1. Decree 34/2022/ND-CP expending the deadline for value added tax, corporate income tax, personal income tax and land rental payment in 2022
Issued by: The Government
Effective date: May 28, 2022
Aiming to support businesses recover production and business, on May 28, 2022, the Government issued Decree 34/2022/ND-CP extending the deadline for value added tax (“VAT”), corporate income tax (“CIT”), personal income tax (“PIT”) and land rent payment for the year 2022.
Accordingly, the tax payment expending the deadline for 2022 is specified as follows:
Extend from 3 to 6 months for the deadline of value-added tax (“VAT”) (except for VAT at the import stage) for organizations and businesses, until December 30, 2022 for business households, personal business;
Extend 03 months for the tax amount temporarily paid in Quarter 1, Quarter 2 of the corporate income tax period
Extend of the deadline for paying personal income tax (“PIT”) to December 30, 2022;
Extend 06 months from May 31, 2022 (for 50% of land rent arising in 2022)
2. Decree 41/2022/ND-CP issued on june 20, 2022 amending decree 123/2020/nd-cp on invoices, receipts and decree 15/2022/nd-cp on vat reduction policy.
Issued by: TheGovernment
Effective date: June 20, 2022
Besides the announcement of new forms to be applied by the Tax Authorities, Decree 41/2022/ND-CP has also amended and supplemented regulations on invoicing for goods and services that are reduced VAT. Specifically:
Form No. 01/TB-SSĐT Appendix IB issued together with Decree No. 123/2020/ND-CP notifying the receipt and processing results of e-invoices made with errors will be replaced by Form No. 01/TB-HDSS (issued together with this Decree);
In case business entities calculate VAT by the credit method, when selling goods or providing services with different tax rates, the VAT invoice must clearly state the tax rate of each good or service;
In case a business entity calculates VAT according to the percentage method on revenue, when selling goods or providing services, the sales invoice must clearly state the reduced amount as prescribed;
In addition, in the case of a business establishment that has issued a VAT invoice according to the above provisions in the period from February 1, 2022 to June 20, 2022, they are still entitled to VAT reduction and do not have to adjust the invoice as well as no penalties regarding tax and invoice.
3. Decree 38/2022/ND-CP on statutory minimum wages paid to employees working under employment contracts
Issued by: TheGovernment
Effective date: July 1, 2022
On June 12, 2022, the Government issued Decree 38/2022/ND-CP stipulating the minimum wage for employees working under labor contracts which takes effect from July 1, 2022.
The monthly minimum wage in each region increased by 6% on average (corresponding to an increase of VND 180,000 - VND 260,000) compared to the current minimum wage, specifically as follows:
Region I increased by 260,000 VND, from 4,420,000 VND/month to 4,680,000 VND/month
Region II increased by 240,000 VND, from 3,920,000 VND/month to 4,160,000 VND/month
Region III increased by 210,000 VND from 3,430,000 VND/month to 3,640,000 VND/month
Region IV increased by 180,000 VND from 3,070,000 VND/month to 3,250,000 VND/month
In addition, Decree 38/2022/ND-CP adds regulations on minimum hourly wages in each region. The statutory minimum wage per hour is the minimum wage used as the basis for any agreement between employers and employees on hourly salary and payment thereof. The job- or position-based salary paid for every working hour to an employee who has fulfilled his/her labor productivity norms or tasks as agreed shall not be lower than the statutory minimum wages per hour, specifically:
Region I: 22,500 VND per hour
Region II: 20,000 VND per hour
Region III: 17,500 VND per hour
Region IV: 15,600 VND per hour
4. Decision No.08/2022/QD-TTG implementing rent support policies for employees
Issued by: TheGeneral Department of Taxation
Effective date: March 28, 2022
In order to support workers after the Covid-19 pandemic, on March 28, 2022, the Prime Minister issued Decision 08/2022/QD-TTg stipulating the implementation of the rent support policy for employees.
Accordingly, two subjects are supported with house tax, including employees working in enterprises and employees returning to the labor market. Specifically, these two subjects need to meet the following conditions to enjoy the rental allowances:
For employees working in enterprises:
The term of rental and accommodation is from February 1, 2022 to June 30, 2022
Having an indefinite-term employment contract or a fixed-term employment contract with a duration of at least 1 month which was signed and executed before April 01, 2022.
Participating in the compulsory social insurance or be included in the enterprise's payroll of the month preceding the month in which the enterprise makes the list of employees applying for rent support;
Support level: 500,000 VND/month (maximum 3 months)
For employees returning to the labor market:
The term of rental and accommodation is from April 1, 2022 to June 30, 2022
Having an indefinite-term employment contract or a fixed-term employment contract with a duration of at least 1 month which was concluded and executed from April 1, 2022 to June 30, 2022, except renewed employment contracts.
