Our Vietnam legal update #140 would lead you on 03 legal issues:
I. Guidelines for regulations on authorization
The Ministry of Justice issued the Official Letter No. 3817/BTP-PLDSKT dated 15 October 2020 responding to questions about regulation on authorization as follows:
- Authorization contract is made regardless of the name of the document. An authorization document which is signed by the authorizing party and the authorized party to establish the authorization relationship will be considered as an authorization contract.
- In case of being agreed by the authorizer, the authorized party can authorize another person to perform in writing, provided that the form is consistent with the original authorization contract.
- In case the legal representative of the enterprise authorizes another person to perform the work, this representative can authorize by the following forms:
- The legal representative on behalf of the enterprise authorizes another individual to perform the tasks authorized under the authorization document; or
- The legal representative themselves authorizes another individual to perform the work in his/her competence within the authorized scope under the authorization document.
II. CIT incentives in case of merger of investment projects
Tax Department of Bac Giang Province issued Official Letter No. 6019/CT-THTT dated 30 October 2020 regarding CIT incentives in case of merger of investment projects with following contents:
- If the enterprise has an investment project which is formed by merging 02 investment projects in the same locality with CIT incentives, the project after the merger is not considered as a new investment project or expanded investment project to enjoy CIT incentives.
- Enterprises are entitled to inherit the CIT incentives of their investment projects before the merger for the remaining time if they continue to satisfy the conditions for CIT incentives. Enterprises shall determine the CIT incentives as prescribed.
III. PIT for Vietnamese individuals having incomes from capital investment abroad
Tax Department of Ha Noi City issued Official Letter No. 95846/CT-TTHT dated 02 November 2020 on PIT policies for incomes from capital investment with the following contents:
- In case Vietnamese individuals having income from capital investment abroad:
- Non-resident individuals shall not pay CIT in Vietnam.
- Resident individuals shall pay CIT according to regulations.
- In case the Agreement between Vietnam and USA for the avoidance of double taxation officially comes into force, individuals who pay PIT in Vietnam shall be enjoy tax deduction for the amount paid in USA.
See other Vietnam legal updates: November 2020 (P4) | November 2020 (P3) | November 2020 (P2) | November 2020 (P1) | October 2020 |September 2020 | August 2020 | July 2020 | June 2020 | May 2020 | April 2020