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In This Updates: |
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TAX – FEE – CHARGE |
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TAX – FEE – CHARGE |
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1 |
Circular No. 80/2014/TT-BTC dated June 23, 2014 of the Ministry of Finance amending and supplementing the Ministry of Finance’s Circular No. 111/2012/TT-BTC of July 4, 2012, promulgating the list of commodities and their import duty rates for application of tariff quotas |
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The over-quota import duty rates of un-manufactured tobacco and tobacco refuse of Burley is 80% |
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Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance guiding the implementation of the Government’s Decree No. 218/2013/ND-CP of December 26, 2013, detailing and guiding the implementation of the Law on Enterprise Income Tax |
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Allowed to clear the loss and gain in the transfer of real estate |
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FINANCE – BANKING |
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FINANCE - BANKING |
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Directive No. 25/CT-TTg dated August 13, 2014 of the Prime Minister on superintending to perform financial tasks – Budget 2014 |
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Cancel purchasing expenditures that the estimation has not been approved yet |
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Circular No. 19/2014/TT-NHNN dated August 11, 2014 of the State Bank of Vietnam guiding the foreign exchange management of foreign direct investment in Vietnam |
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Foreign investor parties in business cooperation contracts in Vietnam must open direct investment capital accounts |
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INFORMATION – COMMUNICATIONS |
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INFORMATION - COMMUNICATIONS |
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Decree No. 60/2014/ND-CP dated June 19. 2014 of the Government on prescribing printing activities |
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Photocopying service establishment must make declaration at least 10 days before operation |
Page 3 |
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ECONOMIC – SOCIAL POLICIES |
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ECONOMIC – SOCIAL POLICIES |
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Directive No. 22/CT-TTg dated August 05, 2014 of the Prime Minister on the elaboration of the 05 year socio-economic development plan from 2016 to 2020 |
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Reducing the average poverty rate by 1.5%/year |
Page 4 |
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Decree No. 67/2014/ND-CP dated July 07, 2014 of the Government on a number of fisheries development policies |
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May borrow loans from commercial banks not exceeding 70% of the total investment |
Page 4 |
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Decree No. 59/2014/ND-CP dated June 16, 2014 of the Government amending and supplementing a number articles of the Government’s Decree No. 69/2008/ND-CP |
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Allowed to clear the loss and gain in the transfer of real estate |
Page 5 |
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SUMMARY:
Ü TAX – FEE – CHARGE
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On June 23, 2014, the Ministry of Finance issued the Circular No. 80/2014/TT-BTC amending and supplementing the Ministry of Finance’s Circular No. 111/2012/TT-BTC of July 4, 2012, promulgating the list of commodities and their import duty rates for application of tariff quotas. Accordingly, from August 07, the over-quota import duty rates of un-manufactured tobacco and tobacco refuse of Burley is 80%. And the remained un-manufactured tobacco |
tobacco refuse shall be applied the current over-quota import duty rates. In particular, the over-quota import duty rates of Tobacco, not stemmed/stripped or tobacco, partly or wholly stemmed/stripped, the Virginia type, flue-cured is 80% and the Virginia type, not flue-cured is 90%. The over-quota import duty rates of tobacco refuse for tobacco stems and others are in turn 80% and 90%. This Circular takes effect on August 07, 2014. |