Participating in the compulsory social insurance or be included in the enterprise's payroll of the month preceding the month in which the enterprise makes the list of employees applying for rent support;
Support level: 1,000,000 VND/month (maximum 3 months
5. Official Letter No. 1873/TCT-TTKT on enforcement of verification and against fraudulence in value-added tax (“VAT”) refund
Issued by: TheGeneral Department of Taxation
Effective date: June 1, 2022
In order to promptly detect, prevent and strictly treat cases of trading in invoices to gain illicit profits, on June 1, 2022, the General Department of Taxation issued the official letter No.1873/TCT-TTKT to enforce verification and inspection to detect taxpayers with signal of risk on invoices, tax refund fraud. Accordingly, some typical indicators and violation of invoice management are stipulated in the attached appendices as follows:
Enterprises change their legal representative twice or more within 12 months, or change their legal representative and business location at the same time;
Enterprises use a large number of invoices (from 500 to 2000 invoices). The number of deleted invoices is large and accounts for about 20% of used invoices;
Enterprises using e-invoices according to the Decree No. 123/2020/ND-CP, Circular No. 78/2021/TT-BTC have abnormally reduced a number of electronic invoices compared to the used invoices according to Decree No. 51/2010/ND-CP;
Enterprises have a large revenue and output, input VAT but do not incur VAT payables and have a negative VAT for many periods;
Enterprises have no fixed assets or the value of fixed assets is very low;
Enterprises have suspicious transactions via banks (deposits and withdrawal within the same day);
Enterprises employ workers that are not commensurate with their size and industry;
In addition, this official letter also clearly stipulates the time to return the result of invoice verification. Specifically, the tax authorities at all levels shall return verification results within 10 working days from the date of receipt of the verification request form, and within 30 working days for complicated cases.
6. Official Letter No. 2054/TCHQ-GSQL about using e-invoices for exporting goods
Issued by: TheGeneral Department of Taxation
Effective date: June 3, 2022
In order to promptly support businesses exporting goods about electronic invoices in the customs dossier or the time of issuing electronic invoices for exported goods, the General Department of Customs issued Official Letter No. 2054/TCHQ-GSQL on the use of electronic invoices for exported goods with the following instructions:
Invoices in export customs dossiers:
- The customs dossier of exports shall include commercial invoices or equivalent documents value in case the buyer has to pay the seller.
- There is no requirement to issue additional VAT electronic invoices in export procedures.
Time to issue e-invoices for exported goods:
- The VAT invoices for exports shall be issued after completing export customs procedures by exporters. Therefore, at the time of customs clearance for exported goods, the customs declarant is unable to issue a VAT invoice for submitting with the customs dossier.
Other notes:
- The issuance of an e-invoice complies with Vietnamese law, the time to issue this invoice is after the customs clearance.
- Commercial invoices in international trade comply with the international practices, the time to issue such invoice is prior to the customs clearance
7. Official Letter No. 2086/BLDTBXH-TLDLDVN dated june 17, 2022 implementing decree no. 38/2022/nd-cp on minimum wages.
Issued by: Ministry of Labor, War Invalids and Social Affairs of Vietnam
Effective date:June 17, 2022
Decree 38/2022/ND-CP on statutory minimum wages paid to employees working under employment contracts takes effect from July 1, 2022. To promptly implement the regulation across the country, the Ministry of Labor, War Invalids and Social Affairs, the General Confederation of Labor has issued Official letter 2086/BLDTBXH-TLDLDVN directing local authorities to guide employees and employees on implementation of minimum wages, in which paying attention to the following key points:
Minimum monthly wage and minimum hourly wage are the base upon which employees, trade unions, and employers agree as salary and pay for employees, in which.
Minimum monthly wage applies to employees who are receiving monthly wage. Minimum hourly wage applies to employees who are receiving hourly wage.
For employees who are receiving wage under other forms of wage payment (weekly, daily, product-based, package wage), the wage currently paid under these payment methods shall be converted to monthly or hourly (according to Points a and b, Clause 3, Article 4 of Decree No. 38/2022/ND-CP) must not be lower than the monthly minimum wage or the minimum hourly wage prescribed by the Government. The Decree does not require a change in the form of wage payment agreed upon by the employer and the employee.
Official letter 2086 also highlights the responsibilities of employers:
Review agreements specified in employment contracts, collective agreements and regulations and rules of employers to revise accordingly;
Do not cut overtime pay, night work pay, allowances in kind and other benefits as prescribed.
Continue to implement terms in employment contracts, collective agreements or other legal agreements that are more beneficial to employees compared to regulations in Decree No. 38/2022/ND-CP (in which wages paid for trained employees are at least 7% higher than minimum wages), unless otherwise agreed by both parties.
8. Official letter 410/CVL-TTLLD implement the policy of supporting rent for employees according to decision no. 08/2022/QD-TTG
Issued by: TheGeneral Department of Taxation
Effective date: June 8, 2022
Answering a number of problems related to Decision 08/2022/QD-TTg, on June 8, 2022, the Hanoi Department of Labor, War Invalids and Social Affairs issued Official Letter 410/CVL-TTLD to provide guidance on the implementation of policies on rent support for employees according to Decision No. 08/2022/QD-TTg of the Prime Minister of Vietnam.
Accordingly, employees on maternity leave and sick leave are still supported with rent. Specifically, employees who take leave to enjoy maternity benefits and sickness benefits are prescribed as follows:
According to point a clause 3 Article 8 of Decree No. 145/2020/ND-CP, total actual duration that employees work for employers also includes paid maternity leave and sick leave according to regulations of laws on social insurance.
If duration of paid maternity leave and sick leave is at least 14 working days in a month, employees are not required to pay social insurance but they still have to participate in compulsory social insurance of the social insurance agency.
Should you have any concerns during the process of implementing the regulations, please contact RSM Vietnam.