Legal update on November 2020 (Part 2)

Legal updates of BLawyers Vietnam

Our Vietnam legal update #137 would lead you on 03 legal issues:

I. Tax administration for enterprises having related party transactions (“RPT”)

On 05 November 2020, Government issued Decree No. 132/2020/ND-CP regulating tax administration for enterprises having RPT. Such Decree will take effect from 20 December 2020 and apply for the CIT period of 2020 with the following main contents:

  • Related parties are parties having relation in one of following cases:
    1. One party involves directly or indirectly in management, control, capital contribution, or investment in the other party; or
    2. Parties are directly or indirectly managed, controlled, contributed capital, or invested by the other party.
  • Trade database is one of the databases used in declaration, determination and management price of RPT.
  • Some new provisions on Country by Country Report (“CbCR”)
    1. An ultimate parent company in Vietnam having an annual global consolidated revenue of VND18,000 billion and more shall be responsible for preparing a CbCR and submitting it to the Vietnamese tax authority within 12 months from the end of the finance year.
    2. Enterprise has an overseas ultimate parent company may be exempt from submitting the CbCR if the Vietnamese tax authority can receive the CbCR through automatic information exchange under international agreements.
  • The Decree regulates the cases of exemption from declaring, preparing dossier of price determination of RPT.

II. Handling of incorrect e-invoices

On 22 October 2020, Dong Nai Tax Department issued the Official Letter No.10411/CT-TTHT guiding the handling of incorrect e-invoices as follows:

  • If the issued e-invoice contains errors but not yet sent to the buyer, the seller shall:
    1. Cancel the issued incorrect e-invoice; and
    2. Issue new e-invoice to send to buyer.
  • The cancelled e-invoice must be recorded for later check of competent authorities.

III. List of imported goods not to be stored in bonded warehouses

On 15 October 2020, the General Department of Customs issued Official Letter No. 6639/TCHQ-GSQL on the implementation of Decision No. 27/2020/QD-TTg of Prime Minister on list of imports banned from storage in bonded warehouses. Accordingly, the following goods are not allowed to be stored in bonded warehouses:

  • Goods of which a foreign owner has not signed a sale contract with the enterprise in Vietnam or pending to be exported to a third country; or
  • On-hold imported goods of Vietnamese enterprises to be brought into the domestic market or to be exported to a third country, which are in the following list of goods:
    1. Cigarettes containing tobaccos and being labelled 555 or Esse, but not originated in Vietnam; or
    2. Whisky with capacity of more than 50ml not originated in Vietnam.

For down-loading: 

Legal Update #137 (EN version)

Legal Update #137 (VN version)

See other Vietnam legal update: November 2020 (P1) | October 2020 |September 2020 | August 2020 | July 2020 | June 2020 | May 2020 | April 2020 

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