RBK Updates - April 2021

UPDATE NEW REGULATIONS

DECREE:

  • Decree 52/2021 / ND-CP dated April 19, 2021 of the Government on extension of time limit for payment of value added tax, corporate income tax, personal income tax and land rental in 2021
  • Cross-ownership between companies in the group of companies is provided in Article 195 of the Enterprise Law 2020 and Article 12 of Decree 47/2021 / ND-CP.
  • Decree 18/2021 / ND-CP amending and supplementing Decree 134/2016 / ND-CP guiding the Law on Import Tax and Export Tax.

CIRCULARS

  • Circular 26/2021 / TT-BTC guiding the accounting work when converting public non-business units into joint stock companies, issued on April 7, 2021

OFFICIAL LETTER:

  • Official Letter 1194 / TCT-KK introduces new point of Circular 19/2021 / TT-BTC guiding electronic transactions in tax field, accordingly, new point about electronic signing in electronic transactions

Newsletter April 2021

Decree 52/2021 / ND-CP dated April 19, 2021 of the Government on extension of time limit for payment of value added tax, corporate income tax, personal income tax and land rental in 2021
Accordingly, Decree 52/2021 applies to the following subjects:

(1) Enterprises, organizations, business households and individuals engaged in production in the following economic sectors:

  • Agriculture, forestry and fisheries;
  • Producing and processing food; weaving; costume production; manufacture of leather and related products; wood processing and products made from wood, bamboo (except beds, wardrobes, tables, chairs); production of products from straw and plaiting materials; manufacture of paper and paper products; manufacturing products from rubber and plastic; manufacture of products from other non-metal minerals; metal production; mechanical; metal treatment and coating; manufacturing electronic products, computers and optical products; manufacture of automobiles and other motor vehicles; production of beds, wardrobes, tables, chairs;
  • Construction;
Publishing activities; cinematographic activities, television program production, music recording and publishing;
  • Extraction of crude oil and natural gas (with no extension for corporate income tax on crude oil, condensate, natural gas collected under agreements or contracts);
  • Manufacture of beverages; printing, copying records of all kinds; production of coke coal, refined petroleum products; chemical production and chemical products; manufacture of products from prefabricated metal (except for machinery and equipment); motorbike and motorbike manufacture; repair, maintenance and installation of machines and equipment;
  • Drainage and wastewater treatment.
(2) Enterprises, organizations, business households and individuals doing business in the following economic sectors:
  • Transporting warehouse; accommodation and catering services; education and training; medical and social assistance activities; real estate business;
  • Labor and employment service activities; activities of travel agents, tour business and support services, related to tour promotion and organization
  • Creative, artistic and recreational activities; activities of libraries, archives, museums and other
    cultural activities; sports activities, entertainment; film projection activities;
  • Radio and television activities; computer programming, consulting services and other activities related to computers; information service activities;
  • Activities supporting services for mining.
 
(3) Enterprises, organizations, business households and individuals engaged in manufacturing supporting industrial products give priority to development; key mechanical products.(
4) Small and micro enterprises are determined in accordance with the Law on Small and Medium Enterprises Support 2017 and Decree 39/2018 / ND-CP
(5) Credit institutions, foreign bank branches implementing solutions to support customers who are businesses, organizations and individuals affected by COVID-19 translation in accordance with the State Bank of Vietnam regulations.
 
Extension of tax and land rental payment in 2021
 For value added tax (excluding value added tax at import stage):
  • Extension of the tax payment deadline for the payable (including the tax amount attributable to other provinces where the taxpayer is headquartered, the amount of tax payable upon each occurrence ) of the tax period from March to August 2021 (in case of VAT declaration on a monthly basis) and tax period of quarter 1, quarter 2, year 2021 (in case of VAT declaration increase by quarter) of businesses and organizations.
  • The extension period is 05 months for the value added tax from March to June 2021 and quarter 1, quarter 2, 2021, the extension period is 04 months for the value added tax of July. in 2021, the extension period is 03 months for the value added tax of August 2021.
  • The extended time is counted from the end of the payment deadline in accordance with the law on tax administration.
 For corporate income tax:
  • Extension of the time limit for tax payment for the provisional corporate income tax amount of the first quarter or second quarter of the 2021 enterprise income tax period of the above-mentioned enterprise or organization.
  • The extended time is 03 months from the date of expiration of the time limit for paying corporate income tax in accordance with the law on tax administration.

