Legal Document Updates in English (44/2020)

04 NOTES FOR TAXPAYERS DURING THE SUSPENSION OF BUSINESS OPERATION

On October 19, 2020, the Government issues the Decree No. 126/2020/ND-CP on detailing a number of articles of the Law on Tax Administration.

Accordingly, taxpayers should pay attention to the following rights and obligations during the period of suspension of operation or business activities:

Firstly, taxpayers are not required to submit tax declaration dossiers. Unless the taxpayers suspend their operation or business activities not enough one month, quarter, calendar year, or fiscal year, they must submit monthly or quarterly tax declaration dossiers or annual settlement dossiers.

Secondly, if business households or individuals that pay tax amounts by presumption method suspend their operation or business activities, the tax offices shall re-determine their presumptive tax amounts in accordance with regulations of the Minister of Finance.

In addition, taxpayers are not allowed to use invoices and are not required to submit reports on use of invoices.

In cases where the taxpayers are permitted by the tax offices to use invoices in accordance with the laws on invoices, they shall submit tax declaration dossiers and reports on the use of invoices in accordance with the regulations.

Noticeably, taxpayers shall abide by decisions and notices of tax administration offices on urging the collection of tax arrears, coercive enforcement of tax administration-related administrative decisions, inspection and examination of tax law observance, and handling of administrative violations of tax administration.

Besides, the Government also guides various important contents related to tax declaration and calculation; tax refund, freezing of tax arrears; write-off of tax arrears, late-payment interests and fines; and enforcement of tax administration-related administrative decisions, etc.

This Decree takes effect on December 05, 2020.

TO FINE UP TO VND 20 MILLION FOR THE ACT OF TRANSMITTING E-INVOICE DATA
BEYOND THE PRESCRIBED PERIOD

The Government promulgates the Decree No. 125/2020/ND-CP on sanctioning of administrative violations related to taxes and invoices on October 19, 2020.

To be specific: A fine from VND 02 – 05 million shall be imposed for the act of transmitting e-invoice data to the tax agency beyond the prescribed period from 01 working day to 05 working days. A fine from VND 10 – 20 million shall be imposed for the act of transmitting e-invoice data to the tax agency beyond the prescribed period for 11 working days or more, or failing to transmit e-invoice data to the tax agency within the time limit as specified.

Additionally, a fine equal to the evaded tax amount shall be imposed on the taxpayer that has one or more extenuating circumstance(s) when committing any of the following acts of violation: Failing to submit the tax registration dossier;

failing to submit the tax declaration dossier or submitting the tax declaration dossier past 90 days, after the expiration of the time limit or extended time limit for submission of tax declaration dossiers; Using unlawful invoices; unlawfully using invoices for making the tax declaration that leads to a decrease in the payable tax amount, or an increase in the exemptible, reducible or refundable tax amount, etc.

The acts of notifying changes in tax registration contents beyond the prescribed period for 91 days or more, resulting in changes of the tax registration certificate or the notice of tax identification number or failing to notify changes in information in the tax registration dossier shall be fined from VND 05 – 07 million.

This Decree takes effect on December 05, 2020.

TO REDUCE THE CHARGE OF APPRAISAL
FOR LICENSING OF IMPORT PUBLICATION PRODUCT TO THE END OF DECEMBER 31, 2020

On May 26, 2020, the Ministry of Finance promulgates the Circular No. 43/2020/TT-BTC on collection and remittance level of charge for appraisal of non-business documents for licensing of publishing certificate, charge of licensing of import of non-business publication products, charge of registration of import of publication products for business purpose.

Accordingly, from May 26, 2020 to the end of December 31, 2020, agencies and organizations up on submit the application for licensing of publishing certificate of non-

business documents, submit the application for licensing of import of non-business publication products and registration of import of publication products for business purpose shall pay the charge and fee equal to 50% the charge rate as prescribed before. From January 01, 2021, agencies and organizations shall pay the charge and fee as prescribed in Article 4 of the Circular No. 214/2016/TT-BTC.

This Decree takes effect from May 26, 2020, until the end of December 31, 2020.

