Decree No. 12/2015/ND-CP dated February 12, 2015 of the Government detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws and amending and supplementing a number of articles of the decrees on taxes

DECREE

Detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws and amending and supplementing a number of articles of the decrees on taxes^[1]

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 29, 2006 Law on Tax Administration and the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Law on Tax Administration;

Pursuant to the November 21, 2007 Law on Personal Income Tax and the November 22, 2012 Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax;

Pursuant to the June 3, 2008 Law on Value-Added Tax and the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Value Added Tax;

Pursuant to the June 3, 2008 Law on Enterprise Income Tax and the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Enterprise Income Tax;

Pursuant to the November 25, 2009 Law on Royalties;

Pursuant to the November 26, 2014 Law Amending and Supplementing a Number of Articles of the Tax Laws;  

At the proposal of the Minister of Finance,

The Government promulgates the Decree to detail the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws, and to amend and supplement a number of articles of the decree on taxes.

Article 1. To amend and supplement a number of articles of Decree No. 218/2013/ND-CP of December 26, 2013, detailing and guiding the implementation of a number of the Law on Enterprise Income Tax, and Article 1 of Decree No. 91/2014/ND-CP of October 1, 2014, amending and supplementing a number of articles of the Decrees on taxes as follows:

1. To amend and supplement Clause 3, Article 3 as follows:

“3. Taxable incomes generated in Vietnam by foreign enterprises defined at Points c and d, Clause 2, Article 2 of the Law on Enterprise Income Tax are incomes originating in Vietnam received from the provision of services, supply and distribution of goods, provision of loans to and copyright royalties paid by Vietnamese organizations and individuals or foreign organizations and individuals doing business in Vietnam, or from the transfer of capital, investment projects, the capital contribution right, the right to participate in investment projects, the rights to explore, exploit and process mineral resources in Vietnam, regardless of places of business operation.

Taxable incomes referred to in this Clause exclude incomes from the provision of services outside the Vietnamese territory, such as overseas repair of vehicles, machinery or equipment; overseas advertising, marketing and investment and trade promotion; overseas goods or service sale brokerage; overseas training; and international post and telecommunications service charges divided to foreign parties.

The Ministry of Finance shall specify taxable incomes referred to in this Clause.”

2. To amend and supplement Clause 1, Article 4 as follows:

“1. Incomes from cultivation, husbandry, farming, rearing or processing of agricultural or aquatic products or salt production of cooperatives; incomes of cooperatives operating in the sector of agriculture, forestry, fisheries or salt production in localities with difficult socio-economic conditions or with particularly difficult socio-economic conditions; incomes of enterprises from cultivation, husbandry, farming, rearing or processing of agricultural or aquatic products in localities with particularly difficult socio-economic conditions; incomes from marine fishing.

Cooperatives operating in the sector of agriculture, forestry, fisheries or salt production specified in this Clause and Clause 2, Article 15 of this Decree are those achieving the ratio of products or services provided to their members being individuals, households or legal persons engaged in agriculture, forestry, fisheries or salt production in accordance with the Law on Cooperatives and guiding documents.

Incomes from the processing of agricultural or aquatic products eligible for the tax incentives provided in this Decree must fully satisfy the following conditions:

- The ratio of value of raw materials being agricultural or aquatic products to production cost of a goods or product is at least 30%.

- Products and goods processed from agricultural or aquatic products are not liable to excise tax, except cases decided by the Prime Minister at the proposal of the Ministry of Finance.”

3. To supplement Clause 9, Article 4 as follows:

“9. Incomes from the performance of state-assigned tasks of the Development Bank of Vietnam regarding development investment credit and export credit; incomes from the Social Policy Bank’s extension of credit to the poor and other policy beneficiaries; incomes of the single-member limited liability company managing assets of Vietnamese credit institutions (VAMC); incomes from revenue-earning activities in the performance of state-assigned tasks of the state financial funds: the Vietnam Social Security Fund, the Deposit Insurance, the Health Insurance Fund, the Vocational Training Support Fund, the Overseas Employment Support Fund under the Ministry of Labor, War Invalids and Social Affairs, the Supporting Fund for Farmers, the Vietnam Legal Aid Fund, the Vietnam Public-Utility Telecommunications Service Fund, local development investment funds, the Vietnam Environmental Protection Fund, the Credit Guarantee Fund for Small- and Medium-Sized Enterprises, the Cooperative Development Support Fund, the Assistance Fund for Poor Women, the Fund for Assisting Overseas Vietnamese Citizens and Legal Entities, the Housing Development Fund, the Fund for Development of Small- and Medium-Sized Enterprises, the National Foundation for Science and Technology Development, the National Technology Innovation Fund, science and technology development funds of ministries, sectors and localities which are established under the Law on Science and Technology, and the Support Fund for Self-Employment of Poor Laborers; incomes from the performance of state-assigned tasks of the Land Development Fund and other not-for-profit funds of the State which are established under decisions of the Government or the Prime Minister and operate in accordance with law.”

4. To add Clause 12 to Article 4 as follows:

“12. Incomes of bailiff offices operating on a pilot basis in accordance with law.”

5. To supplement Point a, Clause 1, Article 9 as follows:

“a/ They are actually paid for production and business activities of enterprises, including the following expenses:

- Expense for the performance of the national defense and security education task, drills and operation of militia and self-defense forces and other national defense and security tasks in accordance with law; expense for operations of Party organizations and socio-political organizations in enterprises;

- Expense for vocational education and training for employees in accordance with law;

- Expenses actually paid for HIV/AIDS prevention and control at workplaces of enterprises, including expense for training HIV/AIDS prevention and control personnel of enterprises, expense for anti-HIV/AIDS communication among employees of enterprises, charges for counseling, examination and HIV test, and expense for HIV-infected employees of enterprises.”

6. To amend and supplement Point e, Clause 2, Article 9 as follows:

“e/ Loan interests paid corresponding to insufficient charter capital amount to be contributed according to the schedule indicated in the enterprise’s charter; loan interests in the investment process recorded as asset value; interests on loans for the performance of oil and gas prospecting, exploration and exploitation contracts;

In case an enterprise whose charter capital has been fully contributed pays in the course of business operation interests on loans borrowed for investment in other enterprises, such interests may be accounted as a deductible expense upon determination of taxable income.”

7. To amend Point o, Clause 2, Article 9 as follows:

“o/ Expense in excess of the level of VND 1 million/month/person for setting up the voluntary pension fund and buying voluntary retirement insurance for employees; expense in excess of the level prescribed by the laws on social insurance and health insurance for setting up funds of social security nature (social insurance and additional retirement insurance), health insurance fund and unemployment insurance fund for employees.

Deductions for contribution to the voluntary pension fund and funds of social security nature or for buying voluntary retirement insurance for employees which may be accounted as deductible expenses under this Clause must have the conditions for receipt of and level of insurance sums specified in any of the following dossiers: labor contracts, collective labor agreements, financial regulations of companies, corporations or groups; reward regulations set out by chairpersons of Boards of Directors, directors general or directors in accordance with financial regulations of companies or corporations;”

8. To amend and supplement Clause 1, Article 11 as follows:

“1. An enterprise income tax amount payable in a tax period is equal to taxed income multiplied by (x) the tax rate.

