UPDATE NEW REGULATIONS
Resolution 105/NQ-CP issued on 09 September 2021 (comes into force from 09 September 2021) – supporting businesses, cooperatives and business households in the COVID-19 epidemic
Decision 2166/QD-TCHQ issued on 04 August 2021 (comes into force from 04 August 2021 and cancels a number of articles of Decision 2999/QD-TCHQ dated 06 September 2017) – Issuing analytical procedures to classify imported and exported goods .
Decision 1975/QD-BTC issued on 18 August 2021 (comes into force from 21 August 2021 and takes effect within 5 years from 21 August 2021) – Application of official anti dumping tax on some H-shaped steel products originating from Malaysia
– Official Letter 6770/CTTPHCM-KK issued on 19 July 2021 – Regarding the submission of tax declaration during the implementation of Directive 16/CT-TTg
– Official Letter 2956/TCHQ-GSQL issued on 16 June 2021, 3461/TCHQ-PC issue on 9 July 2021 – Regarding the implementation of customs procedures during the period of influence of the Covid19 epidemic
– Official Letter 3261/TCHQ-GSQL issued on 29 June 2021 – Regarding procedures for temporary export and re-import of replacement goods
– Official Letter 3631/TCHQ-GSQL issued on 19 July 2021 – The sub-labelling of imported goods
– Official Letter 3530/TCHQ-TXNK issued on 13 July 2021 – Regarding VAT, taxable value for imported software
– Official Letter 3548/TCHQ-TXNK issued on 14 July 2021 – Regarding procedures and tax policies on temporarily imported goods
– Official Letter 4125/TCHQ-TXNK issued on 20 August 2021 – Destruction of imported goods
– Official Letter 3494/TCHQ-TXNK issued on 12 July 2021 – Regarding the exported tax of scrap
– Official Letter 10385/BTC-QLKT issue on 10 September 2021 – Accounting of expenses incurred due to the impact of the Covid-19 epidemic
Newsletter September 2021
Resolution 105/NQ-CP issued on 09 September 2021 (comes into force from 09 September 2021) – supporting businesses, cooperatives and business households in the COVID-19 epidemic
1. Support to cut down costs, remove financial and cash flow difficulties for enterprises, cooperatives and business households:
– Reduce the payment or support from the balance of short-term social insurance fund in order to promptly support employees, business, cooperatives, business households and other employers, complete in September 2021 .
– Proposal to waive fines for late payment of social insurance arising in 2020 and 2021 according to regulations, complete in September 2021 .
-Implement the Resolution 97/NQ-CP dated 28 August 2021 on the plan to support to reduce electricity bill and reduce electricity price (phase 5) for customers using electricity in the correct sequence, procedures and regulations; strictly ensure, the right subjects, not to be exploited for policies .
– Implement policies on extension and reduction of taxes, fees, charges and land rental after being promulgated by competent authorities; implement preferential tax policies for imported goods to support prevention and control COVID-19 after being approved by the Government .
– Consider and study to continue extending the deadline for paying excise tax for domestically manufactured and assembled automobile until the end of 2021; study and assess the impact to consider reducing the registration fee for domestically manufactured and assembled automobile with the COVID- 19 epidemic situation .
2. Creating favorable conditions for workers and experts:
– In September 2021, direct localities to flexibly and easing some regulations and conditions on the issuing, extension and confirmation of work permits for foreign workers working in Vietnam suitable for the new context but must be absolutely safe in terms of COVID-19 prevention and control, specifically:
+ At Point a, Clause 3, Article 3 of Decree 152/2020/ND-CP shall be implemented as follows: Having a university degree or higher or equivalent and having at least 3 years of work experience relevant to the public position the job that the foreign worker is expected to work in Vietnam.
+ At Point a, Clause 6, Article 3 of Decree 152/2020/ND-CP shall be implemented as follows: Having been trained in a technical or other specialized discipline for at least year and having at least 3 years of working experience suitable to the job position that the foreign worker is expected to work in Vietnam.
