Update news regulalations and newsletter of 8-20221

September 26, 2022

UPDATE NEW REGULATIONS

CIRCULAR:

Circular 45/2021/TT-BTC issued on 18 June 2021 (comes into force from 03 August 2021 and supersedes the Circular No. 201/2013/TT-BTC) – Guidance on application of advance pricing agreements to enterprises having related-party transactions

NOTICE:

Notice 209/TB-VPCP issued on 05 August 2021 – Tax exemption, reduction solutions to support businesses and people affected by the Covid-19 pandemic

Newsletter August 2021

Whereby, Transactions to which an APA is proposed to be applied are related-party transactions specified in Clause 2 Article 1 of the Decree No. 132/2020/ND-CP :

Transaction activities as purchase, sale, bartering, renting, leasing out, borrowing, lending, transfer or disposal of commodities, provision of services;

Financial borrowing, lending, financial services, financial guarantee and other financial instruments;

Purchase, sale, bartering, renting, leasing out, borrowing, lending, transfer or disposition of tangible assets, intangible assets;

Agreement on purchase, sale and sharing of resources such as assets, capital, labor and sharing of costs between related parties;

except business transactions in goods and services subject to price adjustments that the State makes under laws on prices.

Besides, The transactions must fully satisfy the following conditions:

Actual transactions arise in the taxpayer’s production and business activities and will continue to take place during the proposed APA application period.

Transactions have any basis for determination of the nature of transaction deciding tax liabilities, and any basis for analysis, comparison and selection of independent comparable according to the provisions in Articles 6 and 7 of the Decree No. 132/2020/ND-CP, based on information and data in compliance with the provisions in Point b Clause 6 Article 42 of the Law on Tax Administration.

Transactions are not involved in tax disputes or complaints.

Transactions are made in a transparent manner, not for the purpose of tax evasion, avoidance or misuse of tax treaties.

Noted: Where an APA application was submitted prior to the effective date of this Circular but has not been concluded and the proposed APA application period is still unexpired when this Circular takes effect, such application shall continue to be processed as prescribed by the Law on Tax Administration, the Decree No. 126/2020/ND-CP and this Circular.

Notice 209/TB-VPCP issued on 05 August 2021 – Tax exemption, reduction solutions to support businesses and people affected by the Covid-19 pandemic

1. On 04 August 2021 at the Government Office, Permanent Government and agencies attending the meeting agreed with the Ministry of Finance’s proposal on tax exemption and reduction policies to support businesses and people affected by Covid-19 pandemic. Accordingly, Ministry of Finance proposed:

30% reduction of corporate income tax (CIT) payable in 2021 for enterprises as applied for 2020;

50% reduction of tax payable arising from production and business activities of the months in the third and fourth quarters of 2021 for households business and individuals business in all fields, career, locality, forms of tax declaration, tax payment;

30% reduction of value added tax (VAT) rate applied to enterprises operating in a number of service fields.

Exemption of late payment arising in 2020 and 2021 (2 years affected by the Covid 19 pandemic) for enterprises incurred continuous losses in 2018, 2019 and 2020.

2. The Ministry of Finance needs to gathers the opinions from relevant agencies to submit
proposals land rental fee reduction policies to the Government, Prime Minister before 10 August 2021 as the Report 123/TTr-BTC dated 23 July 2021 of the Ministry of Finance.

The content of the Government’s supporting solutions to enterprises and people affected by the Covid-19 pandemic will be updated by Russell Bedford KTC in the next newsletters.