Our Vietnam legal update #152 would lead you on 03 legal issues:
I. Guidance on duty-free business
The General Department of Customs issued Official Letter No. 714/TCHQ-GSQL dated 05 February 2021 guiding the implement of Decree No. 100/2020/ND-CP on duty-free business with the following contents:
- Pending the completion of the software system for management of tax-free goods business:
- The Office managing duty-free shops, duty-free warehouses (“DS and DW”) inspects and certifies 02 paper copies presented by the enterprise. After completing the procedures, the customs authority shall save 01 copy, and the enterprise shall save one.
- Information criteria must comply with forms under regulations on the Customs electronic data processing system.
- The declaration on the finalization report for tax-free goods of an enterprise having many DS and DW at many different locations is under the management of many Customs Branches, Customs Departments of different provinces and cities:
- At the DS and DW selling goods to DS and DW under other management of the Customs Branch:
(i) If purchased goods are from “temporarily imported from abroad, bonded warehouse or free trade zone”, they are recorded to be exported in the period in column “re-export” of finalization report when leaving warehouse.
(ii) If purchased goods have origin “from domestic”, they are recorded to be exported in the period in column “brought back to the domestic market” of finalization report when leaving warehouse.
- At DS and DW purchasing goods from DS and DW under other management of the Customs Branch:
(i) Goods originating “temporarily imported from abroad, bonded warehouse or tariff zone” shall be recorded in the column “temporarily imported from abroad, bonded warehouse or free trade zone” when being in warehouse.
(ii) If goods have domestic origin, they are recorded as purchasing in the period in the column “from domestic”.
II. Tax declaration and payment of CIT in case the enterprise transfers real estate in another province instead of the place where its head office is located
General Department of Taxation issued Official Letter No. 489/TCT-CS dated 01 March 2021 for guiding the Tax policy as follow:
In case the enterprise transfers real estate in another province instead of the place where its head office is located, the enterprise shall implement Tax declaration, payment of CIT where transferring real estate arises.
III. Tax declaration and payment for incomes from providing online services
Hanoi Tax Department issued Official Letter No. 5167/CTHN-TTHT dated 09 February 2021 on tax declaration and payment for incomes from providing online services with the following content:
- In cases individuals providing services in Vietnam for a foreign-based company and having income from the provision of these services, the provided services shall not be applied 0% VAT rate.
- Sports competitions, performing arts, culture, entertainment, conferences, hotels, training, advertising, travel and tourism;
- Online payment service; or
- Services provided in association with the sale, distribution and sale of products and goods in Vietnam.
- In case individuals generate revenue from business activities, they are responsible for declaring and paying VAT and PIT according to regulations.
Maybe you are interested in reading other updates: March 2021 (Part 1) | February 2021 (Part 2) | February 2021 (Part 1) | January 2021 (Part 5) | January 2021 (Part 4) | January 2021 (Part 3) | January 2021 (Part 1) | January 2021 (Part 2)