TO CHANGE PROCEDURES FOR REVOKING LICENSES
OF FOREIGN CREDIT INSTITUTIONS’ REPRESENTATIVE OFFICES FROM DECEMBER 17

The State Bank of Vietnam issues the Circular No. 11/2020/TT-NHNN of November 02, 2020 on amending and supplementing a number of articles of the Circular No. 24/2017/TT-NHNN dated December 29, 2017 of the Governor of the State Bank of Vietnam, guiding the order and procedures for revocation of licenses and liquidation of assets of credit institutions and foreign bank branches; the order and procedures for revocation of licenses of representative offices of foreign credit institutions and other foreign institutions engaged in banking activities.

In accordance with this Circular, a representative office requesting operation termination shall make 01 set of dossier, then submit it directly at the Single-window section or send it by post to the State Bank branch. Within 05 working days after receiving a complete dossier, the State Bank branch shall examine it and consult in writing the related units affiliated to the State Bank on the operation termination and license revocation.

Next, within 07 working days after receiving the request of the State Bank branch, the consulted units shall send their written opinions to the State Bank branch. Within 20 days from the expiration of the time limit for giving opinion, the Director of the State Bank branch shall issue a decision on license revocation, request the representative office to liquidate the office rent contract and pay liabilities and other debts to related individuals and organizations, etc.

Besides, the State Bank also supplements provisions for the case where the representative office does not request for extension of the operation period according to the State Bank’s regulations or already requested for extension of the operation period but had no writing approval from the State Bank branch. In such case, within 07 working days after the expiration of license, the State Bank branch shall be responsible for publishing the expiration of the representative office's operation period on its website.

This Circular takes effect on December 17, 2020.

TO FINE UP TO VND 60 MILLION
FOR THE ACT OF TRANSPORTING SCRAPS INTO VIETNAM

The Decree No. 128/2020/ND-CP on sanctioning of administrative violations in the customs field is promulgated by the Government on October 19, 2020.

Specifically, a fine from VND 40 million to VND 60 million shall be imposed for any of the following acts: Unloading goods at a port of destination other than that in the goods manifest or bill of lading; Illegally selling, destroying, or throwing goods to avoid customs examination and inspection or customs supervision; Transporting scraps into Vietnam for a consignee on the goods manifest, who is ineligible for importing scraps use as production materials, etc.

In addition, to fine from VND 30 million to VND 50 million for the acts of importing or exporting goods on the list of goods

designated to importers and exporters without a competent agency's written designation as prescribed.

A fine level equal to 20% of under-declared tax amounts or over-declared exempted, reduced, refunded or uncollected tax amounts shall be imposed for the acts of failing to make additional declarations of the customs value according to regulations are discovered thorough inspection and examination of goods without official prices at the time of registration of the customs declaration or goods for which the actually paid amount or amount to be added to customs value has not yet been determined at the time of registration of the customs declaration.

This Decree takes effect on December 10, 2020.

20% OF THE TIMBER SHIPMENTS SHALL UNDERGO FIELD CHECK
BEFORE BEING EXPORTED

On September 01, 2020, the Government issues the Decree No. 102/2020/ND-CP on promulgating the Vietnam Timber Legality Assurance System.

Accordingly, timber shall be considered high-risk for export to Vietnam if meeting one of the following criteria: Being listed in the Appendices of the Convention on International Trade of Endangered Species of Wild Fauna and Flora; Being in the List of endangered, precious and rare wild animals and plants of Group IA, Group IIA; The List of endangered, precious and rare species being prioritized for protection; Being imported to Vietnam for the first time; Being on the verge of extinction in the logging country or being illegally traded as specified in International treaties to which Vietnam is a signatory.

Additionally, shipments of exported timber of owners not being classified as Group I enterprises shall be subject to verification of timber origin by the local Forest Protection agency.

Verification of origin shall not be required for shipments of timber logged from cultivated forest to non-EU markets. 20% of the timber shipments shall undergo field check by the Forest Protection agency. In cases where there is information of violation, Forestry Protection officers shall report and propose the head of the local Forestry Protection agency to decide over an increase in the degree of field check and an extension in the time duration for field check, the extended time shall not be more than 02 days.

Besides, cases of license revocation include: FLEGT license is voluntarily returned by the timber owner; FLEGT license expires but the timber owner fails to export or fails to apply for the extension of the license; The timber owner commits law violations related to the shipment of exported timber which are detected after being granted with a FLEGT license; The timber owner commits information fraud related to the issued FLEGT license, such as: forging, changing or modifying information on the FLEGT license.

This Decree takes effect on October 30, 2020.