Our Vietnam legal update #153 would lead you on 03 legal issues:
I. Paying fees, charges on enterprise registration on National Enterprise Registration Information System
The Ministry of Planning and Investment issued Official Letter No. 1007/BKHDT-DKKD dated 25 February 2021 regarding paying fees on enterprise registration with the following contents:
- The request for publishing of enterprise registration information and payment of fees thereof shall be made when the enterprise submits the application for enterprise registration. The fees paid shall be refunded if the enterprise registration certificate is not issued.
- Regarding the methods of payment:
- The person responsible for enterprise registration shall pay fees, charges when submitting the dossier by directly paying transferring or paying through electronic payment services. Charges shall not be refunded if the enterprise is not issued with the enterprise registration certificate.
- Online payment of fees and charges is supported on the National Business Registration Portal. Fees for electronic payment services must not be included in other fees and charges.
- The entities eligible for fee/charge exemption at enterprise registration are regulated at Article 5 of Circular No. 47/2019/TT-BTC issued by Ministry of Finance.
II. PIT on benefits and allowances with the nature of salaries and wages paid by enterprises to foreign employees after termination of labor contract
Hanoi Tax Department issued Official Letter No. 2545/CTHN-TTHT dated 20 January 2021 on the PIT finalization with the following contents:
- In case the enterprise pays two million dong or more to the foreign employee (“FE”) defined as an individual residing in Vietnam after terminating the contract for benefits and allowances with the nature of salaries and wages, the enterprise must deduct PIT at the rate of 10% of the total income before paying to the employees according to laws.
- In case the FE terminates the contract of working in Vietnam but has not completed tax finalization procedures with the tax authority before leaving Vietnam, they can authorize the enterprise to make tax finalization if the enterprise commits to take responsibility with the tax authority for the individual’s payable PIT amount according to regulations. The deadline for submitting the PIT finalization dossier in this case is the 45th day from the date of the FE’s exit.
III. Extending tax payment deadline, tax exemption and tax reduction policies
On 02 March 2021, The Ministry of Finance has issued Official Letter No. 2013/BTC-TCT guiding the extension of tax payment and tax exemption with the following contents:
- Taxpayers may be exempted from paying the late payment interest and be considered to apply Tax deferral in the force majeure events for up to 02 years from the tax payment deadline.
- Taxpayers that commit a tax offence in a force majeure will be exempted from paying the fine. The total fine exempted shall not exceed the loss of assets or goods.
- In some the force majeure cases, non-refundable input VAT on damage goods may be deducted and shall be deemed as deducted expenses when determining taxable income.
- Taxpayers that produce excise taxable goods and face difficulties caused by natural disasters or unexpected accidents are entitled to tax reduction.
- Taxpayers who face difficulties caused by natural disasters, fires, accidents, or severe diseases and affecting their tax payment ability may be considered for tax reduction corresponding to the extent of damage they suffer from but not exceeding payable tax amounts.
- A rent for the land or water surface shall be reduced by a corresponding rate if less than 40% of its yield is damaged by disaster or conflagration; exempted if 40% or more of its yield is damaged.
- Taxpayers shall be exempted tax payment in the force majeure events if the value of damage over 50% of the taxable price, be reduced if the value of damage accounts for between 20% and 50% of the taxable price.
- Taxpayers in the force majeure shall be considered for exemption from or reduction of payable severance tax for the lost volumes of natural resources.
Maybe you are interested in reading other updates: March 2021 (Part 2) | 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)