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October 2023 News Summary

I. Decision 25/2023/QD-TTg on reduction of land lease fees in 2023


Issued by: Prime Minister

Issued date: October 03,2023. Effective date: November 20,2023


On October 3, 2023, based on current regulations and the proposal of the Minister of Finance, the Prime Minister issued Decision 25/2023/QD-TTg on reducing land lease fees in 2023 as follows:


1. Subjects of application

  • Organizations, units, businesses, households, and individuals that are leasing land directly from the State in the form of annual land lease payments (hereinafter referred to as land lessees).

In cases the land lessees are not eligible for land lease exemption or reduction, the land lease exemption or reduction period expires, and in cases the land lessees are receiving land lease reduction in accordance with the provisions of the land law and other relevant laws are also applicable to this regulation.

  • Competent authority to handle land lease reduction applications; other relevant agencies, organizations and individuals.

2. Land lease fees reduction

  • Reducing 30% in land lease payable in 2023 for subjects applying this regulation; Do not reduce outstanding land lease fees for years before 2023 and late payment interest (if any).

  • The land lease reduction is calculated based on the land lease payable in 2023. In case the land lessees are receiving a land lease reduction according to regulations or/ and deduction of compensation, site clearance according to the provisions of law, the 30% reduction in land lease fees will be calculated on the land lease payable (if any) after being reduced or/and deducted according to the provisions of law (except for the land lease fees reduced according to the Decision No. 01/2023/QD-TTg dated January 31, 2023 of the Prime Minister).

3. Application for land lease fees reduction

  • Land lessee's request for land lease fees reduction in 2023 according to the Form in the Appendix issued with this Decision.

  • Copy of one of the following documents: Land lease decision or Land lease contract or Certificate of land use rights, ownership of houses and other assets attached to land from a competent state agency.

4. Procedures for reducing land lease fees

  • The land lessee submits the application requesting land lease fees reduction (directly/electronically/in postal form) to the tax agency managing land lease collection, the Economic Zone Management Board, and the Management Board of High-tech zones and other agencies according to the provisions of law on tax administration from the effective date of this decision until March 31, 2024. After March 31, 2024, applications submitted will not be eligible for land lease fees reduction.

  • Within 30 days from the date of receiving all documents, the competent authority will determine the amount of land lease fee to be reduced and issue a decision to reduce land lease fees accordingly.

  • In case the land lessee has been approved for land lease fees reduction according to the provisions of this decision but after inspection procedures it is discovered that the land lessee is not eligible for reduction, the land lessee must refund the received reduction fees and late payment interest to the state budget.

  • In case the land lessee has paid land lease fees in 2023 but after that the competent authority determines and decides to reduce the land lease fees, the reduced amount can be deducted from the land lease fees of the next period. In case there is no longer the next period to pay land lease, the excess amount will be offset or refunded.

II. Decision 1560/QD-LĐTBXH annoucing administrative procedured amended and supplemented in Decree 70/2023/ND-CP amended in Decree 152/2020/ND-CP regulationg foreign workers working in Vietnam and recruiting and managing Vietnamese workers working for foreign organization and individuals in Vietnam


Issued by: Ministry of Labor – Invalids and Social Affairs

Issued date: October 17, 2023. Effective date: October 17, 2023


On October 17, 2023, Ministry of Labor – Invalids and Social Affairs issued Decision 1560/QD-LĐTBXH announcing administrative procedures amended and supplemented in Decree 70/2023/ND-CP amending Decree 152/2020/ND-CP regulating foreign workers working in Vietnam and recruiting and managing Vietnamese workers working for organizations, Foreign individuals in Vietnam as follows:


1. Revision of 11 procedures in the field of employment under the management of Ministry of Labor – Invalids and Social Affairs


Accordingly, amend 11 procedures in the field of employment under the management of Ministry of Labor – Invalids and Social Affairs as follows:

  • Central-level administrative procedures:

+ The report explains the needs and changes in the demand for using foreign workers.

+ Issuance of work permits to foreign workers working in Vietnam.

+ Re-issuance of work permits to foreign workers working in Vietnam

+ Work permit extension for foreign workers working in Vietnam.

+ Confirm that the employee is not eligible for a work permit.

  • Provincial administrative procedures:

+ The report explains the needs and changes in the demand for using foreign workers.

+ Offer to recruit Vietnamese workers to the contractor's proposed job positions for foreign workers.

+ Issuance of work permits to foreign workers working in Vietnam.

+ Reissuance of work permits to foreign workers working in Vietnam.

+ Work permit extension for foreign workers working in Vietnam.

+ Confirm that the employee is not eligible for a work permit.


2. Order of issuance of work permits for foreign workers working in Vietnam


In particular, for procedures for issuance of work permits for foreign workers working in Vietnam, the order of implementation is as follows:

  • Step 1: At least 15 days before the date the foreign worker is expected to start working in Vietnam, the person submits an application for a work permit to the Ministry of Labor - Invalids and Social Affairs (Employment Department).

