Our Vietnam Legal Update #184 would lead you on 03 legal issues:
I. The submission of proof of origin of goods applying safeguard measures
The General Department of Customs has issued Official Letter No. 4769/TCHQ-GSQL dated 08 October 2021 to opine on the proposal on the imposition of anti-dumping tax on imported galvanized steel products of Bluescope company (“Company”) with the following contents:
- If the Company submits a Certificate of Origin (the “C/O”) showing that the goods are manufactured in a specific country/territory other than China, Hong Kong, and South Korea, it will not apply the anti-dumping tax.
- The company failed to submit the C/O but submitting the proof of origin is inappropriate. Therefore, the customs authority has set the anti-dumping tax as in the case of not having C/O is appropriate.
- The Ministry of Industry and Trade shall stipulate the procedures and dossiers of inspection and application of anti-dumping tax.
- In case the Company requests to use self-certification documents of origin of goods from a country/territory that is not a member of the Free Trade Agreement that Vietnam has signed under the jurisdiction of the Ministry of Industry and Trade.
II. Guidance on VAT refund for investment projects
The General Department of Taxation has issued Official Letter No. 3765/TCT-CS dated 30 September 2021 to provide guidance on VAT refund for investment projects. The content is as follows:
The VAT of a business that has not been deducted shall not be refunded and instead be carried forward to the next period in the following cases:
- The investment project does not have adequate charter capital as registered; engages in conditional business lines while the corresponding conditions have not been fully satisfied as prescribed by the Law on Investment or the fulfillment of such conditions is not maintained throughout its operation;
- The project is a natural resource extraction project or mineral extraction project licensed from 01 July 2016 or a manufacturing project where the total value of natural resources or minerals plus energy costs makes up at least 51% of the product price.
III. Guidance on foreign contractor tax policy
On 12 October 2021, the Tax Department of Bac Giang province issued Official Letter No. 4782/CTBGI-TTHT to guide the foreign contractor tax policy. The content is as follows:
- In case the enterprise imports machinery from abroad (foreign contractor) in the form of DDU, and the delivery point is located within the territory of Vietnam, the income from the foreign contractor’s machinery supply activities is subject to foreign contractor tax.
- When the supply of machinery not associated with any service is carried out in Vietnam, the value of imported machinery is only subject to import VAT by the law.
- The rate of CIT calculated on taxable revenue from the provision of machinery and equipment is 1%.
Maybe you are interested in reading other Legal Update of BLawyers Vietnam: October 2021 (Part 3) | October 2021 (Part 2) | October 2021 (Part 1) 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)