Vietnamese enterprises that make offshore investment in countries that have concluded double taxation avoidance agreements with Vietnam and remit to Vietnam their incomes after paying enterprise income tax there shall comply with such agreements; in case of enterprises making offshore investment in and remitting incomes from countries that have not yet concluded double taxation avoidance agreements with Vietnam, if enterprise income tax rates in such countries are lower than that prescribed in Vietnam’s Enterprise Income Tax Law, the enterprise income tax difference shall be collected.”

9. To amend and supplement Point dd, Clause 1, Article 15 as follows:

“dd/ Incomes earned by enterprises from the implementation of new investment projects in the field of production (except projects on production of goods liable to excise tax and mineral mining projects) which satisfy either of the following criteria:

- Being capitalized at least VND 6 (six) trillion, having their capital disbursed within 3 years from the date of grant of initial investment licenses in accordance with the investment law, and earning a total turnover of at least VND 10 (ten) trillion/year after no later than 3 years counting from the first year of earning turnover;

- Being capitalized at least VND 6 (six) trillion, having their capital disbursed within 3 years from the date of grant of initial investment licenses in accordance with the investment law, and regularly employing more than 3,000 laborers after no later than 3 years counting from the first year of earning turnover;

The number of regularly employed laborers shall be determined in accordance with the labor law.”

10. To supplement Point e, Clause 1, Article 15 as follows:

“e/ Incomes earned by enterprises from the implementation of investment projects in the field of production, except projects on production of goods liable to excise tax and mineral mining projects capitalized at least VND 12 (twelve) trillion, using technologies which have been appraised under the Law on High Technology and the Law on Science and Technology, and having their registered total capital disbursed within 5 years counting from the date of receiving investment licenses in accordance with the investment law.”

11. To add Point g to Clause 1, Article 15 as follows:

“g/ Incomes earned by enterprises from the implementation of new investment projects to produce products on the list of products of support industries prioritized for development which satisfy either of the following criteria:

- They are products of support industries for high technologies specified in the Law on High Technology;

- They are products of support industries for production of products of textile and garment; leather and footwear; electronics and informatics; automobile manufacture and assembly; and mechanical engineering, which cannot be produced at home by January 1, 2015, or can be produced at home but must satisfy the technical standards of the European Union (EU) or the equivalent.

The list of products of support industries prioritized for development and eligible for tax incentives referred to in this Clause must comply with regulations of the Government.”

12. To amend and supplement Point a, Clause 2, Article 15 as follows:

“a/ Incomes earned by enterprises from their socialized education-training, vocational training, health care, cultural, sports, environmental protection and judicial assessment activities.

The list of types, size criteria and standards of enterprises engaged in the socialized fields mentioned in this Clause shall be issued by the Prime Minister.”

13. To amend and supplement Point dd, Clause 2, Article 15 as follows:

“dd/ Incomes earned by enterprises from planting, tending and protection of forests; cultivation, husbandry, farming or rearing of agricultural or aquatic products in localities with difficult socio-economic conditions; rearing or planting of forest products in localities with difficult socio-economic conditions; production, propagation and cross-breeding of plant varieties and animal breeds; production, exploitation and refinement of salt, except salt production specified in Clause 1, Article 4 of this Decree; investment in post-harvest preservation of agricultural products or preservation of agricultural and aquatic products and food, including investment in direct preservation or preservation for lease;”

14. To supplement Clause 3a, Article 15 as follows:

“3a. The tax rate of 15% is applicable to incomes earned by cultivation, husbandry or processing enterprises in the field of agriculture or fisheries outside localities with difficult socio-economic conditions or particularly difficult socio-economic conditions.”

15. To supplement Clause 5a, Article 15 as follows:

“5a. For projects specified at Point e, Clause 1 of this Article, the duration of application of the preferential tax rate may be prolonged but must not exceed 15 years provided one of the following criteria is satisfied:

- Turning out products of global competitiveness and generating a turnover of over VND 20 trillion/year after no later than 5 years counting from the time their investment projects generate turnover;

- Regularly employing over 6,000 laborers as determined in accordance with the labor law;

- Investment projects in the field of econo-technical infrastructure, including: investment in developing water plants, power plants, water supply and drainage systems, bridges, roads, railways, airports, seaports, river ports, airfields, railway stations, new energies, clean energies, energy-efficient industries and petrochemical projects.

The Prime Minister shall decide to prolong the duration of application of preferential tax rates prescribed at this Point at the request of the Minister of Finance.”

16. To amend and supplement Point a, Clause 1, Article 16 as follows:

“a/ Incomes earned by enterprises specified in Clause 1, Article 15 of this Decree.”

17. To supplement Point dd, Clause 2, Article 19 as follows:

“dd/ Incomes earned by enterprises from investment projects in the field of commercial business or service provision outside economic zones, hi-tech parks, industrial parks and localities eligible for tax incentives are ineligible for enterprise income tax incentives provided in Clauses 1 and 4, Article 4, and Articles 15 and 16, of this Decree.”

18. To amend and supplement Clause 5, Article 19 as follows:

“5. New investment projects (including also public notary offices established in localities with difficult socio-economic conditions or particularly difficult socio-economic conditions) eligible for the tax incentives specified in Clauses 1 and 3, Article 15, and Clauses 1, 2 and 3, Article 16, of this Decree are investment projects implemented for the first time or investment projects independent from operating projects, excluding:

a/ Investment projects formed as a result of the division, split, merger, consolidation or transformation of enterprises in accordance with law, except the case specified in Clause 6, Article 19 of this Decree;

b/ Investment projects formed as a result of the owner change (including cases of implementation of new investment projects with assets, business locations and business lines of former enterprises for continued production or business activities);

New investment projects eligible for the tax incentives specified in Articles 15 and 16 of this Decree must have investment licenses or investment certificates granted by competent state agencies or be permitted to make investment in accordance with the investment law.”

19. To add Clause 6 to Article 19 as follows:

“6. Enterprises engaged in the socialized fields, established as a result of transformation of enterprises in accordance with law and satisfying the criteria for socialized establishments under decisions of the Prime Minister are entitled to enterprise income tax incentives as new investment projects from the date of transformation if their predecessors have not yet enjoyed such incentives for eligible fields.”