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On June 18, 2014, the Ministry of Finance issued the Circular No. 78/2014/TT-BTC guiding the implementation of the Government’s Decree No. 218/2013/ND-CP of December 26, 2013, detailing and guiding the implementation of the Law on Enterprise Income Tax (EIT). In accordance with this Circular, from January 01, 2014, the enterprise income tax is at the rate of 22% and from January 1, 2016, this enterprise income tax shall be 20%. Income from the transfer of real estate or investment projects; income from the transfer of the right to participate in investment projects or the right to explore, exploit and process minerals; except incomes of enterprises from implementing investment projects on construction of social houses for sale, lease or lease-purchase which enjoy the enterprise income tax rate of 10%. Also in accordance with this Circular, In a tax period the Ministry of Finance allow an enterprise engaged in the transfer of real estate, investment projects or the right to participate in investment projects (excluding mineral exploration and exploitation projects) suffers a loss, it may offset this loss against the profit from its production and business activities. For the losses from the transfer of real estate, transfer of investment projects or transfer of the right to participate in investment projects (excluding mineral exploration and exploitation projects) of 2013 and previous years which are still in the loss-carry forward duration, enterprises shall carry them forward to incomes from the transfer of real estate, investment projects or the right to participate in investment projects; if they cannot fully carry |
forward these losses, they may carry forward such losses to incomes from production and business activities (including also other incomes) of 2014 and subsequent years. Enterprises established in accordance with the Vietnamese law (including cooperatives and non-business units) engaged in goods production or service provision activities and having an annual total turnover not exceeding VND 20 billion may be subject to the tax rate of 20%. An enterprise that has just been established for less than 12 months in a calendar year shall make declaration for temporary calculation of enterprise income tax at the rate of 22% except the cases eligible for the tax incentives. At the end of the fiscal year, if its average monthly turnover in the year does not exceed VND 1.67 billion, it shall finalize the payable enterprise income tax amount of the fiscal year at the tax rate of 20%. For non-business units, other non-enterprise organizations established and operating under Vietnamese law, and enterprises paying value-added tax by the direct method which trade in goods or provide services liable to enterprise income tax and can determine the turnover from but cannot determine the costs of and incomes from these business activities, they shall declare and pay enterprise income tax at the percentage of the turnover from the sale of goods or services as 5% for services including interests from deposits and loans; 2% for education, health and art performance activities; 1% for goods trading and 2% for other activities. This Circular takes effect on August 02, 2014. |
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Ü FINANCE - BANKING
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On August 13, 2014, the Prime Minister issued the Directive No. 25/CT-TTg on superintending to perform financial tasks – Budget 2014, actively cut down on or put off the implementation of payment tasks for purchasing equipment, cars… that are out of date but still be usable. From October 31, 2014, after October 31, 2014, expenditures for purchasing and repairing that are allocated in the estimation of units shall be stopped and cancelled but at that time, the estimation has not been approved yet, and the auction is not held yet. At the same time, avoid lengthening the time of implementing investment capital under the plan 2014, advances of state budget and government bonds the plan 2014 to the plan 2015 except some cases permitted by competent agencies. Particularly, avoid the prepayment of capital from state budget for works, projects except for cases that are really necessary and urgent to ensure the |
national defense, security, territory protection and must balance and allocate the source to refund the prepayment. Striving to achieve the target of economic growth and state budget estimation 2014 that is about 8 – 10%; The Ministry of Finance shall assume the prime responsibility for enhancing the simplicity and modernization in administrative procedures in the field of tax and customs to create favorable conditions for tax-payers in fulfilling their rights and obligations towards the state; supervising the fluctuation of price, and promptly propose the suitable measures to intervene the market with a view to stabilizing price, restraining inflation in each locality and nationwide, especially on Tet, holidays. To continue to adjust the price of some necessary goods (petrol, electricity, coal, power milk for under 6 year old children…) |
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In accordance with the Circular No. 19/2014/TT-NHNN issued by the State Bank of Vietnam on August 11, 2014 guiding the foreign exchange management of foreign direct investment in Vietnam. To conduct foreign direct investment activities in Vietnam, a foreign-invested enterprise or foreign party to a business cooperation contract may open a foreign-currency, Vietnam-dong direct investment capital account at 1 (one) licensed bank to conduct collection and payment transactions. In case a foreign-invested enterprise or foreign party to a business cooperation contract needs to open a direct investment capital account at another licensed bank, it shall close the current direct investment capital account and transfer the whole balance on such account to the new account. Foreign-invested enterprises and foreign parties to business cooperation contracts may conduct collection and payment transactions on newly opened direct investment capital accounts only after closing and liquidating previously opened ones. |
