Legal update on April 2021 (Part 5)

BLawyers Vietnam - Legal update

Our Vietnam legal update #159 would lead you on 03 legal issues:

I.  Guiding the PIT policy for income from salaries and wages of foreign experts working in Vietnam

Hanoi Tax Department issued Official Letter No. 11900/CTHN-TTHT on 16 April 2021 on guiding the PIT policy for income from salaries and wages of foreign experts working in Vietnam with the following contents:

  • In case the foreign experts meet the condition of resident in the tax year, the taxable income is the income earned within and beyond Vietnam’s territory, regardless of the place where the income is paid. Individuals make PIT declarations according to the Partial Progressive Taxation.
  • In case the foreign experts meet the condition of being a non-resident in the tax year, the taxable income is income earned in Vietnam (regardless of the place where income is paid and received). Individuals make tax declarations at the tax rate of 20%.
  • In case the foreign experts are eligible for PIT exemption, the foreign experts must prepare a tax exemption dossier according to regulations.

II. Guiding the procedures for establishing investment projects in industrial zones

The Ministry of Planning and Investment issued Official Letter No. 2040/BKHDT-QLKKT dated 12 April 2021 on guiding the procedures for setting up investment projects in industrial zones with the following contents:

  • Procedures for issuance of investment registration certificates and written forms of investment procedures comply with the Law on Investment and guiding documents of the Ministry of Planning and Investment.
  • The recipient is responsible for checking the reasonableness of the application, not requiring investors to submit additional dossiers other than the dossiers in the application as prescribed by law.
  • The Management Board of the industrial zones is responsible for solving the problems in the industrial zones.

III.  Deductible expenses when determining taxable CIT about salary payments to foreign employees

Ba Ria – Vung Tau Province Tax Department issued Official Letter No. 2405/CT-TTHT dated 02 April 2021 on guidance on counted expenses for PIT paid by companies to foreign workers. The content is as follow:

In case of foreign experts coming to Vietnam for working as appointed by the foreign parent company and receiving 02 sources of income paid by the company in Vietnam and the foreign parent company, the Vietnamese company shall include those expenses in deductible expenses when determining taxable CIT if having any agreement stipulates that the income from 02 above sources are NET salary and all PIT from 02 above sources will be paid by the Vietnamese company.

IV.  New administrative procedures which are newly issued, amended, and supplemented in the field of offshore investment from Vietnam

On 14 April 2021, the Ministry of Planning and Investing issued Decision No. 426/QD-BKHDT on the announcement of administrative procedures which are newly issued, amended, and supplemented in the field of offshore investment from Vietnam with the following contents:

New administrative procedures:

  • Amending Offshore Investment Registration Certificate (“Certificate”) with the projects subject to approval offshore investment policies by the National Assembly.
  • Proofreading Certificate.

Amended or supplemented procedures:

  • Issuing Certificate of the project subject to approval offshore investment policies by the National Assembly.
  • Issuing Certificate of the project subject to approval offshore investment policies by the Prime Minister.
  • Amending Certificate of projects subject to approval offshore investment policies by the Prime Minister.
  • Issuing Certificate of projects not subject to approval offshore investment policies.
  • Amending Certificate of projects not subjected to approval offshore investment policies.
  • Reissuing Certificate.
  • Terminating Certificate.
  • Notifying of investment activities in foreign countries.
  • Notifying of extending the time limit for remittance of offshore investment project profits.

For down-loading: 

Legal Update #159 (EN version)

Maybe you are interested in reading other updates: April 2021 (Part 4)April 2021 (Part 3) | April 2021 (Part 2)April 2021 (Part 1)March 2021 (Part 4)March 2021 (Part 3) | March 2021 (Part 2) | March 2021 (Part 1) | February 2021 (Part 2) | February 2021 (Part 1) 

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