20. To amend and supplement Clause 2, Article 20 as follows:

“2. Enterprises having investment projects are eligible for enterprise income tax incentives in accordance with the law on enterprise income tax effective at the time of grant of licenses or investment certificates in accordance with the investment law. In case there is a change in the law on enterprise income tax and enterprises still satisfy the conditions for tax incentives prescribed by the revised law, from the effective date of the revised law they may choose between preferential tax rates and tax exemption and reduction durations in accordance with the law effective at the time of investment licensing and those under the revised law for the remaining duration.

a/ Enterprises having investment projects which, by the end of the 2013 tax period, remain eligible for the enterprise income tax incentives, including also investment projects for which investment licenses, investment certificates or enterprise registration certificates have been granted (for domestic investment projects associated with the establishment of new enterprises, capitalized at under VND 15 billion and outside the conditional investment fields), and have not yet enjoyed the incentives under the legal documents on enterprise income tax before this Decree takes effect may continue to enjoy the incentives for the remaining duration under such documents. In case they are currently enjoying the incentives for expanded investment projects or new investment projects, they may continue to enjoy such incentives. In case the incentives provided in this Decree are higher than those they are currently enjoying (including enterprises that are eligible but have not yet enjoyed the incentives), enterprises may choose to enjoy the incentives provided in this Decree for the remaining duration;

b/ Enterprises having expanded investment projects for which investment licenses have been granted by competent agencies or making investment during 2009-2013, and by the end of the 2014 tax period satisfying the conditions for tax incentives provided in Law No. 32/2013/QH13, may enjoy the tax incentives for expanded investment under this Decree for the remaining duration as from the 2015 tax period;

c/ Enterprises that implemented investment projects in industrial parks during 2009-2013 may enjoy the tax incentives provided in Law No. 32/2013/QH13 for the remaining duration as from the 2015 tax period;

d/ Enterprises having investment projects in areas which are not yet eligible for the tax incentives (industrial parks, economic zones, hi-tech parks and other preferential localities) before January 1, 2015, and now become eligible for the tax incentives under this Decree, are entitled to the tax incentives for the remaining duration as from the 2015 tax period;

dd/ Enterprises having investment projects in areas which become eligible for the tax incentives after January 1, 2015, are entitled to the tax incentives for the remaining duration from the date their areas become eligible;

e/ By the end of the 2015 tax period, enterprises having investment projects eligible for the preferential tax rate of 20% provided in Clause 3, Article 15 of this Decree will change to enjoy the tax rate of 17% for the remaining duration from January 1, 2016;

The Ministry of Finance shall guide the determination of the remaining duration for enjoying tax incentives since the implementation of the provisions on tax incentives in the legal documents on foreign investment in Vietnam, domestic investment promotion and enterprise income tax issued before the effective date of this Decree.”

Article 2. To amend and supplement a number of articles of Decree No. 65/2013/ND-CP of June 27, 2013, detailing a number of the Law on Personal Income Tax and Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax, and Article 3 of Decree No. 91/2014/ND-CP of October 1, 2014, amending and supplementing a number of articles of the Decrees on taxes as follows:

1. To amend and supplement Clause 1, Article 3 as follows:

“1. Incomes from business activities, including:

a/ Incomes from goods production or trading or service provision in accordance with law. Particularly for incomes from agricultural production, forestry, salt production, aquaculture and fishing activities, personal income tax shall be imposed only on individuals who are ineligible for tax exemption specified in Clause 5, Article 4 of this Decree;

b/ Incomes from independent professional practice of individuals possessing practice licenses or certificates in accordance with law;

Incomes from business activities specified in this Clause exclude incomes of businesspersons who earn VND 100 million/year or under.”

2. To amend Point dd, Clause 2, Article 3 as follows:

“dd/ Other monetary or non-monetary benefits other than salaries and wages paid by employers for taxpayers in any form:

- House rentals, charges for electricity, water and associated services (if any), excluding benefits in houses, electricity, water and associated services (if any), for houses built and provided by employers to their employees in industrial parks or houses built and provided by employers in economic zones and localities with difficult socio-economic conditions or particularly difficult socio-economic conditions to their employees;

- Accumulated premiums of life insurance and other optional insurance, accumulated monetary contributions to the voluntary pension fund paid or contributed by employers for their employees;

- Membership fees and charges for other services such as healthcare, recreation, sports, entertainment and beauty care, which are paid for individuals upon their request;

- Other benefits as provided by law.”

3. To amend and supplement Point b, Clause 2, Article 3 as follows:

“b/ Allowances and subsidies other than:

- Monthly preferential allowances and subsidies and lump-sum allowances paid under the law on preferential treatment of persons with meritorious services;

- Monthly and lump-sum allowances for persons participating in resistance wars or national defense or performing international duties, or youth volunteers who have fulfilled their duties;

- National defense or security allowances; allowances for the armed forces;

- Hazard or danger allowances for persons working in sectors, occupations or jobs at places affected by hazardous or dangerous elements;

- Incentive allowances for persons working in particular sectors or regions;

- Allowances for unexpected difficulties, occupational accident or disease allowances; lump-sum maternity or child adoption allowances; working capacity loss allowances, lump-sum retirement allowances, monthly survivor allowances, severance and job loss allowances, unemployment allowance and other allowances provided in the Labor Code and the Social Insurance Law;

- Allowances for social security beneficiaries as prescribed by law;

- Service allowances for high-ranking leaders;

- Lump-sum allowances for persons moving to work in areas with particularly difficult socio-economic conditions, lump-sum supports for cadres and civil servants performing sea and island sovereignty tasks as prescribed by law. Lump-sum expatriation allowances for foreigners residing in Vietnam, Vietnamese working abroad and overseas Vietnamese working in Vietnam;

- Allowances for village health workers;

- Particular occupational allowances;

Allowances and subsidies not accounted as taxable incomes specified at this Point must be those determined by competent state agencies.”

4. To amend and supplement Clause 3, Article 3 as follows:

“3. Incomes from capital investment, including:

a/ Loan interests;

b/ Dividends;

c/ Incomes from capital investment in other forms, including also capital contributions in kind, reputation, land use rights, inventions; except incomes from government bond interests and after-tax incomes of private enterprises and single-member limited liability companies owned by individuals.”

 5. To amend Point c, Clause 6, Article 3 as follows:

“c/ Bet winnings.”

6. To add Clauses 15 and 16 to Article 4 as follows:

“15. Incomes received from salaries or wages of Vietnamese crewmembers working for foreign shipping companies or Vietnamese shipping companies engaged in international shipping.

16. Incomes received by individuals who are ship owners, have the right to use ships or work on board ships, from the provision of goods or services to directly serve offshore fishing activities.”

7. To amend and supplement Article 6 as follows:

“Article 6. Tax on incomes from business activities

1. Businesspersons shall pay personal income tax in percentage (%) of turnover corresponding to each production or business sector or line. A businessperson engaged in many fields, sectors or lines shall make tax declaration and calculation based on the tax rate applicable to each business sector or line. In case a businessperson fails to make declaration or make declaration inconsistent with practical business activities, the tax agency shall assess his/her tax in accordance with the law on tax administration. 

