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September 2023 News Summary

I. Decree 70/2023/ND-CP amending and suppementing a number of regulations on foreign workers ("employees") working in Vietnam and recruiting and managing Vietnamese workers working for foreign organizations and individuals in Vietnam


Issued by: The Government

Issued date: September 18,2023. Effective date: September 18,2023


On September 18, 2023, the Government issued Decree 70/2023/ND-CP amending Decree 152/2020/ND-CP regulating employees. Accordingly, Decree 70/2023/ND-CP has some changes as follows:

  • Changing the authority responsible for approving the use of foreign labor The official issuing the written approval for the employment of foreign workers: Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs.

  • Changing the reporting deadline for explaining the demand for foreign labor use Time to report explaining the demand for foreign workers: At least befor 15 days from the expected date of employment of the foreign worker.

  • The form and content of the foreign labor recruitment notice

From January 1, 2024, the announcement of recruitment of Vietnamese workers to positions expected to recruit foreign workers must be made on the electronic portal of the Ministry of Labor, Invalids and Social Affairs or on the electronic portal of the Job Service Center established under the decision of the Chairman of the People's Committee of the centrally governed province or city.


The content of the recruitment announcement includes: position and job title, job description, number, qualification requirements, experience, salary, time and location of work.


After failing to recruit Vietnamese workers to positions recruiting foreign workers, employers are responsible for determining the need to employ foreign workers.


II. Decree NO 68/2023/ND-CP amending and supplementing certain provisions of decree NO. 115/2022/ND-CP of December 30, 2022, of the Government on promulgating export tax incentives, special import tax incentives of Vietnam to implement the comprehensive and progressive partnership agreement for trans-pacific partnership 2022-2027


Issued by: The Government

Issued date: September 7, 2023. Effective date: September 7, 2023


Accordingly, the Decree amends and supplements certain provisions of Decree No. 115/2022/ND-CP as follows:


1. Supplement three (03) countries applying preferential export tax incentives, special import tax incentives of Vietnam to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in the 2022-2027 period, specifically:


a) Supplement clause 4a, 4b, and 4c after Clause 4 of Article 4 regarding the tax rates applicable to Malaysia, the Republic of Chile, and Brunei Darussalam for the period 2023-2027 as specified in Appendix I.


b) Supplement point "a" to paragraph 5 of Article 4, including the three (03) countries: Malaysia, the Republic of Chile, and Brunei Darussalam, to the list of countries allowed to import into the territory as stipulated in the CPTPP Agreement.


c) Supplement clauses 6a, 6b, and 6c after paragraph 6 of Article 5 regarding the tax rates applicable to Malaysia, the Republic of Chile, and Brunei Darussalam for the period 2023-2027 as specified in Appendix II.


d) Supplement point "b" to paragraph 7 of Article 5, including the three (03) countries: Malaysia, the Republic of Chile, and Brunei Darussalam, to the list of countries allowed to be imported into Vietnam as stipulated in the CPTPP Agreement.


2. Effective date


a) This decree shall come into effect on September 7, 2023.


b) Regarding customs declarations for goods exported from Vietnam to Malaysia or vice versa, registered from November 29, 2022; goods exported from Vietnam to the Republic of Chile or vice versa, registered from February 21, 2023; goods exported from Vietnam to Brunei Darussalam or vice versa, registered from July 12, 2023; and submitted prior to the effective date of this decree, if they meet all the conditions to enjoy preferential export tax and special import tax as stipulated in Decree No. 115/2022/ND-CP, the customs authorities shall process the excess tax paid in accordance with the tax management regulations.


III. Decision 7823/QD-TLĐ on delaying payment of trade union funds for enterprises with cuts or reduction of orders


Issued by: Vietnam General Confederation of Labor

Issued date: August 31,2023. Effective date: August 31,2023


On August 31, 2023, the General Confederation of Labor issued Decision 7823/QD-TLĐ on postponing trade union funding to December 31, 2023 for enterprises with reduced orders.


Accordingly, the General Confederation of Labor agrees to allow enterprises that have reduced their workforce by 50% or more in terms of employees participating in social insurance compared to January 1, 2023 (including employees who have ceased working, suspend the execution of labor contracts, agreements to unpaid leave) due to business reductions or order reductions to defer the payment of union fees until Dec 31, 2023.


