Our Vietnam legal update #168 would lead you on 03 legal issues:
I. Amended, supplemented administrative procedures in the field of judicial records
On 24 June 2021, Ministry of Justice issued Decision No. 1050/QD-BTP to announce the amended, supplemented administrative procedures in the field of judicial records under the management of this Ministry. The main content is as follows:
- The amended and supplemented procedure at state level: Issuing judicial record cards to Vietnamese citizens whose permanent or temporary residence cannot be identified; foreigners already residing in Vietnam.
- The amended and supplemented procedure at provincial level: Issuing judicial record cards to Vietnamese citizens and foreigners residing in Vietnam.
- Specific contents of each of the above procedures are detailed in this Decision.
- Attached to the Decision are application forms related to the above procedures.
- The decision takes effect from 1 July 2021.
II. Regulation on implementation of legal responses of the Ministry of Transport in legal support for small and medium enterprises
The Ministry of Transport issued Decision No. 1127/QD-BGTVT dated 22 June 2021 to issue the Regulation on implementation of legal support for small and medium enterprises. Some notable points of the Regulations are as follows:
Regarding the regulations on asking and answering questions:
- Questions can be sent in writing directly to the Ministry of Transport or asked directly in the “Q&A” section on the e-Portal.
- The Legal Department receives questions, categorizes, and transfers questions to the answering department.
- The answer to the question is prescribed:
- Questions submitted in writing will be answered in writing.
- Questions sent through the e-Portal will be answered in the “Legal support for enterprises” section on the e-Portal.
Regarding the order of legal response:
- For questions sent by text: Questions are received within 3 working days. After the next 10 working days, the answer must in writing and will be sent to the enterprise. Response time will take up to 25 days if the question is complex. At the same time, the questions and answers will be posted on the “Legal support for enterprises” section on the e-Portal.
- For questions sent via the e-Portal: Questions are received within 3 working days. After the next 10 working days, the answer will be posted on the “Legal support for enterprises” section on the e-Portal. Response time will take up to 25 days if the question is complex.
III. Execution of the Advance Pricing Agreement (APA) mechanism used in tax administration for enterprises with related-party transactions
The Ministry of Finance issued the Circular No. 45/2021/TT-BTC dated 18 June 2021 guiding execution of the Advance Pricing Agreement (APA) mechanism used in the tax administration of enterprises involved in related-party transactions with the following contents:
- The transactions applied APA are the business transactions between related parties, except for business transactions related to goods and services requiring price stabilization within the scope of the State’s regulations on prices.
- The transactions applied must fully satisfy the following conditions:
- Actual transactions arise in the taxpayer’s production and business activities and will continue to take place during the period of application of APA.
- Transactions have any basis for determination of the nature of transaction deciding tax liability, and any basis for analysis, comparison, and selection of independent comparable according to the provisions of law.
- Transactions are not involved in tax disputes or complaints.
- Transactions are made in a transparent manner, not for tax evasion, avoidance, or misuse of Tax Agreements.
- Principles of application: APA is applied on the principle that tax authorities and taxpayers or Vietnamese tax authorities and partner tax authorities and taxpayers together cooperate, exchange and negotiate on the application of tax regulation on the implementation of corporate income tax obligations for related-party transactions within the scope of APA in accordance with the principles of independent transactions and the principle that the nature of operations, transactions determine tax obligations.
- The General Department of Taxation conducts the application of taxpayers for APA to check, compare, determine and evaluate the completeness, accuracy, legality, reasonableness and validity of the information, data provided by the taxpayer to provide an assessment of the associated transaction price determination method, the selected comparison object is suitable for determining the price, profit margin or distribution ratio. declare profits for transactions within the scope of application of APA.
- Regulations on the rights, obligations, and responsibilities of taxpayers. In addition, it stipulates the powers and responsibilities of tax authorities.
- The validity period of a signed APA is up to 03 tax years, but it must not exceed the actual number of years the taxpayer has operated in production and business, declared and paid corporate income tax in Vietnam.
Maybe you are interested in reading other updates: June 2021 (Part 4) | June 2021 (Part 3) | June 2021 (Part 2) | June 2021 (Part 1) | May 2021 (Part 4) | May 2021 (Part 3) | May 2021 (Part 2) | May 2021 (Part 1) | April 2021 (Part 5) | April 2021 (Part 4)