2. Taxed turnover from business activities is the whole goods sales, processing remuneration, commission or payment for goods or service provision earned in a tax period. It is specified in some cases as follows:

a/ Taxed turnover from goods sold on installments shall be determined based on  goods selling prices to be paid in lump sum, exclusive of deferred payment interests;

b/ Taxed turnover from goods or services used for exchange or donation shall be determined based on selling prices of products, goods or services of the same or equivalent type at the time of exchange or donation;

c/ Taxed turnover from goods processing is money amounts received for processing activities, including also remuneration, expenses for fuels, power, auxiliary materials and other expenses for the processing;

d/ Taxed turnover from asset lease is the rental amount paid by the lessee in each period under the lease contract. In case the lessee pays the rental in advance for many years, taxed turnover shall be determined based on turnover paid in lump sum;

dd/ Taxed turnover in other cases shall be guided by the Ministry of Finance.

3. Determination of taxed turnover from business activities:

a/ Taxed turnover of a businessperson is the presumptive turnover level kept unchanged for a year. If, through data verification, examination or inspection, there are  grounds to believe that the taxed turnover has changed by at least 50% against the presumptive turnover level, the tax agency shall re-determine the presumptive turnover level in accordance with the law on tax administration for application in the remaining time of the tax year;

b/ Taxed turnover of a businessperson shall be determined in accordance with the law on tax administration based on investigation and survey data and results of examination and inspection of such businessperson and expenses actually paid to generate the turnover;

The Ministry of Finance shall develop a risk management database for businesspersons suiting practical conditions and meeting management requirements.

4. Tax rate for incomes from business activities in each production or business sector or line is as follows:

a/ Goods distribution and supply: 0.5%;

b/ Services and construction without contracted provision of materials: 2%;

Particularly for asset lease, insurance agency, lottery agency and multi-level marketing: 5%;

c/ Production, transportation and services associated with goods or construction with contracted provision of materials: 1.5%;

d/ Other business activities: 1%.

5. Businesspersons who regularly employ at least 10 persons shall establish enterprises in accordance with the Law on Enterprises, keep invoices and documents in accordance with the accounting law, and make tax declaration and payment in accordance with the law on enterprise income tax. In case they have not yet established enterprises, tax agencies shall assess their tax in accordance with the law on tax administration.”

8. To amend and supplement Article 11 as follows:

“Article 11. Tax on incomes from salaries and wages

1. Taxable incomes from salaries and wages shall be determined under Clause 2, Article 3 of this Decree.

2. The time of determination of a taxable income from salary or wage is the time when an employer pays salary or wage to a taxpayer or when a taxpayer receives his/her income.

In case employers purchase for their employees life insurance (other than voluntary pension insurance) or other optional insurance with accumulated premiums from insurance companies established and operating in accordance with Vietnamese law, employees are not required to account insurance premiums as a taxable income at the time of insurance purchase. When insurance contracts become due, insurance companies shall withhold tax at the rate of 10% of accumulated premiums paid by employers for their employees since July 1, 2013.

In case employers purchase for their employees life insurance (other than voluntary pension insurance) or other optional insurance with accumulated premiums from insurance companies not established and operating in accordance with Vietnamese law but licensed to sell insurance in Vietnam, employers shall withhold tax equal to 10% of insurance premiums paid or contributed by employers before paying incomes to their employees.

3. Taxed incomes from salaries and wages are taxable incomes minus (-) the following reductions:

a/ Social insurance, health insurance, unemployment insurance and professional liability insurance premiums for sectors and occupations in which employees must participate in compulsory insurance, contributions to voluntary pension funds and amounts for purchase of voluntary pension insurance;

The maximum amount for contribution to a voluntary pension fund or purchase of voluntary pension insurance to be deducted from income upon determination of taxed income prescribed in this Clause is VND 1 million/month, including premiums paid by the employer for employees and those paid by employees themselves (if any);

Individuals who are residents in Vietnam but work overseas, earn incomes from business activities, salaries or wages overseas and have paid compulsory insurance premiums under regulations of countries where these premiums are paid for social insurance, health insurance, unemployment insurance and professional liability insurance for a number of sectors and occupations subject to compulsory insurance may have such insurance premiums deducted from their taxable incomes upon determination of taxed incomes from business activities, salaries or wages.

b/ Family circumstance-based reductions prescribed in Article 12 of this Decree;

c/ Contributions to charity funds, humanitarian funds and learning promotion funds prescribed in Article 13 of this Decree.”

9. To amend and supplement Article 16 as follows:

“Article 16. Taxed incomes from securities transfer

1. A taxed income from securities transfer is the value of each transfer.

2. The selling price of securities shall be determined as follows:

a/ The actual transfer price at the Stock Exchange, for securities of public companies traded at the Stock Exchange;

b/ The transfer price stated in the transfer contract or actual transfer price or price recorded in accounting books of the unit whose securities are transferred at the time of making the latest financial statement in accordance with the accounting law effective before the time of transfer, for securities other than those specified at Point a of this Clause.”

10. To amend and supplement Clause 2, Article 17 as follows:

“2. The tax rate applicable to incomes from securities transfer is 0.1% of the securities selling price of each transfer.”

11. To amend and supplement Article 18 as follows:

“Article 18. Taxed incomes from real estate transfer

1. Taxed income is the real estate transfer price of each transfer.

2. Real estate transfer price is that stated in a transfer contract at the time of transfer.

a/ In case the transfer contract does not indicate any land price or indicates a land price lower than that prescribed by the provincial-level People’s Committee, the land transfer price is that prescribed by the provincial-level People’s Committee at the time of transfer in accordance with the land law;

b/ In case of transfer of a house attached to land, the value of the house, infrastructure facilities and architectures attached to land shall be determined based on the price for house registration fee calculation prescribed by the provincial-level People’s Committee. In case the provincial-level People’s Committee does not prescribe the price for house registration fee calculation, regulations of the Ministry of Construction on house classification, capital construction standards and norms and actual residual value of works on land shall be based on;

The value of a future construction work shall be determined based on the ratio of capital contribution to the total contract value multiplied (x) by the price for construction work registration fee calculation prescribed by the provincial-level People’s Committee. In case the provincial-level People’s Committee has not yet prescribed the unit price, the work construction investment ratio announced by the Ministry of Construction and applicable at the time of transfer shall be used;

c/ In case of sublease with a sublease unit rate stated in the sublease contract lower than that prescribed by the provincial-level People’s Committee at the time of sublease, the sublease rate shall be determined according to the lease rate tariff set by the provincial-level People’s Committee.

3. The time of taxation on real estate transfer shall be determined as follows:

a/ In case the transfer contract contains no agreement that the purchaser pays tax for the seller, the time of taxation is the time when the transfer contract takes effect in accordance with law;

b/ In case the transfer contract contains an agreement that the purchaser pays tax for the seller, the time of taxation is the time of carrying out procedures for registration of real estate ownership and use rights.” 

12. To amend and supplement Article 22 as follows:

“Article 22. Tax rates

The tax rate applicable to incomes from real estate transfer is 2% of the transfer value.”