For value added tax, personal income tax of business households and individuals:

  • Extension of the time limit for payment of and personal income tax on the arising tax amount payable in 2021 of business households and business individuals operating in the economic sectors and fields specified at (1), (2), (3) above.
  • Business households and individuals shall pay the tax amount extended in this Clause no later than December 31, 2021.

 For land rent:

  • Extension of the time limit for land rental payment for the land rent payable for the first period of 2021 of the enterprise, organization, business household or individual subject to the above- mentioned subjects who are directly leased land directly by the State. Decision or contract of a competent state agency in the form of annual rental payment.
  • The deadline for extension is 6 months from May 31, 2021.
  • Decree 52/2021 / ND-CP takes effect from the date of its signing.
Cross-ownership between companies in the group of companies is provided in Article 195 of the Enterprise Law 2020 and Article 12 of Decree 47/2021 / ND-CP.
In Clauses 2 and 3, Article 195 of the 2020 Law on Enterprises:
Article 195. Parent company, subsidiary company
  • 2. Subsidiaries are not allowed to invest in buying shares or contributing capital to the parent company. Subsidiaries of the same parent company are not allowed to simultaneously contribute capital and purchase shares to cross-own each other.
  • 3. Subsidiaries having the same parent company as an enterprise owning at least 65% of state capital are not allowed to contribute capital together, buy shares of another enterprise or to establish a new enterprise according to the regulations of this law.
  • The capital contribution, share purchase of another enterprise or the establishment of an enterprise as prescribed in Clause 3 Article 195 of the Law on Enterprises include the following cases:
  • Jointly contribute capital to establish a new business.
  • Together buying capital contribution, buying shares of an established enterprise.
  • Jointly receive shares and capital contributions from members and shareholders of the established enterprise.
  • Enterprises owning at least 65% of the State capital under Clause 3, Article 195 of the Law on Enterprises are state-owned enterprises with 65% or more of the charter capital held by the State or the total number of voting shares or more.
  • The company's President, Board of Members and Board of Directors are responsible for ensuring compliance with Article 195 of the Law on Enterprises when proposing and deciding on capital contribution, share purchase, or capital contribution. Other companies and jointly are responsible to compensate for damage occurred to the company when they violate the provisions of Clause 3,

Article 12 of Decree 47/2021 / ND-CP.

  • The business registration agency refuses to register the change of members or shareholders of the company if, during the process of accepting documents, detects the capital contribution, purchase of shares to establish an enterprise or transfer of shares or joint capital shares concerned violating the provisions of Clauses 2 and 3, Article 195 of the Law on Enterprises.

In Clause 4, Article 34 of Decree 47/2021 / ND-CP stipulates:

Article 34. Effect and transitional provisions

  • ... 4. Except for the case specified in Clause 3, Article 195 of the Law on Enterprises, enterprises that have contributed capital or purchased shares before July 1, 2015 have the right to purchase, sell, or transfer, increase or decrease the contributed capital, the number of shares but must not increase the cross-ownership ratio compared to the time before July 1, 2015.

Decree 18/2021/ ND-CP amending and supplementing Decree 134/2016 / ND-CP guiding the Law on Import Tax and Export Tax.

Accordingly, additional provisions on the cases of non-collection of import and export tax (import-
export) as follows:

Tax shall not be collected for goods eligible for tax refund but for which tax has not been paid as
prescribed:
+ Tax refund for exported goods that must be re-imported;
+ Tax refund for imported goods that must be re-exported;
+ Tax refund for machinery, equipment, tools and means of transport of organizations and individuals
permitted to be temporarily imported for re-export;
+ Tax refund for goods imported for production and business but for which products have been
exported;
+ Tax refund for taxpayers that have paid import-export tax but have no import-export or import-export
goods less than those for import-export goods for which tax has been paid; No tax refund for the case
with the minimum tax amount.
Tax shall not be collected for goods not subject to import and export tax.

