Tax Newsletter 2021

Stay up-to-date with the latest tax notices and legal environment to know the latest changes to tax laws and laws related to your business!

CONTENTS UPDATED

MONTH 11-2021

Decree 102/2021/ND-CP amending Decrees on sanctioning of administrative violations in the field of taxes and invoices; custom; insurance business, lottery business

Increase the statute of limitations for sanctioning administrative violations on invoices from 1 year to 2 years
Decree 102/2021 amending and supplementing a number of articles of Decree No. 125/2020/ND-CP dated October 19, 10 of the Government providing for penalties for administrative violations on taxes and invoices, according to which, Point a, Clause 2020, Article 1 is amended as follows: “a) The statute of limitations for sanctioning administrative violations on invoices is 8 years.”

MONTH 10-2021

Resolution 406/NQ-UBTVQH14 on reducing CIT and VAT in 2021

Resolution 406/NQ-UBTVQH14 dated October 19, 10 on solutions to support businesses and people affected by the COVID-2021 epidemic. Whereby:
🔸 30% reduction of CIT payable in 2021 for businesses that meet the following conditions: Having a revenue of not more than VND 2021 billion in 200 AND a decrease in revenue in 2021 compared to 2019. The criterion that the revenue in 2021 is reduced compared to the revenue in 2019 is not applied to the case of taxpayers newly established, consolidated, merged, divided, split in the tax period 2020, 2021.
🔸 Reduced value added tax from November 01, 11 to the end of December 2021, 31: for transportation services; Lodging; Food Service; services of travel agencies, tour operators and support services, related to the promotion and organization of tours.
🔸 Exemption of late payment arising in 2020 and 2021.

Circular 80/2021/TT-BTC guiding tax administration from January 01, 01

Tax administration law plays a leading and unifying role in all tax administration activities in Vietnam. Over the years, tax administration guidelines have shifted towards being closer to business and also more comprehensive, managing all aspects of tax. Especially more and more clear about activities related to e-commerce.

Circular 88/2021/TT-BTC on accounting regime for business households and individuals

1. Subjects of compulsory application: are business households and individuals that pay tax according to the method of declaration according to the provisions of tax law.
2. Organization of accounting work: Business households and individuals subject to compulsory application must organize accounting work according to the provisions of this Circular.

Decision 29/2021/QD-TTg on special investment incentives

In which, there are regulations on corporate income tax incentives for special investment projects. Such is the preferential tax rate of 7% for a period of 33 years applicable to income from investment projects that meet the conditions.

MONTH 09-2021

Circular 78/2021/TT-BTC on invoices and documents

Regulations on subjects that must convert to electronic invoices with tax authorities' codes.
This Circular is mandatory to apply nationwide from July 01, 07. Private Ho Chi Minh City is piloted to apply first on November 01, 11. Businesses in Ho Chi Minh City must convert to apply electronic invoices according to the new regulations in this Circular from January 01, 11.

MONTH 08-2021

Small and medium enterprises (how to identify and support policies)

Changes in how small and medium-sized enterprises are defined are as follows:
🔸 The field of operation of a small and medium-sized enterprise is determined based on the main business lines that the enterprise has registered with the business registration agency.
🔸 The annual average number of employees participating in social insurance is calculated as the total number of employees participating in social insurance of all months in the preceding year divided by 12 months. The number of employed employees participating in social insurance of the month is determined at the end of the month and based on the social insurance payment voucher of that month that the enterprise submits to the social insurance agency.

Circular 45/2021/TT-BTC guiding the application of APA in tax administration for enterprises with associated transactions

Transactions proposed to apply APA are transactions of buying, selling, exchanging, renting, leasing, borrowing, lending, transferring, transferring goods or providing services; loans, loans, financial services, financial guarantees and other financial instruments; buy, sell, exchange, rent, lease, borrow, lend, transfer, transfer tangible assets, intangible assets and agree to buy, sell, use common resources such as assets, capital, labor activities, cost sharing among related parties, except business transactions for goods and services subject to the State's price adjustment scope in accordance with the provisions of the law on prices.

Circular 43/2021/TT-BTC supplementing medical instruments and equipment subject to VAT rate of 5%

Accordingly, additional medical instruments and equipment are subject to the VAT rate of 5% when having one of the following papers:
- Import license; Certificate of registration of circulation; Receipt of application for publication of standards in accordance with the law on health; According to the List of medical equipment under the specialized management of the Ministry of Health, goods codes are determined according to the List of exported and imported goods of Vietnam promulgated together with Circular 14/2018/TT-BYT. and amendments and supplements (if any).

MONTH 07-2021

MONTH 06-2021

Tax rates and tax administration for business households and individuals from August 01, 08

Circular No. 40/2021/TT-BTC dated June 01, 06 with the scope of application covering all individuals earning income from business, including the following:
🔸 Business households and individuals doing business in all fields and lines of production and business;
🔸 Business households and individuals operating in border areas in the Vietnamese territory;
🔸 Individuals leasing properties;
🔸 Individuals transferring the Vietnamese national internet domain name “.vn”;
Circular 40/2021/TT-BTC also adds cases where enterprises must declare and pay on behalf of individuals in the prescribed cases.

MONTH 05-2021

Extension of tax payment in 2021 for businesses

The Government has just issued Decree 52/2021/ND-CP on extending the tax payment deadline for businesses in 2021. Specifically as follows:
🔸 A 05-month extension for VAT amounts of March 3,4,5,6, 2021, 1, and 2, 2021 and quarters XNUMX and XNUMX of XNUMX;
🔸 04 months extension for the VAT amount of July 7;
🔸 03 months extension for the VAT amount of July 8;
🔸 Extending the tax payment deadline for 03 months for the temporarily paid CIT amount of the first and second quarters of 1.

Tax risk assessment and key monitoring of taxpayers from July 02, 07

Applying risk management in tax management for businesses and individuals
Circular 31-2021-TT-BTC stipulating the application of risk management in tax administration was issued by the Ministry of Finance on May 17, 5, effective from July 2021, 02, according to which:
🔸 Assess the taxpayer's risk classification;
🔸 Key supervision for taxpayers showing signs of tax law violations.

MONTH 04-2021

MONTH 03-2021

MONTH 02-2021

MONTH 01-2021

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