1. Decree No. 91/2022/ND-CP amending and supplementing some articles of the government’s decree no. 126/2020/ND-CP dated october 19, 2020 details some articles of the law on tax administration
Issued by: The Government , effective date: 30 October, 2022
On October 30, 2022, the Government of Vietnam promulgated Decree No. 91/2022/NĐ-CP, which amends and supplements Decree No. 126/2020/NĐ-CP elaborating the Law on Tax Administration. In which, there are some points to pay attention as follows:
1. Addition of Decree 126/2020/ND-CP:
· Regulations on expiration of the time limit for submission of tax declaration dossiers and payment of tax: In case the expiration date of the deadline of submission tax declaration dossiers, deadline of tax payment, deadline for tax authorities to process applications, effective periods of decisions on enforcing the implementation of tax decisions is a statutory day off, the expiration date will be the working day succeeding the day off.
· The case in which a taxpayer is not required to declare tax: The declarant of personal income tax who is the income payer, declares personal income tax monthly or quarterly, and does not deduct personal income tax in the same month or quarter do not have to submit tax returns.
· The owner of e-commerce platforms must provide tax authorities information about the sellers: Organizations that are established and operating under Vietnam's law and own e-commerce platforms shall provide tax authorities with full, accurate and timely information about traders, organizations and individuals whose goods or services are entirely or partially traded on their e-commerce platforms. Information shall be provided electronically every quarter by the last day of the first month of the succeeding quarter.
· In case of individuals receiving dividends in securities: Individuals who receive dividends in the form of securities, individuals who are existing shareholders receiving bonuses in the form of securities that are recorded in securities accounts of investors up until December 31, 2022 and have not had their tax declared and paid on their behalf by the related organizations shall declare and pay personal income tax themselves in accordance with personal income tax laws, be exempted from incur administrative penalties for late submission of tax declaration dossiers and imposition of late payment interest (if any) from December 05, 2020 to the end of December 31, 2022.
2. Amendments to Decree 126/2020/ND-CP:
· Provisional corporate income tax of 04 quarters to be at least 80% of annual tax: Total provisional corporate income tax of 04 quarters must be at least 80% of corporate income tax payable under the annual tax finalization dossier. If the provisional corporate income tax of 04 quarters is underpaid, late payment interest shall be charged on the tax arrears over the period from the date succeeding the deadline for paying provisional corporate income tax of the fourth quarter to the date preceding the day on which tax arrears are paid to state budget.
Note: Provisional corporate income tax of tax period 2021 will be paid as follows:
- By October 30, 2022, if the provisional tax paid by the taxpayer in the first 03 quarters of 2021 is not smaller than 75% of the annually finalized tax, regulations of Clauses 3, 4, 5 Article 1 of Decree No. 91/2022/NĐ-CP on the minimum ratio of provisional corporate income tax of 04 quarters (at least 80% of annually finalized tax) shall not apply.
- By 30/10/2022, if the provisional tax paid by the taxpayer in the first 03 quarters of 2021 is smaller than 75% of the annually finalized tax, the regulations that provisional corporate income tax of 04 quarters must be at least 80% of annually finalized tax may be applied if it does not lead to an increase in late payment interest.
Regulations on post-tax profit that remains after making contributions to funds of wholly state-owned enterprises: For wholly state-owned enterprises, the total post-tax profit that remains after making fund contributions of 04 quarters must be at least 80% of that under the annual tax finalization dossier. In case of underpayment, late payment interest shall be charged on the arrears over the period from the date succeeding the deadline for paying the remaining post-tax profit of the fourth quarter to the date preceding the day on which the arrears are paid to state budget.
2. Circular no.67/2022/TT-BTC dated november 7, 2022 guiding tax responsibilities when enterprises contribute and use science and technology development fund
Issued by: The Ministry of Finance Effective date: December 23, 2022
Accordingly, the proportion for the enterprise's science and technology development fund is prescribed as follows:
• Annually, enterprises are entitled to proportionate a percentage (%) of their taxable income to create a fund according to regulations, specifically:
(1) For state-owned enterprises: Proportionate from 3% to 10% of the assessable income of corporate income tax in the tax period. The specific proportion is based on the enterprise's ability and needs to spend on scientific and technological activities;
(2) For enterprises other than those mentioned in (1): The enterprises decide the specific proportion, but the maximum limit is not more than 10% of the assessable income of corporate income tax in the tax period.
• The fund proportion is determined for each corporate income tax period and deducted from the taxed income when determining the payable corporate income tax in the tax period.
In addition, within 5 years, from the proportion to the fund, if enterprises do not use or use less than 70% of the annual fund, the enterprises shall transfer corporate income tax calculated on the proportionated revenue that is unused or used less than 70% of the yearly fund to the State Budget while transferring the interest generated from such corporate income tax.