+ Tax refund for exported goods that must be re-imported;
+ Tax refund for imported goods that must be re-exported.

  • The taxpayer submits a non-collection of tax documents to the customs authority where the import and export procedures are carried out at the time of customs clearance or after the goods are cleared.
  • Decree 18/2021 / ND-CP takes effect from April 25, 2021 and abolishes Circular 90/2011 / TT-BTC, Circular 201/2012 / TT-BTC, Circular 81/2013 / TT- BTC and Circular 116/2013 / TT-BTC of the Ministry of Finance.
The Ministry of Finance issued Circular 26/2021 / TT-BTC guiding the accounting work when converting public non-business units into joint stock companies, issued on April 7, 2021.
Circular 26/2021 / TT-BTC applies to organizations and individuals specified in Article 2 of Decree
150/2020 / ND-CP.
Accounting work when converting public non-business units into joint stock company
  • Converted public non-business units follow the financial mechanism applicable to the public non-business units and account under the provisions of the administrative and non-business accounting regime issued together with Circular 107/2017 / TT-BTC until the time of official transfer. changed into a joint stock company;
  • The joint stock company is converted from public non-business units operating under the provisions of the Enterprise Law, the specialized laws and the current law provisions and accounting according to the regulations of the corporate accounting regime. together with Circular 200/2014 / TT-BTC for the activities arising from the official transformation into joint stock companies.
Accounting principles
  • The activities related to the financial settlement to determine converted public non-business units value must be fully recorded on the accounting books of the unit.
  • Based on dossiers and vouchers related to the financial settlement results when determining the unit value for conversion, the unit shall conduct the accounting according to the current administrative and non-business accounting regime's regulations.
  • On the basis of the accounting data fully reflected in the accounting books, the units must make the finalization reports and financial statements according to the provisions of the administrative and non-business accounting regime at the time of value determination. unit and time officially transformed into a joint stock company.
  • The results of determining the value of public non-business units and the reassessment of the asset value of public non-business units for the purpose of conversion are not adjusted into the accounting books of public non-business units according to the administrative and non-business accounting regime but used as a basis. to prepare a report on the financial situation according to the business model guided in Circular 26/2021 / TT-BTC.
Circular 26/2021 / TT-BTC takes effect from June 1, 2021.
Official Letter 1194 / TCT-KK introduces new point of Circular 19/2021 / TT-BTC guiding electronic transactions in tax field, accordingly, new point about electronic signing in electronic transactions
  • For taxpayers who register for the first time and grant tax identification numbers as prescribed in Clause 1, Article 13 of this Circular, they may register a unique mobile phone number of individuals or individuals who are legal representatives. laws of organizations to receive electronic transaction authentication codes via “text message” when submitting electronic tax registration dossiers to tax authorities for the first time.
  • Additional regulations: If the taxpayer is an organization or individual that declares or pays tax on behalf of a foreign organization, individual or contractor that conduct electronic tax transactions with the tax authority, the organization or individual Tax declaration and tax payment instead of using digital certificates of organizations or individuals declaring and paying tax instead of signing on electronic documents when dealing with tax authorities electronically.
Previously, only regulated for tax agents.
1) Additional regulations on electronic tax filing time:
  • The time a taxpayer submits an application is within the day if the application is successfully deposited between 00:00:00 and 23:59:59 hours of the day.
2) Supplementing the regulations on the time of confirming the submission of tax returns Tax declaration
  • Dossiers including attached documents are submitted directly or by post, calculated according to the date the taxpayer completes the submission of the complete dossier as prescribed.
3) Adding a regulation on the time when the tax authority sends the notice, decision or document to the taxpayer identified as within the day if the application is successfully deposited within the period from 00:00:00. to 23:59:59 hour of the day.

CONTACT

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This Newsletter contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Reference should be made to the appropriate advisors and Russell Bedford KTC will not accept any responsibility for loss occasioned to any person acting or refraining in this publication. 

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