The Executive Committees of the Provincial and Municipal Labor Federations, the Central-level Sectoral Trade Unions and their equivalents, and the Trade Union of the affiliated General Corporation under the General Confederation of Labor shall review, determine, and take responsibility for the decision regarding the deferral of trade union fees for enterprises affected by job cuts or order reductions until December 31, 2023. They shall also report on the implementation of this decision to the General Confederation of Labor (through the Financial Committee) before January 31, 2024.


IV. Decision NO. 1318/QD-BHXH on annoucement of amended and additional administrative procedures under the authority of Vietnam social insurance


Issued by: Vietnam Social Insurance

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


Accordingly, 04 administrative procedures under the jurisdiction of Vietnam Social Security are amended and supplemented, including:

  • Register and adjust compulsory social insurance contributions, health insurance, unemployment insurance, labor accident insurance, and occupational diseases; issue social insurance books and health insurance cards;

  • Register, re-register, and adjust voluntary social insurance contributions; issue social insurance books;

  • Register to pay and issue health insurance cards for people who only participate in health insurance;

  • Reissue, change, and adjust information on social insurance books and health insurance cards. Details of documents that need to be prepared and submitted by employers and employees, and the procedure for receiving and returning results, please find the Appendix attached to this Decision.

V. Official letter 4172/TCT-DNNCN on expediting the processing of personal income tax ("PIT") refund documents


Issued by: General Department of Taxation

Issued date: September 20, 2023


On September 20, 2023, the General Department of Taxation issued Official Letter No 4172/TCT-DNNCN on expediting the processing of personal income tax (PIT) refund documents. Accordingly, the General Department of Taxation guides to determine the place for submitting PIT refund documents as follows:


Regarding the location for submitting PIT finalization documents for individuals who file their personal income tax (PIT) returns directly with tax authorities, as stipulated in point b.2, clause 8, Article 1 of Decree No. 126/2020/ND-CP of the Government dated October 19, 2020, as follows:


In case a resident individual has salaries and wages subject to deduction tax at source from two or more places, they should submit their tax finalization documents as follows:

  • Individuals who have already claimed personal exemption with the paying organization or individuals should submit their tax finalization documents to the tax authority directly managing the organization or individual that pays that income.

In case the individual changes their workplace and the last paying organization or individual has calculated personal exemption, they should submit their tax finalization documents to the tax authority managing the last paying organization or individual.


In case the individual changes their workplace, and the last paying organization or individual did not calculate personal exemption, they should submit their tax finalization documents to the tax authority where they reside.


In case the individual has not claimed personal exemption with any paying organization or individual, they should submit their tax finalization documents to the tax authority where they reside.

  • In case the resident individual does not sign labor contracts, or sign labor contracts under 3 months, or sign service contracts with income subject to a 10% deduction either at one place or multiple places, they should submit their tax finalization documents to the tax authority where they reside.

  • Individual residents who have income from salaries and wages at one place or multiple places during the year, but at the time of finalization are not working with any paying organization or individual, they should submit their tax finalization documents to the tax authority where they reside.

VI. Official letter NO 3511CTBNI-TTHT guidance on tax policies relating value added tax


Guided by: Tax Department of Bac Ninh Province

Issued date: September 16,2023


On August 30, 2023, the Tax Department of Bac Ninh Province received an official letter from Sungwoo Vina Co., Ltd. (referred to as the "Company") requesting guidance on value-added tax (“VAT”) policies when reorganizing (merging) businesses. Regarding this matter, the Tax Department of Bac Ninh Province provides the following opinions:


The Company carries out merger procedures with SMC Vina Co., Ltd. (referred to as "SMC," the merged company), the declaration and processing of un-deducted VAT of SMC as follows:

  • In cases where SMC has been engaged in production and business activities, declared and paid VAT using the deduction method, if the input VAT amount has not been fully deducted upon merging the Company, it is eligible for VAT refund according to the provisions of Point 5, Clause 3, Article 1 of Circular 130/2016/TT-BTC dated August 12, 2016, of the Ministry of Finance.

  • In case SMC does not claim a VAT refund and transfers this tax amount to the merging company for further deduction, the company should declare it in item [39a] - "Deductible VAT received from transfer during the tax period" on the VAT return form 01/GTGT (issued with Circular 80/2021/TT-BTC dated September 29, 2021, of the Ministry of Finance).