  • Step 2: Within 05 working days after receiving a complete application for a work permit, the Ministry of Labor - Invalids and Social Affairs shall issue a work permit to foreign workers according to Form No. 12/PLI Appendix I issued together with Decree 152/2020/ND-CP. In case of refusal to issue a work permit, a written reply clearly stating the reason shall be given.

The work permit is A4 size (21 cm x 29.7 cm), consisting of 2 pages: page 1 is blue, page 2 has a white background, blue pattern, in the middle is a star.


Work permits are coded as follows: codes of provinces and centrally-run cities and codes of the Ministry of Labor - Invalids and Social Affairs according to Form No. 16/PLI Annex I issued together with Decree 70/2023/ND-CP; last 2 digits of the year of issuance of the license; type of license (new symbol 1; renewal of symbol 2; re-issuance of symbol 3); sequence number (from 000.001).


In case the work permit is electronic, it must comply with relevant laws and meet the contents according to Form No. 12/PLI Annex I promulgated together with Decree 152/2020/ND-CP.


III. Official letter 4626/TCT-CS on Corporate income tax CIT) policy


Issued by: General Department of Taxation. Issued date: October 19, 2023


On October 19, 2023, the General Department of Taxation issued Official Letter No. 4626/TCT-CS on corporate income tax policy. Accordingly, the General Department of Taxation has the following opinion:

  • According to Clause 8, Article 1 of Law No. 32/2013/QH13 of the National Assembly amending and supplementing a number of articles of the Law on Corporate Income Tax;

  • According to Clause 12, Article 1 of Law No. 32/2013/QH13 of the National Assembly;

  • According to Clause 3, Article 16 of Decree No. 218/2013/ND-CP of the Government detailing and guiding the implementation of the Law on Corporate Income Tax (amended and supplemented in Clause 6, Article 1 of Decree No. 91/2014 /ND-CP of the Government);

  • According to Clause 2 and Clause 3, Article 19 of Decree No. 218/2013/ND-CP of the Government;

  • According to Point dd, Clause 2, Article 16 of Decree No. 118/2015/ND-CP of the Government;

  • According to Clause 2, Article 10 of Circular No. 96/2015/TT-BTC of the Ministry of Finance;

  • According to Clause 1 and Clause 3, Article 4, Circular No. 83/2016/TT-BTC of the Ministry of Finance guiding the implementation of investment incentives according to the provisions of the Investment Law and Decree No. 118/2015/ND-CP of The Government details and guides the implementation of a number of articles of the Investment Law;

  • According to point a, clause 1, clause 4, Article 15 of Investment Law No. 61/2020/QH14.

Based on the above regulations, the corporate income tax law does not provide for corporate income tax incentives for investment projects in industrial zones at the rate applicable to areas with difficult socio-economic conditions.


Therefore, the income of businesses from implementing investment projects in Industrial zones and Industrial clusters are not eligible for corporate income tax incentives like difficult socio-economic areas.


For income from deposit interest, loan interest, exchange rate differences not related to production and business activities eligible for tax incentives, CIT incentives do not apply as prescribed in Article 15 and Article 16 Decree 218/2013/ND-CP dated December 26, 2013 of the Government.


For the Company's income from investment projects in the field of commercial business and services arising outside tax incentive areas, this income is not eligible for corporate income tax incentives according to investment incentive areas.


IV. Official letter 4423/LĐTBXH-BHXH on reporting on the implementation of Resolution 125/NQ-CP, Resolution 102/NQ-CP and Resolution 69/NQ-CP


Issued by: Ministry of Labor – Invalids and Social Affairs

Issued date: October 19, 2023. Effective date: October 19, 2023


On October 19, 2023, the Ministry of Labor - Invalids and Social Affairs issued Official Letter 4423/LĐTBXH-BHXH on reporting on the implementation of Resolution 125/NQ-CP, Resolution 102/NQ-CP and Resolution 69/NQ-CP as the followings:


1. Report on the implementation of resolutions on social insurance policy reform by 30/11/2023;


According to the provisions of Resolution 125/NQ-CP dated 08/10/2018 of the Government on the Action Program of the Government to implement Resolution 28-NQ/TW dated 23/5/2018 of the Seventh Conference of the XII Central Committee on reform of social insurance policies, Resolution 102/NQ-CP dated 03/8/2018 and Resolution 69/NQ-CP On May 19, 2022 of the Government on the assignment of targets for development of social insurance participants, annually the People's Committees of provinces and centrally-run cities report on the implementation of the above resolutions to the Ministry of Labor - Invalids and Social Affairs for synthesis, report to the Government and the Prime Minister.