In the case of transferring fund, the 05 years for the transferring fund is determined from the corporate income tax period when receiving the transferring fund.
In addition, the interest rate for calculating the interest arising on the recovered corporate income tax amount calculated on the unused up fund is the one-year term interest rate of treasury bond applied at the time of withdrawal, and the calculated interest period is 02 years as prescribed in Clause 2, Article 17 of the Law on Corporate Income Tax 2008.
3. Circular no.12/2022/TT-NHNN dated september 30, 2022 providing instructions on foreign exchange administration in respect of foreign borrowing and foreign debt repayment of enterprises
Issued by: State Bank of Vietnam , effective date: November 15, 2022
Circular no.12/2022/TT-NHNN dated september 30, 2022 providing instructions on foreign exchange administration in respect of foreign borrowing and foreign debt repayment of enterprises
Accordingly, Circular 12/2022/TT-NHNN amends and supplements to meet the practical needs of enterprises' foreign debt repayment and borrowing activities as well as the management objectives of the State Bank (“SBV”)). As follows:
1. Reporting regulations applied to the borrower
On the monthly basis, no later than the 5th day of the month immediately after the reporting period, the borrower must prepare an online review report on short-term, mid-term and long-term loans on websites. Where any technical failure in websites arises that makes the reporting unfeasible, the borrower shall send a written report in accordance with regulations.
Circular 12/2022/TT-NHNN takes effect from November 15, 2022. Therefore, the first reporting period to comply with Circular 12 is the November 2022 report (the deadline for submitting the report is December 5, 2022, the data reported in November 2022 is the data arising in October 2022 and November 2022, the opening balance of the reporting period in November 2022 is equal to the ending balance of the reporting period in the third quarter of 2022).
Where there is any breach of regulations on foreign loans and repayment and reporting regimes, the enterprise shall be subject to penalties in accordance with applicable regulations on the imposition of penalties for administrative violations in monetary operations and banking activities.
2. Loans subject to registration with the State Bank include:
Mid-term and long-term foreign loans.
Short-term loans whose principal repayment period is renewed which have more than 01 (one) year of maturity term.
Short-term loans without an extension agreement but with outstanding principal balance (including outstanding interest included in principal) at the full date of 1 year from the date of first capital withdrawal, unless the borrower completes the payment of the above principal balance within 30 days from the date of full 1 year from the date of the first capital withdrawal.
(Current Circular 03/2016/TT-NHNN stipulates: unless the borrower completes the loan repayment within 10 (ten) days from the date of full 01 (one) year from the date of the first capital withdrawal)
3. Cases that must be registered changes of foreign loans:
According to the Circular, a borrower must register changes of foreign loans with the State Bank of Vietnam if it makes any changes related to the loans mentioned in the written confirmation of the registration or the written confirmation of registration for changes of foreign loans of the State Bank of Vietnam, except for:
Change of time for withdrawal of loan proceeds, repayment of principal within 10 working days as against the once previously approved by the State Bank;
Change of the borrower's address without change of the city or province where the borrower’s head office is located;
Change of the creditor, related information about creditors in respect of a syndicated loan that designate the representative for creditors, except when a creditor is also the representative for creditors in respect of a syndicated loan, and any change of creditors that may entail changes to the roles of the representative for creditors;
Change of the commercial transaction name of the account service provider, the bank providing secured transactions;
Change the plan for payment of interests and fees on the foreign loan as against the one previously confirmed by the State Bank, but do not change the method to calculate the interests and fees specified in the loan agreement;
Change the amount of loan proceeds to be withdrawn, repayment of principal, interests, and fees within 100 currency units of the foreign loan currency compared to the registered amount;
Change of the actual amount of loan proceeds to be withdrawn or principal repayment of a specific period less than the amount stated in the loan proceed withdrawal or debt repayment plan.
4. Circular no.32/2022/TT-BCT about rules of origin under the regional comprehensive economic partnership (RCEP) agreement
Issued by: The Ministry of Industry and Trade , effective date: 01 January, 2023
On November 18 2022, the Ministry of Industry and Trade of Vietnam promulgated Circular No. 32/2022/TT-BCT, which amends Circular No. 05/2022/TT-BCT prescribing Rules of Origin under the Regional Comprehensive Economic Partnership (RCEP) Agreement.
According to the Circular, certain appendices related to certificate and inspection of origins mentioned in Circular No. 05/2022/TT-BCT are replaced. To be specific:
Appendix I on Product-Specific Rules mentioned in Point a Clause 1 Article 4 of Circular No. 05/2022/TT-BCT is replaced by Appendix I of Circular No. 32/2022/TT-BCT;
Appendix III that contains C/O form RCEP for exports and C/O Continuation Sheet in Point c Clause 1 Article 4 of Circular No. 005/2022/TT-BCT is replaced with Appendix II of Circular No. 32/2022/TT-BCT.
