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Tax news - December, 2021

1. CIRCULAR 80/2021/TT-BTC PROVIDING GUIDANCE ON LAW ON TAX ADMINISTRATION AND DECREE 126/ND-CP


Issued by: The Ministry of Finance

Applicable subjects: Taxpayers, tax agencies and related individuals and organizations

Effective from: January 01, 2022


To support businesses in implementation, on September 29, 2021, The Ministry of Finance issued Circular 80/2021/TT-BTC (“Circular 80”) providing guidance on Law on Tax Administration 2019 and Decree 126/2020/ND-CP (“Decree 126”). The Circular has issued guidelines for state budget revenues managed by tax authorities, including notable points about tax payment, specifically:


About Handling of late tax payment

  • In case the taxpayers submit tax dossier supplementation which reduces their tax obligations, taxpayers shall determine the reduced amount of late payment interest on the supplementary tax return. Taxpayers are notified by the tax authority of the reduced amount of late payment based on information on management of taxpayers' obligations.

  • If the tax authority or competent state agency through tax inspection detects a decrease in the tax payable amount, or the tax authority or competent state agency issues a decision or notice on the reduction of the tax payable, the taxpayers are notified the reduction the calculated late payment amount corresponding to the reduced tax difference by the tax authority.

About handling of overpaid tax, late payment interest and fines

Taxpayers who have overpaid tax, overpaid late money, and overpaid fines as prescribed in the Law on Tax Administration 2019 are allowed to offset the overpaid amount with the outstanding tax, late payment interest, outstanding fine, or deducted from the next tax, late payment interest, and fine arising in some cases, or refund, refund cum clearing budget revenue. In which, Circular 80 specifies the authority and procedures for handling this overpayment.


Besides, Circular 80 also abrogates several regulations such as: Circular 156/2013/TT-BTC guiding the Law on Tax Administration, the Law amending the Law on Tax Administration and Decree 83/2013/ND-CP, Circular 99/2016/TT-BTC guiding the management of Value added tax refund; …


2. CIRCULAR NO. 19/2021/TT-BCT DATED NOVEMBER 23, 2021 ABOUT AMENDMENTS THE LIST OF PRIORITIZED SUPPORTING PRODUCTS


Issued by: Ministry of Industry and Trade

Effective from: January 12, 2022


On November 23, 2021, Ministry of Industry and Trade issued Circular No. 19/2021/TT-BCT amending and supplementing Circular No. 55/2015/TT-BCT dated December 30, 2015 stipulating the procedures for confirmation of incentives and post-inspection incentives for projects producing supporting industry products on the list of prioritized supporting products.


Circular promulgates a new list of supporting industry products prioritized for development (substitute of Appendix 1 of Circular 55/2015/TT-BCT) including products of the following industries:

  • Textile

  • Leather - shoes

  • Electronic

  • Manufacturing and assembling cars

  • Mechanical engineering

This list is the basis for assessing tax incentives possibility for investment projects producing supporting industry products according to Tax Law No. 71/2014/QH13 and Decree 111/2015/ND-CP.


3. DECREE 101/2021/ND-CP ABOUT AMENDMENTS OF DECREE 57/2020/ND-CP ON PREFERENTIAL EXPORT AND IMPORT TARIFF SCHEDULES


Issued by: The Government

Effective from: December 30, 2021


To control inflation and support businesses under the impact of the Covid-19 pandemic, the Government issued Decree 101/2021/ND-CP dated November 15, 2021 setting out changes in import and export tax including:

i. Reducing export tax rates of some products including sand; jewelry; industrial goods; metal products, precious stones;…;

ii. Adding Oil seeds and oleaginous fruits suitable for planting; Engine ECU into the group of goods with preferential import tax rate of 0%;


Allowing enterprises manufacturing and assembling cars using gasoline and diesel fuel to choose a 6-month or 12-month of tax incentive period.


4. DECREE 102/2021/ND-CP DATED NOVEMBER 16, 2021 ON PENALTIES FOR ADMINISTRATIVE VIOLATIONS AGAINST REGULATIONS ON TAX AND INVOICING; CUSTOMS


Issued by: The Government

Effective from: January 01, 2022


On November 16, 2021, the Government issued Decree 102/2021/ND-CP amending some articles of decrees on penalties for administrative violations against regulations on tax and invoicing; customs; insurance business and lottery business.


