Our Vietnam legal update #150 would lead you on 03 legal issues:
I. Expenses for quarantine, medical examination and treatment and some specific regimes in Covid-19 epidemic control and prevention
On 08 February 2021, the Government issued Resolution No. 16/NQ-CP on costs of medical isolation, medical examination and treatment and some specific regimes in Covid-19 epidemic prevention and control, with the following main contents:
- For foreigners, overseas Vietnamese entering Vietnam are only allowed to quarantine at hotels, resorts and must pay all costs such as: cost of transportation to the quarantine; cost of testing and screening; cost for meals, accommodation and living according to the prices announced by hotels and resorts.
- Domestic Vietnamese apply the measure of concentrated medical quarantine, if they choose to stay at a quarantined place such as a hotel or resort, they shall bear the same fees as for foreigners and overseas Vietnamese. In case the quarantine is selected as a medical facility, military barracks, military school, or another facility arranged by the State, they only paid the meal fee (VND80,000/person/day), other expenses paid by the State Budget.
II. Remittance of profits to the parent company overseas
Tax Department of Ba Ria – Vung Tau Province issued Official Letter No. 681/CT-TTHT dated 25 January 2021 on remittance of profits to the parent company overseas. In case enterprises having directly capital investment from foreign investors, to remit profits overseas, enterprises must execute as follows:
- Submitting the audited Financial Statement and the CIT finalization declaration of financial year to the direct tax management department in accordance with laws.
- After submitting the above documents, enterprises must submit to the direct tax management department the original of Notice on remittance of profits overseas in compliance with regulated form. Such submission must be conducted at least 07 working days in advance before remittance of profits overseas.
- Enterprises are responsible before the law for the accuracy, truthfulness and completeness of tax dossier.
III. Tax policy for goods that are temporarily imported and re-exported to serve investment projects
General Department of Customs issued Official Letter No. 8210/TCHQ-TXNK dated 31 December 2020 providing guidance on policy for goods that are temporarily imported and re-exported to serve the investment projects with the following main contents:
- Machinery, equipment, tools and means of transport of organizations and individuals permitted to be temporarily imported for re-export for execution of investment projects, construction and installation of works must pay import tax and not falling into the cases of import tax refund as prescribed.
- Machinery, equipment, tools and means of transport of organizations and individuals permitted to be temporarily imported for re-export for execution of investment projects are not subject to VAT. In case the time limit for temporary import expires but the enterprise does not re-export these goods, VAT must be declared and paid according to regulations.