+ At Point b, Clause 4, Article 9 of Decree 152/2020/ND-CP shall be carried out as follows: Papers proving experts and technical workers as prescribed in Clauses 3 and 6, Article 3 of this Decree, are: Diploma, certificate; A written certification from an agency, organization or enterprise in a foreign country about the number of years of experience of the expert, technical worker or the issued work permit to prove the experience.
+ At Point d, Clause 3, Article 8, Clause 7, Article 9, Clause 5, Article 17 of Decree 152/2020/ND-CP shall be implemented as follows: A copy of the valid passport as prescribed by law.
+ Allow foreign workers who have been issued and still valid work permits to be transferred to work in another province or city for a period not exceeding 06 months and the employer must report to the labor management agency where the foreign worker comes to work without having to renew the work permit.
– Research and propose to competent authorities according to the shortened procedures in September 2021 on allowing enterprises and cooperatives to agree with employees to increase overtime/month accordingly with the development of the COVID-19 epidemic, provided that the total number of overtime hours does not exceed 300 hours/year.
– The Ministry of Education and Training shall coordinate with the Ministry of Labor, War Invalids and Social Affairs in guiding the qualifications of foreign teachers teaching at short-term training institutions, general education institutions, educational institutions career, university in accordance with international practices and provisions of the Law on Education, the Law on Higher Education, and the Law on Vocational Education.
Decision 2166/QD-TCHQ issued on 04 August 2021 (comes into force from 04 August 2021 and cancels a number of articles of Decision 2999/QD-TCHQ dated 06 September 2017) – Issuing analytical procedures to classify imported and exported goods
Procedures for analyzing, classifying, processing analysis results, classifying, controlling, exploiting, looking up, and notification of analysis results with codes of exported and imported goods and notification classification results for imported and exported goods
Based on the risk level of goods and the information analyzed by the customs authorities, the customs authorities will determine whether imported goods or exported goods should be tested for classification purpose.
The declarant disagrees with the Notice of analysis results with the code of exported and imported goods, the Notice of classification results for exported and imported goods, and requests for expertise further inspection for classification.
Decision 1975/QD-BTC QD-TCHQ issued on 18 August 2021 (comes into force from 21 August 2021 and takes effect within 5 years from 21 August 2021) – Application of official anti-dumping tax on some H-shaped steel products originating from Malaysia
Applying official anti-dumping tax on some H-shaped steel products, classified under HS codes 7216.33.11, 7216.33.19, 7216.33.90, 7228.70.10 and 7228.70.90 imported into Vietnam, originating from Malaysia (code AD12).
The current Most Favored Nation (MFN) rate is 15% for carbon H-sections and 0% for alloy H-sections. However, due to the ASEAN Trade in Goods Agreement (“ATIGA”), the import tax rate for H-shaped steel from Malaysia for the period from 2017 to 2020 is 0%.
Anti-counterfeiting tax The additional import tax applied to imported H-shaped steel originating from Malaysia is 10.64%.
Official Letter 6770/CTTPHCM-KK issued on 19 July 2021 – Regarding the submission of tax declaration during the implementation of Directive 16/CT-TTg
According to the official letter of the Tax Department of Ho Chi Minh City, taxpayers are organizations and individuals with business headquarters, addresses (permanent residence, temporary residence) located in isolated areas, individuals belonging to subjects who are quarantined according to decisions or notices of competent state agencies due to the Covid-19 epidemic, if there is an obligation to submit tax declaration dossiers, but during the quarantine period (including the quarantine period the entire society according to the documents of the Prime Minister, the Government Office, isolation by region, area, according to the decision of local government agencies, isolation according to the notification decision of the agency, the state has authority) cannot submit tax declaration dossiers in accordance with the law, leading to late submission of tax declaration dossiers, they will not be sanctioned for administrative violations according to regulations.