Accordingly, it is stated that the prescriptive time limit for imposition of an invoice-related administrative penalty shall be 02 years (instead of 01 year as currently stated in Decree 125/2020/ND-CP of the Government).


In addition, adding the regulations on administrative sanctions for the act of making invoices that do not fully write the required contents on invoices as prescribed (from VND 4 million to VND 8 million).


The above fines range also applies to the following acts:

  • Causing the loss, burning or damage of invoices already released or purchased from tax authorities even though they have not been issued yet.

  • Causing the loss, burning or damage of issued invoices (the replicas intended for clients) during use although sellers have already declared or paid taxes, or have had documents or records evidencing the sale of goods or the provision of services.

  • If such loss, burning or damage takes place through the buyer's fault, both the seller and the buyer must keep a record of such incident.

  • Causing the loss, burning or damage of invoices issued but not yet submitted for completion of tax declaration.

Relevant parties must make a record of the loss, burning or damage. (New terms compared with current regulations ).


5. DECREE 104/2021/ND-CP DATED DECEMBER 04, 2021 ON EXTENDING THE DEADLINE FOR PAYING EXCISE TAX FOR DOMESTIC AUTOMOBILE MANUFACTURING AND ASSEMBLING ENTERPRISES


Issued by: Government

Subjects of application: domestic automobile manufacturing and assembling enterprises; tax authorities; other relevant organizations and individuals

Effective from: December 04, 2021


Accordingly, the Government allows to extend the deadline for paying excise duties arising in the tax period of October and November 2021 for domestic automobile manufacturing and assembling enterprises.


The extension time is from the end of the time limit for paying excise duties in accordance with the law on tax administration as follows:

  • The deadline for excise duties payment incurred in the tax period of October 2021 is no later than December 20, 2021.

  • The deadline for excise tax payment incurred in the tax period of November 2021 is no later than December 30, 2021.

After the extension period under Decree 104/2021, the excise duties payment for domestic automobile manufacturing and assembling enterprises shall comply with current regulations.


About regulations for some cases are as follows:

  • In case the taxpayer makes additional declarations to the tax declaration dossier in the extended tax period, leading to an increase in the excise duties payables and sending it to the tax authority before expiration of the extended tax payment time limit, the tax amount will be increased, the extended amount includes the additional tax payables due to the additional declaration.

  • Taxpayers who are eligible for an extension to declare and submit excise duties declarations in accordance with current laws, have not had to pay the excise duties arising on the excise tax declarations.

In case enterprises has branches and affiliated units, which separately declares excise tax with the direct management tax authority of the branch or affiliated unit, the branches and affiliated units are also eligible for the extension to excise duties payment. In case branches or affiliated units of an enterprise is not engaged in manufacturing or assembling automobiles, the branch or affiliated unit is not eligible for the extension to excise duties payment.


6. DECREE 108/2021/ND-CP DATED DECEMBER 7, 2021 ABOUT ADJUSTMENTS TO RETIREMENT PENSIONS, SOCIAL INSURANCE ALLOWANCES AND MONTHLY BENEFITS


Issued by: The Government

Effective from: January 20, 2022


Accordingly, as of January 01, 2022, the amount of retirement pensions to the persons prescribed in Clause 1 Article 1 of this Decree increases by 7.4% compared to the amount of December 2021, for example as follows:

  • Cadres, officials, public employees and workers; military personnel, police officers and cipher officers who are receiving monthly retirement pensions.

  • Cadres of communes, wards and commune-level towns prescribed in Decree No. 92/2009/ND-CP dated October 22, 2009, Decree 34/2019/ND-CP dated April 24, 2019,…

  • Those who are receiving monthly work-capacity loss allowance; those who are on monthly benefits as prescribed in Decision No. 91/2000/QD-TTg dated August 4, 2000 and Decision No. 613/QD-TTg dated May 6, 2010,...