From September 25, 2014, foreign-invested enterprises and foreign parties to business cooperation contracts shall convert special-use foreign-currency deposit accounts into foreign-currency direct investment capital accounts. The conversion of special-use foreign-currency deposit accounts into foreign-currency direct investment capital accounts of foreign-invested enterprises and foreign parties to business cooperation contracts shall be conducted within 6 months. After 6 months from the effective date of this Circular, foreign-invested enterprises and foreign parties to business cooperation contracts may no longer use their special-use foreign-currency deposit accounts for conducting direct investment activities in Vietnam. This Circular takes effect on September 25, 2014. |
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Ü INFORMATION - COMMUNICATIONS
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A photocopying service establishment shall make declaration to the district-level People’s Committee at least 10 days before operation is the important content at the Decree No. 60/2014/ND-CP dated June 19, 2014 of the Government prescribing printing activities. Accordingly, the Government prohibit acts that printing or photocopying service establishments operating without printing licenses or registering or declaring operation in accordance with legal regulations. Other important contents prescribed in this Decree are the regulations on condition for printed product created by technology and equipment of printing industry on different materials, including newspapers, magazines and other press publications prescribed by the press law; paper forms issued by state agencies; anti-counterfeit stamps; financial invoices, cards and papers with pre-printed face value or for inscription of face values (excluding banknotes). Accordingly, a printing establishment that conduct prepress, press and post press of the products must be an enterprise, a public non-business unit or household engaged in printing activities; have printing equipment to perform at least one of prepress, press and post press operations; have an area for performing prepress, press and post press operations which is located outside residential areas, except printing establishments that use only laser or jet-ink technology and |
printing equipment for printing paper of A0 or smaller sizes and printing establishments that are households conducting manual screen printing; especially, the head is the Vietnamese citizen lawfully residing in Vietnam, having full civil act capacity and possessing a collegial or higher degree in printing, or a certificate of training in printing management granted by the Ministry of Information and Communications. Similarly, a printing establishment that conduct prepress, press and post press of the products (Such as newspapers, magazines and other press publications prescribed by the press law; paper forms issued by state agencies; anti-counterfeit stamps; financial invoices, cards and papers with pre-printed face value or for inscription of face values...) must have printing equipment to perform at least one of prepress, press and post press operations; have an area for performing prepress, press and post press operations which is located outside residential areas, except printing establishments that use only laser or jet-ink technology and printing equipment for printing paper of A0 or smaller sizes and printing establishments that are households conducting manual screen printing; being owned by a Vietnamese organization or individual.. This Decree takes effect on November 01, 2014. |
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Ü ECONOMIC – SOCIAL POLICIES
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This is one of the economic – social objectives directed by the Prime Minister at the Directive No. 22/CT-TTg on the elaboration of the 05 year socio-economic development plan from 2016 to 2020. At the Directive, the Prime Minister emphasizes the social economic development plan in 5 years from 2016 to 2020 of the country must be done with closely follow-up of Resolutions of Party, National Assembly and Government on 10-year social economic development strategy from 2011-2020 of the country, suitable with each sector and locality; maintaining macroeconomic stability, inflation control, coupled with acceleration of growth, economic sustainable development assurance in order to strive to become an industrialized country towards modernization. Raising the standards of living, cultural and spiritual life of people; striving for the average economic growth rate (GDP) for 5 years from 2016 to 2020 by 6.5 – 7%/year. Reducing the average poverty rate by 1.5% / year. |