13. To amend and supplement Point d, Clause 2, Article 23 as follows:

“d/ For other assets: Taxed incomes shall be determined based on the prices of the assets or assets of the same kind (if any) which are used for registration fee calculation. In case an individual receives inheritances or gifts being imported assets and has to pay import-related taxes, the value of assets used for taxation is the price used for registration fee calculation at the time of asset ownership registration, except the tax amounts already paid at the stage of import.”

14. To amend and supplement Article 26 as follows:

“Article 26. Taxed incomes from won prizes and the time of determination of taxed incomes

Taxed incomes from won prizes and the time of determination of such incomes must comply with Article 15 of the Law on Personal Income Tax. Prize-giving organizations shall withhold personal income tax on prize winners before giving the prizes.”

15. To amend and supplement Clause 5, Article 30 as follows:

“5. Tax finalization declaration

Income payers, and resident individuals earning incomes from salaries or wages shall make annual tax finalization declaration, except the following cases:

a/ Individuals have payable tax amounts smaller than the quarterly temporarily paid tax amounts and do not request tax refund or tax clearance against the subsequent period;

b/ Individuals have incomes earned at other units in addition to incomes from salaries or wages earned regularly at a unit with an average monthly amount of such additional incomes not exceeding VND 10 million in a year for which the income payers have withheld personal income tax at source, and these individuals do not want to make tax finalization;

c/ Individuals have incomes used to buy life insurance or another non-compulsory insurance with accumulated premiums while employers or insurance businesses have withheld a personal income tax equal to 10% of insurance premium amounts paid by employees in accordance with Article 11 of this Decree.”

16. To amend and supplement Article 31 as follows:

“Article 31. Responsibilities of income payers, organizations where individuals transfer capital, securities depository and issuing organizations and Vietnamese organizations signing contracts to buy services of foreign contractors not operating in Vietnam, for tax withholding and declaration and information disclosure

1. When paying incomes to individuals, the payers shall withhold personal income tax as follows:

a/ For incomes from salaries or wages paid to individuals who sign labor contracts of 3 months or more, the income payer shall withhold tax of each individual based on his/her monthly taxed income and the partially progressive tariff; temporarily calculate family circumstance-based deductions according to the taxpayer’s written declaration in order to determine the tax amount payable in the month, and withhold tax, and shall not be held responsible before law for such temporary calculation of family circumstance-based deductions. The income payer shall declare and pay tax to the state budget in accordance with Clauses 1 and 2, Article 30 of this Decree and the law on tax administration;

b/ For other wages and amounts paid to individuals who do not sign labor contracts or who sign labor contracts of under 3 months, the income payer shall temporarily withhold tax at the rate of 10% of the income paid to an individual. Individuals having incomes subject to tax temporary-withholding prescribed in this Clause are not required to make monthly tax declaration;

The Ministry of Finance shall specify the income level used as a basis for tax withholding or temporary withholding at the rate prescribed at this Point.

c/ Before paying insurance benefits or incomes to individuals, insurance businesses or employers shall withhold personal income tax in accordance with Article 11 of this Decree in case employers buy life insurance or another non-compulsory insurance with accumulated premiums for individuals;

d/ Before paying incomes to individuals being their lottery agents, insurance agents or multi-level marketing agents, lottery companies, insurance businesses and multi-level marketing businesses shall withhold personal income tax if the commission level for an individual exceeds VND 100 million per year;

dd/ Enterprises or economic organizations that rent houses or assets of individuals with a total rental exceeding VND 100 million per year for an individual shall withhold tax at the rate of 5% of the rental before paying such rental to the individual if it is agreed in the lease contract that the lessee pays personal income tax, and shall pay tax to the state budget.

2. Securities companies or commercial banks where individuals deposit securities and fund management companies shall withhold tax for securities transfer at the rate of 0.1% of the securities selling price upon each transfer.

3. Before changing the list of capital contributors or list of shareholders, enterprises where individuals have their capital amounts transferred shall request the individuals to provide documents proving their fulfillment of tax liability for the transferred capital amounts. Enterprises that change the list of capital contributors or list of shareholders in case of transfer of capital without documents proving the capital transferors’ fulfillment of tax liability shall pay tax for these transferors.

4. Organizations that are established and operate in accordance with Vietnamese law (below referred to as Vietnamese parties) and sign contracts to buy services of foreign contractors signing labor contracts with foreign workers in Vietnam shall notify such foreign contractors of the obligation of foreign workers to pay personal income tax and the responsibility to provide information on foreign workers, including the list of foreign workers, their citizenships, passport numbers, working duration, jobs and incomes, to the Vietnamese parties for forwarding to tax agencies at least 7 days before the foreign workers start working in Vietnam.”

Article 3. To amend and supplement a number of articles of Decree No. 209/2013/ND-CP of December 18, 2003, detailing and guiding a number of articles of the Law on Value-Added Tax, and Article 2 of Decree No. 91/2014/ND-CP of October 1, 2014, amending and supplementing a number of articles of the decrees on taxes, as follows:

1. To add the following Clauses 1b and 1c to Article 3:

“1b. Fertilizers; and feeds for cattle, poultry, aquatic animals and other domestic animals, including processed or unprocessed products such as rice bran and oil cakes of all kinds, fish meal, bone meal, shrimp meal, feeds of other kinds, and additives of animal feeds (such as premix, active substances and carriers);

The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, providing guidance on non-taxable feeds for cattle, poultry, aquatic animals and other domestic animals, and additives of animal feeds prescribed in this Clause.

1c. Offshore fishing ships; and specialized machinery and equipment for agricultural production, including plough machines; harrowing machines; mills; row-making machines; stump grinders; land-leveling equipment; sowing machines; rice seedling-transplanting machines; sugarcane-planting machines; machines for making rice seedling carpets; cultivators, furrow-making machines and fertilizer spreaders; pesticide sprayers; rice, maize, sugarcane, coffee and cotton harvesters; tuber, fruit and root harvesters; tea tree-pruning and tea leaf-plucking machines; rice threshers; maize husking machines and maize separators; soybean threshers; groundnut-husking machines; coffee bean-husking machines; coffee and wet rice processors; dryers of agricultural products (rice, maize, coffee, pepper, cashew nut, etc.) and aquatic products; sugarcane, rice and straw collectors; poultry egg-hatching machines; grass harvesters and straw and grass-baling machines; and milking machines, and other specialized machines;

The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, providing guidance on other non-taxable specialized machinery for agricultural production prescribed in this Clause.”

2. To amend and supplement Point a, Clause 2, Article 3 as follows:

“a/ Credit provision services include:

- Loan provision;

- Discount and rediscount of negotiable instruments and other valuable papers;

- Guarantee;

- Financial leasing;

- Issuance of credit cards;

- Domestic factoring and international factoring;

- Sale of loan collateral assets, including the case in which the borrowers sell loan collateral assets as authorized by the lenders for payment of secured loans. Added-value invoices are not required in case persons having collateral assets are unable to pay debts and have to transfer the assets to credit institutions for handling in accordance with law;

- Provision of credit information in accordance with the Law on the State Bank of Vietnam;

- Other forms of credit provision as prescribed by law.”