For the persons specified in this Decree, the specific adjustment is as follows:

  • Those whose retirement pension, social insurance allowance or monthly allowance is VND 2,300,000/person/month or below will receive an additional VND 200,000 each per month.

  • Those whose retirement pension, social insurance allowance or monthly allowance is from VND 2,300,000 to less than VND 2,500,000 will receive a retirement pension, social insurance allowance or monthly allowance of VND 2,500,000 each per month.

The amount of retirement pensions, social insurance allowances and monthly benefits adjusted as prescribed in this Article shall serve as the basis for the next adjustments to the retirement pensions, social insurance allowances and monthly benefits.


7. DECISION NO. 3749/QD-TLD DATE 15/12/2021 – SUPPORT FOR UNION MEMBERS AND EMPLOYEES AFFECTED BY COVID-19


Issued by: Vietnam General Confederation of Labor

Effective from: December 15, 2021


The decision clearly states that F0 union members and employees who do not violate the provisions of the law on Covid-19 prevention are supported as follows:

  • A maximum of 3,000,000 VND/person if there are severe symptoms of illness, must be treated for 21 days or more at a hospital, medical facility that is entitled to receive treatment for Covid-19 according to the documents certified by the Competent Health Authority.

  • A maximum of 1,500,000 VND/person if they have to undergo outpatient treatment for 21 days or more or inpatient treatment for less than 21 days at a hospital or medical facility that is entitled to receive treatment for Covid-19 according to the documents certified by the Competent Health Authority.

Previously, the regulation that union members and employees who were F0 were supported at the rate of 3,000,000 VND/person.


8. OFFICIAL LETTER NO. 13983/BTC-TCT DATE DECEMBER 7, 2021 - UPDATE - GUIDANCE ON 2021 TEMPORARY CORPORATE INCOME TAX PAYMENT


Issued by: The Ministry of Finance

Effective from: December 07, 2021


Regarding the provisions of Decree 126/2020/ND-CP on the issue " The total amount of provisional corporate income tax (CIT) paid in the first 03 quarters of the year shall be at least 75% of the terminal tax ", in fact, many enterprises have difficulty in determining the amount of CIT temporarily paid.


In this Official letter, the Ministry of Finance guides as follows:

  • During the third quarter in 2021, there were 23 provinces and cities under social distancing. Therefore, most businesses had to temporarily suspend their production and business, and did not generate revenue or income, resulting in no temporary payment of CIT.

  • Moving to the fourth quarter in 2021, the Government has implemented many measures to prevent and control the Covid-19 epidemic so businesses gradually recover operations. It is expected that CIT will mainly focus on the last quarter of the year. Therefore, the Ministry of Finance had a written report to the Prime Minister asking for permission to amend some articles of Decree No. 126/2020/ND-CP, including the provision for temporary payment for the first 3 quarters of the year mentioned above.

Based on the direction of the Prime Minister, the Ministry of Finance will draft a Decree amendment document and send to Ministries and branches for comments and submission to the Government for promulgation.


9. OFFICIAL LETTER NO. 53949/CTHN-TTHT DATED DECEMBER 13, 2021 GUIDING ON PERSONAL INCOME TAX POLICY FOR ALLOWANCE OF COVID-19 PREVENTION


Issued by: Tax Department of Hanoi

Effective from: December 13, 2021


To respond to the questions in Official Letter No. 16/2021/CV-MPVN dated November 29, 2021 on policies applied to allowance of Covid-19 prevention, Hanoi Tax Department has issued Official Letter No. 53949/CTHN-TTHT provides guidelines for the above allowance in PIT calculation.


Specifically, the beneficiaries include employees who are subject to the regime of occupational accident and occupational disease insurance according to the provisions of the law on social insurance and the law on occupational safety and hygiene (except for cadres, officials, public employees, people in armed forces, employees in agencies of the Party, the State, administrative agencies, public non-business units are entitled to salaries from the state budget.).


The payment rate and applicable time respectively are as follows:

  • 0% of salary fund as a basis for social insurance contribution

  • From July 1, 2021 to the end of June 30, 2022

In case the employer supports the entire amount obtained from the reduction of unemployment insurance and occupational disease insurance contribution, this allowance is not included in employees' personal taxable income.


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