The Ministry of Labor - Invalids and Social Affairs shall elaborate an outline of the report on the implementation of the Resolutions (detailed in the attached annex). Request the People's Committees of provinces and centrally-run cities, based on the tasks assigned in the above resolutions and the attached report outline, to develop a report on implementation results in 2023 (data reported by the end of September 30, 2023 and estimated by the end of December 31, 2023) and the implementation plan for 2024, send to the Ministry of Labor - Invalids and Social Affairs (through the Department of Social Insurance) by 30/11/2023 to summarize and report to the Government and the Prime Minister, and send the electronic version of the report (word or excel file format) to vubhxh@Ministry of Labor – Invalids and Social Affairs.gov.vn email address.


2. Outline of report on implementation results of Resolution 102/NQ-CP and Resolution 69/NQ-CP

  • Formulate indicators for development of participants in social insurance and unemployment insurance.

  • Instruct relevant departments, departments and branches based on principles, targets and plans developed to implement the set targets and implement the solutions in Resolution 102/NQ-CP and Resolution 69/NQ-CP.

  • Results of the implementation of targets for the development of social insurance and unemployment insurance participants in the locality (assessed and compared with the implementation results of 2022).

  • Key tasks and expected implementation plans for Resolution 102/NQ-CP and Resolution 69/NQ-CP of localities in 2024.

  • Problems arising in the process of implementation, recommendations and proposals in the formulation and implementation of targets for development of social insurance and unemployment insurance participants.

V. Official letter 5334/TCHQ-TXNK on payment in tax refund documents


Issued by: General Department of Customs

Issued date: October 16, 2023. Effective date: October 16, 2023


On October 16, 2023, the General Department of Customs issued Official Letter No. 5334/TCHQ-TXNK providing guidance on payment documents for exported and imported goods in tax refund dossiers as follows:


1. About payment method:


- Pursuant to Article 433 of the Civil Code No. 91/2015/QH13 stipulates: Price and payment method are agreed upon by the parties or determined by a third person at the request of the parties. In case the law stipulates that the price and payment method must comply with the regulations of a competent state agency, the agreement between the parties must be in accordance with those regulations.


In case there is no agreement or unclear agreement on price and payment method, the price is determined according to the market price and payment method is determined according to customs at the place and time of entering into the contract.


2. Regarding tax inspection order and procedures:

  • Pursuant to Clause 4, Article 110 of the Law on Tax Administration No. 38/2019/QH14 on tax inspection at the taxpayer's headquarters stipulates:

Compare the declared information with accounting books, accounting records, financial statements, tax risk analysis, information about the document inspection on the tax authority’s premises, the situation within the scope of the tax audit decision…”.

  • Pursuant to Clause 5, Article 36 of Decree 134/2016/ND-CP dated September 1, 2016 of the Government, amended and supplemented at Point d, Clause 20, Article 1 of Decree 18/2021/ND-CP dated March 11, 2021 of the Government stipulates that tax refund dossiers for imported goods for production and business but have already exported the products include 01 photocopy of payment documents for exported or imported goods in cases where payment has been made.

3. Regarding payment documents via banks

  • Pursuant to Point 4.1, Appendix VII on Bank Payment Documents issued together with Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance stipulates:

In case exported goods are paid off against foreign loans, the exporter must meet the following conditions and documentation procedures:


a) Loan contract (for financial loans with a term of less than 1 year); or loan registration confirmation from the State Bank of Vietnam (for loans over one year);

b) Documents of money transfer from foreign parties to Vietnam via banks;


The method of payment for exported goods offset against foreign loan debt must be specified in the export contract.


c) Foreign party's confirmation of loan debt offset:

d) In case there is a difference after deducting the value of exported goods from the foreign loan debt, the difference must be paid via bank. Payment documents via banks must comply with the instructions in this Appendix.


VI. Official dispatch No.2807/HQTPHCM-GSQL on declairing raw materials type code and product code according to export production type


Issued by: Ho Chi Minh City Customs Department

Issued date: September 29, 2023. Effective date: September 29, 2023


Responding to official letter No. 2207-12/CV dated September 20, 2023 of Sakura Technical Plastics Co., Ltd., Ho Chi Minh City Customs Department has the following opinion:

  • According to the provisions of Point a, Clause 1, Article 18 of Circular No. 38/2015/TT-BTC dated March 25, 2015, amended and supplemented in Circular No. 39/2018/TT-BTC

  • According to the provisions of Point a, Clause 1, Article 18 of Circular No. 38/2015/TT-BTC dated March 25, 2015, amended and supplemented in Circular No. 39/2018/TT-BTC dated April 20, 2018 of the Ministry of Finance:

If raw materials or supplies are imported for processing of exports or manufacture of domestic exports, the declarant shall declare the codes of the products, materials or supplies in the description section of Appendix II hereof.

  • According to the provisions of Point a, Clause 2, Article 60 of Circular No. 38/2015/TT-BTC dated March 25, 2015, amended and supplemented in Circular No. 39/2018/TT-BTC dated April 20, 2018 of the Ministry of Finance:

If the trader uses codes other than those specified in the customs declaration, there must be a conversion table, which will be presented to the customs upon inspection or request.


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