The Ministry of Planning and Investment , the Ministry of Finance and other relevant units shall rapidly increase the potential and ensuring the national financial security; healthier financial system; stable macroeconomic balances; mobilization, attraction and effective use of resources for economic development; continue the innovation and improvement of business and investment environment, creating favorable conditions for the development of enterprises of all economic sectors, especially the sector of private enterprise, foreign invested capital enterprises, economic cooperation, small and medium-sized enterprises; fair competition assurance; implement employment and labor policies associated with the development of the labor market; proactively preventing diseases and improving health care quality; gender equality; raising women’s position; focusing on care, education and protection of children's rights and youth development. |
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In accordance with the Decree No. 67/2014/ND-CP dated July 07, 2014 of the Government on a number of fisheries development policies, from August 25, owners of fishing ships or fishery logistics ships conducting fisheries activities with efficiency, having financial capability and specific production and business plans can get loan not exceeding 70% of the logistics service value, for fishing logistics ships; not exceeding 70% of expenses for a fishing voyage, for fishing ships. Also form August 25, the state budget shall provide insurance premium supports for offshore fishing ships and offshore fishery logistics ships, which are members of fishing teams or cooperatives and have a total main engine capacity of 90 HP or over; annual support of 100% of ship crew insurance premiums for every ship crew member working on board; annual support for insurance premiums of ship hulls, equipment and fishing gears on board each ship (against all risks) at the levels as 70% of the insurance premium for ships with a total main engine capacity of between 90 HP and under 400 HP each and 90% of the insurance premium for ships with a total main engine capacity of 400 HP or over each. For building new offshore fishing logistics ships, including engines, maritime equipment, marine product preservation equipment and machinery; product preservation; loading and unloading equipment; in case of building steel ships, ship owners may borrow loans from commercial banks not |
exceeding 95% of the total investment in the shipbuilding, with the interest rate of 7%/year, of which ship owners shall pay 1%/year and the state budget shall subsidize 6%/ year. In case of building wooden ships, ship owners may borrow loans from commercial banks not exceeding 70% of the total investment in the shipbuilding, with the interest rate of 7%/year, of which ship owners shall pay 3%/year and the state budget shall subsidize 4%/year. The lending term is 11 years. In the first year ship owners will be exempted from interest payment and not be required to pay the principal yet. The state budget shall pay to commercial banks the loan interests for ship owners eligible for exemption. For tax incentives, the Government shall exempt from personal income tax for households and individuals directly fishing marine resources; exempt from enterprise income tax for incomes from marine resource fishing, incomes from logistics services provided directly for offshore fishing; incomes from building and upgrading of fishing ships with a total main engine capacity of 400 HP or over each for marine resource fishing; non-collection of registration fee for fishing vessels; exempt from license tax for organizations, households or individuals engaged in aquaculture, fishing or fishery logistics services and exempt from aquaculture land or water surface rental. This Decree takes effect on August 25, 2014. |
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This is the new guideline of the Government prescribed at the Decree No. 59/2014/ND-CP dated June 06, amending and supplementing a number articles of the Government’s Decree No. 69/2008/ND-CP of May 30, 2008, on policies to encourage socialization in the fields of education, vocational training, healthcare, culture, sports and environment. In particular, in accordance with the regulations of this Decree, in the course of implementation of a socialization project, if the socialization establishment, for objective reasons, cannot further implement such project on the land leased by the State, it may transfer the project in accordance with the law on real estate business, provided that it obtains a written in-principle approval from the provincial-level People’s Committee. The project transferee must commit to further implement the socialization project in accordance with its objectives and land use purpose |
Land-attached assets, in case the project is eligible for exemption from land rental or subject to annual rental payment; land-attached assets and the whole of land use right value, in case the project is leased land with one-off rental payment for the whole lease term and has fully pay the payable land rental amount (ineligible for land rental exemption or reduction); land-attached assets and part of the land use right value in correspondence to the land rental amount already paid to the state budget, in case the project is eligible for land rental reduction shall be agreed upon by the two parties. Besides, the Decree also supplement the judicial expertise to the fields in which socialization is encouraged include education-training, vocational training, healthcare, culture, physical training and sports, environment. This Decree takes effect on August 01, 2014. |
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