Our Vietnam Legal Update #181 would lead you on 03 legal issues:
I. Tax policy for importing goods for processing but no manufacturing or processing facilities
On 20 September 2021, the General Department of Customs issued Official Letter No. 4528/TCHQ-TNXK to guide on tax policies for importing goods for processing but no manufacturing or processing facilities. The content of the guidance are as follows:
- Goods imported for processing export products are exempt from import tax.
- Before carrying out the import procedures for the first shipment of raw materials and supplies to process and produce exported goods, the organization/individual shall notify the manufacturing facility to the customs authority.
- In case an organization/individual does not have a manufacturing or processing facility, which results in not being able to notify the customs authority, it is considered as having not met the conditions for determining tax-exempt goods.
II. Guidance on the tax policy applied to transfer of profit abroad
Tax Department of Hai Phong City has issued Official Letter No. 2323/CTHHP-TTHT to guide on the transfer of profits abroad with the following contents:
- Enterprises that have a foreign investment (the “Enterprise”) must implement fully all financial obligations towards the Vietnam State by the laws related to the incomes that create profits for foreign investors to transfer abroad.
- The Enterprise must notify the tax authority which directly managing the Enterprise before transferring profits abroad. Notification must be made at least 07 working days in advance.
- When transferring profits abroad, the Enterprise must pay tax on the amount of money transferred abroad to investors.
III. Amending and supplementing a number of articles of the Government’s Decree No. 52/2013/ND-CP on e-commerce
On 25 September 2021, the Government issued Decree No 85/2021/ND-CP on amending and supplementing a number of articles of the Government’s Decree No. 52/2013/ND-CP on e-commerce with the main following contents:
- Supplementing the concept of e-commerce services. At the same time, it is clear that those who are not considered as traders/ organizations providing e-commerce services, specifically traders and organizations that only provide website design services and do not participate directly in e-commerce. engage in business, operate or coordinate activities on that website.
- Amending and supplementing the act of taking advantage of e-commerce activities to do business by the multi-level method but have not yet been granted a certificate of registration of multi-level sale activities, to the list of prohibited acts in e-commerce.
- Amending and supplementing the subject of e-commerce activities and the principles of e-commerce activities.
- Regulating about the information of goods and services that the traders/ organizations shall provide to their customers.
- Modifying and supplementing the operation forms of the e-commerce exchange. Specifically include: (1) Website allowing participants to open booths to display and introduce goods or services; (2) Website allows participants to open accounts to perform the process of entering into contracts with customers; (3) The website has a buying and selling section, which allows participants to post information on buying and selling goods and services; and (4) The social network with one of the forms of above activities and the participants directly or indirectly pay fees for the performance of such activities.
- Amending regulations on responsibilities of traders and organizations providing e-commerce exchange services.
- Annulling the regulation that traders and organizations providing online auction services are not allowed to organize online auctions if they do not register for the business of auction services.
- Adding content on the management of e-commerce activities.
Maybe you are interested in reading other Legal Update of BLawyers Vietnam: September 2021 (Part 4) | September 2021 (Part 3) | September 2021 (Part 2) | September 2021 (Part 1) | August 2021 (Part 4) | August 2021 (Part 3) | August 2021 (Part 2) | August 2021 (Part 1) | July 2021 (Part 5) | July 2021 (Part 4) | July 2021 (Part 3)