroleum product stores after implementing electronic invoicing for each sale. Periodic reports on progress and outcomes will be organized for consolidation and reporting to the General Department of Taxation.
V. OFFICIAL LETTER NO. 1806/TCT-DNNCN ON ENHANCING PERSONAL INCOME TAX MANAGEMENT FROM INVESTMENTS IN CAPITAL GAINS RECEIVED IN THE FORM OF STOCK DIVIDENDS
Issued by:General Department of Taxation
Issued date: 2 May 2024
The General Department of Taxation issued Official Letter No. 1806/TCT-DNNCN to strengthen the management of personal income tax (PIT) on income from capital investments, particularly regarding dividends received and the transfer of shares of the same type. The General Department of Taxation requested Tax Offices to implement the following measures:
Propaganda and Support:
- Tax Offices should develop appropriate propaganda plans based on the actual tax management situation in their respective areas;
- Clearly propagate the obligation to declare and pay taxes for individuals receiving stock dividends and provide guidance to individuals on the deadlines and procedures for tax declaration;
- Guide individuals to declare taxes for shares recorded before December 31, 2022, which have not been declared and taxes not paid by organizations on behalf of individuals.
Propaganda and Support:
For organizations that have not fulfilled the obligation to declare and pay taxes on behalf of individuals, Tax Offices will conduct monitoring and impose tax management measures to ensure compliance with this obligation.
Inspection and Audit Work:
- Implementing risk management principles to inspect records at the tax offices of organizations such as securities companies, commercial banks with securities custody activities, fund management companies, and securities issuers;
- Inspect the declaration and payment of PIT on behalf of individuals receiving stock dividends and examine the tax declaration of individuals for income from the transfer of shares of the same type as stipulated by law.
VI. OFFICIAL LETTER NO. 1846/TCHQ-TXNK ON DOMESTIC IMPORTED GOODS FOR PRODUCTION AND EXPORT
Issued by:General Department of Customs
Issued date: 2 May 2024
On 2 May 2024, the General Department of Customs issued Official Letter No. 1846/TCHQ-TXNK in response to Official Letter No. 2188/HQBD-TXNK dated 31 August 2023 of Binh Duong Province Customs Department on duty refund for goods imported to produce exported goods and actually exported of ai Binh Investment Joint Stock Company.
Based on current regulations, according to the General Department of Customs, in case businesses already paid import duties on imported goods (including duty-free goods) for production and business purposes, and then used such goods for production of exports and actually exported the products abroad or into non-tariff zones, the paid import duties shall be refunded.
Import duty refundable imports include:
- Raw materials, supplies, components, semi-finished goods imported to be directly incorporated into the exports or directly used in the production of exports but not directly transformed into goods.
- Finished goods imported to be attached on exports or packed with exports as a whole;
- Components and parts imported for repair of exports under warranty.
Basis for determination of eligibility for duty refund:
- The enterprise has an establishment for producing exports in Vietnam; owns or has the right to use machinery and equipment which is suitable for the imported raw materials, supplies and components;
- The value or quantity of duty refundable imported raw materials, supplies and components is the actual value or quantity of those used for the production of exports;
- The exports are declared as domestic exports;
- The enterprise directly imports materials and exports goods or authorizes another entity to do so.
However, currently there have not been any clear regulations on the refund of import duties for cases where businesses domestically import raw materials, supplies, and components, then hand them over to other businesses for processing, completion, and receive the finished goods for export abroad. There is still controversy surrounding tax refunds for domestic import and export, so the businesses that need to apply for tax refunds for this type should seek further advice from the authorities or professional service providers.
VII. OFFICIAL LETTER NO. 29277/TCTHN-TTHT ON GUIDANCE ON 07 TAX RATE OF EXPORTED GOODS
Issued by:Hanoi Tax Department
Issued date: 20 May 2024
On 20 May 2024, Hanoi Tax Department issued Official Letter No. 29277/TCTHN-TTHT answering some questions about VAT tax rate policy for Vina Ni Co., Ltd. as follows:
According to the provisions of Clause 1, Article 86 of Circular No. 38/2015/TT-BTC regulating customs procedures, when a Company trades goods to foreign organizations and individuals without a representative in Vietnam and is appointed to deliver goods to another enterprise in Vietnam by the foreign entity, it shall be considered a case of domestic exports.
In the case where Ni Vina Co., Ltd. exports goods under the domestic export regime in accordance with the law, meeting the conditions specified in Clause 2 of Article 9 of Circular No. 219/2013/TT-BTC issued on 31 December 2013 by the Ministry of Finance and not falling under the cases specified in Clause 2 of Article 1 of Circular No. 130/2016/TT-BTC issued on 12 August 2016 by the Ministry of Finance, then a VAT rate of 0% shall be applied.
Specific provisions regarding the 0% tax rate and applicable conditions are as follows:
According to the provisions of Article 9 of Circular No. 219/2013/TT-BTC, tax rate of 0% is applied to exported goods and services, including domestic exported goods according to the provisions of law. To enjoy the tax rate of 0%, enterprises must meet the following conditions:
- A sale contract, export processing contract, or export entrustment contract;
- Bank receipts for payment for exported goods and other documents prescribed by law;
- A customs declaration.
Cases not eligible for the 0% tax rate
- Services provided in free trade zones:
+ Leasing of houses, conference rooms, offices, hotels, warehouses;
+ Transportation of workers;
+ Food and beverage services (except the industrial catering services and food and beverage services in free trade zones).
- Services provided in Vietnam for overseas organizations and individuals:
+ Sports competitions, art performances, cultural events, entertainments, conferences, hotels, education, advertisements and tourism;
+ Online payment services;
+ Services in connection with the sale, distribution and consumption of goods in Vietnam.
VIII. OFFICIAL LETTER NO. 2203/TCT-CS DATED MAY 24, 2024, REGARDING VAT 08 TAX POLICIES
Issued by:General Department of Taxation
Issued date: 24 May 2024
On May 24, 2024, the General Department of Taxation issued Official Dispatch No. 2203/TCT-CS guiding VAT policies on VAT rates applicable to wires and cables for electricity transmission under code 27320 as follows:
In Appendix I, the list of goods not eligible for VAT reduction issued with Decree No. 44/2023/ND-CP, with industry codes at level 7 being 2599921, 2599922:
“2599921: Braided wire, ground wire, cable, braided ribbon, hanging wire, and similar items made of uninsulated iron, steel; braided wire, cable, braided rope, and similar items made of uninsulated copper; braided wire, cable, braided rope, and similar items made of uninsulated aluminum; wires and cables for electricity transmission classified under group 27320.
2599922: Barbed wire; including twisted belts or flat single wires with or without barbs, double twisted wires used for iron or steel fences. Wires and cables for electricity transmission classified under group 27320.
” Accordingly, wires and cables for electricity transmission under code 27320 are not eligible for VAT reduction from 10% to 8% during the period from July 1, 2023, to December 31, 2023.
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