Official Letter 2956/TCHQ-GSQL issued on 16 June 2021, 3461/TCHQ-PC issue on 9 July 2021 – Regarding the implementation of customs procedures during the period of influence of the Covid19 epidemic
– Guide customs declarants and taxpayers to declare and submit customs dossiers, documents related to tax exemption, reduction, refund, and non-collection of tax to customs authorities through e-customs system or sent via postal services, express delivery, ensuring all transactions between customs officers and enterprises are done on the system or via phone, without directly contact.
– The consideration of not sanctioning administrative violations due to the impact of the Covid-19 epidemic must be based on the regulation of the above law and specific case, whereby individuals and organizations must prove that they have applied take all necessary measures and capabilities to allow but not prevent the violation from happening.
Official Letter 3261/TCHQ-GSQL issued on 29 June 2021 – Regarding procedures for temporary export and re-import of replacement goods
– For goods that have been temporarily exported but not re-imported: Carry out the procedures for exporting goods (type B12- Export after being temporarily exported) at the General Department Customs (GDC) where the temporary export declaration is opened according to the Section 5 Chapter III Decree 08/2015/ND-CP dated 21 January 2015, as amended and supplemented in Decree 59/2018/ND-CP dated 20 April 2018 of the Government. If the declaration is classified into the red channel, the Head of the GDC shall decide not to carry out physical inspection of goods.
– For new imported goods for replacement: Carry out the import procedures (not re-import) of ordinary goods specified in Section 5 of Decree 08/2015/ND-CP dated 21 January 2015, already amended and supplemented in Decree 59/2018/ND-CP dated 20 April 2018 of the Government and Circular 38/2015/TT-BTC dated 25 March 2015, Circular 39/2018 /TT-BTC dated 20 April 2018 of the Ministry of Finance
– Tax policies comply with regulations for each type of export and import respectively in the Law on Import Tax and Export Tax, Decree 134/2016/ND-CP dated 01 September 2016 as amended, supplemented in Decree 18/2021/ND-CP dated 11 March 2021 of the Government detailing a number of articles of the Law on Import Tax and Export Tax
Official Letter 3631/TCHQ-GSQL issued on 19 July 2021 – On the sub-labelling of imported goods
– Regarding sub-labelling:
+ Goods imported into Vietnam that have not been shown on the label or have not shown enough mandatory contents in Vietnamese must have an additional label showing the mandatory contents in Vietnamese and keep the original label of the goods The content written in Vietnamese must correspond to the content written on the original label. (In Clause 3, Article 7 of Decree 43/2017/ND-CP dated 14 April 2017)
+ For goods imported into Vietnam with the original label not conforming to regulations, the importing organization or individual must add additional labels according to the provisions of Clause 3, Article 7 and Clauses 3 and 4, Article 8 of this Decree when importing goods into Vietnam put into circulation and must keep the original label. (In Clause 4, Article 9 of Decree No. 43/2017/ND-CP dated 14 April 2017)
– For imported goods subject to physical inspection, the customs authority shall check the labeling of goods on the original label according to the provisions of Decree 43/2017/ND-CP and compare and check information on the original label. information on the label of imported goods with information declared on the import customs declaration to determine that the labeling of imported goods is in accordance with the provisions of Decree 43/2017/ND-CP
Official Letter 3530/TCHQ-TXNK issued on 13 July 2021 – Regarding VAT, taxable value for imported software
– Regarding the taxable value: According to the point b.1 Clause 5 Article 6 of Circular 39/2015/TT-BTC dated 25 March 2015 of the Ministry of Finance, amended and supplemented in Clause 5 of Article 1 Circular 60/2019/TT-BTC dated 30 August 2019, the control and operation software imported to upgrade or replace the control and operation software for the first time has been added to the value of the machine machinery and equipment are not included in the value of imported goods
– Regarding VAT: Pursuant to VAT Law 13/2008/QH12 stipulates: computer software is not subject to VAT.