3. To supplement Point a, Clause 3, Article 4 as follows:

“a/ The land price to be deducted for value-added tax calculation is specified as follows:

- In case of land allocation by the State for investment in infrastructure to build houses for sale, the land price to be deducted for value-added tax calculation is inclusive of the land use levy payable to the state budget (exclusive of the exempted or reduced land use levy) and expenses for compensation and ground clearance as prescribed by law;

- In case of auctioning land use rights, the land price to be deducted for value-added tax calculation is the auction-winning land price;

- In case of renting land to build infrastructure or build houses for sale, the land price to be deducted for value-added tax calculation is inclusive of the land rental payable to the state budget (exclusive of the exempted or reduced land rental) and expenses for compensation and ground clearance as prescribed by law;

- In case business establishments acquire land use rights from organizations or individuals, the land price to be deducted for value-added tax calculation is the land price at the time of acquisition, inclusive of the value of infrastructure (if any); business establishments are not permitted to declare and credit input value-added tax on infrastructure already included in the non-taxable to-be-deducted value of land use rights. If the to-be-deducted land price is exclusive of the value of infrastructure, business establishments may declare and credit input value-added tax on infrastructure not yet included in the non-taxable to-be-deducted value of land use rights. If it is impossible to determine the land price at the time of acquisition, the land price to be deducted for value-added tax calculation is the land price prescribed by the provincial-level People’s Committee at the time of signing the acquisition contract.

In case business establishments receive land use rights as contributed capital from organizations or individuals, the land price to be deducted for value-added tax calculation is the price stated in the capital contribution contract. In case the land use rights transfer price is lower than the price of land received as contributed capital, the land price to be deducted must be the transfer price;

- For real estate businesses that implement build-transfer (BT) works for which they receive payments being the value of land use rights, the land price to be deducted for value-added tax calculation is the price at the time of signing the BT contract as prescribed by law; if the price is not determined yet at the time of contract signing, the land price to be deducted is the land price decided by the provincial-level People’s Committee for payment for the works.”

4. To supplement Point dd, Clause 1, Article 6 as follows:

“dd/ Cases ineligible for the value-added tax rate of 0% include:

- Offshore transfer of technologies or intellectual property rights;

- Offshore reinsurance services;

- Offshore credit provision services;

- Offshore capital transfer;

- Offshore securities investment;

- Derivative financial services;

- Post and telecommunications services;

- Exported products being exploited natural resources and minerals not yet processed into other products as prescribed in Clause 11, Article 3 of this Decree;

- Goods and services provided for individuals not making business registration in non-tariff areas;

- Imported cigarettes, liquor and beer which are later exported.”

5. To amend Point b, Clause 2, Article 6 as follows:

“b/ Products prescribed at Point b, Clause 2, Article 8 of the Law on Value-Added Tax include:

- Ores for fertilizer production, which are ores used as materials for fertilizer production;

- Pesticides, including plant protection drugs and other pesticides;

- Animal and plant growth stimulants.”

6. To amend and supplement Point b, Clause 1, Article 9 as follows:

“b/ For goods and services (including fixed assets) used for production and trading of goods and services both subject and not subject to value-added tax, the input value-added tax may be credited only for goods and services used for production and trading of goods and services subject to value-added tax. Business establishments shall separately account creditable and non-creditable input value-added tax; if they cannot do so, the creditable input value-added tax amount shall be calculated based on the ratio (%) between the turnover of goods and services subject to value-added tax and the total turnover of goods and services sold;

The Ministry of Finance shall assume the prime responsibility for, and coordinate with related ministries in, guiding the determination of the total turnover of goods and services sold as a basis for determining the percentage of value-added tax credit prescribed in this Clause as suitable to each sector;

For production and business establishments which organize closed production and centralized cost-accounting and use products not subject to value-added tax in different stages for production of goods subject to value-added tax, they are allowed to credit the whole input value-added tax amount in all stages.

For production and business establishments, including newly established ones, which have investment projects implemented in different phases, have production and business plans, organize closed production and centralized cost-accounting, and use products not subject to value-added tax for production of goods subject to value-added tax, but provide goods and services not subject to value-added tax in the phase of capital construction investment, they are allowed to credit the whole input value-added tax amount in the investment phase for formation of fixed assets. The input value-added tax amount for goods and services not forming fixed assets shall be credited based on the ratio (%) between the turnover of goods and services subject to value-added tax and the total turnover of goods and services sold;

For production and business establishments, including newly established ones, which have investment projects and invest in production and trading of goods and services both subject and not subject to value-added tax, they are allowed to temporarily credit the input value-added tax amount for fixed assets in the capital construction investment phase at the ratio  (%) between the turnover of goods and services subject to value-added tax and the total turnover of goods and services sold under their production and business plans. The temporarily credited tax amount shall be adjusted based on the ratio (%) between the turnover of goods and services subject and value-added tax to the total turnover of goods and services sold within three years from the first year in which turnover is generated;

The Ministry of Finance shall guide the determination of the ratio (%) between the turnover of goods and services subject to value-added tax and the total turnover of goods and services sold, and the temporary credit and adjustment of the input value-added tax amount prescribed at this Point.”

7. To add the following Point i1 to Clause 1, Article 9:

“i1/ The input value-added tax amount for goods, services and fixed assets serving the production of fertilizers, machinery and equipment specialized for agricultural production, offshore fishing ships, or feeds for cattle, poultry, aquatic animals and other domestic animals for domestic sale shall not be declared and credited but shall be included in deductible expenses upon determining enterprise income tax-liable incomes, except the value-added tax amount on goods, services and fixed assets purchased before January 1, 2015, and meeting the conditions for tax credit or refund and eligible for tax refund under Article 10 of this Decree.”

8. To amend Point b, Clause 2, Article 9 as follows:

“b/ Having non-cash payment documents for purchased or imported goods and services, except goods and services valued at under VND 20 million per purchase or upon each importation.

For goods and services purchased on deferred payment or in installments with a value of VND 20 million or more, business establishments shall declare and credit input value-added tax based on goods and service purchase contracts, added-value invoices and non-cash payment documents of such goods and services. If non-cash payment documents are not yet available because the payment time is not due under the contract, business establishments may still declare and credit input value-added tax;

Payment for purchased goods and services by clearing the value of goods and services purchased against that of goods and services sold shall also be regarded as non-cash payment; after clearing, if the residual value in monetary terms is VND 20 million or more, business establishments are entitled to tax credit only when they produce non-cash payment documents;

A business establishment that purchases goods or services valued at under VND 20 million from the same supplier but makes many purchases in a day totaling VND 20 million or more is entitled to tax credit only when it produces non-cash payment documents.”

9. To amend and supplement Clause 2, Article 10 as follows:

“2. Newly established business establishments under investment projects that have registered to do business and pay value-added tax by the credit method, or under ongoing oil and gas prospecting, exploration and development projects not yet put into operation, are entitled to value-added tax refund for goods and services used for investment in each year if they have an investment period of one year or longer. If the accumulated value-added tax amount for purchased goods and services used for investment reaches VND 300 million or more, business establishments are entitled to value-added tax refund.