VII. Official letter NO. 4980/TCHQ-TXNK regarding on-site import tax refunds


Issued by: General Department of Custom

Issued date: September 26, 2023


Based on the guidance request from Duong Minh International Freight and Transport Company, the General Department of Customs has issued Official Letter No. 4980/TCHQ-TXNK providing instructions on tax refunds for goods imported on the spot. In this regard, the General Department of Customs expresses the following opinions:


1. Regarding tax policies

  • For cases where on-site importers have paid import taxes on goods for production or business purposes, have incorporated imported products into the production of export goods, and have actually exported these products abroad or to non-customs areas, they are eligible for the refund of import taxes paid in accordance with the provisions of Article 36 of Decree No. 134/2016/ND-CP.

  • The criteria for determining goods eligible for tax refunds are as follows:

a) Organizations or individuals engaged in the production of export goods with a production facility located within the territory of Vietnam, who have ownership or usage rights for machinery and equipment at the production facility that are suitable for the imported raw materials, materials, and components used in the production of export goods;


b) The value or quantity of imported raw materials, materials, or components eligible for tax refunds is the actual value or quantity of imported raw materials, materials, or components used in the production of actual exported products;


c) Exported products must undergo customs procedures based on the type of export production.


d) Organizations or individuals directly or indirectly involved in importing goods and exporting products.


2. Regarding the submission of additional customs documentation

  • After the goods have been cleared through customs, the declarant may provide additional information in accordance with the criteria specified in Section 4 of Appendix II to Circular No. 38/2015/TT-BTC as amended and supplemented in Appendix I to Circular No. 39/2018/TT-BTC, except for additional declarations related to export and import licenses, specialized inspections for quality, health, culture, animal quarantine, animal products, plants, and food safety in the following cases:

i) Customs declarants or taxpayers who identify errors in their customs declarations may provide additional customs documentation within a period of 60 days from the date of customs clearance but prior to the customs authorities' decision to conduct post-clearance inspections or audits;


ii) If errors in customs declarations are identified after the 60-day period from the date of customs clearance but before the customs authorities decide to conduct post-clearance inspections or audits, the customs declarants or taxpayers may still provide additional documentation, and they will be processed in accordance with the provisions of the law.


VIII. Official letter NO. 1393/GSQL-GQ1 regarding supplementing and canceling customs declarations


Issued by: General Department of Custom

Issued date: August 31, 2023


On August 31, 2023, the Customs Supervision and Management Department – General Department of Customs responded to the concerns raised by Heineken Vietnam Brewery Limited Liability Company regarding incorrect declarations of product codes and payment methods on the import customs declaration as follows:


In the case where the customs import declaration has been cleared, and the goods have passed through the customs supervision area, if there is an error in the declaration of the type code, it does not fall under the case of canceling the declaration, and the type code criteria cannot be supplemented on the declaration.


In the event that the company identifies an error in the actual payment method compared to the initial declaration on the customs import declaration, the company should follow the procedures for supplementary declaration as stipulated in Article 20 of Circular No. 38/2015/TT-BTC, as amended and supplemented in Section 9 of Article 1 of Circular No. 39/2018/TT-BTC


IX. Official letter NO. 4830/TCHQ-TXNK regarding temporary export and re-import of goods leased by export processing enterprises


Issued by: General Department of Custom

Issued date: September 18, 2023


Regarding the tax policy related to machinery temporarily exported for re-import leased by Export Processing Enterprises (EPEs), the General Department of Customs provides the following opinions in response to the issues raised by Truong Loc Construction and Trade Joint Stock Company:


The buying and selling, exchange of goods between EPEs (in accordance with the provisions of Article 4, Export and Import Tax Law No. 107/2016/QH13) and other areas within the territory of Vietnam, which are not considered non-customs areas, constitute export and import relationships.


In cases where machinery, equipment, or professional tools temporarily exported for re-import by enterprises under lease are not intended for serving construction work conducted by foreign enterprises and are not intended for specific work within a certain period, they are not exempt from taxation. When exported, the enterprises must pay export taxes (if applicable), and when imported, they must pay import taxes as per regulations.


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