Official Letter 3548/TCHQ-TXNK issued on 14 July 2021 – Regarding procedures and tax policies on temporarily imported goods
– Regarding customs procedures: at Clause 5, Article 25 of Decree 08/2015/ND-CP as amended and supplemented in Clause 12, Article 1 of Decree 59/2018/ND-CP stipulates: “… If temporarily imported goods for re-export have been released or cleared, but then change the purpose of use, consume domestically must be made a new customs declaration. Policy on management of export and import goods; tax policies for exported and imported goods shall be implemented at the time of registration of a new customs declaration, unless the policy on management of exported and imported goods has been fully implemented at the time of registration of the declaration initial” .
– Regarding tax policy: at Clause 3, Article 21 of Circular 38/2015/TT-BTC dated 25 March 2015 of the Ministry of Finance stipulating the responsibilities of customs authorities: “b) In case the taxpayer has paid tax of the old customs declaration (CD): The customs authority shall issue a decision to reduce the tax amount of the old CD, then make a tax refund and offset between the tax amount of the old CD and tax amount of the new CD (same as overpaid tax). If the tax amount of the old CD is less than the payable tax amount of the new CD, the taxpayer must additionally pay the missing amount before completing the procedure for domestic consumption, if excess, the customs office will refund according to regulations. The procedure of offset or refunding shall comply with Article 132 of this Circular. The time for tax refund and offset between the old CD’s tax amount and the new CD’s tax amount shall comply with Clause 3, Article 49 of this Circular. During the time the customs authority processes the tax refund and makes a clearing between the paid tax amount of the old customs declaration and the tax amount of the new customs declaration, the taxpayer will not be charged late payment of tax.
Official Letter 4125/TCHQ-TXNK issued on 20 August 2021 – Destruction of imported goods
– Regarding sending a notice to the customs authority before destroying goods imported for production export, code E31: goods imported for production and export that must be destroyed include exceed raw materials and supplies, damaged materials, products and finished products that must be destroyed from 25 April 2021 (the effective date of Decree 18/2021/ND-CP) are exempt from import tax. Enterprises must send a written notice to the customs authority before destruction, clearly stating the form of destruction and location of destruction. The destruction must comply with the provisions of the law on environment.
– Regarding the destruction of imported goods to create fixed assets: the destruction of imported goods to create fixed assets that are exempt from tax according to the regulation of the Law on Import Tax and Export Tax must comply with the provisions of law relevant laws and under the direct supervision of a customs official. Before destroying, the taxpayer must notify the customs authority of the destruction, the time and place of destruction, the written permission of the competent authority for destruction of the destroyed goods, and the reason for the destruction according to regulations. In case goods are allowed to be destroyed and all procedures are carried out as prescribed by law, they are exempt from import tax.
Official Letter 3494/TCHQ-TXNK issued on 12 July 2021 – Regarding the exported tax of scrap
At Point a, Clause 1, Article 11 of Decree 134/2016/ND-CP as amended in Clause 5, Article 1 of Decree 18/2021/ND-CP dated 11 March 2021 of the Government “Goods exports are mineral resources, products with the total value of natural resources and minerals plus energy costs accounting for 51% or more of the product’s cost, and goods (except for scraps generated in the process of production or processing). exports from imported goods) exported for processing and are subject to export tax, they are not exempt from export tax
Pursuant to the above regulations, in case of importing A12 type for production, in the process of producing scrap is obtained, the company wants to export this scrap to foreign countries for outsourcing (according to the type of E82) or exported to foreign countries under sales are not eligible for export tax exemption.
Official Letter 10385/BTC-QLKT issue on 10 September 2021 – Accounting of expenses incurred due to the impact of the Covid-19 epidemic
Pursuant to Point b, Clause 1, Article 84 and Point a, Clause 1, Article 94 of Circular 200/2014/TT-BTC, the enterprise shall account expenses related to the direct production department during the shutdown due to the epidemic by Covid-19 into account 811 – Other expenses, and this accounting must be disclosed in the Notes to financial statements.
The determination of tax liability for expenses related to direct production parts due to the impact of the Covid-19 epidemic shall comply with tax law.