In case business establishments’ investment projects have been inspected, examined or audited by competent state agencies, tax agencies may use the inspection, examination or audit results to decide on value-added tax refund and shall take responsibility for their decision.”

10. To amend and supplement Clause 5, Article 10 as follows:

“5. Business establishments that pay value-added tax by the tax credit method are entitled to value-added tax refund if they have an overpaid value-added tax amount or have the input value-added tax amount not yet fully credited upon ownership transformation, enterprise transformation, merger, consolidation, separation, splitting, dissolution, bankruptcy or operation termination.

Business establishments that are subject to dissolution, bankruptcy or operation termination before commencing production and business activities and have no output value-added tax arising from main business activities under investment projects are not required to adjust the declared, credited or refunded value-added tax amount. The tax declaration, calculation and payment in case of transfer of investment projects, sale of assets of investment projects or change of production and business purposes of investment projects must comply with the guidance of the Ministry of Finance.”

Article 4. To amend and supplement a number of articles of Decree No. 50/2010/ND-CP of May 14, 2010, detailing and guiding a number of articles of the Law on Royalties, as follows:

1. To amend and supplement Clause 8, Article 2 as follows:

“8. Natural water, including surface water and groundwater, except natural water used for agriculture, forestry, fishery or salt production and seawater used for cooling machinery.

Seawater used for cooling machinery prescribed in this Clause must meet the requirements on environment and water circulation efficiency and specialized economic-technical conditions.

The Ministry of Finance shall assume the prime responsibility for, and coordinate with related ministries in, providing guidance on non-taxable seawater used for cooling machinery prescribed in this Clause.”

2. To amend and supplement Clause 9, Article 2 as follows:

“9. Natural swallow nests, except swallow nests harvested by organizations or individuals from building breeding houses to attract natural swallows for feeding and exploitation.”

3. To amend Point c, Clause 3, Article 4 as follows:

“c/ For exploited natural resources which are not domestically sold but exported, it is the customs value of natural resources exploited for export, exclusive of export duty.

For exploited natural resources which are both domestically sold and exported:

- For the output of domestically sold natural resources, it is the selling price of a unit of exploited natural resources, exclusive of value-added tax.

- For the output of exported natural resources, it is the customs value of natural resources exploited for export, exclusive of export duty.

The customs value of natural resources exploited for export must comply with the provisions on customs valuation of exports of the Customs Law and guiding documents.”

4. To amend and supplement Clause 4, Article 4 as follows:

“4. Provincial-level People’s Committees shall specify taxed prices of exploited natural resources prescribed in Clause 2 and at Point b, Clause 3, of this Article. For exploited natural resources which cannot be sold without undergoing production or processing (prior to domestic sale or export), their taxed prices shall be determined based on the customs value of products already produced or processed for export or the selling price of produced or processed products, exclusive of export duty (if any) and relevant expenses from the production or processing to export or domestic sale.

The determined taxed prices of natural resources shall be based on to apply taxed outputs for relevant natural resources units. The taxed price of a natural resource determined at a certain stage shall be based on to apply the taxed output at such stage.”

5. To amend and supplement Clause 5, Article 4 as follows:

“5. The Ministry of Finance shall:

a/ Guide the determination of taxed prices of natural resources specified at Points a and d, Clause 3 of this Article and in other specific cases;

b/ Assume the prime responsibility for, and coordinate with related agencies in, prescribing taxed price tariffs for categories and kinds of natural resources of similar chemical and physical characteristics;

c/ Guide deductible production and processing expenses for provincial-level People’s Committees to determine taxed prices of exploited natural resources in accordance with Clause 4 of this Article;

d/ Build a database on taxed prices of natural resources for uniform application nationwide.”

Article 5. To amend and supplement a number of articles of Decree No. 83/2013/ND-CP of July 22, 2013, detailing a number of articles of the Law on Tax Administration and the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, and Article 4 of Decree No. 91/2014/ND-CP of October 1, 2014, amending and supplementing a number of articles of the decrees on taxes, as follows:

1. To add the following Clause 4 to Article 9:

“4. Based on the practical situation and conditions of tax agencies, customs offices and related state management agencies, the Ministry of Finance shall guide in detail cases in which taxpayers are not required to submit documents in tax declaration and payment dossiers, tax refund dossiers and other tax-related dossiers which are available at state management agencies.”

2. To amend and supplement Point a, Clause 2, Article 11 as follows:

“a/ Monthly or quarterly value-added tax declaration dossiers are the monthly or quarterly value-added tax declarations.”

3. To amend and supplement Point a, Clause 2, Article 13 as follows:

“a/ Monthly excise tax declaration dossiers are the monthly excise tax declarations.”

4. To amend and supplement Point a, Clause 2, Article 15 as follows:

“a/ Monthly royalty declaration dossiers are the monthly royalty declarations.”

5. To amend and supplement Clause 2, Article 23 as follows:

“2. Business individuals and households that pay taxes by the presumption method shall declare and pay value-added tax, excise tax, royalty, environmental protection tax, personal income tax and environmental protection charge. A business individual or household that pays taxes by the presumption method and earns a turnover not subject to value-added tax under the Law on Value-Added Tax or an income not subject to personal income tax under the Law on Personal Income Tax is not required to pay value-added tax or personal income tax.”

6. To add the following Article 26a:

“Article 26a. Currency for tax payment and determination of turnover, expenses, taxed prices and tax amounts payable to the state budget

1. Taxpayers shall pay taxes and other amounts to the state budget in Vietnam dong, except cases in which they are allowed to pay taxes in foreign currency in accordance with law.

2. When turnover, expenses and taxed prices arise in foreign currency or when taxpayers are obliged to pay taxes in foreign currency but allowed to pay them in Vietnam dong in accordance with law, foreign-currency amounts shall be converted into Vietnam dong at actual exchange rates. The Ministry of Finance shall guide the conversion of foreign currency amounts into Vietnam dong prescribed in this Clause.

3. For imports and exports, the exchange rates used for duty calculation must comply with Clause 3, Article 21 of the Government’s Decree No. 08/2015/ND-CP of January 21, 2015, detailing and measures for implementation of the Customs Law regarding customs procedures, inspection, supervision and control.”

7. To add the following Article 28a:

“Article 28a. Handling of late tax payment

Taxpayers who pay taxes beyond the prescribed time limit, extended time limit, or time limit stated in notices or handling decisions of tax administration agencies shall fully pay tax amounts and late-payment interests at the per-diem rate of 0.05% of the late paid amounts. Late paid amounts detected through inspection or examination or detected by taxpayers themselves since January 1, 2015, are subject to the per-diem rate of 0.05%.

Taxpayers who provide goods or services to be paid by the state budget but have not yet received payments and therefore fail to pay taxes within the prescribed time limit, thus having tax arrears, are not subject to tax-related coercive measures and payment of late-payment interests on the tax arrears which must not exceed the payments not yet made by the state budget.”

