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Tax news - January 2022


Issued by: National Assembly

Effective from: January 11, 2022


RESOLUTION 43/2022/QH15 – PROVIDING FISCAL POLICIES, MONETARY POLICIES SUPPORTING ECONOMIC - SOCIAL RECOVERING AND DEVELOPING PROGRAM.


Aiming to improve the capacity of COVID-19 epidemic prevention and control, recover and develop economy & social situation during the period of 2021-2025, on January 11, 2022, The National Assembly Standing Committee issued the Resolution No. 43/2022/QH15.


Accordingly, the policies of exemption and reduction of Value Added Tax (VAT) and Corporate Income Tax (CIT) are as follows:

  • Reduce 2% of VAT in 2022 for goods and services currently subject to 10% VAT (to 8%), except for the following goods and services: telecommunication, financial activities, banking activities, securities, insurance, trading of real estate, metal, precast metal products, mining products (excluding coal mining), coke mining, refined oil, chemical products, goods and services subject to excise tax;

  • Allow donations and sponsors made by enterprises and organizations for COVID-19 epidemic control operation in Vietnam to be included in deductible expenses when calculating taxable corporate income for the tax period of 2022.


Issued by: The Government

Applicable Subjects: Employers, employees and related individuals and organizations

Effective from: January 17, 2022


DECREE 12/2022/ND-CP GUIDING ON ADMINISTRATIVE SANCTION IN TERMS OF LABOR, SOCIAL INSURANCE, VIETNAMESE WORKERS WORKING ABROAD UNDER THE CONTRACT


This Decree mentions many regulations on sanctions in terms of labor. In which, the increase in the level of penalties for administrative violations on wages is a notable content in the above document.


Accordingly, the fine of VND 5 - 10 million (currently VND 2 - 5 million) will be imposed on employers who take one of the following acts:

  • Do not publicly announce at the workplace before implementation: salary scale, payroll; labor level; bonus policies;

  • Do not consult the employee representative organization for the place where there is a representative organization of employees as establishing salary scale and payroll; labor norms; bonus policies;

  • Do not establish salary scale, payroll or labor norms.

  • In addition, a fine of VND 5 and 10 million also applies to newly regulated violations as below:

  • Do not apply any trial of labor norms before official promulgation;

  • Do not make a notice the salary statement or notify the salary statement but not in accordance with regulations;

  • Do not equally pay salaries or discriminate against employees doing tasks of equal value.


Issued by: The Ministry of Industry and Trade

Effective from: February 01, 2022


CIRCULAR 24/2021/TT-BCT PROVIDES GUIDELINES ON PRINCIPLES FOR MANAGEMENT OF IMPORT BY QUOTAS FOR SALT, POULTRY EGGS AND RAW TOBACCO IN 2022


On December 16, 2021, the Minister of Industry and Trade issued Circular 24/2021/TT-BCT on principles of managing imports under tariff quotas for salt, poultry eggs and raw tobacco in 2022.

Accordingly, the amount of import tariff quotas for salt, poultry eggs and raw tobacco in 2022 is as follows:

  • Chicken eggs (code 0407.21.00 and 0407.90.10), duck and geese eggs (code 0407.29.10 and 0407.90.20), others (code 0407.29.90 and 0407.90.90) are 63,860 dozen (commercial eggs without embryos).

  • Salt (code 2501) is 80,000 tons (Quantity is temporary for the first phase in 2022).

  • Raw tobacco (code 2401) is 65,156 tons.

In addition, subjects of assignment of import tariff quotas include:

  • Import tariff quotas for salt is assigned to traders who directly used as raw materials for the production of chemicals, drugs, and medical products.

  • Import tariff quotas for poultry eggs is assigned to traders who have import demand.

  • Import tariff quotas for raw tobacco is assigned to traders who have a license to manufacture cigarettes and have demand to use imported raw tobacco for cigarettes.


Issued by: Hanoi Department of Taxation

Effective from: November 23, 2021


THE OFFICIAL LETTER NO. 48921/CTHN-TTHT ABOUT PERSONAL INCOME TAX ("PIT") REGULATIONS FOR THE EXPENSE TO MAKE TEMPORARY RESIDENCE AND VISA CARDS FOR EMPLOYEES.


Aiming to respond the problems in the Official Letter No. 10/2021/KMV, on November 23, 2021, the Hanoi Department of Taxation issued the official letter No. 48921/CTHN-TTHT to give policies for the expenses of making temporary residence and visa cards.


Accordingly, the Letter mentioned the following specific cases:

  • If the expense of making and renewing temporary residence and visa cards for foreign workers paid by the Company to help meet requirements to work at the Company in Vietnam are the employers’ responsibility, it is not included in the taxable income of the salaries and wages.

  • If the expense of making and renewing temporary residence or visa cards for foreign workers paid by the Company on behalf of the employees is an employees’ benefit, this amount shall be included in the taxable income from foreign workers’ salaries and wages.

  • If the expense of making a visa for employees working at the Company in Vietnam to go on a business trip as required is a business trip allowance in accordance with the financial regulations or internal regulations of the Company and as prescribed in Section 4, Point dd, Clause 2, Article 2 of the Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, it should not be included in the income subject to PIT of employees. The portion of perdiem exceeding the prescribed level is included in employees’ taxable income.


Issued by: Bac Ninh Department of Taxation

Effective from: January 04, 2022


OFFICIAL LETTER 05/CTBHI-TTHT PROVIDES GUIDELINES ON THE PAYMENT OF UNPAID LEAVES FOR EMPLOYEES IN DETERMINATION OF DEDUCTIBLE EXPENSES FOR CIT AND PIT CALCULATION


To respond the questions of the Official Letter No. 01MOTUS dated December 28, 2021, requesting instructions on deductible expenses for the payment of unpaid leaves; The Bac Ninh Department of Taxation has issued Official Letter 05/CTBHI-TTHT on December 29, 2021.


Accordingly, if the enterprise pays the salary for the unpaid leaves in the year to employees who do not subject to the cases of resignation or severance and the enterprise has not fully met the regulations for the payment of salary and bonus to employees, this expense is not included in deductible expenses when calculating CIT.

However, this is an employees’ benefit paid by the company, the payment must be included in the employee's taxable income for PIT calculation.


Issued by: The General Department of Customs

Effective from: January 17, 2022


OFFICIAL LETTER 185/TCHQ-TXNK PROVIDES GUIDELINES ON IMPORT TAX REFUND


On December 30, 2021, the General Department of Customs received an Official Letter No. 09/21-VS/XNK about requesting for guidelines on import tax for goods imported under type A12 - outsourcing to other enterprises for processing. Therefore, on January 17, 2022, the Official Letter 185 was issued to respond the above problem.


This Letter has mentioned two specific cases as follows:

  • Taxpayers, who have paid import tax on goods for production and business, but have put them into production for export and exported their products to foreign countries or exported into a non-tariff zone, shall get import tax refund.

  • Import taxpayers for imported goods for production and business, who does not directly manufacture the products, but assigns all imported goods to be processed by other enterprises and then receives the processed products for export. This case does not meet the requirements for determining tax refunded goods.



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