List of agencies and organizations granting C/O Form RCEP in Vietnam is updated on the Online Certificate of Origin Issuance and Administration System of the Ministry of Industry and Trade at https://ecosys.gov.vn
5. Decree 3503/QD-BHXH dated november 18, 2022 amending and supplementing several articles regarding processing procedures of social insurance benefits, and payment of social insurance and unemployment insurance benefits promulgated with decree NO. 166/QD-BHXH dated january 31, 2019 of the general director of vietnam social insurance
Issued by: Vietnam Social Insurance , effective date: November 18, 2022
Accordingly, amending regulations on decentralization of settlement and payment of one-time social insurance as follows:
• The provincial social insurance agency makes a list of one-time payments of social insurance benefits paid by the provincial social insurance agency; the list of one-time payments of social insurance benefits in cash-settled by the provincial social insurance agency and transferred to the postal authorities (for the case that the beneficiary registers to receive cash at the postal authorities).
(Previously, according to Decision 166/QD-BHXH: Make a list of one-time payments of social insurance benefits paid by the provincial social insurance agency; the list of one-time payments of social insurance benefits settled by the provincial social insurance agency and transferred to the postal authorities).
• The district social insurance agency makes a list of one-time payments of social insurance benefits paid by the district social insurance agency; the list of one-time payments of social insurance benefits in cash-settled by the district social insurance agency and transferred to the postal authorities (for the case that the beneficiary registers to receive cash at the postal authorities); list of support for vocational skills training according to revenue decentralization.
(Previously: Making a list of one-time payments of social insurance benefits paid by the district social insurance agency; the list of one-time payments of social insurance benefits settled by the district social insurance agency and transferred to the postal authorities; list of support for vocational skills training according to collected decentralization).
In addition, the Department of Social Insurance Benefits is responsible for settling the one-time social insurance benefits and benefits based on the data (including one-time allowances attached to the monthly social insurance benefits that beneficiaries register to receive via personal accounts); notice of transfer of enjoying the labor accident regime, occupational disease, one-time survivorship benefits and monthly pension and social insurance allowance to which the beneficiary has one-time allowance from another district/province.
6. Decision 3504/QD-BHXH 2022 on pilot process for benefits and payment of funeral allowances according to procedures on national public service portal
Issued by: Vietnam Social Insurance , effective date: November 21, 2022
On November 21, 2022, the Vietnam Social Insurance issued Decision 3504/QD-BHXH 2022 on the pilot process for benefits and payment of funeral allowances according to the inter-related administrative procedures "Registration of death - Deregistration of permanent residence - Payment of funeral allowances"… as follows:
· Subjects of application:
- The person who is reserving the period of contribution of social insurance premium dies but has contributed compulsory social insurance for full 12 months or more or has a total period of contribution of compulsory and voluntary social insurance of full 60 months or more;
- A participant in voluntary social insurance who dies and has paid compulsory social insurance for full 12 months or more;
- The person who is waiting to meet the age requirements to enjoy the monthly pension or commune cadre's monthly funeral allowance;
- The person who is enjoying the monthly funeral allowance of social insurance.
Note: Individuals applying for death registration must have an account issued by the National Public Service Portal
· The process of settling and paying funeral allowances:
- Receiving documents;
- Settlement of entitlements and making payment lists;
Return settlement results.
7. Official Letter No 9793/TXNK-TGHQ dated november 14 2022 on declaration of delivery conditions
Issued by: Import and Export Duty Department, effective date: November 14, 2022
Answering questions from the Ho Chi Minh City Customs Department about delivery conditions, the Import and Export Duty Department has the following comments:
• Delivery conditions:
- According to Incoterm 2020, the DPU term replaces the DAT term in Incoterm 2010;
- Pursuant to the guidance in indicator 1.44, box 2, clause 2, Appendix II issued with Circular No. 38/2015/TT-BTC dated March 25, 2015 is replaced in Appendix I issued with Circular No. 39/ 2018/TT-BTC dated April 20, 2018, export duty, import duty and tax administration for exported and imported goods, listing delivery conditions, in which there is DAT delivery condition but no DPU condition.
• Value declaration details:
- Pursuant to the indicator No. 1.50 "value declaration details" Clause 2, Appendix II issued with Circular No. 38/2015/TT-BTC dated March 25, 2015 is replaced in Appendix I issued with Circular No. 39/2018/TT-BTC dated April 20, 2018 instructing customs declarants to update notes on value declaration.
According to the above regulations, enterprises need to declare in the following direction: Enter delivery conditions according to DAT terms, and at the same time in the box "value declaration details" enter the note: "DPU delivery conditions according to Incoterm 2020"