8. To amend and supplement Article 31 as follows:

“Article 31. Extension of tax payment time limit

1. Cases eligible for extension:

Taxpayers’ requests for extension of the tax payment time limit shall be considered in one of the following cases:

a/ Taxpayers suffer material damage caused by natural disasters, fires or unexpected accidents that directly affect their production or business;

Material damage means damage of property of a taxpayer expressible in monetary terms such as machinery, equipment, vehicles, supplies, goods, workshops, working offices, money and papers valuable as money.

b/ Taxpayers have to suspend operation for relocation of their production and business establishments at the request of competent state agencies, thus affecting their production or business results;

c/ Taxpayers are unable to pay taxes on time because materials and supplies imported for export production have a production or reserve cycle longer than 275 days, or because customers cancel contracts or prolong the goods delivery duration;

d/ Taxpayers meet other exceptional difficulties.

2. Tax amounts, late-payment interests and fines eligible for payment extension:

a/ For the case specified at Point a, Clause 1 of this Article, eligible for payment extension are the tax amounts, late-payment interests and fines still owed by taxpayers by the time of occurrence of a natural disaster or fire or an unexpected accident, which must not exceed the value of material damage, except the value of damages payable by individuals and organizations in accordance with law;

b/ For the case specified at Point b, Clause 1 of this Article, eligible for payment extension are the tax amounts, late-payment interests and fines still owed by the time taxpayers suspend their production and business operations, which must not be higher than expenses for the relocation of production and business establishments and the damage caused by such relocation;

c/ For the case specified at Point c, Clause 1 of this Article, eligible for payment extension are the tax amounts, late-payment interests and fines still owed corresponding to the quantities of materials and supplies imported for export production but not yet exported within 275 days;

d/ For the case specified at Point d, Clause 1 of this Article, eligible for payment extension are the arising tax amounts, late-payment interests and fines owed by taxpayers who meet other exceptional difficulties.

3. Tax payment extension:

a/ A tax payment extension must not exceed 2 (two) years from the date of expiration of the tax payment time limit, for the case specified at Point a or c, Clause 1 of this Article;

b/ A tax payment extension must not exceed 1 (one) year from the date of expiration of the tax payment time limit, for the case specified at Points b or d, Clause 1 of this Article.

4. Competence to extend tax payment:

a/ Heads of tax agencies managing taxpayers shall, based on dossiers of request for tax payment extension, decide on the tax amounts eligible for payment extension and the extension periods, for the cases specified at Points a and b, Clause 1 of this Article.

b/ Heads of customs offices shall decide on the tax amounts eligible for payment extension and the extension periods, for the cases specified at Points a, b and c, Clause 1 of this Article;

c/ Extension of tax payment for cases meeting with other exceptional difficulties must not lead to adjustment to state budget revenue estimates already decided by the National Assembly, specifically as follows:

- The Government shall decide on tax payment extension for cases of market support and removal of general difficulties for production and business;

- The Prime Minister shall decide on tax payment extension in each case meeting with other exceptional difficulties at the proposal of the Minister of Finance.

5. Decisions on tax payment extension shall be posted on the websites of tax administration agencies.”

9. To amend and supplement Clause 2, Article 39 as follows:

“2. Responsibilities of taxpayers allowed to pay tax arrears in installments

a/ During the period of installment payment of tax arrears, taxpayers shall still pay late-payment interests at the per-diem rate of 0.05% of late-paid tax amounts. Taxpayers shall fully pay tax amounts and late-payment interest as committed;

b/ In case taxpayers violate their committed schedules of installment payment of tax arrears and late-payment interests, their guarantors shall pay such tax arrears and late-payment interests on behalf of the taxpayers.”

10. To amend and supplement Article 40 as follows:

“Article 40. Certification of fulfillment of tax liability

1. Vietnamese who leave the country to reside abroad, overseas Vietnamese and foreigners shall fulfill their tax liabilities before leaving Vietnam. Immigration management agencies shall suspend the exit of a person upon receiving a tax administration agency’s written or electronic notice of that person’s failing to fulfill his/her law-prescribed tax liability.

2. Tax administration agencies shall give written certifications of the fulfillment of tax liability at the request of taxpayers, except the case specified in Clause 1 of this Article.”

11. To amend and supplement Point b, Clause 3, Article 41 as follows:

“b/ The time limit for processing tax refund dossiers specified in Clause 13, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration must apply to dossiers of request for refund of overpaid tax amounts certified by a tax agency; and dossiers of request for refund of overpaid tax amounts, late-payment interests or fines for imports and exports;

Heads of tax administration agencies at all levels shall issue tax refund decisions. In case the processing of a tax refund dossier is prolonged due to the tax administration agency’s fault, the taxpayer will, in addition to the tax amount to be refunded under regulations, also be entitled to an interest on the late-refunded amount and the period of late refund calculated at the interest rate prescribed at Point a or b, Clause 2, Article 30 of this Decree.”

12. To amend and supplement Clause 1, Article 48 as follows:

“1. Taxpayers that are business entities shall use e-services (tax registration, declaration and payment, and search for and sending of tax-related information) provided by tax agencies, except special cases prescribed by the Ministry of Finance.

Taxpayers (both organizations and individuals) that run restaurants, hotels and supermarkets and deal in some other goods and services and use point-of-sale systems or payment software systems shall connect such systems to tax agencies for sending information according to the latter’s implementation roadmaps.

Taxpayers (both organizations and individuals) doing business in the fields highly prone to tax-related risks shall make electronic invoices and send information in invoices by electronic means to tax agencies for obtaining invoice confirmation codes. The Ministry of Finance shall specify cases in which the use of e-invoices with tax agencies’ invoice confirmation codes is required.”

Article 6. Effect and implementation responsibility

1. This Decree takes effect on the effective date of the November 26, 2014 Law Amending and Supplementing a Number of Articles of the Laws on Taxes.

2. To annul the provisions on exchange rates upon determination of turnover, expenses, taxed prices, taxed incomes and taxable incomes in Articles 7 and 8 of the Government’s Decree No. 87/2010/ND-CP of August 13, 2010; Clause 9, Article 4 of the Government’s Decree No. 26/2009/ND-CP of March 16, 2009; and Clause 3, Article 1 of the Government’s Decree No. 113/2011/ND-CP of December 8, 2011.

3. To annul Point n, Clause 2, Article 3, and Point g, Clause 2, Article 9, of the Government’s Decree No. 218/2013/ND-CP of December 26, 2013.

4. To annul Articles 7, 8, 9, 10, 19, 20 and 21, and the provisions on incomes from business operations in Articles 12, 13 and 14, of the Government’s Decree No. 65/2013/ND-CP of June 27, 2013.

5. To annul Point c, Clause 2, Article 6 of the Government’s Decree No. 209/2013/ND-CP of December 18, 2013.

6. The Ministry of Finance shall guide the implementation of this Decree.

7. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG